NECPA in NEBRASKA

This just happened on an audit that I am currently trying to get finished. The spouse answered the phone and hung up, because she is very ill and didn't understand. She also didn't remember the call. I had no idea that they were making first contact by telephone. I guess I won't be so shocked now.

Thanks, KC. That was really a nice chart.

Ok. I haven't loaded my new program yet, because I am buried with fiscal year corps and old returns. Will ATX not longer compute depreciation for prior years, unless I purchase their fixed asset manager? I already purchase assetkeeper, but it doesn't integrate with ATX, so I only use it for a few clients. If this is true, I will have to look at both programs to see which will work the best for me. I'm sure as heck, not buying two of them.

Your SS PIN is if you are set up to E-file W-2s with the SSA. Yes, you put your ERO PIN in.

Thanksm KC and Julie. She was fine with the answer, but was just hoping to be able to qualify for the $8,000.

My client is buying her deceased mother's house from the estate. I have researched it and it looks like she does not qualify for the credit. The realtor told her that she will qualify. The will stated that her mother's property would go to her children. It also stated that the house had to be sold. Then they split the proceeds. She says that since she has a paper stating that she is buying it from the estate, that it will qualify her for the credit. I would really like to be wrong, but I don't see a way for this to work. If I am wrong, please let me know. Thanks! Bonnie

Deb, I have used HP Laserjets for years. I have an HP Laserjet 4200 that is very fast. The cartridge is pretty pricy, but mine will normally last me for at least a year, since I'm not printing all of the copies anymore. Bonnie

Catherine, I'm sorry that you have the flu. My 15 year old son had H1N1 in early September. I got him in to the doctor on the first day that he had symptoms, because we knew that he had been exposed by friends. He tested positive and they put all of us on Tamiflu. He had a mild version and would have gone back to school after one day, but they wouldn't allow him back for three days. He has been very sick three times since then. He just finished his third round of antibiotics and prednisone. I am taking him back to the doctor tomorrow, because I am worried about his terrible cough and bubbling in his chest. His ENT said that the H1N1 causes a lot of damage to people's organs and respiratory systems so please take care of yourself. I know that he hasn't rested as much as he should, but he has already missed too much school. I was sick two weeks ago, but don't know what it was. I didn't have a fever, but I was miserable for a week and couldn't stay at the office for the whole day, because I was so exhausted. Good luck and go to the doctor if you get worse. Bonnie

Well. I am NOW representing the client. He did stay at the meeting for a while, which made it easier for him to answer questions about specific items. I don't know what happened at their first meeting, but there was no indication yesterday from the auditor that he expected to hang me. In fact, he told me that they really needed new agents like me, how much money I would probably make to start and that they don't care about my age. There were no strange questions, so maybe he was different because I was there or maybe my client was blowing smoke for some reason. Most of the current adjustments are in my client's favor. There are still some missing items and hopefully, it will be over by the end of the month. I still can't imagine why he would have made some of those comments to my client. I could really be a bad judge of character and get a huge surprise when it's over. I really appreciate all of the support and suggestions from everyone. I will not call my insurance company again, unless I know that it is an emergency. She had me sick for two days. This is why I hate taking their CPE, because everytime that I leave, I am ready to dump my business. Thanks so much, Bonnie

If anyone is interested in watching a very moving movie that pertains to any war get "Taking Chance" with Kevin Bacon. It is the story of an officer accompanying a soldier's body home. It was beutifully done and a shame that it ever has to happen. A few weeks ago I was at our airport when a plane landed with a soldier's body coming home. It still makes me cry just remembering all the people watching the tarmac out the window silently. This soldier was just now coming home from Viet Nam. This isn't political, just sad. Bonnie

If you decide to prepare both returns, you should. Bonnie

I would like to thank all of the veterans for serving our country. My stepson served in Iraq and is getting ready to go to Afghanistan so I really appreciate the good thoughts for all of our veterans; past, current and future. Bonnie

John, I just saw your reply and I am thinking that you may be right. Yesterday was the first time that the client mentioned anything to me about the agent asking anything about how he pays me. I don't know what is going on, but I am just going to act professional and give him the depreciation schedules. The client has until the meeting to decide if he wants me to represent him. I don't think that he is going to go for it, because I told him last night that he could bring me the information and I would take the meeting, but he still insists on coming. He thinks that the IRS will think that he has something to hide if he doesn't show up. I asked him if the agent had mailed him the list of what he wanted additionally and he said that he told him not to, because he wouldn't be home to get the letter. I'm assuming that the agent mailed it anyway, but he hasn't been home to get the mail. Thanks! Bonnie

No, it is definitely for real. The taxpayer already met the agent at his office a few weeks ago. I'm not really surprised, because the agent that I had dealt with on two audits within the past three years told me that she had moved back here from working in a bank to be closer to her family. This is an appointment for the taxpayer to clarify some checks that the agent didn't know what to do with and bring him some bank records that weren't included at his original meeting. I told him that when I have gone in the past, that I just faxed or mailed the missing records. I do think that my client has not done himself any favors. When he asked the agent why he was selected for audit, the agent said that it was because "someone hung up on us when we called". I don't know if that was really the reason. Jainen, I am not going to push him on the mileage records unless he really pushes hard. Apparently he didn't ask the client for one. The CNA rep is the one that said that in the IRS forums that they have been to this year, that the IRS is saying that they are expecting preparers to see the logs and recordkeeping. I asked the rep if they were going to fight for us and she didn't know the answer. She told me that if the IRS finds that I made a mistake, that they might audit all of my clients. That made for a sleepless night. I was really sorry that I had called CNA, since I don't even think that I made a mistake. After this is over, I am going to find some more CPE on handling audits. I've only had six in thirty years and never got this stressed out before. Thanks everyone.

