JohnH

Can't speak for Judy, but here's my take on it. If they were providing a service regarding sensitive financial information, I'd conclude they were trying to comply with some sort of government requirement designed to protect them or me. I'd assume they have sense enough to know who I am or else I wouldn't be doing business with them in the first place, so there must be a logical explanation.

Jack's right - too paranoid for their own good. Interesting thought process on the part of the client. Here are my W-2 forms (WITH MY SS#, BTW), my home mortgage information,. a rundown of every penny I have invested drawing dividends, interest, capital gains, etc. Not to mention my medical bills and whether I'm a cheerful giver or a skinflint. So I'm giving you more information about my finances than anyone in the world (aside from possibly my spouse), but I just don't feel right knowing you have a copy of my Social Security Card and my Driver's License.

On a few occasions, I've been able to point out to a new client that their last preparer's fees were a huge bargain and so they benefitted from that while it was available, but now it's time to step up and pay the going rate. Some people don't accept that simple truth, but if they don't then it's my contention they simply aren't fair minded (or else they're financially ignorant), and either way I don't need them taking up my time. The only alternative is to cave in and let them ride roughshod over me, which I would resent as long as I did their work. It is important to let them know in advance, so they aren't shocked by the bill.

You could "migrate" over the course of a Couple of tax seasons. Buy both programs for a couple of years - maybe one full access and the other on a pay per return basis. Then pick and choose which returns you run on Drake based on their complexity. A return that takes 20-30 minutes to prepare is probably not worth taking another 10-15 minutes manually entering the client data before beginning, but for a return that takes ab hour and a half or longer , the extra 10-15 minutes is a wise investment. I'd probably keep the simple returns in ATX and focus in getting the more complex returns into Drake since you get the highest efficiency from preparing the most complex returns on the fastest program. And there is absolutely no doubt that Drake runs circles around ATX when it comes to speed. Anyone who says differently just doesn't know what they are talking about. That discussion is beyond settled. When year 2 rolls around, you're definitely realizing tremendous gains in efficiency and it will make the time spent converting the simpler returns seem more productive. I've been blown away by how fast my tax preparation has become in year 2. In addition to the efficiencies and speed of the program itself, I'm now reaping the rewards of having taken the time to manually enter my client data last year. I can think of other creative ways you could handle the changeover, but if you get it done you are not likely to regret it. If you simply can't commit the time to convert everything all at once electronically, then doing it a step at a time is the next best thing. You would still yield tremendous productivity gains in the areas where you realize the best return on your time invested - the most complex returns. Personally, if I were preparing 1200 returns I'd be running two separate tax programs on an ongoing basis anyhow, but I've beaten that horse to death in other discussions and so there's no reason going over it all again.

I forgot that the question is even on the form until this thread reminded me.

I know someone who entered of his three grandson's social security number incorrectly on a family members' tax return last year. Their refund was delayed until a phone call straightened it out. He had to offer to advance them the money until the refund arrived, but they assured him that wasn't necessary. He had an excuse - he had changed from ATX to Drake and re-entered all his clients' info rather than do a conversion. It was one of 3 mistakes he made last season during the re-entry process. Said tax preparer will remain nameless - nobody knows other than my daughter and son-in-law.

Roth conversions also provide a way to avoid RMD's after age 70-1/2 on the amount converted. In some cases that can provide some marginal benefit, assuming the person has a reasonable expectation of living a long time. If the person has retirement income high enough to assume they will always be in the 15% marginal bracket or above, and if their current income doesn't max out the 15% bracket, then a Roth conversion sufficient to use up the 15%bracket is virtually a no-brainer. It guards against future increases in the tax rate AND eliminates the RMD issue for the converted amounts.

If there are questions or open loops at this late date, I would only give her the option of an extension. The extension will give you both time to either get on the same page or for her to find another preparer. Also, the extension gives her until Oct 15 to put the money in the SEP. She can pay the balance due with the extension assuming she will put the money in the SEP by Oct 15, or if she doesn't come up with the SEP money by then, she will owe additional tax at that time. Of course, she can also make a partial payment (or no payment) with the extension request and simply pay the FTP penalty and interest when the return is filed. No matter how or when she pays, the important thing is to get the extension in. Of course if it were me personally in this situation, I'd already have had the extension in place... the run-up period to Apr 15 is exactly the wrong time to be dealing with this sort of nonsense from a client.

