BulldogTom

If your client wants to pay on Oct 15th, you could hold the return and file on that date. The funds will be withdrawn within about 2 business days. ATX has the same issue as Drake, you can't go out even 1 day. I filed a return a few weeks ago after the end of the banking day, so smart me I put in the next day as the bank withdrawal date. REJECTED. Even at 10PM. It is just the rule that if you owe and you efile and you want the direct debit option you pay immediately...but I don't have a source for that rule. Tom Longview, TX

Wow, I never knew you could do that. Thanks @Lee B Tom Longview, TX

"Everything is bigger in TEXAS!" Oh, you said TAXES....oops Tom Longview, TX

I think they call it the sausage making in DC. I call it Halloween - Senators go to the doors of lobbyists and hold out a bag looking for cash to be put in. The more cash the AICPA can put in the senator's candy bag, the more chance the senator will make changes to the sausage recipe. Not appealing to watch.... Tom Longview, TX

Is it an ABLE account or a SNT account? It can be confusing to interpret what the client is telling us. If it is a SNT, then all income is taxed to the trustee. Not a tax advantaged plan. Take a close look at what she is doing and see if it makes sense for what she is trying to accomplish. Tom Longview, TX

Ask your hairdresser Tom Longview, TX

You are doing business in the state. CA has never made an issue of unlicensed preparers or preparers unlicensed in CA preparing returns. They recognize all EAs, CPAs and Attorneys from other states to practice in CA. That being said, if you are organized as an LLC, Corp, Partnership or any entity organized under the SOS of your state, they do want you to register as a foreign entity and pay the fees and taxes associated with doing business in CA. They do like their nexus. Not a problem for me as I am a SP, so my Sch C just goes to them with my 540NR, no special filing required. I keep my workpapers for my allocation of income and expense but they have not audited me on my application of the market based sourcing rules. The statute is running on my first year filing an NR with them, so I might see a letter at some point before it runs out. Tom Longview, TX

The rule in CA is "where the benefit of the service is received, that is where the tax lies". In practice, it means that any client who is a resident of CA at the time I prepare the tax return received the benefit of that service in CA. Therefore, the income I received from that client is taxable to CA. Even if they come to my office in Texas, CA considers the benefit received in the state. I have a few clients that are non-residents of CA but who still have CA sourced income. Because they do not reside in CA, the preparation of the 540NR is not sourced to CA and I don't pay tax on it. The benefit of the service was received in their home state. I think OR is pretty much spelling out the same schema for their income tax sourcing rules. Tom Longview, TX

@Abby Normal what website did you get that radar image from. I have not seen one like that before. @RitaB take care of yourself. This spring the weather is not fooling around. Tom Longview, TX

Not a surprise. But based on your earlier email they are not going to have out of state EA preparers anyways because they don't recognize our licensure. I don't have any OR clients, and I guess I never will. I will send anyone who asks to you Lee. Tom Longview, TX

I had an issue when the IRS missed my renewal. 3 years later I went in to the website and renew and it asked me for proof of my CE. I freaked out and called. When I did, the agent was like "we don't have record of your XXXX renewal". I was like "can I send you over my application and receipt with the date and time stamp? I renewed on the first date the application was on line" The dude was like "you have that available?" and I was like "Of course I do. I can email it to you right now, give me your email address". They asked me to mail in my application and my cc payment receipt from three years prior and in a few weeks I got my enrollment card. I think it had something to do with being the first day to renew on the website that caused the issue. Tom Longview, TX

I stay out of my client's investments, until last year, I broke my rule. Client is in a PTP for 30 days, loses $100 and the K-1 drops a few dollars of interest expense and depreciation on her. Add in my charge for Sch E page 2 and the 1256 straddle form and she lost a couple hundred bucks for a 30 day investment. I asked if she knew what the partnership did, she had no clue. So I gave her some questions to ask the advisor. She called me back and said he promised not to put her into those investments again. I never know where the line is to talk to my clients about their investments when I think they are being taken advantage of. I try to tell myself it is none of my business, but I care about my clients and it pi$$3s me off when I see these "professional advisors" putting their profits before my clients best interests. Tom Longview, TX

