Tax Prep by Deb

I had someone walk up off the street (my office is in my home, not advertised except to my clients). Turns out all she wanted was a form that she couldn't get at the post office. I gladly printed the form to get her out of my office. She's actually a neighbor of sorts and I have had problems with her children stealing things, as well as the fact that I had done an amended return for her last year because a friend did her taxes on line and didn't file for the additional tax credit. She was insulted that I would charge my normal fee (even though I explained to her I basically had to do her return completely over). She paid me then hounded me for weeks until finally the refund showed up. (so can you guess why I was eager to get her on her way?) She took the form, prepared her taxes, came back to my office asking for the address where to mail it, which I gave her, again just to get her to leave. Then she had the nerve to ask me to look it over and see if she had prepared it correctly! This time I drew the line. I told her not without her paying my normal fee, as this is what I do for a living! Some people leave me wondering. For example I wonder if she would work if her employer didn't pay her? Just to add my 2cents worth. Deb!

I have had a couple of clients do things similar. However in my case unfortunately they do come back and have me file. Each year I get one or two that I really would rather they not come back. But they do and each year they question the correctness of their returns. Each year I go through the same explanation and like Janitor Bob try to explain what they can do to minimize the damage however each year they choose to ignore the recommendations. Our job is one in which we rarely receive praise for a job well done! If we tell client they will receive $5,000 refund they complain it isn't $6,000 and if we tell someone they owe, they try to make us feel like it's our fault. There are days that I wonder why in the world I chose to go into this profession, and then someone really nice comes along, someone with a difficult problem and you are able to assist them and they love you for it! That's when it becomes worthwile for me! Deb!

That is basically your only option. I have had this come up. The courts placed a child with my clients and appointed them legal guardians. Every year when I would go to file the return, the childs social security number had already been used. We paper filed the returns and then towards the end of the year we would get a letter from IRS requesting additional information regarding the child. We sent them court documents showing guardianship and other documentation and each time my clients prevailed. Your client will have to furnish proof at some point that they were the custodial parent. Usually IRS will request school records, leases that include childs name, doctor records, ect... Any documentation your client can get that shows their name and the name of the child with the same address is basically what they will be needing to offer proof. Not a pleasant road ahead, but it can be done! Deb!

Thanks Jainen, I was able to get the state info I was looking for. It doesn't look good for my client at this point. There was no state w/h which means that more than likely there was no fed w/h. I'm sure I can get the Fed info, but Fed's stated that they do not keep state info. So at least I have 1/2 of the puzzle solved! Again thanks so much! Deb!

No I'm not sure, but that's the point. Before I have my client agree to the change I would like to confirm. An earlier comment stated that he doesn't go the extra for his clients with missing W-2's, and under certain circumstances I would agree, however this client came to me early in February last year, was up front about not having the W-2 tried his best to get a copy, (I do not believe he lost the original, I do believe the post office didn't deliver it, and no he didn't move. He has lived at the same place for several years). Having said this, I believe I owe my client the best care I can give him. That is the reason that my clients come back year after year and why I am continuing to increase clients each year. As to the e-service. Yes I am registered, however I am just a lowly tax preparer so my use is limited. I have tried to file a POA on several occassions, but as of yet I have never had one accepted. I must be doing something wrong! It's funny, they won't accept my POA however I can make phone calls pertaining to third party disignation and they will usually talk to me. I would really like to be able to help my client. I will follow Jainen's comment and check out the FTB site, and hope for the best! Deb!

Thanks that would be great however California doesn't require a copy to be filed they share with IRS. Keep the ideas coming! Deb!

That's what IRS website said, however I went to social security website and the only info I see is instruction for employers to file W-2. I hoped that someone else maybe had this experience and could give me some pointers! Thanks anyways!

I have a client from last year who has been trying in vain to get a copy of his W-2 that he never received. He has gone to the former employer who gives him a phone number to call. He calls the number gets and answering machine, leaves his message but never receives a call back. The employer does have a web site were you are suppose to request the information, problem is you have to have you employee ID # to access and client had not worked there since early 2006 therefore doesn't remember his number. Goes back to former boss who tells him he doesn't know the number either and informs him that he has tried contacting HR department but doesn't get any response. Client did not keep any pay stubs and can not seem to find anyone who has. We filed without it knowing that eventually IRS would catch it, and they have. The amount the claim is fair however they do not include any withholding. I am reasonably sure there was withholding and I would like that information taken into their consideration. I know I can request a transcript from IRS however that is not going to show me the state information. This change will also effect his state return, and again I'm reasonably sure there was some withholding. Does anybody know how I can go about getting a copy of his actual W-2? Any help will be greatly appreciated! Deb!

It's good to see you saying what many of us have been feeling! CCH doesn't appear to be the brighted Company in the world! Deb!

To get the information for the state e-file you have to go to the state letter, click on to the options tab and then make your appropriate selection. Then it will show up on the combined letter. Hope this helps! Deb!

You are right about "required" but I have had several come through as normal distributions with nothing withheld. So "required" and "doing" are sometimes two different things! Deb!

I also had one that according to IRS schedule (not a guarantee) should have been deposited today. Earlier this week I checked the status and it moved to Tuesday the 26th. This morning I checked and now it has been moved again to March 4th. I don't know what has happened either, except I can say that it did happen a couple of times last year as well. If IRS workflow is anything like mine I have done the majority of my expected clientel between January 15th and February 15th this year. I'm well over half way through my expected. So if I've been that busy, perhaps IRS has been as well and just can't keep up with the flow. Deb!