They key element is giving the return to the client to mail. Preparing a return is not filing a return. Only the act of either 1) placing the return in the mail, or 2) transmitting the return electronically, is actually filing. So the statement is redundant on two levels, but it is still a good thing to have in your files.

I find it ironic that a bunch of politicians are meeting to discuss and pass judgment on anyone's ethics.

I'd tell him the Feds already know about the safe deposit box and are just looking to see if he is honest enough to list it. And if he fails to list it (even if it doesn't benefit him), they will tap his phone and audit him. Plus NSA will start intercepting all his emails. He apparently enjoys being a worry wart - may as well give him something to worry about. Plus, he will probably forget all about that .46% once you drop this bomb on him.

The 8948 is easy to fill out. You just mark Box 1 indicating that the client wants to paper file. You also need to have something to retain in your files stating that the client was the one who wanted to do it this way. Here's one example statement that I saw online. Date:___________ RE: Federal Income Tax Return for Tax Year 2013 Our Federal Tax Return Preparer whom is (Preparer Name)has informed me that he may be required to electronically file our 2013 Individual Federal Tax Return Form 1040 if he files it with the Internal Revenue Service on our behalf. We DO NOT want to file the return electronically and choose to file my or our return on paper forms. My preparer named above will NOT file my or our paper return with the Internal Revenue Service, and I or We will file and mail the return to the IRS ourselves. In addition I or We hereby assume full responsibility for filing and mailing the said return for 2013 to the IRS to comply with Internal Revenue Service Regulations for timely filing. I or We was NOT influenced by (Name of Preparer)or any member or associate of his firm to sign this statement Client Signature Client SSN Date

Valuable/invaluable, sincere/insincere, flammable/inflammable, appropriate/inappropriate... Is is any wonder that people struggle when trying to learn English?

Yes, thanks for the reminder I just donated.

I thought the President pulled a pretty good April Fool's prank with his Obamacare speech yesterday. (OK, if anybody objects I'll delete it.)

I called a couple of clients to let them know what they owe yesterday and they THOUGHT it was a prank call. They're waiting for me to call back today and yell "April Fool", but unfortunately that isn't going to happen.

You must not have many young clients. If you do, you need to face the fact that you probably won't be able to keep them long term.

I won't say I've killed them, but I can say that most of those people I have eliminated professionally.

If it isn't illegal and treatment for a legitimate medical condition (not cosmetic,etc) , it's probably deductible. Transportation and lodging (within limits) are also deductible. Here's a link to a discussion on this subject from the Tax Book forum a few weeks ago. The writer waffles quite a bit, but maybe there's something in there which might help you: http://www.taxgirl.com/ask-the-taxgirl-foreign-medical-expenses/

You need to be careful how word things when you try to hire him. If you say you want somebody "smoked", you might get something other than the intended result. Right, Crank?

I think he could get away with putting the income on line 21 if he only kills one or two, he hasn't killed any before or a regular basis, and he doesn't plan on killing any in the future. For me, that last part is definitely a problem...

Oh absolutely enjoyable. She should have tossed him a roll of toilet paper as she went by - he probably had a sudden need for it.

I think the deed only comes into play when deciding whether interest on the loan (if there is one), is deductible as interest paid on a second home. If it's a deeded timeshare, then the interest is deductible. But if it's a right-to-use timeshare, then the interest is not deductible. But as Jack said, gain or loss on sale isn't deductible (unless it is held as rental property).

You're right. Very dangerous place to be. And anyone who has ever found themselves side-by-side with a tractor trailer shredding a tire will vow never again to be in that scary spot for very long. (Trust me). There's no question that the video depicts a dangerous driver in the pickup (he doesn't even know how unstable pickup trucks are because they're so light in the rear). He got what was coming to him. But the person filming it is also a very bad driver who made several foolish mistakes IMO.

I tell them we are going to extend them even when they DO have everything at this late date. So extending someone who doesn't have everything with them is absolutely no problem - just a a part of the routine. In most cases, I don't want to hear from them until well after Apr 15.