Catherine

Got a standard answer for this one -- "Topeka, Kansas." They don't like the answer - they asked the wrong question. Folks in Kansas may want to substitute "Nome, Alaska" or some other far away location. It has always astounded me how the shortest questions require the longest answers. For example, "How do you do payroll?" Or, "What _is_ AMT?" (Quick answer: alternative MAXIMUM tax.) Catherine

Dear Client, For the nineteenth time, I do NOT know how to fill out the financial aid form for your sons' private school. I understand that the financial advisor who sent you to me is not in his office today. (He is probably hiding in the closet from your endless calls; he has already apologized profusely to me for sending you here.) However, that -still- doesn't make me suddenly able to help you with the financial aid forms. I truly cannot understand -why- the financial aid administrator at the school doesn't want to help you, either. It must be one of those mysteries. And not even that fact makes me suddenly able to assist you (for free!) with those forms. Have a great life. Preferably far from here.

I have a client (was from MA; moved to WA, now works in CA but lives in WA - yoikes!) who keeps getting letters from CA demanding an amendment we've sent them, in full, TWICE. Called with the last letter and they said to ignore the letters as they are auto-generated. One more letter, though, and I'll be back asking for hints from CA preparers on how to get them to process what they have already been sent!

Yes, fill out CP letter, fax it with Schedule D plus whatever other written explanation you think pertinent. That should do it. The IRS will eventually inform the states -- up to you whether to wait for the state letter or pre-emptively send an amendment. In Mass, when the change means MORE tax will be owed, I advise waiting. But that's because the amended return people do NOT share information with anyone else, and are super-slow at processing the returns. Easier/less stressful for client to wait for letter and send right back with already-prepared amended return and note. Then it gets processed right away and there are no extra letters sent automatically when you keep telling the state the amendment is already submitted and in process and please go talk to that unit. 'Cuz you can't submit twice; that is even worse.

And in target shooting, the most common problem that causes bad shots is the loose nut behind the trigger. :P

Rita -- I love you. I _really_ needed that laugh.

Hi Lion -- They usually do NOT want a 1040X with these letter responses. Send a Schedule D showing all the sales they have with basis. Fill out the letter with the checkbox saying "agree with some of the changes" (after all, you agree that there were sales made). Add another letter saying "client did not realize taxable event; we include completed Sch D showing basis; actual gain is $X and not $XXXXX as stated in CP-whatever letter dated-whenever; additional tax due is $X, enclosed/taxpayer has refund due of $X." That will take care of it, better than 9 times out of 10. But 1040X tosses another wrench in the works unless you find other errors.

Rita -- if you are EVER sick of taxes, you have enough material for a stand-up comedy show!

Thanks SO much, OldJack -- for a much-needed laugh!

Hence my post about getting darned near as much enjoyment out of just -thinking- about it. Of course none of us wants to be responsible for some poor temp ripping her fingers open on staples (haven't we all done that ourselves -- won myself a client once by taking his prior-year return and hammering the staples down before I'd touch the thing). But the thought of the faceless, nameless, heartless -bureaucrats- getting fingers snagged and having to spend time to log extra papers -- now -that- puts a smile on one's face!

Prayers to all those affected for strength, and prayers of thanks for all who came through without damage.

Linda & Randall -- my sympathies to both of you. Hang in there and we forgive in advance ANY and ALL lame questions. Catherine

Y'know, sometimes you can get --AALLMMOOSSTT-- as much fun from just READING about this kind of thing as you could from DOING it. With NO repercussions (unless you count the silly grin you wear for the next half-day.) I sent that list 'round to a couple colleagues here, and they all got a real kick out of it. Thanks, Jack!

DEFINITELY brings a laugh on a day when I needed one -- thanks, Jack!

Congratulations!!

I noticed that if you put in per-item billing it no longer charges for the Schedule D as a form. Either/or -- charge for D or charge per item on D. grrr. I calculated what I wanted to charge overall and divided by the number of line items on the D detail - put that in as my per-item chage. Annoying, but it worked.

I have a Kodak i1120 duplex scanner that is fabulous. I use it with Gruntworx by Copanion (just bought by Drake and they've improved it), and have also added Tic, Tie, and Calculate by CPaperless to my Adobe Acrobat (version 9, bought new and unregistered for small $$ on ebay since it's now an "old" version). Gruntworx takes the pdf files and indexes them (all W-2s together, etc), and TTC/Adobe lets me mark items as entered, hot-link forms and entries, add notes, even run "paper tape" calculations all in the pdf. It's a terrific system and saves me tons of time.

One oddball printer glitch I have (still have, and have to watch for) is after printing out e-file acks. It re-sets the printer to _landscape_ mode, so anything else you try to print comes out too big, offset, and on multiple pages. The fix for that problem is from the Return Manager menu, change the printer back to "portrait" mode.

Hang in there, Joan!! Our sympathies!

Who is it -- here or somewhere else -- whose sig line says, "If you loan someone $20 and never see them again, it was probably worth it." That sounds like the case here, although you're out time instead of dollar bills. Let it go. However, if someone else ever comes in screaming, dial 911 and let the cops show up. People screaming verbal abuse can "lose it" and start swinging.

Hi Sara -- Massachusetts has some bizarre stuff on their returns. Make sure you have checked the "Nonresident" checkbox above Line 1 on the form. Line 3 will show TOTAL income. Line 5 should show Mass-sourced income. The jump-bunny will take you to the Line 5 worksheet, where you can check those figures. Lines 15a and 15b are adjustments for amounts paid to Soc Sec/Medi/Mass retirement; those likely WILL need to be adjusted. The only deduction there is for amounts tied to Mass-sourced income. Nonresidents shouldn't have any adjustment for rental deduction, nor should they have any Use Tax due. Hope this helps; if not re-post, send a private message, or even call me for a walk-through. Catherine

Clients formed an LLC in early 2011 for a livery service (will be taxed as partnership). There is one vehicle, purchased specifically for the business. Major partner who runs the business has personal miles as well as business miles on this car. How do I account for the personal miles? "Guaranteed payment to partner" at standard mileage rate? Apportion expenses by business use percentage? Some other form I haven't been able to find to show personal miles as income to the driving partner? TIA, Catherine

Thanks to all -- will go the letter with amended return route. Catherine

Thought of that, but there was no audit. Someone on another forum recommended trying to file an amended return. We may give it a try and see what (if anything) they do with it. If they won't take/accept/process it, he's really no worse off than right now.

Client came to me new last year for 2010 return; no problem with a pretty straightforward situation. Then he came back with questions on "what can be done" for 2008 and 2009 returns (much more complex returns). Brought with him CP2000 letters for each year's return -- one dated March 2010, the other dated February 2011 (nothing like being right on top of things, I guess). He is making payments. Talked to IRS with a POA and they say they sent the letters, but there is NO indication on file that he ever responded (agree/agree partially/disagree). However he did enter into a by-phone installment agreement. Looking over the 2008 & 2009 returns, they were done flat-out wrong. Big box "prep" place where whoever it was asked no questions and plugged in numbers wherever they saw fit. Client may well not owe the IRS (or at least, not nearly so much). I still need to go through the IRS "changes" on the CP2000 letters. However, before I spend several hours on this, I'd like to know his options. Since he never agreed to the CP2000 changes, will the IRS accept amended returns? Or, by making payments, has he tacitly accepted their changes so there is no sense taking the time to prepare and submit amendeds? (In other words, is he sunk and therefore it's not worth my time and fee before we even start looking?) TIA, Catherine