Lion EA

It would be fun to see the return the CPA prepared, but not worth more stress! Maybe they filed MFS to give him fewer assets and make him insolvent or partially insolvent or maybe they didn't give the CPA their 1099-C or maybe the CPA prepared the return exactly as you had but charged them a lot more. (By the way, I too would demand upfront payment if I were to take him back, as you did all that work last year without pay.) But keep it for your fantasies, and move on with your nice clients. You can vent here. Write your Dear Client letter here.

I had a client that bought a boat inside a Maryland LLC that some company set up especially for people who already had two homes and could not deduct mortgage interest; owners were LLC members of the LLC that owned "their" property. He was always looking for the latest "deal." I did NOT give him my contact information when I went out on my own, was happy to not have to prepare his returns any longer. (I left HRB before we would've been filing for the year he "bought" the boat.)

My choice was and has been and still is 1., but with less arguing and more closing the door. (I mentioned 2., in case she wanted them back.) And, I thought from her first post that she had filled out the 982, but her subsequent post said she had spent her time asking the IRS if his forgiveness was taxable, something they would not know absent 982 -- that's why I asked her what was the result from her 982 as opposed to the result from the IRS, which as we all know stands a much smaller chance of being correct than Tabby. I never criticized Tabby's work! In fact, I wanted to learn her results even though her client left, as has been mentioned by others, to see what that other CPA did compared to Tabby's conclusions and to see if her client might be returning with his tail between his legs because the CPA filed 982 with the same results as Tabby. Now, her clients' words show that not to be the case! Tell him Good Bye and hang up.

I have a self-employed psychiatrist client. His 1099s come with every possible box used. Dr. is in his title, so it would seem the preparers, especially Medicare, would know what box to use!

Mine was a couple of family friends, mother and daughter, who I was preparing free and had wanted to postpone until after tax season. They knew they were getting big refunds (EIC) and didn't want to wait. I realized they made perfect tests for my first two e-files; couldn't get too upset since they weren't paying anything! All went well; although, I remember waiting anxiously until the acks arrived hours later (next working day after feds were acked for states).

Did he have a "home" while in school, a temporary absence, not in state x?

But, what was the result when you filled out Form 982? Was his debt all taxable or partially or all excluded? He had credit card debt and student loan debt and what else as liabilities? And, no house; what about a car or savings account or any assets at all? Maybe they were insolvent or partially insolvent....

"by itself"

Snope's Urban Legends suggests calling 911: http://www.snopes.com/crime/warnings/fakecop.asp

Per TTB: If the return was already filed, send Form 8379 by itself to the IRS center for the place the injured spouse lived when the return was filed. Attach a copy of all Forms W-2 and W-2G for both spouses, and any Forms 1099 showing federal income tax withholding. I did this once, and my client received her refund.

EIC is probably extra, right?

Skunks. Don't ask!

If there's an amount of money that makes this client worthwhile for you, then 2. If it's final that you don't want him, then instead of 1. call him to tell him that you have a full schedule of clients and no longer have time to take him on as a client, something like that. Be firm. Don't argue. Thank him for his business over the years and wish him well with his new preparer and hang up!

Can't charge for e-filing. And, both TT and HRB do the free simple federal return thing (1040EZ only?) then charge for the state and more complex federal returns. Dueling ads!

I hate it when my equipment conspires against me. Didn't I pay for its loyalty?

Have them send you their materials.

That TT commercial has its own misleading direction. While trying to convince viewers that HRB preparers might have "no experience necessary" they fail to point out that TT preparers are themselves not experienced preparers! (Yes, TT users can ask an "expert," but HRB preparers have their own Hotline.)

I started with H&R Block. Was required to take a 66 hour course and pass a test with 85% or better to be hired, then was required to take 24 credits (30?) each year to keep my certification. With HRB training, I passed all four parts to earn my EA in one sitting. I still refer to my HRB textbooks. By the way, we didn't touch a computer until after we were hired and they were training us; used a computer in some of the advanced classes, too. There were some beginners who were never going to get better, but there were some outstanding and intelligent preparers who chose to work only during the winters (other jobs or retired or...). I had a couple of great mentors at Block.

I think it is now a database based program, but I don't use ATX so don't care!

I was trying to figure out what they meant by federal wages!

EmployEE FICA is already deducted as Wages. EmployER FICA is a deduction; I usually group it with Payroll Taxes. Federal Taxes are seldom a tax deduction on any type of return; they were simply the result of the prior year federal return. Health and Dental Insurance paid for regular employees can be deductions; paid for the greater than 2% shareholder/employee they go on the W-2 as part of his compensation (he'll deduct them on his 1040). Life Insurance can be a deduction if paid for regular employees, but there's an IRS chart to look up the amount to put on W-2. If you're talking about keyman insurance or insurance for shareholder/employees, it's out of my pay grade. None of my S-corps have any type of life insurance, so I haven't looked this up. Make use of your Tax Book or other research materials now and consider an S-corp course after tax season.

My daughter came by this weekend (Penguin Plunge on Saturday that hubby attended to support her) and was at church Sunday, so I took her out to lunch while hubby had to go into the City. A nice restaurant, and I had sangria. Came home expecting to nap for an hour, but didn't sleep so watched a bit of TV. Hubby brought home Chinese food for dinner. Still managed to complete an S-corp before finally getting to bed before dawn. Hubby's out stocking up on dark chocolate to get me through the rest of tax season!

I thought I read an e-news alert about Tuesday when all forms could b filed that they are ready, but I can't find where I read it now.

Yes, extend until they meet the PP test. Then, for 2012, you'll have a ratio of the 2012 months (2?) to multiply times foreign income, foreign housing, etc. (For 2013, it sounds like they will be at 100% .)

Mold isn't sudden as required of a casualty. And even if you try it as medical, it can only be the excess over what increases the value of the home; and I would think all of what they are doing increases the value of the home from unsalable/uninsurable to useable. It adds to their cost basis.