Lion EA

If you try to work with both, make sure you have a signed statement that each understands that you can have a conflict of interest. Your E&O insurance company may have a template. Or, they may tell you not to do it. With children, you know you will have a conflict. How do you tell one that his taxes will be lower if he claims the children and then turn around and say the same thing to her? And, that's just an obvious one. Keep your original client or the one who asks first or neither one. I know preparers who give recommendations to both so each one can start fresh with a preparer who doesn't have inside knowledge of the other ex-spouse. Decide what you're going to do before you talk to either of them, and then stick to your decision.

Also makes a difference WHY. If a highly compensated employee after the 2014 plan was tested is then issued a withdrawal on a 2015 form with certain codes (P?) it was really part of his 2014 compensation and you need to amend 2014. Check the instructions for each code.

So many of the students of clients have multiple states and the trusts set up by grandparents, that my minimum fee is not all that small, but at least a substantial discount from what the parent pays. Just finished one with H/W 1065, joint 1040, and simple return for high school kid -- no charge for kid's return (and discounts to parents for the multiple returns). But those college kids, often $100 minimum. I have college kids that have more state returns than their parents do and K-1s and Schedule D and maybe Schedule C, so I price on a case-by-case basis, maybe a % of their parents' price as a guideline. I show full price on the invoice and the Family Return Discount.

The clergy person is a bit of a hybrid employee. Employee for income tax purposes (think Box 1) but a self-employed person for SS/Medicare purposes (think Schedule C for Box 1 + qualified housing, as Rita defined). If he owns his house, he still gets to deduct mortgage interest and property tax on Schedule A. You've been given good advice and have clergy specialists advising. His national church probably has good publications. Those mentioned above are great. The IRS must have a pub or two and maybe an Audit Guide. Read Church and Clergy Tax Guide and anything else by Richard R. Hammer, J.D., LL.M., CPA. I also like anything from William F. Geisler. You started with him when he came to this job, so you're getting to know his situation from the beginning. Getting him started right will make it very easy for future years. If you like him -- keep him.

Hey, Rita, did she crochet the whole poncho while you were preparing her return?!

But, if Rita and Pacun divorce, who gets custody of the kids? And the farm animals?

I was just going to mention your liability when reviewing returns. Judy stated it well. Bold face her last sentence!

I agree with Pacun. The reg reads something like Less than Three Months. But, they use calendar months; and you have to be without insurance for every day in a calendar month for it to count as a month without insurance. Count only the whole months without insurance. Pacun gave a great example of March qualifying as an insured month and June qualifying as an insured month, leaving his only gap April and May for a two month gap or short term exemption. It was way more than 60 days, but it was only two months using ACA definitions. Like the Uniform Definition of a Child that's not at all uniform; the IRS definition of time is different for different purposes! Sometimes it's any part of a month; sometimes we have to count days; sometimes it's hitting an age milestone any time during an entire year. At least the ACA definition provides the wiggle room in the taxpayer's favor.

Make sure they dissolve the S Corp with their Secretary of State. The LLC gives them some legal protection and separation from their personal, if they do not comingle. But it is not a substitute for good insurance.

If you're a tax professional preparing your own taxes, you will want to keep up on your education. I suggest Lisa Ihm's courses: http://shop.lisaihm.com/Part-1-Foreclosures-Short-Sales-Other-COD-5-hours-1.htm

Don't those of you in MA and ME get even one more day due to Patriot's Day? We in CT used to get that but don't file in Andover, MA, any longer.

Is he separating from service after 55 years of age?

Isn't there a phrase something like "In order for the taxpayers to work"? Someone must know a cite....

And, if it's really 50/50, then no one gets the dependency exemption and all the benefits!

NY

IRS accepts current and two prior years via e-file: 2013, 2014, and 2015. Check with those states. And, check with your software. I have filed a prior year PA, but not this season.

Send a friend in uniform, a policeman is good but any uniform really, to pick up your mail. A cop car waiting in front of his house might help. Or a hearse driver that can keep the vehicle parked in front of the guy's house for awhile.

In the meantime, to get you through this tax season, ring their doorbell to tell them that you will be stopping by every Saturday morning at 10 a.m. (pick your date and time here, and be prepared to change it to suit the jerks) to pick up your mail that the PO has mis-delivered each week. Play nice right now; use PO as scapegoat. Maybe even offer a lock box he can dump your mail in on his side walk or someplace for you to pick up and not have to ring his doorbell ever again. Put a lock box on your driveway in case he wants to do a drive by. Then, hire that lawyer after tax season.

About the same for me. Except, I stopped using nicer paper a couple of years ago. As I realized how many never open the folder, I stopped using the heavier stock. I explain until they tell me to stop, and then tell them they can call me with any questions or issues.

His filing correctly will not hurt his wife. Her filing incorrectly could hurt her. But, we know how efficient the IRS is! I would probably suggest he bring his wife in with him to discuss MFJ. Or, if I didn't like her, let her continue to deal with her new preparer.

Years ago when I was at Block, their proprietary software priced the individual returns for us and there was little we could do to lower the price. The few workarounds we had got fewer and fewer each year. But, the entity returns were done on ATX, and we entered in the price ourselves, supposedly from a price list HRB provided. So, if I wanted to give a client a discount who had both personal and business returns, I had to charge him full price for personal but could enter anything I wanted for the business return from $1 on up so it would show as paid before we transmitted. (Personally, I think a total of $380 for a partnership and personal return is too cheap.)

Don't worry about it, but do take a break. I've been trying to proofread a partnership for a week, maybe more. Finally finished and printed it. Don't know why I can't let go. Just always checking one more thing! I need to pick up speed. Promised some things for Wednesday when I see biz clients and other things are due Friday in NY and it's closing in on corporations and.... I tell my kids to strive for excellence, not perfection. Perfection isn't always possible, especially with ambiguous tax laws. Really dreading some 1095s this year, for instance. You've warned your client what could go wrong and to notify you immediately if she gets any letters, right? So, hand her the paper returns to sign and mail. You've done your best with the information you collected.

Yes. Well, I remember that to be the case. If it were my client, I'd step through a chart in TTB or Pub 17 or my research software. But, doesn't MFJ disqualify the dependency unless only to get a refund? Aren't all other filing statuses OK?