Lion EA

PS FileShare is included with CCH's SiteBuilder website. CCH offers a more robust portal at extra cost, but FileShare has been simple for my clients to use. This year, FileShare added a new layer with a code needed to log in (just like my banks). Yeah, love those phone pics and emails and links to Google Drive/Dropbox/etc. and that one client who hangs her sack of stuff on my mailbox -- which is out on the street 100 yards away from my house! My low-tech solution is a large mail slot in my front door of my locked house.

I had a client who got that $0 bill every month or so, so she DID send them a $0 check. The bills stopped.

I use CCH's FileShare to upload and download.

The owner &/or his employees, agents, etc., together can add up to 250 hours for the safe harbor. Or, the rental must rise to the level of a trade or business...

I had a client call me about receiving an IRS letter for $0 owed. He was my first this year. But, not my first ever! He's a banker and figured out that it must have to do with rounding or such.

Won't get EIC or HOH. I always have to check the flow chart.

But did you stuff the chocolates in your mouth and shirt?! Hopefully, NOT the batteries.

Did he return the equipment when he left? If your client still has the equipment, then I agree it would be at FMV when he left.

You want to match the FICA/Medicare to the right spouse, too. But yes, we all make mistakes under this kind of deadline pressure. There was only one perfect person, and we crucified him! I wake up in a panic trying to remember if I did this or checked that, and get up and turn on my computer. But in my sleepy state, I probably don't do any better than I would waiting until the morning. Except that I wouldn't fall back asleep and would lay there with a knot in my stomach. (I guess a home office does save me time.) And then, I'm even more sleepy due to that middle-of-the-night working or due to that middle-of-the-night worrying, either way. It's only February, and I'm already sleep deprived. Hang in there. You're doing fine.

The tie-breaker rules are used when two people BOTH claim a child.

That is a benefit. Thank you, Eric. I was stuck on the fact that he has nothing to take into income now, and didn't notice that the date changes with this election.

Client took a picture (why are all my clients doing that now? so hard to read and not at all secure) and emailed or texted me his 83(b) election for 2019 prior to mailing it to the IRS & turning it in to his new company. I'm researching, but have never had this come up in real life before. The FMV on the form is $0.00 and the amount paid by the taxpayer is $0.00. So, when he sells his units down the road, his basis will be $0.00, right? I'm not sure I see the benefit to my client. My research refers to a cover letter provided with the form, but client has only a one-page form his new company gave him to sign. It's due prior to 6 March. Any direction, thoughts, opinions?

Prayers, Cathy. But, this year is a labyrinth for everyone. I have PE clients who must be in "entertainment" unless they split their business activities (and I'm not going to redo their 2018 accounting now during tax season) who are going to be furious, because they are over the income thresholds. Especially bad when I prepare only the biz returns, and their personal preparer tells them I did it wrong and wants the activities split. I'm putting off finishing PE returns but need to get started to meet the march deadlines; but, the thought of preparing the K-1s for the QBID scares me. And, people's lower withholding... And, mid-2018 CT passed a retroactive law that PEs pay ES at the company level. I had trouble getting that through biz owners' heads. And, the higher the biz income, the less likely they were to believe me and to send in the vouchers with checks. People came in early, so I've been backlogged for weeks. But, now they're getting more tax documents in the mail. And, asking about new things to me, such as the Code Section 83(b) election, causing me more research. And, prior year returns. I have a lot of dumb days during tax season, but this year I feel like an idiot much too early! Can we all sit down for some strong drink in April -- and, again in October? Please!

TTB has a handy page covering the due diligence areas. I don't get too worried about my clients that's I've known for ages, seen the birth announcements, had the kids in my office, don't see any signs of a divorce, etc. I ask if everyone's still living at the same address, that kind of thing.

Yes, but all that goes to show that we do need prior year returns for new clients, and we do need to check various moving parts. It isn't always a simple formula.

AMT. What would've been the Sales Tax deduction. Maybe something else I'm missing.

Could he make a small IRA contribution... Or, does he qualify for an exclusion due to low income or other...

It depends on your credentials, who you work for, how many returns you prepare, etc.: https://portal.ct.gov/DRS/TSC/Paid-Preparers/Preparers https://portal.ct.gov/DRS/Fraud/Tax-Preparers/Hiring-a-Preparer https://portal.ct.gov/-/media/DRS/Publications/pubssn/2018/SN-2018(8).pdf?la=en

Safe harbor can be used for 2018. The contemporaneous log isn't required for 2018, must start in 2019. At least that what I understand. No rentals yet, so academic and not practical knowledge!

I've told clients that I love them but will not go to jail for them. If in person, a hug or arm around their shoulders as you walk them to the door helps, too.

The few times I've had clients sell their interests, they received a K-1 with the usual items for the portion of the year they were owners PLUS a spreadsheet with notes detailing what amounts are capital gains and what amounts need to go to 4797 and other forms, or maybe it's adjustments to those forms, but you get the idea, $ amounts and where to put them. Also, a chart with buy and sell dates. And, contact information.

And, we ARE obligated to ask more questions if we feel anything we receive from a client (paper or verbal) is not complete, correct, or otherwise leaves us needing more information/leaves us with more questions. The "known or should have known" proviso. I, too, do NOT take on new clients if my gut tells me they are not telling me the whole story. And, I work to rid myself of such current clients when my gut acts up. Women might be better at trusting our instincts. But, we all see clients bare their financial souls to us, so we also get a feel for when clients are holding back.

My clients won't DIY or go to HRB or look for someone cheaper -- usually. I do lose one every once in a while who wants their return faster when I already have a backlog. But, I keep getting referrals. Non-itemizers are not a threat. DIY is not a threat. Find a niche, such as small businesses or trusts or investors or multi-state returns or...and work as much and as long as you want.

If your biz tanks, so does your retirement.

Does he want the paper return NOW for his loan. And, will he tell you he made a mistake when it's time to e-file? Or, if he's not a client from last year anyway, will you even see him again after handing him a paper return for his mortgage? I'm busy enough that I'd have sent him on his way, too. Follow your gut.