JohnH

What frequently drives me nuts about the pubs is their choice of examples to illustrate a point. It's as though a group sits around and tries to think up the most exotic or unusual set of circumstances to explain how the law applies in a given situation. Meanwhile, an example intended to clarify a high-probability set of circumstances is nowhere to be found.

WOW! Close call there, Jack. Glad you're safe.

These days you need to win the lottery to afford a family trip to Disneyland...

I do have to say the renewal process is very easy. I liked the ability to exclude myself from the public list, although I question how comprehensive the exclusion may be.

Here is where it all began. https://www.irs.gov/pub/irs-news/ir-99-72.pdf Wikipedia says IRS issued 1 million PTIN's in the first year. I assume the numbers were issued on a first come/first served basis.

Yes, I think Joel just nailed the title.

My original CAF# (1982) was that same nine-digit format, followed by an R. Due to a mix-up on an address change, I was assigned a different on in 1989, also followed by an R. Then in 1991 I was issued a third one (for unexplained reasons), also followed by an R. So I've always assumed all CAF numbers had R at the end. After a few more mix ups, I was eventually told to use the 1991 number from that point forward. In the process of looking through all that paperwork, I also found a couple of sets of clear plastic overlay sheets I used for many years to drop this information onto a photocopy of Form 8821 after I'd type the client info onto the form with a typewriter. Talk about a walk down memory lane...

Couldn't leave this alone, so it occurred to me to look at an old file I keep for a family member. Turns out that until 1998, the only number the preparer could enter on the 1040 was the SSAN. The first year the 1040 made a provision for "SSAN or PIN" in the jurat was 1999, and I began using my PTIN in that initial year. So I suppose the earliest any of us could have obtained a PTIN was late 1998 or early 1999. This also means that for any of us who prepared a tax return in 1998 or before, every time someone threw out old tax records without shredding them, there's been a potential identity theft issue for them and for us lurking in their garbage dump.

This thread got me wondering if I kept my original PTIN application. Haven't located it yet, but I did find a folder with my original CAF number assignment. It was dated Dec 6, 1982. I still have the 2-part form printed on continuous-form paper (holes & perforation on both sides), unburst, with the carbon paper intact. Talk about a pack rat....

Mine is 8 digits, beginning with 3 zeros. The first non-zero digit is a 4. I thought I applied for mine as soon as they were introduced, but it appears I wasn't as quick on the trigger as I've been thinking all these years.

I've always followed the theory that my odds of wining the lottery are roughly the same whether I buy a ticket or not.

True. Or they're thinking "Once I give you my shoebox, all you need to do is make a few entries and press a button to send it. Right?" Or maybe they're not thinking at all...

So when using the tax assessment, and assuming it's a recent assessment, do most of you just use the land value on the assessment? Or do you calculate the ratio of land to buildings on the assessment and then apply that ratio to the purchase price to arrive at the figures you actually use?

Some clients think there's time left. After all, they still have the weekend to get things together since the deadline isn't until Monday...

We had a politician over for dinner. The more loudly he proclaimed his honesty, the faster we counted our silverware.

Although I must add that any adult who is so ill-informed that they need to be reminded/encouraged to register probably should not be voting anyhow. (Oh, the irony)

Depends upon how badly you want to keep the client.

The bottom half could be a voter registration card, with instructions.

Nothing definitive here, but I don't think the registration fee is deductible as property tax (as much as I'd like to say it is). I prepare a few SC returns for residents and nonresidents, but is has been a while since I prepared a PY return. SC follows fairly common rules for allocation of income between states for a PY resident, although sometimes you'll need to prepare your own supplemental worksheet to break out the allocation of interest, dividends, retirement income, etc for the transition year. If the clients are retired, SC gives some generous allowances for retirement income. One quirk is how SC handles the K-1 income of a SC resident with ownership in an operating company doing business as an S corporation in another state. If that situation applies, you have some extra work to do, and it is s a little counterintuitive.

It's my understanding that the SEP IRA becomes the property of the recipient the moment the money goes into the account. The recipient is then free to do with it what they wish, which would be to leave it there, transfer it to another IRA, or withdraw it (incurring the appropriate penalty and tax of course). But I don't have a cite, so maybe someone else will jump in if there is a need for clarification. I did have a client one time who would put money into SEP plans for himself and his employee, and each time the employee would withdraw the money the very next day & spend it. The plan trustee never balked at doing this.

That is a very informative site. Well worth bookmarking for those times when clients ask questions about savings bonds. The $10K per year limit on EE beds with a guaranteed 3.5% rate at maturity seems low, but a couple in their 40's building a bond ladder would certainly want to give it some careful thought. It's strictly a long-term play, but not unreasonable for the fixed income, no risk allocation of a retirement plan.

This is so true. Many times people who have limited skills in their non-native language will answer "Yes" when asked if they understand, even though they don't. They do so for a number of reasons - running the gamut of everything from embarrassment, not wishing to inconvenience/embarrass the other person, simply not really wanting to understand in hopes that will give them cover if things go wrong, and so on. I've seen it firsthand numerous times, and will generally try to have the other person explain to me what I just said. Even that approach doesn't always get you where you need to be.

Wow. That is comprehensive. Lots of excellent info in there, plus creative writing. (Probably the first time I've ever seen a tax discussion say something to the effect that "If taxable income is greater than $XXX, then you are hosed.") This is definitely a link to be bookmarked, and its clear they plan to update the info. Thanks, Max

This guy has some interesting math shortcuts for maximizing the benefit of the QBI deduction. Haven't actually run his number yet, but he seems to know his stuff and he's interesting to read. He also had mentioned the late w2 issue when he wrote this back on Dec 28, 2017 https://www.forbes.com/sites/peterjreilly/2017/12/28/how-much-owner-salary-should-s-corp-pay-to-maximize-qualified-income-deduction/#5a1f8d6372ef

The ultimate in minimalist accounting.