I hope you have been paid. And I hope you will send this client packing! Any client who makes my fee dependent on their tax outcomes is not someone I want to deal with. If you let them get away with making that statement, they will make it again the next time they don't like the outcome. Tom Longview, TX

I was looking around for a CPE seminar in Late Summer or Early Fall. NY EAs are having an education seminar in Saratoga Springs Oct 26-28. Never been to upstate NY, worried that it might be winter conditions. Any of you going? Advice for that time of year in that place? Tom Longview, TX

Oil rich areas West Texas and Eastern New Mexico. Northwestern Nevada is barren north of Reno (pretty, but not very populated) and except for weed growers, I don't know who is getting rich up there. Wyoming has some cattle and the price of beef is high right now, but ranching does not normally produce consistent high income (because they always need new trucks!). Curious indeed. Tom Longview, TX

EAs left out? Not surprised, most politicians can't spell EA, let alone describe our licensure. Tom Longview, TX

What is the reason for wanting to change the tax structure? Strictly tax savings? SEHI Deduction is the same as SP or S Corp. Tax Rates don't change. Is she looking to manipulate by paying a low salary and taking large distributions? Lots of people think that is how to beat the SE tax. Tom Longview, TX

I made my own as well. Took it from the IRS prototype, changed it to meet my needs, and then made my employee/spouse read and sign it. Scanned copy in the folder somewhere - Where did I put that? Oh well, like all the 8879s that I sign that the IRS has never asked to see, I am sure I could do a search of my documents and find it if I need to. Tom Longview, TX

No Cash Receipts. Everything on a 1099NEC. Contracted with a local govt agency to provide after school care. Profits did not justify the effort, so they did not renew the contract and closed the business mid-year. I am not worried about the audit. What I thought was most interesting is the wording of the letter. "If we do not receive a response, we will not process your return." Since when does the IRS have the choice to "not process" a timely filed return? I understand they can audit, they can delay the payment of refund while under examination, etc. But to flat out say they will not process the return because they want more info blows my mind. BTW - we got the response to the client today and they are uploading to the new portal thingy the IRS rolled out a while ago. I am interested to see how this works out, if it actually gets what they want to who wants it via their upload tool. Tom Longview, TX

Cattle prices are up right now. This may be less of an issue until the prices come down. But on the other hand, feed and fertilizer are up as well. Tom Longview, TX

Client got a letter from the IRS that needs to be responded to in 20 days. The letter is dated 4/7/2024. I got the letter today.... The letter asks for "Any Supporting Documents Verifying Income". The client has a Sch. C with 500K of gross income and a loss on the bottom line. At least I did not get it after it was too late to respond. I am blessed that my clients are so thoughtful. 20 days to respond, 20 weeks to get a response back. Anyone taking the under on getting a response before 20 weeks? Tom Longview, TX

@mcb39I am with @Abby Normal on this. You are doing way too much work. I have extensions every year and I have no issue with efiling the extension and then working on the return and when I have everything, efiling the return. Something is not working for you the way ATX works for me...... Tom Longview, TX

^^^^^^ What @GLGACCT said. Double check that your efile manager does not show a rejection for the extension. If it does, call support. If not, you are good and the error is just telling you that you revised the return and saved it when you have an accepted efile. Tom Longview, TX

Wow that is weird. Not sure what to say. All my CA returns filed on the 14th and 15th were Ack'd by the end of the day on the 15th. Tom Longview, TX

If you think the client is lying, then by all means you should decline. That is your call not mine. I don't think a behemoth of a truck is preposterous for a ranch. 2 tons of feed in a trailer going up hill....on the freeway....at 70 mph. It takes a truck. A man sized, full power, get through the mud truck. I just wish we could plug in an app like the insurance companies do and at the end of they year it would spit out a mileage log so we don't have to guess where it was parked and driven. Maybe the next Acting Commissioner (fifth, sixth...I lost count) can make a rule that they have to have that device to get a mileage deduction... how cool would that be? Pipe dreaming Tom Longview, TX