Lion EA

Client no longer works for that employer, wants nothing to do with that former employer, and did not get a corrected W-2. So, the W-2 shows MA-sourced income when the client never worked in or resided in MA. Company did stop it when client complained after a paycheck or two but did not reverse it, so it's maybe 1/12 of her total income. Her work location was always in CT for that employer after she moved back to CT and went to work for them. It's low enough that I can get all her w/h back even though its' still showing the W-2 MA amount on the non-resident MA return, so I'm happy for now. I'll warn her about the letter. Thanks for the heads up. She did call last night to say she found the box with her 2011-2012 financial documents, was in her bedroom and not in the stacks of boxes in the basement after her move, some very damp. I'll tell her to keep everything from that time frame. I think she found the offer letter that includes when and where she worked.

Thank you. You may hear from me tonight. I think it's looking OK now. (She also has a MA W-2 which was in error. She worked only in CT while residing in CT, but one job w/h for MA for awhile until they got it stopped but did not reverse their error. I don't like the way the MA looks/flows. But, I have all her withholding coming back, so I think it's good enough for this late in the season.)

Used The Finder and poked around the rest of the Ohio Dept. of Tax site. That helps, I think!

Thank you very much. So, the Blue Ash on her W-2 is probably where she works? Or, resides? When the return asks me for her county and school district, do they mean where she works or where she resides?

Have an old client who moved back to CT during 2012 from Ohio. Her things are still boxed up in her mother's house as they're trying to sell it (mother passed away) so hasn't found her 2011 return. I need to know her Ohio County name and Public School District code. Her address there was 9212 Deercross Pkwy Blue Ash, OH 45236 She thinks she may have been in Montgomery County. She also said she paid Blue Ash taxes quarterly and spoke with them before she left in June 2012 and was told she was paid through the end of June. Her W-2 has locality name as OH BLUEA. Anything else I need to know? Is the OH web site helpful? My software does have a locality code for Blue Ash, but am not sure about finding the county &/or the school district without knowing the county &/or school district. Thank you for any direction you can give me.

Give your client this site: http://www.irs.gov/uac/Identity-Protection

Check for any stray space or character in the field by deleting the field and typing in the SSN fresh. But, if you rolled this return forward from 2012 when it e-filed just fine, I too would suspect identity theft. I'd try one more e-file after retyping the number and then print it out for mailing.

She had the same amount going to their joint checking account each pay. It was a savings or investment account that was getting a lot less during those six months and was finally noticed by her husband when he caught up reading the statements.

Michael: lol

For my cause, no charge. For continuing clients, I have enough built in to their fees that I feel comfortable taking those phone calls, answering those questions, responding to the IRS up to a point and without extensive calculations. If it's going to go over the time in which I feel comfortable, then I charge, but at a bit of a lower rate than I use for new clients, separate engagements like an audit, etc. I often offer to put it on next year's bill as much is done over the phone. I don't want then to feel nickel and dimed. But, for a large chunk of time or expertise, I bill at that time. (Sometimes, I have clients write out a check contributing to Appalachia Service Project if it's during that April through July period when I'm spreading the word.)

But they could've done something more productive with $71,000 than Uncle Sam's lack of interest !! She's getting a great return on one of her K-1s, for instance, and their dividends go up every year. My point was we work hard to keep them out of penalties. We do aim to keep them close on one side or the other of zero (I have other clients that never want to write checks in April, so for their personal reasons and not necessarily pure financial reasons -- I make sure my time is reflected in their fees! -- we keep them on the refund side all the time). A $71,000 refund would be a gross miscalculation on my part (and a $71,000 balance due much worse), but luckily they realized even before I told them that they'd failed to follow my instructions. For this couple, I don't spend too much time getting them closer than about a $9,999 swing on one side or the other of zero, because as I mentioned their income and bonuses fluctuate and I don't get their full picture until after 15 September K-1s come out. She makes more money, but he's the better record keeper. Our current $20,000 adjustment for 2013 will keep penalties away but still leave them a refund or balance due depending on their December bonuses which get underwithheld at 28%.

My software doesn't have a requirement; I don't change the spreadsheet. ProSystem fx grabs the columns you tell it to get. Love it. And really want to have time to work with the Scan program before next tax season. It'll take the paper G/L reports and based on the broker, turn them into spreadsheets.