I was finally able to get my acks, but I had to synchronize with ATX to do it. The normal channel only gave me the acknowledgement for the one return I sent today. I am currently up to date and able to access the e-file site without any problems. Deb!

Thanks to all who replied. I did think of using the dispositon tab to force the correct depreciation. As always I respect all of your opinions. Deb!

I agree in theory, however I personally feel that when the tenant moved out she put the house up on the market and hoped it would sell. I know I need to ask her more questions regarding it, but lets say I'm right here and she did not try to rent it, for example advertise or list it with a property management? How would you figure depreciation using ATX?

I have a client who had a rental property (house). In 2006 she rented the house for the entire year. For 2007 however the renter left and my client was not able to get a renter in the house for the remainder of the year. She is propabably not going to keep the house for 2008, as she cannot afford the payment, however the market has dropped and will not be able to sell it for what she has in it. My question though is what to do about the two months she rented it. How do I get the depreciation to reflect only two months use? If I take full depreciation for the year she will have a huge loss, and I'm not sure if she tried very hard to rent it versus just putting it up for sale. Any thoughts! Deb!

KC I had a client who for the past two years has filed the 8379. Her's was not due to back child support, but rather her husband owed back taxes before they were married. We wrote letters, sent a copy of marriage certificate, and anything else we thought would help. My client was told by the IRS agent that this does not protect the innocent spouse from his debt. This debt was incurred before their marriage! So therefore my client didn't get anything. In the case of child support, a couple of years ago I had a client that I filed the form for and again the innocent spouse was denied her 1/2 refund. I had another case several years back in which the client did get the refund but only because she kept calling IRS and complaining. Eventurally she did win. So basically I tell my clients that it's a 50/50 shot because I've yet to figure out why they denied the other two. Deb!

I agree and have done just that with out any problems. Deb!

I am so glad that someone discussed this issue. I agree with Tom. Many times a senior will come into my office to file and it is obvious that they are barely making it. My parents are also seniors living on fixed income, and believe me when I tell you it's tough to get by especially in California. So if I have seniors calling asking for pricing I may quote $10 to $20 to do the return however if they bring me the papers and I can see were they stand I will probably waive my fee. These types of returns really do not take that much time, and I have found in the few cases I have done in the past, that little good will goes a long way. In the case of my clients who have children that work but still can be claimed as dependents, I often to the childrens return at no charge, the exception of course is if the child is getting a good refund. But I will never charge more than what they expect as a refund, in fact if the refund is less than more normal fee I don't charge at all. The parents are very pleased with this and it often results in referrals. I have a case were I do the daughter and son's return and this year they asked me if mom needed to file. I told them it would be best to bring the info to me and let me run the figures, and it turned out that because of the stimulas package she does need to file, but also there is a small amount due of $10.00. Again I'm not charging for this. The daughter and son think I'm wonderful. They are happy, I'm happy. I have another client who from day one has been hounding me about this. He's just that kind of guy. I kept telling him to hold off until it has actually been signed and we know exactly what needs to be done, but he kept on and on. Finally I quoted him a price of $25.00. The phone stopped ringing! The bottom line is that our seniors have worked hard and contributed much to who and what we are today. I feel this in a small opportunity that we have to show our respect! Deb! Just my two cents worth!

I paper filed the husband. But right after posting this I got the acknowledgement back from California rejected because of how I adjusted the withholding. I'm currently trying to figure out how to rescend, but haven't figured it out yet. I will keep you posted. The main problem has been with the federal line 7 and now the state withholding. I was able to figure the 1040 issues out but can't seem to find the magic button for California Deb!

Actually the way I understand it you need more information. Your client needs to provide you with actual amounts they paid. I would apply the scholarship or grant to books tuition ect. (there is a list of items that grants, scholarships can be used for). Remember that the education credits for the most part only apply to tuition and related fees, not to books, equipment, ect... that the student may be required to purchase for the classes. That's were the grant/scholarship comes in. It can be used for several different expenses. Expense it out first. It could actually end up with the student paying more out of pocket for tuition and able to take a larger deduction. Please correct me if I'm wrong, as this is just my take on this situation. I have very few clients who do anything more than community college, very limited! Deb!

:P UPDATE!!!! Well Bulldog Tom & Julie, I DID IT! There is actually good news and bad new to report on e-file of CA MFS. You were on the right track Julie when you suggested using the 1040 line 7 worksheet to adjust the income. Here is what I did in addition to the 1040 e-file community property worksheet: Put wives w-2 information on her return, added both income together divided by two and adjusted the difference on line 7 worksheet. Then went to taxes withheld on 1040 pge 2 which also has a worksheet to bunny hop to and added all withholding from both spouses and divided by two and made adjustment there. This allowed me to create the e-file and transmit and was accepted. Now the bad news, tried exactly the same on the husband but couldn't create the file. The reason I could would the wife is that I adjusted income up (she made less than husband). The program would not let me adjust income down on line 7 worksheet. So therefore I could not create the e-file. I'm sure there is a workaround on this but husband was only getting a small refund and in all likelihood wouldn't get it due to an offset anyway. But just wanted to let you know that it can be done. If you figure anything different please let me know! Thanks, Deb!

Welcome! Deb!

Thanks to both of you! I'm not prepared to give up trying, so I will keep you posted! Deb!

Have either of you e-filed a married filing separate return using the community property worksheet tab on the 1040 e-file worksheet? If so can you explain to me how to do the return. Do I include all the w-2's and then split everything in half? Do I overide to do that? I know we are suppose to be able to e-file it but I can't for the life of me figure out what I'm doing wrong. Any help would be greatly appreciated! Deb!