JohnH

Great one!

While we are thinking about that issue, can someone explain the logic behind the following article to me? I would swear I thought it was illegal to "share" someone's social security number. Or maybe that only applies to legal citizens?... http://www.forbes.com/sites/robertwood/2016/04/13/irs-admits-it-encourages-illegals-to-steal-social-security-numbers-for-taxes/#3304b59d237a

You don't have any obligation to the lender. You certainly shouldn't sign anything for the lender, nor should you waste your time telling the lender how to do their job. Give the client a 1040X with the Schedule E address correction attached, and an explanation on the 1040X that there is not change to the return other than the address correction on the Schedule E. There is a place on the 1040X just for that sort of explanation. It could be as simple as "This filing reflects no change to tax liabilities. However, upon review we discovered that an incorrect address was shown on the original Schedule E. The attached Schedule E reflects the correct address." The client can furnish the 1040X and corrected Schedule E to the lender if he so chooses. Whether or not the client files the 1040X is irrelevant. Whether or not the lender accepts this is also irrelevant insofar as you are concerned.

The most recent one was an 1120S for the 2012 year. Return was filed (on extension) on 9/13/13 and received by IRS on 9/23/13. They tried to assess a $195 penalty for it being one month late. They were not questioning the extension in this case; they were only questioning the filing date. But the principle is the same - what constitutes timely filing? We had Certified Mail & Return receipt, which I sent along with a printout from the Post Office of the tracking info on 12/5/2013. On 12/26/2013 they sent a denial letter saying the return was filed on 9/23/13 and thus it was late. I responded to that letter with copies of the original info again, along with a printout of IRS Notice 97-26. It clearly states that timely mailing is timely filing. I did ask them to let me know if there had been any change to the filing requirements. The issue was not resolved until April, 2014, but they finally relented. None of the above is intended to say it isn't a good idea to filed the extensions electronically. I think that is a good practice for all you e-flingers. My point was simply to emphasize that if one does mail an extension with a balance due expected (whether or not any payment accompanies the extension request), it is worth the extra cost to use certified mail with return receipt. I prefer USPS to any other means of delivery, even though the IRS does recognize the other PDS's provided the correct level of service is used. In any event, dropping an extension in the mail via First Class Mail is extremely risky & leave you with virtually no way to demonstrate timely filing. And until IRS Notice 97-26 is revised, it is the job of the IRS to honor it even if some of their employees don't understand and have to be pressured to apply their own rules properly.

I've only had a few questions arise over the years regarding a missing extension. But every time we provided IRS with a certified mail receipt and green return card, along with a copy of the canceled check, the extension was acknowledged. I've heard the arguments that "proof of filing doesn't prove anything was in the envelope", but apparently IRS doesn't see it that way. I'm not saying that some uninformed IRS person on the phone hasn't made such a claim, but it just isn't the reality when you get down to the facts. However, there's no doubt that e-flinging the extension is certainly another level of protection.

I didn't know you could even be required to have road block insurance.

Well, did you get their extensions? Just checking...

It is a good idea to do that.

Reply: "Thanks. I'll be waiting for it. You're on extension until then."

I would deduct it as medical transportation.

Glad I could help out, Bill.

The problem is probably a leading zero. You can find out by going here:. http://www.sosnc.gov/search/index/corp type in the corporation name, then look for the ID number. Second box to the right, after the name.

Happy Birthday, KC.

Last three stragglers' extensions were filed today. Unless something new, unusual, or weird comes in over the transom, I'm coasting. Now to see how many of those extended returns I can (or care to) loop back and complete by the 18th. Not sure it will be any of them since there are payroll reports to crank out and get a jump on the 30th, but at least I have options. Thank God for Form 4868 and all its benefits.

I sympathize with the "make 'em pay" viewpoint, but I respectfully disagree. We all have a right to be paid for our work, but accepting payment for anything carries with it an implied acceptance of some responsibility. We all know that isn't the case, but most clients don't. So when this scheme blows up and they get audited 2 or 3 years from now, and dad is dead or incapacitated, they are likely to come back to you since they paid you for "some kind of help" in the past. It isn't right, but that's how things often work. Who needs the hassle? If I'm in this situation, I'm giving them back their original documents with no charge, and wishing them well. That way if they ever return for any reason, I'm free to say "I couldn't help you then and I can't help you now." Oh, and one more thing. As Catherine rightly said, "Before you go, I'd like to have my business card back. "

I saw the Facebook question about access this morning, and Eric I have your email address in my contacts. But I was getting ready to leave the office for an extended appointment and at this time of year I didn't have the presence of mind to send you an email. Anyhow, a little down time reminds us of how important this forum is to us. Thanks Eric for taking care of us. We all appreciate you immensely.

So, what exactly is the point of drinking water not filtered through coffee grounds? Water needs to be filtered. Don't you know all the disgusting things fish do in water?

Chances are she will find someone who will prepare the return for her. She may go through one or two candidates before she figures out what she needs to tell them in order to get her desired result And chances are she will get away with it. But if she does get audited, it would not be pretty to be in the middle of this, even unknowingly. It is always smart to dig deeply when a new client shows up on the doorstep with a complicated situation and without a clear explanation for why they left the last preparer.

Same here. I bailed out of ATX early in the 2012 meltdown, discovered Drake (thank God), and have never looked back. But I still like this forum, both for the camaraderie and for the total independence from meddling by any vendor.

Interesting. Thanks for the perspective. Guess I need to be on the lookout for something like this. Right after I become an expert on ACA.

Whew! Now I can live without that fear hanging over my head.

Rita, if I ever meet you and you try to hug me, please don't be offended if I politely decline. Or even if I run the other way screaming "Somebody save me!"

Whatever amount he stiffed you for was well worth the investment. If he cheated you out of $500, you learned enough about his lack of character to insure that he would never have a chance to cheat you out of $5,000 (which he probably would do if given the chance). That's valuable information to have about anyone with whom you might be doing business in the future. Some people are are so insecure that they simply MUST get things over on others, usuallly as a way to validate their own self-worth. Best to identify them early in the relationship and steer clear of them forever afterward.

I've only had a few clients over the years who actually questioned the bill. But in those cases I've always followed the advice to ask them "What do you think it should be?" They never have an answer, other than to say it should be less. So they don't have any idea of what's reasonable, but they are absolutely sure the existing charge is unreasonable. How stupid & illogical can someone be? (Don't answer that...) Anyhow, my response has always been to tell them to decide what's fair and send a check for that amount. I think in all these years only one person actually sent less than the amount billed. But in almost every case I made sure they went somewhere else the next year. If they didn't do so voluntarily, I took the initiative - usuallly by calling it to their attention next time around (if there was going to be one), and pointing out it will be larger the current year if all work is about the same as the year before. They need to know & acknowledge you're in the business to make a profit, not just to earn a wage. I don't want to do business with someone who doesn't trust me to charge them appropriately, and I don't want to do business with someone who is opposed to me making a profit. No sense being bashful about that.

I think it's a mistake to ask clients if they are OK with an extension. I prefer to tell them up front we will need to file an extension and proceed to get it ready. It's the tax preparer equivalent. Of what's known as the "assumed close" in sales. Asking implies that they have a choice in the matter, when in fact the preparer should be making the choice. If they object, in some cases I tell them it's the only way we can move forward. But for special situations (and in my case they have to be VERY special), I will make an exception and go ahead without the extension. This business is about making distinctions, but the essential question becomes "who is making the distinctions?" If you surrender that control to the client, they will always decide in a way that is not in your best interests.