She was always very underwithheld, so with an extra $80,000 coming in on top of her usual investment income on top of her six figure salary on top of her husband's six figure salary, I told her how much extra to withhold late in 2011 and what to change January 2012. She did not notice at all, but her husband finally noticed mid-year that their savings was not increasing as in the past (her direct deposits went to three different accounts plus retirement accounts), so she went back to her old withholding and not what I had suggested. Now, they will be at least $20,000 short for 2013 so are increasing husband's withholding this time and he's more likely to listen to me in January 2014 also. It was just so odd seeing a huge refund. They're in the 35% bracket, so to cover for their investments and her husband's underwithholding of only 20%, 47% was needed for a short-term fix. Now it's 39.6% plus 9% plus enough to cover for tax rate plus 3.8% on investments and one or both of them making up for withholding only 20% since mid-year. Both get bonuses, so income fluctuates. A 1% swing in their income or tax law changes makes a big dollar difference. We work hard to keep them out of penalties -- and usually not let Uncle Sam have anything extra as he doesn't pay interest -- but since they wait on K-1s, I didn't see them earlier in the year to know they hadn't followed my instructions.

I tell my clients about everything all the time. If insurance is expensive to them, then lawyers and court will be more so. And, in my 66 years, I've seen only one change to custody that wasn't agreed to by the other party. I've lived and worked in only five states, but their courts have been reluctant to change divorce agreements when one party protests. So, if the custodial parent is responsible for the child's insurance but doesn't get the credit, I'm going to hear complaints now when we discuss it and again next year when we prepare their returns. My point was that we get to be the bearer of the bad news that Congress created. I wish the lawyers that worked out the original agreements would jump in now to help with "planning."

If their divorce was already final, there is no planning I can do with my client that can get that credit back for them without them risking contempt of court when they don't deliver an 8332 as agreed. And, all their friends will be talking about that new credit they got....

I just had a situation totally the opposite, for a change. Clients are getting refunds of $71,000 and $2,000. Never had that before. Late in 2011, spouse increased her withholding to cover $80,000 in income from various investments inherited a few years ago. She forgot to decrease her withholding in 2012, so was withheld at 47% for the whole year. Of course, the IRS is not issuing refunds until the shutdown ends. My next up is an investor with no day job so no withholding. She just told me she thought I made her estimated tax payments! Her investments did VERY well, so she will owe a bundle. Maybe I should buy a bottle of vodka.

I think I'll add a line item on invoices for Explaining the Dumb Things Congress Does.

I still have one broker who won't provide spreadsheets. For other holdouts, I told my clients the difference in their prices if I type in all their transactions vs. receiving a spreadsheet from their brokers. That got spreadsheets emailed to me that same day in most cases! I may finally set up Scan & Flow so it can create spreadsheets from the hardcopies for next season.

In today's mail: ATX MAX Only $1,099. You save $150. LIMITED TIME OFFER! Purchase by October 31, 2013 to receive this special price...Defer your payment! Purchase by Oct. 31, 2013 and pay only sales tax and processing. You have until Dec. 11, 2013 to pay the balance. It's a win-win! I haven't used ATX in years. Don't know what mailing list they found me on.

Paying no premiums because the child lives with you is not the same as thinking you will get the new credit because the child lives with you and discovering that your ex will get the credit instead because you signed an 8332 for the year (or for all years or for all alternating years). How many custodial parents will not know this until they go to file their tax returns the following year?! Another time we will have to explain the bad news to them.

Having been through a divorce and then a custody battle (that was really about child support; he didn't want his son!), I do not believe in divorce. I do believe in murder.

We don't know that yet. But we do know that who can claim a credit will change with the dependency change. Similar to education credits. A real bummer for divorces that already took place under former tax laws!

My line is that -- It's not logical; it's the law!

I'm putting on my To-Do List for after the 15th to compile that list of politicians so I can do like Michael does! Lots of AMT with my clients. Maybe I can upload my explanation to YouTube and just give clients the link when they ask what's this AMT and why do I have to pay it?!

Yeah, I too love my clients who go over their return, with me or later, and ask questions throughout the year. Especially those that ask questions BEFORE they make a financial move. However, I hate questions in April and October! Now those planning questions -- I can make an appointment or telephone appointment to discuss next month. But, those niggling little questions about that one specific item on their return...it sometimes takes more time to explain than I have right now.