JohnH

Couldn't say this when I started the topic, but now I can. I just returned from the Post Office - mailed my last few extensions (including my own). Nothing waiting to be picked up by clients. And I just burned a backup CD and placed it in my car, plus duplicates on 2 flash drives. I'm officially done.

I was wondering what happened to that client...

How about an "I'm Done" topic? No cheating - you can only check in if all returns are finished & picked up, all extensions filed, and all e-files completed, transmitted, & acknowledged (or however that e-file stuff works).

Pacun: I haven't seen anything specific on the counties or states. Usually when this type of thing happens they make an initial announcement and then follow up with specifics. There aren't any specifics on the web site this morning.

I never include the 1040-V and have never heard a word back about it.

Assuming your client: 1)does not work there any longer & doesn't intend to ever work there again, or 2) if he still works there is prepared to get fired, here's what I believe you should do: 1) Forget the 4852 - it isn't relevant 2) Prepare the 4137 & strike through the wording on line 1 - enter "Wages" on the dotted lines. The 4137 will calculate the employee portion of the SocSec/FICA tax and add it to his liability, but will omit the employer portion. 3) Prepare an SS-8 with employee name & SS# and all employer info. I prefer to have the client fill in the actual answers to the questions in his own words, but that's just me. (The main determinant is what the employee understood his employment situation to be, so I think it's important that he be able to explain it in his own words. I don't want to be accused of misrepresenting the situation if it's questioned). 4) Mark one copy of the SS-8 as "For Information Purposes Only" and attach to the return. 5) Mail the original of the SS-8 to the IRS office where it is required to be filed. The above will save your client about $800 (the employer's portion of the SocSec/FICA tax) minus whatever you charge him for doing the extra paperwork. The IRS will probably not pursue it, but if they do the employer may get very upset with your client. (That's the reason for my opening comments). The other possibility is that the IRS will pursue it and disagree with your client, billing him the $800 plus interest a year or two down the road. I think this is the least likely outcome, but you should warn the client that it could happen and that you won't be responsible for the P&I if that should come to pass. I've done a few of these and never heard another word about them, but one never knows what the future holds.

I've never had much success with French Fried tadpoles: 1) They wiggle around in the batter so much that it all falls off before I can drop them in the hot oil; 2) I can never figure out what wine goes best with them. I agree about not bathing in the water - have you heard what those tadpoles DO in that water?

You can leave the tadpoles in the hot tub for now. Feed them regularly to fatten them up, then scoop them out with a fish net & make a nice tadpole stew. Enjoy it while you are relaxing in the hot tub.

What's all this talk about a "Telephone Excise Tax Refund"? Did I miss something important this tax season?

you might be able to put it off until Apr 19 if you live in the area affected by the Apr 16 storms. Of course, if you are affected you probably aren't reading this since you're either snowbound or without power. http://www.irs.gov/newsroom/article/0,,id=169523,00.html

--> OK - does this guy think that I went "Ohhhhh, I see. Their stuff will now go in the stack for people whose returns need to come out with refunds. Also, note to self: Don't charge them; after all, they could have done it themselves. <--- I like that. I think in the future if someone says they don't want to pay I'll tell them I'll just put their return into the "refund" stack. As for how to charge those who could have done the return themselves, I think you should tell them you decided to forego being a brain surgeon and chose to go into tax preparation. So since you "couild have" been a brain surgeon, you'll charge them brain surgeon rates for preparing their return.

If you obtain an extension, they will avoid the 5% per month Failure To File penalty. However, the client will owe interest on the unpaid balance at about 9% APR and a Failure to Pay penalty of .5% per month, which works out to about 1.25% per month (rounded) on the unpaid balance. I don't believe there would be an estimated tax penalty if the balance due is under $1,000.

Marge: I agree with Cathy. One never knows what unknowns are lurking out there. Even if you know there are refunds due on the return, one never knows what might turn up if the client is audited, and if the IRS subsequently finds tax due the return will be considered late-filed even if there was a refund showing on the original filing. A precautionary extension just removes all those potential headaches.

I want to offer my thanks as well to your taking the time to set up this community. That was very thoughtful of you. I'll gladly help out with the cost. Personally I'd prefer to help pay for it rather than put up with any advertising, no matter how unobtrusive.