JohnH

Do tax preparers who give referral discounts send 1099 forms to their referring clients?

I don't attach anything to returns or amended returns not specifically required. But if you feel you must attach something, I'd recommend attaching the transcript. It's the only thing you know for sure since that's what's in their system. Besides, if they can't understand IT, then you have other problems.

So I was sitting in the stands yesterday watching my 9-year-old and 11-year-old grandsons play baseball. A batter hit the ball to the fence, it bounced off the top of the fence and landed out of play. My 6-year old grandson who was sitting to my right turned and informed me that on this field it was a home run, but if the ball had landed back on the playing field it would have been a "Ground-Fool Double". Just wanted anyone who wasn't aware of that terminology to get their rules straight.

I dont know who took it. I borrowed it from a an email I received whach contained lots of other odd pictures. This one just struck me as exceptionally humorous.

It's almost certainly photoshopped, but still good for a chuckle.

Don't know why I found this so amusing, but I just had to post it.

I think you handled it correctly, but IRS computers for some reason are not set up to handle this situation. They are looking to make a S/E tax adjustment any time there's an entry on Line 29 of the 1040 when a Schedule C is also attached. I'd tell the client to cash the check, and at the same time send IRS a letter explaining the Line 29 entry, with a copy of the W-2, highlighting the entry in Box 12a of the W-2. Then wait and see if they send a bill for the $168. If they never respond, I'd forget about it. I think it's quite likely that nothing will ever come of it.

Yes, you got it right. Jerry was always pretty good at painting the ring around the racoon's tail. (And I'll stick by that statement even if I never see the back of my head again.)

Marilyn: Sounds like you're headed for a divorce regardless of what they decide to do.

Congratulations. You're obviously very proud of him and you have every right to be. Best way to overcome a fear of flying is to realize that when you travel by air, the most dangeous part of the trip is the drive to and from the airport in your car.

I'll always remember the broker who called me up and asked if I could send them a letter stating that the client was self-employed. After getting the client's OK to talk with the broker, I called him back to say I couldn't write that type of letter. All I could say was that I had prepared tax returns based on the figures the client was providing me. He said that wasn't good enough, so I offered to get copies of the actual Schedule C's to him. He quickly replied, "Oh no, we don't want to see any actual numbers. We just need the assurances we're asking you for". He didn't get anything from me, and that conversation was a dead giveaway that something fishy was taking place.

Oh, I didn't think about the fact that you might show our responses to the client. If so, then be sure to show them this: If it becomes apparent that somebody might go to jail, your first responsibility is be sure it's the client.

Assume a worst-case scenario, which would be that you amend the prior-year returns, the bank is swayed by the numbers, and they make the loan. Fast forward a few years and the client defaults on the loan (maybe due to the financial strains of a divorce, for example). The bank is looking for someone to blame, and the only choices are the client, his wife, and you. Wonder how quickly the client and/or his wife will come to your defense, or will they throw you under the bus? If they want the return amended, or if they want to commit mortgage fraud in some other way, I'd let them find someone else to aid & abet their lies. You'll sleep better.

I take phone calls as they come in, unless I'm busy ona project that I don't need interrupted (which is rare). If they must leave a message, I return all phone calls the same day, or the next day at the latest. I try everything possible to migrate my clients over to email because it's infinitely more convenient for them and for me. I answer most emails within a few minutes, even if only to reply that I received their question and I'll get back to them as soon as I have a chance to check on it. I'll send email responses any time, as soon as I get the message (night, day, weekend, etc). It's amazing how patient clients will be insofar as actually getting answers is concerned, provided they are simply given a little reassurance. And most of them are very appreciative of the attention. I like it when they comment something to the effect that "I didn't expect a response that quickly." Oftentimes it's followed by "My previous accountant didn't do that." (I usually tell them "That's one of the reasons he's your previous accountant.")

I think you've figured out part of the reason for assigning a "personal representative". Think of the word "veneer". Just like your "personal banker", it's someone who runs interference for management, slows down the process while giving the appearance of being responsive, and forces customers to seek out their own answers rather than bother the Customer Service department with these pesky questions. After all, most Customer Service departments don't have time to waste on the non-productive tasks of actually assisting customers or answering questions - they're too busy upselling.

I did that this year and managed to get under 100. But next year is a bigger challenge. Unless I can get under 10, I'll have to start eflinging. Think I can select 9 who will accept a 1,000 percent increase? (If I managed to pull this off, I'd call it the Gideon principle on steroids)

I'm going to study retiring. If I pass the course, that should take care of my CE for many years to come.

Weird, isn't it? But that's one approach the NCDR recommended. I decided to also hope they cut my tax rate in half and that I'd get a big refund, so that's how I prepared my own return. Since the cut didn't happen, should I amend? Or just keep hoping?

Only a geek would fall in love with their technology. ( but I'm equally in love with my iPad and iPhone...)

Unlike many in the media and the courts, I acknowledge my biases and freely admit to being hostile toward certain ideologies. As for evidence to support my accusation, exhibit 1 would be the Nedow case. It's hard to find a more convoluted decision, clearly motivated by hostility toward religion.

The housing allowance is being challenged? I thought the Rick Warren case pretty much cleared up the confusion and actually reaffirmed it. But if the ninth circuit persists in this silliness, I wonder if they will try to invalidate the benefit for military officers as well. Given their political leanings, it wouldn't surprise me if their hostility extends beyond religion to the military as well.

KC: I'm shocked at this demeaning example. I think it's in poor taste to show this level of disrespect for monkeys!

I didn't understand the math on e-how. 10 x $50 is $500, and 10 x $100 is $1,000. So where did they get their staement that the penalties could be in the "thousands" of dollars?

I think we've gotten hung up on the "opt back in" phraseology, when in fact that isn't what's taking place. She has opted out with respect to her clergy income, but she has no ability to opt out with respect to her non-clergy income. There simply isn't a choice here. So as Mike pointed out, if she performs services in a second job or a different job, she automatically receives SocSec income and the accompanying credits. She just can't have her church change the way it pays her - I think that clearly crosses the line Jainen is referring to. Whether it's right or wrong to work a job which qualifies her for SocSec benefits ( or whether she accepts them even if forced to pay for them) since she initially objected to SocSec benefits on theological principle, I suppose she will just have to reconcile that issue between herself and her Boss at the appropriate time.

I agree - no sense wasting time when they won't listen. There was a time long ago when I felt bad for people who consistently underpaid. But I finally got tired of commiserating with them - thicker skin, I guess. Now I just tell them they'll probably have the same problem next year if they don't do something about their withholding. When they say they can't stand a reduction in their net check, I just tell them to plan to pay again next year and I move on to something more productive. It's useless trying to teach a pig to sing - all you get for your efforts is bad music and a frustrated pig.