JohnH

As long as you have certified mail documentation for paper filed extensions, you're OK. Without that documentation, you may have a problem. Thanks to the new penalty situation, I mail all S-corp extensions and any C-corps expected to report a profit via Certified Mail with Return Receipt.

There's nothing in his contract that says he can't work a part-time second job, is there? http://www.whitehouse.gov/sites/default/files/president-obama-2010-complete-return.pdf Did you notice the K-1 income from the Freeman Trust Pin Money Fund? $12K annually for the first lady, dating back to the first Bush administration. That's an interesting story in its own right. http://en.wikipedia.org/wiki/Henry_G._Freeman_Jr._Pin_Money_Fund

In any event, $1,000 on the table is chump change with this client. Retainer is likely to be all you'd get, and once you start withholding additional work because he hasn't replenished the retainer, the fun would begin. You'd be in a hassle with him over his accusations of incomplete work and him trying to use his "uncooperative accountant" as another ploy to try and keep the IRS at bay. Worse yet, he will use some of the retainer you should have charged him to hire that lawyer you should have sent him to in the first place, and then you'll have a professional aggravator staying in your face. Anyone who would decide to take this guy on had better get the full amount up front and then start work once you know the check didn't bounce. In the highly unlikely event that he turns out to be cooperative, it's easy enough to give him a refund when the work is completed (probably sometime next year) - he can apply it to the taxes he still owes at that time.

Offer the girlfriend free use of the brick. Tell her she needs to use it either on him or on herself - her choice. If she's wise, she'll use it on herself.

Thanks to Margaret for asking the question, and thanks Eric for setting up the TEOTE button. I had been asking myself all weekend how we would actually make this happen, so I appreciate your taking the bull by the horns & making it so easy. My donation's in, and I encourage everyone else to participate. Let's show Eric how much he means to us.

I agree with Jack, but I'm a bit farther to the negative. Once 2001-2003 are cleared up, 2004-2009 won't be far behind. The client has already demonstrated that he's a total flake, so I don't think even $10,000 will be enough of a retainer. He's probably going to resist everything you do even though it will be in his interest, and his constant response will be "Well, why can't you just settle this so I can move on?" My only response to him would be that he needs a good tax lawyer, and he needs one right now.

I tried looking up local restaurants, but didn't come up with many suggestions on my first try. For example, there's The Governor's Restaurant in Presque Isle, Grammy's Country Inn in Houlton, the Village Restaurant in Fort Fairfield, for example, but each only has one recommendation. The best local choice might easliy be missing on DineSite. http://dinesite.com/city/city-4178/ Eric, I think you need to let us know where you enjoy eating - especially where you'd choose to go for a special occasion such as an anniversary, birthday, entertaining out of town family or clients, etc. WHere would you take us if all the members of this group showed up one weekend and said "Let's go to dinner!" ?

Catherine: Dinner for Eric on us - that's a fantastic idea!

Tom: You could do that with Google Wave (I think).

Seems to me that every time someone mentions a technological feature that I don't presently use, sooner or later there comes a time when it comes in handy. IN some cases it's just nice to have, and other times I find it morphing into something essential. So I'd say having a "Chat" feature would be well worth exploring. If we find it useful, we can refine how & when it's used. If nobody finds it helpful, then Eric will know from the non-use that it isn't a practical tool here. Either way, there's no downside to trying it. (By the way, I'm going to hit the "Donations" button as soon as I finish this post. Hope we all are keeping in mind that this is a self-supported forum).

Yes, so far much of the conversation seems to be dominated by a few folks who are unhappy or have a gripe to air about a feww limited weaknesses, but I assume that once they get some things off their chest it will settle down. Much like what happened when Eric first started up this forum. I do like the idea of a forum which is independent of the company - that doesn't guarantee fair and unbiased discussion, but it has its advantages. It certainly has worked extremely well here.

As my Spanish teacher in Mexico stated several years ago: "A language is simply the dialect spoken by the group with the strongest army."

If you're thinking about Drake (which I'm always doing as a backup plan), here's a new group that might be of interest. http://groups.google.com/group/draketax

Apparently THEIR economy isn't in stagnation...

