BulldogTom

Ouch. That is a tough sell. Hopefully your clients realize the value you bring. Tom Longview, TX

IRS called me back. They have no idea what the problem is with the client tax return. Somehow the computer could not process the efiled return (but CA computers were able to...hmmm) and they sent the return to the error resolution department. That department has done nothing. IRS agent could not see what caused the return to be sent to error resolution. No letters generated, nothing they can see...just sent over to that department and sitting there for over 60 days. I wonder if IRS can't match up the supporting documents because they shredded them? Not being political, just wondering if this is the issue. Tom Longview, TX

On the 4th day, 23rd call, I have a call back appointment. Hopefully they will actually call.... Tom Longview, TX

Are you saying that you need a new "hug garden"? Hope they don't find the clients you hugged when they start on the new building site....Just sayin'. Tom Longview, TX

I drove by the building she is in, I worry for Rita. Like right out of a Friday the 13th movie set, surrounded by forest. I think she should be packin' working in that building. Tom Longview, TX

I have been calling since Friday, same recording saying that "due to very high call volume in the topic you selected, we are unable to take your call at this time." Anyone getting through? Tom Longview, TX

I did that for over 20 years. Finally get to "retire" to only doing tax work. Hope to see the business double the number of returns in the next 2 years. Fingers crossed. Tom Longview, TX

Yardley - I am an EA, MST with over 20 years of experience. I work off of a $ per form basis, but I structure the form costs so that I generate gross billings of approx. $150 per hour for individual, straight forward (if there are any of those anymore) 1040 tax returns. For individuals with Sch. C, Sch. Es, K-1s from partnerships, Non Resident States, etc, (the more complicated returns) I try to bill about $200 per hour. For Corps and Partnerships, I try to bill about $350 per hour. I practiced in Central CA for most of my career, but I am in rural Texas now, so we will see if I can hold this pricing structure. This past tax season, I did mostly CA returns from my prior clients, and I did not advertise in TX. This year, I am planning to do an ad campaign where I will give new TX clients a 25% discount off of last year's invoice if you bring me the invoice from last year's preparer. I did this in Lodi CA several years ago. I did some very cheap returns that year. I also picked up a few really good clients. What I really got was market research. I found that the cheapest preparer in town was extending most of her clients to stockpile as much work as she could for the off season, I was lower than the chain preparers and much lower than the CPAs in town. Raised my prices the next year to get to par with the chains. This probably does not help you but it is the best I got. Tom Longview, TX

Judy and Tex, Thanks so much. I was on the road for a while (Longview to Reno to El Centro to Yuma and back to Longview) and I appreciate that you were there to help out. I think I got this now thanks to you guys. Tom Longview, TX

Thank you Judy, you are the best. Tom Longview, TX

Thanks @jklcpa If I could bug you one more time. Does my math look right? $6,171 for 2022 contribution limit? Tom Longview, TX

That is not the fact pattern. Couple are not losing coverage because of employment change. They get their health insurance via the ACA exchange. He will definitely sign up for Medicare when eligible mid-year. She will drop ACA coverage as well when she gets to 65. So they have family coverage now, and they get the additional catch-up contribution because they are over 55. They have maxed out the last couple of years. They want to know how much they can contribute this year. Client seems to think that he can still contribute the max this year if they do it before he changes to Medicare. I don't think so, and I think that they need her to change the policy to self only. My first thought on how to fill out his form 8889 is $4150 for Jan-May and $0 for the rest of the year. I think I fill out her form 8889 with $4150 for Jan-May and $4650 for months Jun-Dec. Add it all up and divided by 12 to come up with $6171 as the contribution limit. Then I saw this in an article from the Tax Advisor, and I started wondering if she still gets the full family contribution limit. Spouses with family coverage If either an individual or the individual's spouse has family coverage, both are considered to have family coverage. Likewise, if one spouse has self-only coverage and the other has family coverage, the maximum contribution limit is the maximum for family coverage, and the limit is divided between them by agreement (Notice 2008-59, Q&A 17). If the spouses have different family coverage plans, only the one with the lower deductible is counted for HSA eligibility purposes (Sec. 223(b)(5)). The family contribution amount can be allocated between eligible spouses any way they want but must be divided equally among the spouses if they do not agree on a different division. However, no HSA contribution is allowed for an ineligible spouse. The IRS has ruled that an eligible individual does not fail to be an eligible individual merely because the individual's spouse has non-HDHP family coverage, if the spouse's non-HDHP does not cover the individual. Consequently, that individual may contribute to an HSA (Rev. Rul. 2005-25). I may be doing some wishful thinking, but I went back and read the pub, and it looks like the limitation is on his coverage not covering her. I don't see anything that says she has to change the insurance policy coverage to self only and that her coverage cannot cover him, even though he is ineligible to contribute. So if she has family coverage, and they agree to divide the contribution giving 100% to her in Jun-Dec, and still get a full contribution of $8300. I would fill out his 8889 as above, but then fill out her 8889 using $8300 for Jun-Dec. I am still searching and not sure I know enough yet to give them the right answer. Thanks for your help, and feel free to punch holes in anything I have above. Tom Longview, TX

Thank you Judy. I read the instructions and I am getting a clearer picture on how this works. Follow up question, since they have no dependents, she will have to change her coverage to Self-only since he cannot be covered under her policy after he goes on Medicare - Correct? Otherwise the policy disqualifies both of them? Thanks Tom Longview, TX

Married couple have a Family Coverage HSA. He will go on Medicare mid-year. I was reading the IRS pub and got confused. Anyone have a "plain english" primer? Thanks Tom Longview, TX

I wonder if this is a two sided sword? Does this mean that the FAQ's, which have always been the IRS "interpretation of how they understand the law to be applied in various situations" will now carry more authority in disputes with the service? Tom Longview, TX

You dodged a bullet. You must be living a good life. Tom Longview, TX

24 years in business as a part time gig for my spouse and I. 100+ returns complete this year, 9 on extension (most ever extensions for us), lost about 20 clients due to the move from CA to TX. Finally get to give this a go full time next year as I am not working a day job anymore. I "retired" to the tax business in February and I hope to expand it next year. Will start some local advertising late this summer and into the early part of next year. Would like to double revenue next year. We will see how it goes. Anyone going to NATP Taxposium in July? PM me and we can meet up at Caesars. It is nice to meet people from the board in person. Tom Longview, TX

First Time Abatement of the penalty? Tom Longview, TX

Curious, why are you sending both of them together? Shouldn't the LLC, even if disregarded, go by itself? Tom Longview, TX

Hope you are correct. Sounds right, but I have not seen this before. Tom Longview, TX

Thanks Deb. Tom Longview, TX

You are very appreciated Judy. You are more amazing than Spider Man. Congrats on finishing early. Enjoy the time off. Tom Longview, TX

Thanks Robbie. Good to know I am not seeing it for just my clients. I swear it was like 1-2 hours for acks at the beginning of the year, and now it is like 24-36 hours. Really strange, because I am still getting Fed Acks in 1-3 hours for the most part. Tom Longview, TX

CA is normally very quick to ack, but over the last couple of days I have been waiting over a day for my acks. Is it just me? Tom Longview, TX

If you are licensed to practice, I would take a POA and then call PPL. Seems awful fishy that they would set up an appointment for a call on the first contact letter. I would think that the normal process would be to send a letter asking for the returns to be filed or to respond with a reason they have not been filed. But these are not "normal" times. Tom Longview, TX