That's what I plan to do. I'll give him the schedules and tell him that I am have not been retained to represent the client. I really don't know why the client didn't want me to represent him. He did call me before he went to the meeting and I told him that I could represent him, and that I had done so for a couple of other clients the past few years. I couldn't force him to let me go. I haven't actually seen him in probably 20 years. He was always on the road and his wife would bring me the information before she got sick or he would mail or fax it. I even told him on the phone today that I could take it over from here if after they sign the POA and he still wanted to finish it. He thinks that the IRS agent is just some nice straight forward guy and that they have some kind of rapport. Maybe he is. The two audits that I have had in the last few years, the auditor has been really nice and the audits weren't stressful at all. I don't know if I am getting the whole story, because I just don't know how this all started with a phone call to the taxpayer and turned in to an audit when his wife hung up on them. At least thats what the auditor told my client. If the wife hung up on them, she wouldn't even remember or probably know what she was doing. I don't know why the first contact would be a phone call. The client represented himself in an audit back in the 80's and didn't think that this would be any different. I just want it to be over, because it's making me physically sick. I feel a little better, because I just finished playing Wii boxing and tennis. I really appreciate all of the ideas on this website. I don't know what I would do without all of you, because in a one person shop there just isn't anyone to bounce things off of and most of the tenants in my building are psychiatrists and counselors. I try not to talk too much, because they will all want me and my crazy family for clients.

Thanks! I hope that everything works out.

I faxed the POA to the where his wife is. It should be faxed back tonight or tomorrow morning. The husband will come in and sign it when he gets into town. The IRS agent was out today and they are closed tomorrow. I did call my insurance company and they basically said that the IRS may be going on a fishing expedition and should have known that I needed a POA and that they should have summoned me. I don't know how much I want to push this guy or anger my client. I don't feel that I did anything wrong. The insurance agent said that the IRS has been saying at the forums that we all have to see records and mileaqe logs instead of accepting what the clients give us in writing. If that's the case, maybe it's time for me to work at Wal-Mart. This will mean that I have to meet with every client and not take information over the phone, by fax or E-mail. I don't want the client to feel like I am trying to hang him, and I told him that I am just trying to protect both of us. He hadn't told the auditor that his wife isn't here, because he didn't ask. I'll let them use the conference room and give tghe agent the depreciation schedules. The client does not want to reschedule the meeting because he doesn't want the auditor to get mad and he just wants it over. I told him that I am going back to my office and he can deal with the agent. It's really sad, because my client is really a nice guy that I've known since I was an intern in college. (A long time ago.) I really wish that he had hired me to represent him, because I didn't feel this vulnerable on the other two audits I've been through in the past few years. Thanks for listening. Bonnie

Great, now my client is mad, because he won't be back for another month during the week after this meeting. I can't fax it to him, because he is not home to turn on his machine. I'll just call my insurance company and see what they say. Bonnie

OK. I'll fax them over to the client and tell him to fax them to the agent. I'll let you know what happens.

OK, now I have some more information, because I called my client again. The auditor wanted to go to his house, but the client didn't agree. I don't know why, except they live in a pretty dumpy place. Then he wanted to come here to have me explain the depreciation. This is a new agent, he had been a small businessman, and said that they were the only people that would hire him because of his age. Now my client tells me that the guy asked a strange question. He asked him how he paid me? My client said that I gave him a bill and he paid me. Then he said that the guy said "very interesting". WTH is different about that? Don't we all give our customers a bill? I report my income. Now I'm getting PO'd and my heart is pounding. If he is after me for some reason, don't they have to let me know? I haven't had any problems with the IRS before and I don't know why this guy is acting like I'm some kind of criminal. If I call off this meeting and don't explain the depreciation to this guy, won't I look like I have something to hide? Thanks! Bonnie

Do I really need a POA, if I am done with this audit when they leave the office? To be honest, I want as little to do with this as possible. I know that the client doesn't want to have to pay me to handle this or he would have hired me in the first place. He thinks that he can deal with the IRS, because he handled an audit back in the 80's. I suggested that he not represent himself. I didn't want to say no to the meeting, because I don't have anything to hide. Now I'm really not going to be able to sleep!

Taxbilly, The client is coming to the meeting. The agent only mentioned discussing the depreciation to my client and said that it should only take about 15 minutes. I will have those schedules with me and if he asks for something else, I can get it. Bonnie

David, I just went on MyATX and it is on my page. Maybe it was a temporary problem. Bonnie

Margaret, I haven't seen anything, because the client has been handling this all himself. He is a truck driver and he won't be home to send me anything until the night before the meeting. The agent called him on his cell phone. I can't even get a POA because he is gone and his wife is now living with a relative out of town because she is ill and can't stay home alone. I know that his schedule C is an issue and his gambling income and losses. The agent questioned why he reported more income than he received W2G's for. They are coming Thursday, so I will know more then. Thanks! Bonnie

Thanks everyone, for the fast replies. I've always gone to the IRS before and the audits were resolved in a couple of hours or less. I reserved the conference room. I don't know what he wants for sure. My client just mentioned depreciation. I haven't seen any of the paperwork, because I hadn't been involved with the audit. I haven't been asked to provide anything. I'll just take the depreciation schedules to the conference. Jainen, thanks for suggesting that I ask if I am being audited. I have always spent quite a bit of time preparing for an audit, but it's much harder this time, because I haven't been involved. I will just go through the return and look for red flags. Bonnie