JohnH

This isn't authoritative, but I did run across this info from NAC. Scroll down to the paragraph under "Reimbursement Policy" http://www.nacrescue.org/programs/foster-parent-program/guidlines/

Some tax seasons not everything goes as a planned. If I were in your situation I'd tell every one of them that the LAST thing they want is a tired, stressed out, sleep deprived person preparing their returns. THEIR once-a-year tasks just too important for that type of treatment. Sounds like you need to do a little triage. Even getting extensions in place takes a little time. If you devote some quality time to getting extensions in now on everything you have in house, coupled with an insistence that anything yet to come in automatically goes on extension, you will then be free to complete whichever of the returns most need to be filed by Apr 18. The more relaxed state of mind will free you from the pressures that build up between now and the filing date, and will make you more efficient overall. you may even get more work done than you would have completed just working in reactive mode. IMO, the objective is to do everything you can to insure that Apr 15 ( or 18) is just another workday around your office. I've followed this pattern for years, and I measure the success of my planning based on whether I'm able to come into the office mid-morning on the 15th, review all my extensions, make a few phone calls to verify that people paid their extension payments, and take my wife out to dinner that evening. Incidentally, that also leaves me free to help out some panicky late comer who had a death in THEIR family or for some other reason hadn't gotten around to getting their return done. (putting them on extension, of course)

I did have one last year who made a contribution to an IRA before Apr 15 and then immediately converted it to a Roth. Don't remember the details, but there was a reason for doing it that way at the time. Maybe because they got the IRA deduction for 2009, which they needed due to it being a high income year, but income was expected to be much lower in 2010 I think. Guess I'll be seeing it all again in the next few days.

Isn't it great how people let their financial advisors talk them into this stuff and then want us to explain it to them because neither they nor the advisor have a clue about what's happening with the "investment"? (Well, the advisor does know enough to understand that it pays a generous commission, but that isn't going to enter the conversation. I always mention that to the client and suggest that they make him earn it.)

The safest route would be two separate payments. Then if their return is ready before June 15, you can have them reduce the 2nd est tax payment by the amount of the refund on the 2010 return. It's only 2 more months, and if they're filing an extension they're probably not nearly as concerned about all this as you are anyhow. Best to have them overpaid/paid ahead in the short run rather than trying to explain why they incurred an estimated tax penalty next year, because at that time it will be all your fault as far as they are concerned.

Thanks KC. Just added it to my iPhone as well. This will come in handy. Just an added note - as a long-time Blackberry devotee, I hesitated getting an iPhone for way too long. After only a week with the iPhone, I can't imagine going back to Blackberry as things currently stand.

Have you checked your printer cable and made sure that all connections are tight?

I still insist that filling out an extension when you get the info solves the problem, especially after mid-March. That sets the expectation - we may get your return prepared by Apr 15 and then again we may not. Either way, no need to fret about it.

How about: "Actually, I've been working on nothing BUT your return for the past 2 weeks and still don't have it finished. Wait until you see my bill!"

Chances are GA will want their pound of flesh as well. If so, NC will allow a credit against the NC tax liability, limited to th lesser of the GA tax or the proportional NC tax on the gain. You us schedule TC to do the math, and attach a copy of the GA return to the NC return to support the entries on the TC.

Terry - there are states which require mfs when one spouse is a resident ndthe other is a non-resident or a part year resident. Until a few years go, SC required this treatment by NC residents when one spouse worked in SC and the other did not. But as you say, NC has a fairly straightforward way of handling this situation.

Taxbilly: The NC return piggybacks off the Federal return. They will retain their MFJ status on the NC return. There's a place in the "Data" sheet of the NC FOdm D-400 to indicate residency status - that's where you tell them he's a part-year resident and she's a full-year resident. There's an income allocation worksheet you can click through to when the NC return is being fillet out (not a separate shedule - you bunny hop to it from Line 54 on the back of the NC Retur. Once you work through the allocations of income you'll see how it all fits together. If there happens to be any taxable SocSec income on the Federal, it will be wiped out on the NC return. Remember that NC exempts the first $2,000 of private retirement benfits (more for Federal retirememt benefits and certain other ones). I don't know if that allocates for a Part-Year resident or not.

