Catherine

Just beware with Square! I've heard some horror stories of money getting held up for months at a time -- and they have NO customer service phone number.

I thought "red" errors prevented e-files from being created...

Client gets royalties from a publisher in the UK who actually sends a US 1099-MISC. However, the return address is in the UK. I am getting a "red" error about state and zip code not being correct, or missing, or too many characters, whatever (depending on the dodge I try). There has been, in the past, the trick of putting a period (.) in the state filed and that told the program to chill; foreign address here. That does NOT work this year. I cannot find ANYTHING in the help files about foreign addresses. Anyone here know this year's dodge? (We're using -- or at least feeling like -- this little emoticon a lot this year, aren't we?) TIA, Catherine

Actually, the legal fees WERE to ensure the IRAs were not hijacked by intentionally-cut-off heirs -- so one could make the argument they were for acquisition of taxable income. Yes, they were itemized. They were substantial, too. Hence my wanting to double-check with folks here.

Reconfirmed the investment fees are NOT deductible as they are paid from within the IRA. But the legal fees... TTB just says "for production of taxable income" which this IRA definitely IS. But then there are references to business and lawsuits for injury... So I'm still confused on that one.

Nope; all the bank cares about is if the account number is live. And the bank in question is only identified by the routing number so they don't even know if they are the right bank.

Client inherited big honking IRA from former spouse. Has substantial legal fees from wrangling with other heirs, and substantial investment advisory fees in the inherited IRA. My assumption here is that neither is deductible -- the legal fees because it is personal and not for production of income despite the fact that the RMD produces income; and the investment fees because they are within the IRA rather than paid separately. However, I've had a nasty enough day that I don't trust my head today (headache; just enough that my brain feels fogged in and not thinking right). Looking for confirmation or refutation... TIA, Catherine

I concur with everyone above -- SO many thanks to Eric, SO many thanks to you all!! I could not run my business without the help I get from my online colleagues. Sole practitioner since ~1997; EA since 2003.

That would best be a consumption tax... ;-)

sent to me by my cousin... A woman walks into an accountant's office and tells him that she needs to file her taxes. The accountant says, "Before we begin, I'll need to ask you a few questions. "He gets her name, address, Social Security number, etc. And then asks, "What's your occupation?" "I'm a Lady of the night," she says. The accountant is somewhat taken aback and says, " Let's try to rephrase that." The woman says, "OK, I'm a high-end call girl". "No, that still won't work. Try again." They both think for a minute; then the woman says, "I'm an elite chicken farmer." The accountant asks, "What does chicken farming have to do with being a prostitute?" "Well, I raised a thousand little peckers last year." "Chicken Farmer it is."

Paper file in Mass there is also a checkbox on the bottom of page 1 of the return saying "I do not want my preparer to file electronically" -- don't forget to check that, as well.

The "comparison" is still there -- go to "add forms" and type "comp" in the box -- it will pop right up. I also like to include the summary pages ("sum" in the search).

Paste the verbiage into Word (or whatever document software you use). Shop out the e-file wording and add in the address you can get from the program or TTB or elsewhere. There have been a couple of letters where I've determined 5 minutes with Word was a far better investment of my time than an hour battling ATX's "improved" letters.

Google search for the date the company declared bankruptcy or shut its doors; there is usually an article published somewhere. Or secretary of state where the company incorporated for date of dissolution. Either of those methods gives you a "date worthless" as well as justification in stating the value is $0. Put a copy of the article (paper or electronic) in with the client's documents and keep one for yourself as well.

Of course! How else to determine if it is warm enough to eat -- or hot enough to set aside for a minute before diving in?

It is also possible to have K-1s that are all zeros. I have a couple of children's trusts where no income is distributed; all is held within the trust (which pays trust tax rates on the income; I keep telling the trustees this but ultimately their decision). The trustees, as far as I know, do not send out the K-1s that come with the return as there are no entries. But the K-1s exist.

