JohnH

My barber uses Square. I can’t think of a better recommendation for its services. But he doesn’t dispense tax advice, which is a bit puzzling.

Great point about Venmo's weird social aspect, Eric. I use Venmo to send money to my grandsons (age 20 & 21) occasionally for gas, food, etc while in college. Amazing what I see in some of those comments between them and their friends, and sometimes more amazing they aren't aware that Pawpaw is seeing some of that stuff. Or maybe they know I've already seen & heard it all and it won't make any difference in what I'm sending them. Back to the main point, I've had clients use PayPal to pay me a few times, and it is super easy. I guess Venmo would be just as easy & safe for business. There's also Zelle to consider for business payments, although it's a little more complicated.

Just curious. Do you use keyboard shortcuts and macros? That will significantly speed up your efficiency if you're not taking advantage of them. (Or have we talked about this on another thread? I can't remember. ) Once I settled in with Drake, I realized the mouse was often slowing me down.

Has he actually shown you the letter from the IRS? I'd take a very careful look to try and determine if it's legitimate. (Before he calls them). Would also be wise to have him check his transcript online before calling them if possible..

You won't beat Drake in this price range. You owe it to yourself to take a good hard look at it. I switched from ATX to Drake during the 2012 meltdown. I only wish the ATX meltdown had happened 10 years earlier so I could have gotten on with the transition. Can't imagine using anything but Drake now. It's lightning fast, uses very little resources, and customer service simply cannot be beat. There's a bit of a learning curve ditching forms entry and going to data screens, but it's just a matter of giving up a crutch. I switched in January of that year and was moderately up to speed within a couple of weeks. One you get the hang of it, Drake will make you more efficient, which translates into more profit. Or more free time, whatever you prefer.

Congratulations!

You can also make a reply on a post that includes info of special interest to you. Then if you want to find it later you just look at your profile. It will provide a list of your activity, including your replies, which will significantly narrow your search.

There are some clients you just can't charge enough to make it worthwhile to fool with them.

Here's a new WSJ article about Cryptocurrency and increased IRS attention. Reading the article it reminds me exactly of the issues & misinformation that used to surround the barter exchanges - right down to some of the silly notions about whether or not they were taxable. (The article appears to be behind a paywall, but I was able to click right through & get access). https://www.wsj.com/articles/bitcoin-irs-comes-for-crypto-investors-who-havent-paid-their-taxes-11620937095

I sure was glad to see this discussion. Just ran into the exact same situation on my final return before the 17th and was planning to come here to ask about it. The only difference is that mine was a K-1 from a trust. Glad I procrastinated. Thanks for the excellent replies to Max, and thanks to Max for asking such a fine question.

How long before anyone having VC account becomes subject to FATCA rules? So if we have a client who owns VC and we fail to alert them that they must file the FINCEN report, wonder who they would throw under the bus when the penalty notice arrives?

The first penalty was probably excused without the need for the waiver because it was deemed insignificant by the person who handled your request. You might want to consider whether that's the case this time, based on the amount of the potential penalty. If a hurried IRS employee processes it as a First Time Waiver, you've slammed the door shut for 3 years. You could find yourself in need of a significant penalty waiver with lots of money at stake at some point in the future but unable to get it because you wasted it on a few dollars of penalty reduction prematurely.

This virtual currency phenomenon reminds me in many ways of the old "Barter Exchanges" back in the 70's - 80's (I think). People apparently thought they had figured out a way to avoid taxes on goods & services, but IRS pointed out that they were mistaken and began pushing for an accounting on 1099-B in the early 80's. I think large-scale retail bartering finally fizzled out (at least officially).

I don't buy fireworks, but there are several fireworks vendors on the NC/SC border, not far south of Charlotte. They are all located within a mile of one another at the Interstate 77 exit for the Carowinds theme park. I'm told their selection is vast. Around holidays, there are hordes of cars at these places with people buying hundreds and even thousands of dollars worth of fireworks. Amazing.

I'd rather walk someone through an I/A any day than fill out an 8283 (for example).

Most people needing installment agreements aren't looking for savings. They're looking for sound financial guidance from their tax preparer whom they trust to guide them in dealing with an unexpected tax liability. They're often trying to dig out of a hole while avoiding borrowing from their credit card or a few other sources at incredibly high rates. For them, the I/A is a life saver, and at a very reasonable effective interest rate when compared to other choices they may have. ("effective interest rate" = the interest plus a FTP penalty combined). Plus, it doesn't affect their credit record or available lines of credit. But yes, they do have to actually comply with the terms they agree to or else they can find themselves in hot water.

In the current climate I'd think the best course of action would be to wait for the assessment before requesting the IA. Getting the IA online in response to an assessment letter would be the most reliable method of confirming the IA has been set up.

Maybe the real "art" is in their valuation method...

My oddest current situation is a client who ignores my questions about virtual currency transactions, even though I've sent multiple emails. Makes me strongly suspect the answer is "yes". So he goes on extension until he replies.

That sounds about right. In this case it’s no big deal. It’s my grandson’s return. Refund is about $400. Along with his Christmas present, I gave him the $400 in December and told him he can pay me back when the refund arrives. So technically it’s my refund being held up. Plus, whenever it arrives I’ll probably tell him to keep it (as long as he puts it in savings).

I respect your judgement and am not criticizing your approach. However, if I were at this point I'd still turn the instructions for filing the report with the SBA over to the client with my recommendation that they take this to a lawyer. This may be a routine matter or it may be a time bomb. Wonder what your E&O insurer would advise? It might be worth asking them.

I still have one paper-filed 2019 return that I prepared last Feb (2020) and the refund still hasn't shown up.

Think it's time for him to consult a lawyer? Problems with the SBA are indeed scary, as one mis-step can spell big trouble. Personally, there's no way I'd get in the middle of that situation, now that the basic facts are known.

Doesn't it depend upon sate law? I thought that was why it's important to know if you're in a "recourse" or "non-recourse" state with issues like this. Also, it's possible the borrower may have been "upside down" at the time the car was purchased due to an unpaid balance from a prior auto loan being rolled into the new loan (or more appropriately, piled onto the new loan). Next to divorce, auto financing is the biggest drain on personal net worth in this country, IMO.