JohnH

I'm pretending it hasn't changed. Still filing extensions before Apr 15, unless the client info fails to show up. A month is something, but not much.

Solid advice. Extensions are life savers and sanity checks, especially at this time of year and in these unusual circumstances.

Really.

Give them this video:

Rita, so sorry to hear of your loss. Praying for the grace and peace of God which passes all understanding for you and your family.

Imaginary conversation next week. CL: (Monday) "When do you think I'll get my $1,400?" ME: "Maybe Friday" CL: (Friday) "Hey, it's Friday and I didn't get my check!" ME: "Oh, sorry. Did you think I meant THIS Friday? I did't say WHICH Friday - we still have 40 of them to go in this year alone."

Don’t worry. As soon as they read the news or talk to their friends they will be calling YOU.

My crystal ball almost always flashes “4868” when there are any questions or potential issues.

Well, I completely agree with Rita, having qualified as an expert switch-picker when I was a young lad. (Except for that time I showed up with a rose bush stem and earned myself a second whipping for being a smart-a$$).

I've encountered two situations where the wife received the $600 in Jan but the husband hasn't received anything. Nobody has yet given me a 1444 of any kind.

Yes, an interesting predicament. I'm just laying out the scenario where it applies and telling them to let me know whether they want to file a Federal extension or "just go for it" as things are right now. One thing I'm not going to do is hold onto the returns waiting for IRS or Congress to extend the filing date. If the client want to wait, then an extension goes out immediately. Once their info is in my hands, I either want it out the door on the first pass or send in an extension. (Less stressful for me that way).

I know discussing upcoming legislation is often an exercise in futility, but here's an interesting take on how filing early this year MIGHT be problematic for some people. (If you don't mind clicking a link) It applies to those taxpayers fortunate enough to have experienced an INCREASE in income in 2020 over 2019. Just wondering if anyone else has run across anything along these lines? https://currently.att.yahoo.com/att/lose-1-400-stimulus-check-210600457.html?.tsrc=daily_mail&uh_test=1_11

If parents forego claiming the child/student under age 26 as a dependent, wouldn't there be a risk of not being able to cover the child on the parents' medical insurance?

I tell them the same thing I’ve always told them - “we’re filing an extension”. Doesn’t matter to me whether IRS extends the date or not. I’ll be filing some extensions this week.

Well, I can now confidently state that the Jan 15, 2021 date for the $600 per person second stimulus checks to be received is irrelevant. Today, Feb 4, a client called to let me know they received their check in the mail. This was a retiree, whose first stimulus payment (last year) was direct-deposited to their bank account. So now we know that there will likely be plenty of confusion over whether to claim the second stimulus payment on the 2020 tax return, especially for early filers.

When I skimmed over your post, I first thought $400 was what they wanted to pay. But then I thought, "sounds like $400 should be a reasonable fee for looking over that return (before declining)".

There really isn't any liability... until there is.

I never touch FBAR. Too much liability at stake. I document that I advised them of the filing requirement & penalties and leave it at that. If someone tried to insist that I file it, I would view that as a deal breaker.

It’s very hard for a client to comprehend our explanation when the result of understanding it will mean they have to pay out more money.

Yes, this is the issue with respect to whether to claim the Recovery Rebate Credit or not claim it in ambiguous situations. Will the IRS computers just adjust it, or will the returns just fall into a processing black hole? Whatever happens, any delay will be the preparer's fault in the mind of the client.

So this may mean the Jan 15, 2021 date is irrelevant at this point, I suppose.

Maybe this has been discussed somewhere? I'm trying to figure out what people who have not received their second Economic Impact Payment AND who are not required to file an income tax return are supposed to do in order to claim the $600 per person. Have received a couple of question on it and don't know how to respond. Has anyone seen the answer to this? I'm assuming maybe they file a return anyhow, but haven't seen any guidance on it.

It doesn’t give the amount. But I don’t have access to their account records, so it’s the clients job to look it up. No reason to discuss it any further with me until they’ve done their job.

For anyone who doesn't have the information, I'm going to send them this link and tell them to get back to me after they look it up. https://sa.www4.irs.gov/irfof-wmsp/notice I sent out my letter last week. It had two main points. 1) No in-person meetings; 2) Plan for extensions.

I'm OK with that. They know where I live, so I trust them to send me a new IP PIN in perpetuity if they wish. I doubt I'd ever opt out anyhow even when it becomes available. I always owe, so all I care about is that nobody uses dummy info to claim a refund in my name before I get around to filing. I tried to get one a few years back, using as a reason the loss (or possible theft) of my wife's passport while we were out of the country. But that excuse wouldn't fly. I was relieved to find out it's possible to opt in this year.