When people ask if my fee is negotiable, my response is, "Yes -- upwards only." Shuts 'em up pretty quick. The only time I will lower a set fee is if, upon re-examining it, I realize I have made a mistake in my billing. Rare, but it does happen. Did once earlier this year, in fact. Accidentally charged for a form I did not use. Took it off the bill with an explanation of what I was doing and why, so they didn't think they had "talked me down." My husband keeps telling me I under-charge -- and the prior-year bills I see from the big-box-tax-prep refugees certainly seems to bear that out. So no, my fees generally don't go down. On very rare occasion, I have used the tactic promoted here (or perhaps another tax group?) some years ago: tell the client to pay what it is worth to them, and once paid, (assuming the amount is not acceptable to you) wish them luck with their new preparer next year. They have just fired themselves.

Last year, my daughter was in the Faculty Dance Recital at college, seven hours away. Weekend before 4/15. Had to shut down for three days. Fortunately, my clients understand "family first!" and no one complained. Our anniversary is April 1st. We celebrate a month later. Younger daughter's birthday is March 17th (yes, St Patrick's Day). We celebrate on the day but some years I am more glazed over than others. The big thing that starts to get me is the end of the pistol league season butting up against the start of practice-for-rifle-season butting up against the 4/15 deadline. My husband hauled out all the rifle gear today and instead of being happy about it I wanted to go hide. And last Tuesday our pistol match was a double match with another of our club's teams; almost 40 people, four relays, I had to play captain since our captain was working that night. I started running the first relay before 7:30PM and didn't leave with all the scoring done until about 10:30PM. Too long a night after too long a day!!

Thanks, Joan. Those *$^%& RSU's got my head so turned around I wasn't sure which end was up! Wanted a sanity check before putting that one in the "final review" queue. Happy Easter!

Tax Corresponder (a CFS product) has several fire-your-client letters.

Have thought my head around in circles over this one. Client had ESPPs and RSUs. Looked at the ESPPs after figuring the RSUs and got myself royally confused. He bought but did NOT sell any ESPP shares. So, if my thinking (and reading the info in TTB) is correct, he has nothing to report on the ESPPs for 2012. Yes? All the basis questions and the ordinary income versus capital gain etc only gets triggered upon sale? Or have I got it wrong? TIA, Catherine

The 8948 in this case is easy; first checkbox, taxpayer chose to file this return on paper. I've had a couple of these, mainly for adoption credits. The IRS won't accept those e-filed, so I use 6c "other" and put on the lines that hte IRS won't accept e-filed returns claiming the adoption credit (or whatever the cause was). If you do make it out here, it would be delightful to see you again.

Oh, Margaret, no!! Oh that is _such_ a shame; I know how much you enjoyed visiting every year. Oh, my sympathies, dear! On the Mass Form 1 (I assume final return rather than estate?), there is a checkbox down by the preparer information with "I do not wish my preparer to file this electronically". Check that and you are all set. Catherine

I was not "open" today because I went to an accounting client who had a serious glitch in their systems that needed attention pronto. Then this afternoon had a lovely completed form dropoff/visit with an elderly couple who I don't wish to have come here because of the stairs. They didn't have fresh cookies for me this time (phooey and phew!) but it's like visiting old friends. I will work this evening, tomorrow, and probably part of Sunday but will also go to church early as they are doing a Hallelujah chorus and anyone who wishes to sing can come rehearse with the choir. I have sung the alto line for years but can't it's always best not to do it "cold" and with musical score if possible. My non-observant husband doesn't really get the whole Easter thing, and neither daughter can make it home this Sunday so I will observe for myself. Years and years ago, I went with a friend to a Greek Orthodox Easter midnight service. At one point in the service, they go out with the icon and walk around the block, singing in Byzantine Greek. I still remember words and music after all these years. It was really something.

Got those puts figured out (thanks to all; and also TTB for their handy-dandy chart) and entered. A hundred and forty stock transactions in that one return. The RSU's (that have gotten put off 'til tomorrow; I'm quitting for the night!) will seem like a piece of cake by comparison when I get to them.