I missed a couple-> not because I didn't know them, but my memory failed me. One was the draft cards, which is really odd because I served in the military from 1966-1970. For a little fun, here's a cute rendition of #4: http://www.youtube.com/watch?v=oUMwu_gXK7Q

Aw go ahead & be a smart aleck. We're not under any deadlines right now so there's time for a little levity. And I confess that a few weeks ago I wouldn't have been so up on my parts of speech, but recently a Bible study I've been working with has been focusing on deconstructing sentences for clarity. We even started doing some diagramming, which takes me way back in time.

Well, actually I thought "is" would be a very proper verb in that sentence. Maybe I should have changed the gerund to "authoring"....? But I'm surprised nobody called me on the typo - using an improper article.

Using a word such as "rapacious" is a obfuscacious manner of writing and not at all elucidative.

He should speak to the two farmers fantasizing about winning the lottery. Farmer #1 asked farmer #2 what he would do if he won $10 Million. Farmer #2 replied, "Oh, it wouldn't change me. I'd probably just keep farming 'till I lost it all."

Can you combine the two offers and get 20% off?

I still think there's going to be some sort of opt-out provision, although I haven't seen anything on it yet.

You don't have to do it this upcoming year if you don't want to, provided you prepare 100 or less tax returns. The number drops to 10 returns for 2012 so that's only a one-year reprieve. I'm already working on winnowing the number down to well under 100 for next year. I want to stay well under 100 so I can accept a few new clients if they're the right ones. Then if I can get the last 10 clients to absorb a 1,000% rate increase in 2012, I'll be able to keep paper filing indefinitely. (We're not dinosaurs, but we do qualify as Neandertals)

I got my renewal discount offer yesterday. I did what I always do - I deleted it.

Jack: I remember your having posted something about this a few weeks back. It is a tragic situation, but good to know your daughter is safe now. It's difficult to imagine what you have been through and what bert73 is dealing with as well. As for the interest and penalties, I consider them peanuts and all my clients agree when I explain it to them. I say all my clients agree, because by default anyone who doesn't agree becomes somebody else's client (and somebody else's last-minute headache). Interest is 8% per year and FTP penalty is 1/2 of 1% per month. That's a total of 1.2% per month on the unpaid balance, or 14% APR in total. (I consider the FTP penalty to be no different than interest, since neither is tax deductible). Not advisable to borrow money at these rates on a regular basis, but when the ox is in the ditch you have to react to the reality of the current situation. Now if they want to be SURE they don't pay any penalty & interest, they can vastly overpay the estimate and get a refund when the return is filed. On the other hand, if they want to hold onto the money for a month or so, they'll pay $12 per month per thousand of tax owed. As I said, peanuts in the total scheme of things, especially for someone who already isn't paying much attention to detail. The extension accomplishes avoidance of the 5% per month FTF penalty, which really is the main thing. IRS is very clever by splitting the assessment into penalty and interest. The word "penalty" is loaded with negative meaning, so they spook taxpayers into worrying about it, when in fact it's just additional interest. Tax preparers should not be so readily spooked.

I say #2 is by far the easiest to resolve. Pick a date and say everything that comes in after that date automatically goes on extension. My date is usually Mar 20 (although this year I moved it to Mar 8 for personal reasons). Stick to this rule without exception, no matter how important the client or how urgent THEY think their situation might be. You're the expert and therefore the one who needs to be making that decision, not them. By filing the extensions as soon as the returns come in, you eliminate Apr 15 as a date having any significance. Then as you approach Apr 15, you can double back and work on some of those returns you aleady have on extension and maybe get a few of them out by Apr 15. This frees you up to concentrate on special situations and to handle any true emergencies (as defined by you). It also makes Apr 15 just another work day, rather than some silly mad dash to the finish. Listening to the way some preparers describe Apr 14-15 reminds me of the wacky scenes in the comedy film "It's A Mad Mad World". Unless you enjoy marathons, exhaustion and mistakes, you'll find this a better way to operate. Most clients really are not impressed by a tired, harried, cranky tax preparer telling them how foolish they are to wait until the last minute. They generally resent being reminded of their own lack of attention & preparedness and will appreciate being told this can be handled cooly and professionally. If they don't appreciate your efforts to make up for their procrastinating ways and they choose instead to sit at HRB for a few hours just in order to get SOMETHING cranked out by Apr 15, you don't need them as a client.