BulldogTom

Thanks for all your input. Here is the plan: 1. Start with a payment plan to CA to get them to stop attacking the clients bank account. This will allow the client to keep money in the account to make payments to the IRS. 2. Contact the IRS and get a payment plan on the 941 taxes. Ignore the personal taxes in this conversation if possible. 3. Make a second contact with the IRS on the personal taxes and ask for a 90 day freeze on collections while we get the required documentation together to put in an installment agreement (in my experience, if the TP is working on documentation, they will give some time to get it together). This will get me into next year. 4. After filing the 2017 tax return, send in an OIC instead of the installment agreement. Contact IRS and tell them that the TP cannot pay the personal while the payment plans are in place for CA and 941 taxes. This should buy me about 6 months while we wait for an answer, and then appeal the denial. Hopefully, after 1 year of maneuvering, the client will have his affairs in order, pay off the state with all available extra money, and get an installment plan on the personal taxes that is in line with their ability to pay. Tell me what is wrong with this plan if you like, or wish me luck if you think it has a chance of success. Thanks Tom Modesto, CA

I have the same relationship with QB as I do with ATX. I love the software and hate the companies that own them. They both exhibit the same disdain for their customer support departments and nickle and dime (and quarter and dollar) you to death. They market the crap out of their products, so you can always get a salesperson, but if you need any help with their products, good luck. Just my humble opinion. Tom Modesto, CA

Jack, sometimes you are too absolute. I feel strongly about this as well, but man, you don't know the circumstances. I do, and I will not share them. The client came to me for representation before the IRS. It is my job, should I choose to accept it (do you like the Mission Impossible reference?), to explore every avenue available to this client who wants and needs to clean up his tax situation. Based on where he is, and what he earns in his business, I don't see him paying off the balance owed before the statute expires. That is one of the things the IRS looks at when considering an offer. If I can get him on a payment plan on the 941 taxes (both trust and employer), there will be nothing left to pay the personal taxes because of the balance being so large on those taxes. That is just the simple math. So I am looking for a light at the end of the tunnel to give to both the IRS and the client so they both can see that someday down the road, this taxpayer will be back on track and paying his taxes regularly and properly. If the client never sees an opportunity for this to go away, they will not have the heart to work toward that goal. If the IRS does not see that keeping this guy in business is the best way for him to pay them back, they will not work with him. They will take what they can and leave his life in shambles. This is my job, to mediate between the two and find a win-win for both that will in the long run get them both to a spot where this is behind them. So yes, he does deserve consideration for an OIC. He may or may not get one, but he is entitled to the opportunity to explore the option. Tom Modesto, CA

Can I just get some advice on this one. Client owes the IRS about 450K. Most of that is personal, a good chunk is 941 PR tax. I know the IRS will generally not take an offer from an ongoing business for 941 taxes, but will they take a payment plan on the 941 taxes while entertaining an offer on the personal 1040 taxes? I have never tried this approach, so I would like to know if I should even go down that road. Thanks Tom Modesto, CA

I still use my trusty copy of QuickBooks pro 2003. I have my reminders set up to show me my outstanding invoices when I log into it. Keeps a nice set of books for my business when I do my own tax return. Print it out and put it in the file with my Tax Return docs. Tom Modesto, CA

Be careful. If any community funds were used for the rental property (such as paying the property taxes out of a joint account), that "separate" property in CA will have been tainted with co-mingled funds and may in fact become community property. I am not saying it has happened, but there is the possibility. Tom Modesto, CA

I usually go there at the beginning of the season if I have an issue with the software to see if others have the same problem. If the board has threads on it that are answered by ATX, then I just move on, but if they are blowing smoke and hiding from an issue, then I post all over the board until they acknowledge the issue and get on it. I am only a squeaky wheel over there, but I don't go often. Tom Newark, CA

like everything in taxes, it depends. Sometimes, like during the rollout of the ACA, I think we had something pinned that I looked at a lot. Some of this I never look at and just takes up space. I think you guys do a great job of deciding what should or should not be pinned, and recognizing when that time is up and unpinning it. So I defer to the wisdom of the moderators. Tom Modesto, CA

Yes, it does. But CA std deduction is much smaller than Fed, and rates move up quickly on single individuals with no dependents. Without the education LLC to offset the additional income from including the scholarship amount, there is a good chance the TP would have a balance due. Depending on the size of the scholarship and other income items, it could be a significant amount that CA taxes increase. I don't know the answer to the question, but I am watching this post for someone smarter than me to reply. This could be a very interesting way to prepare student tax return if it is allowed to choose one method for CA and one for Fed. Tom Modesto, CA

There is a button for "Call Server" that lights up a red light on your POS and alerts them that you want to see them. There are also games that can be played (for a fee) so you can hand it to a person who can't sit through a meal without electronic stimulation. Tom Modesto, CA