If I were president, I'd change presidents. And although I'm not president, my answer is still the same. Hopefully that task will be accomplished in about 20 months. :)

Your sub-title also reminded me of one of my favorite quotes. Many years after Waterloo, the Duke of Wellington was attending a diiplomatic function in Vienna. As he entered the room, the French officers all turned their backs to him to express their contempt. The hostess offered an apology for their rude behavior, to which Wellington replied "I have seen their backs before, madam!"

True, but the paperwork for their designation should always contain wording to the effect that "This amount shall remain in effect for all future years until changed or altered." Lots of tax sins of omission can be covered by that little statement...

Agreed, provided the responsibilty to remove the piece was understood up front. I got the impression from the OP that the rules were arbitrarily changed by the university in the middle of the game. As I re-read it, this may have been an erroneous assumption on my part.

First time I'd seen the term used this way, but it makes a lot of sense.

Wonder how likely it will be that the university ever gets cooperation from another artist once word gets out about the shabby way they handled this situation.

I knew it all along, and now there's proof! Old Jack and Bees have been stringing us along for years, posting these outrageous personal attacks just to show everybody else how NOT to carry on a conversation on a professional forum. Now it's confirmed. So guys, it's time to 'fess up. Who's been playing Dan Ackroyd and which one has been imitating Jane Curtin all these years? http://www.youtube.com/watch?v=Y7S_XWuKpHc

I get a few inquiries about this, and I also tell them that if they simply must do this with their retirment funds, they should look for a custodian who specializes in this type of activity. The name is often a clue - the most honest name would be "Landmine Investment Advisors", or something to than effect.

Tell the client that the "red flag" bull has already left the barn. The 1120s with no officer salary and significant net prrofit is all the red flag they need. If he compounds the problem by taking no corrective action the red flag continues to wave. As others have wisely advised, by getting into compliance he will likely avoid any negative consequences of the existing red flag, but if he hunkers down and does nothing, the bull will eventually charge. And you both might get gored.

Good extension policy, but I like to take it a step further. I give them a rough estimate but I make sure they know it might be inaccurate for a number of reasons. Even if they pay when the extension is filed, that's no guarantee that they won't owe more when the return is completed. And I won't be responsible for any FTP penalty or interest on the unpaid amount. As long as that's understood up front, I will accept their info and file the extension. Over the years I've had one or two who griped when they owed more and had to pay some small P&I, but nobody ever asked me to cover it. (Wouldn't do them any good if they did ask anyhow). I also automatically file extensions on everything as it comes in after my cutoff date. That takes Apr 15 off the table completely and we don't have to do any looping back when Apr 15 begins to loom on the horizon. For me, making the extension decision up front makes it a lot easier to manage the workload as the filing date approaches. I think it enables me to complete more returns prior to Apr 15, but that may just be a self-serving statement. Hope you're OK, jainen.

Having a pretty smooth season here ( in spite of the fact I was in India the first two weeks of Feb) I came back with even more of an attitude that nothing much is going to bother me. We have it so good in this country that 90% of our problems and silly aggravations stem from our just having the luxury of too many options in life. So I started filing extensions on anything coming in after March 10 this year Surprised a couple of folks since I usually start extensions around the 20th, but so far nobody has chosen to take their stuff somewhere else. But if they do, then it's with my blessing.

Now I'm really confused. Every time I raise an objection to electronic filing and/or paying, I'm assured repeatedly on this forum and others that doing things electronically completely eliminates the probability of mistakes. As long as we do it right on our end, there won't be problems. Im SHOCKED at this turn of events...

But try taking 45 days to pay the tax due on your tax return and see how patient they are.