Chilli's, Applebee's and Olive Garden do the same thing. There is a POS machine on the table and they expect you to use it (in my experience). If you ask for a check, they will point you to the POS machine. If you hand them a credit card, they will instruct you on how to use the POS machine to pay your check. Prints out the receipt right from the pos machine. Tom Modesto, CA

The IRS signed a 7 million dollar, no bid contract with Equifax last week, to provide fraud prevention services to the Agency. The story comes from MSN Money Page if you want to look it up. REALLY? I just don't have words for how stupid this sounds. Perhaps the two will combine their databases and just make every American subject to ID theft for the rest of the world. OMG - this must be a joke. Tom Modesto, CA

TP is donating a piece of land to a charity. FMV of the bare land is approx. 400K. No buildings or improvements. Taxpayer held the land for about 15 years. I know they need the qualified appraisal and the donee and the appraiser must sign form 8283. Here is my stupid question - Does the donee have to give an acknowledgment letter with the §170 language on it as well as signing the 8283? I would think that the signature on the 8283 should suffice. I don't want to have my E&O policy flapping in the wind if this gets audited because I did not tell him to get the statement. Thanks Tom Modesto, CA

CA does the same thing for non-residents. Tom Modesto, CA

It is similar in CA, except it applies to everybody and all property (I just went through it on the sale of my home). You have to certify that the property was a principal residence and therefore the gain is excluded under §121 or if it is a rental or commercial property, you have to show that there is no gain to escape CA withholding. If there is a gain on the property, you have to have withholding to CA by the escrow company. If you don't fill out the paperwork, the escrow agent will withhold on the entire sales price. But none of this applies to Federal Taxes. Only CA tax. Tom Modesto, CA

The point is, all those emails will be in one spot, and not your regular business account. You are still gonna get them, but it is like setting up a Junk Email account for them to go to. Tom Modesto, CA

Jack, The point is, the IRS publishes all of the PTIN numbers and email addresses of all practitioners. From that list is where all these scammers and CE companies are getting our email to try to defraud us or to get us to buy something. So the IRS is suggesting you get an email account that they will publish that you can put all that crap into, but you have to check it because the IRS will use it to remind you about your PTIN renewal. Tom Modesto, CA

As I am reading this thread, I got a text from my cell provider telling me my payment will be automatically charged today. But I have it set up to charge my credit card, not my debit card, because credit cards are easier to dispute than debit charges. I learned this the hard way about 10 years ago, when I wanted to dispute an automatic charge on my account from a vendor I had terminated service with. The vendor would not remove the charge so I called the bank to dispute the charge. They would not allow me to dispute because I did not initiate the dispute within 24 hours of it appearing. They said because I have a business banking account with electronic access, they only have to give me 24 hours to dispute, where a consumer account has 7 days after the statement date to dispute a charge. Sounded like bull$hit so I fired the bank and got a new one, only to find out that it is the rule for business banking. Oh well...what are you going to do? You need a bank. Now, I only use my AMEX for autocharges. They seem to be the very best at customer service when it comes to disputes. Banks, on the other hand, not so helpful. Tom Modesto, CA

Well, wouldn't you know, I had a new client who needs me to pull a POA this week, so I can get it updated by filing a new POA for her. I checked on the CA form, and I don't see a box to indicate a new address for the representative. I also don't see anyplace on MyFTB to update my address. Hoping that my new address on the CA POA form does not cause it to be delayed or rejected. Thanks for chiming in Max. Tom Modesto, CA

I should know this better. What is the most efficient way to get all my client notices changed to my new address? I think just filing the next POA with a change of address box marked will do it, but I don't have one coming up soon. Should I file a POA for my kid? Or can I call the practitioner priority line and get my address updated. Sorry for the stupid question. Tom Modesto, CA

They call it "John Wayne TP". It is rough, tough, and it don't take crap off of nobody. Tom Modesto, CA

Exclusions of income are generally better than deductions from income because the AGI is lowered (think ACA PTC, Education Credits, etc) and the Payroll Tax is not withheld. Just like everything in tax, it all depends. This is more akin to giving your RMD to charity and getting an exclusion from the income rather than taking the RMD and giving it to charity and taking a Sch. A deduction. For some it works better. This is not a loser to the employee, especially for moderately high income taxpayers or people without enough deductions to itemize who want to be generous in this situation. Tom Modesto, CA

Its a guy thing to go over the top. Chicks like it on the bottom. Tom Modesto, CA

Thanks Judy. Tom Modesto, CA

Chad, Welcome to the board and don't take it personal. Jack hates everyone and lets them know right away. Tom Newark, CA (Until tomorrow)