JohnH

I always accommodate the speeder & reckless driver. It's the safest thing to do. The guy in the pickup is truly a jerk, but she's putting herself in serious danger by driving the way she is driving. She doesn't have an "out" if something goes wrong. If the truck to her right swerves slightly has a blowout, starts shredding a recap, or if something goes wrong in front of her, the only choice she has is the median and possibly a head-on into oncoming traffic. And we won't go into how distracted she is by filming the whole thing - it's worse than texting IMO. If someone's tailgating me, I'll speed up somewhat to get over & let them pass if possible. Even if they're dead wrong, I don't relish being dead right.

I agree. Quadruple the fee. Give them a 25% discount for this year only. If they complain, tell them you're removing the discount.

I'd do a simple spreadsheet for the pension income, and allocate monthly payments based on which state they were in on the payment date of the pensions. I've done this before with NC - didn't even send them my work. I just entered it in the PY adjustments worksheet (I think ATX has one), which also doesn't get attached to the return. The trades, as you said, get assigned to the state they were living in on the date the trade was made. Sounds like an interesting mathematics exercise.

You could also generate the bill for triple the fee this year, then discount it down to what you want to charge them this year (1/3, 2/3, whatever...). Then add a note that the discount only applies this year. That way you're putting it right in front of their eyes, plus you save yourself the trouble of writing an after-the-fact letter which they will likely forget or ignore and then act shocked when you charge them triple next year. There's just something about seeing that number on paper that focuses their attention.

Good summary Gail. NC will exempt the first $2,000 of pension income for each spouse. That figure goes to $4,000 if they are government retirees, and SOME government retirees can exclude their entire pension. (You'll have to read up on the Bailey case if it applies, but if their income is from private pensions or IRA plans, don't bother). NC allocates based on income, not time of residence. Just follow the instructions for allocating NC and non-NC income for a part-year resident. (You might need to allocate the pensions based on where they were living when the payments were made, though). Next year everything changes - and I do mean EVERYTHING. So don't expect 2014 to work like 2013. I'd try to explain, but as they say - it's complicated.

Well, don't forget there's the magic of compound interest. I learned that in your math class.

Maybe a few of us have some extra "likes" we can part with for a while. I have a few small likes I can loan you, but I'll need them back in mid-April.

We bought a time share in the NC mountains about 2 hrs from where we live several years ago. It was a resale through the resort manager, who was not affiliated with the company that originally sold it. These numbers are close but not exact because I'm posting from memory. We paid about $500, plus three year's back dues of $250 or so per year, for a total of about $1,250. Imagine my surprise when I looked through the documents they provided us and learned that the original owner, who lived in Florida, had originally paid over $15,000 for the time share. That gives you an idea of what some of these things are worth (or not worth). Your client should probably be prepared to take a big loss.

Just had a perennial extender drop in. He said his wife told him to ask how late they can get their info to me and still get the return done by Apr 15. Was it OK for me to tell him to crank up his time machine and get it to me by Mar 10, or was that: 1) unkind ? 2) snarky ? 3) uncalled for ? 4) other...

Clearly the littliest rant I've ever seen.

Here is your reference. It is commonly known as a "SPIFF" - reportable on Line 21 and not subject to SE tax. http://www.irs.gov/pub/irs-pdf/p3204.pdf

I think this is why I got my standing desk...

Sounds like a good use of Apr 1 in my opinion - transmitting extensions. BTW, in an earlier post you mentioned a client who is on an installment agreement and is afraid the IA will be voided if she files an extension. She doesn't need to worry about that insofar as her Federal return is concerned. The extension will be valid and there will be no effect on the IA (unless she files an actual return with a balance due and fails to pay it). I have a charity case who has been on installment agreements for going on 4 years now. Each year we file an extension request showing tax due and only a token payment. The extension is valid. When the return is filed in Oct without full payment, IRS will eventually void the installment agreement. They then have to reset the installment agreement and fold the new balance into the existing balance, but IRS will even do that - they just have to pay the fee. It's an expensive way to borrow money, but in this case it's necessary as they wind down the effects of a financial fraud which was perpetuated against them.

Although there is nothing solid to suggest that at the moment, sadly I would not argue with your assessment.

Well, if you assume his 401k will lose 6% per year in value, he breaks even after about 5 years. So there is a way to rationalize taking the one-time hit.

All excellent responses - I'll have to evaluate them to select the best. Thanks for the replies, and the laughs. Interesting thing is, he's among my higher-earning clients - probably top 10 or 15. He has an impressive job with a high-profile company. He's very smart, but not a finance guy for sure.

Email exchange with a client today: Me: "You have a 1099-R showing an early withdrawal of $35K from your 401(k) because you left your employer and didn't repay it. You're going to owe about $10K-$12K of penalty plus state & Federal tax." Client: "Yes, I was expecting that. But they withheld some tax on the withdrawal so it won't hit me that hard." Me: "No, they didn't withhold any tax. The amount on the 1099-R is only the loan balance." Client: "OK, but I still saved money since I borrowed less to buy my house. I would have paid more in interest on the home loan." ======================= I'm still pondering my reply. So far, I have come up with three: 1) Huh? 2) Well, you're losing the tax free accumulation, your mortgage rate is 4% APR and this is over 30%-- oh never mind... 3) Only if your mortgage lender is run by a couple of guys named Vinnie and Guido... Any other suggestions?

Capital gain is calculated by subtracting the market value on date of death from the selling price. Transaction fees can also be added to market value in calculating basis. Even if sold on the date of death, next day, or whenever, you still use this formula. Capital gain on inherited stock is considered long term, even if the stock is held for less than one year by both the decedent and the heir.

I don't guarantee any completion dates. I don't announce my cutoff date in advance in my client letter. The only thing my client letter says about extensions is that anyone with a brokerage statement can expect to go on extension - no matter when they get their info to me. Some do, while with others I feel comfortable enough with the numbers to go ahead an compete the return. But I put them all on notice as a precaution because I can't predict how flaky their brokerage will be in January of any given year. I set my cutoff date based on how the tax season is progressing. In some cases it is as late as March 20, in other cases it is March 15 or even March 10 Most who get all their info to me before my cutoff date get their returns completed, but in some cases I've doubled back and told some of them we need to extend. Some people whose habits I know get extended well before my cutoff date, because I know they won't have everything to me in time - may as well deal with it at the outset and keep them & me relaxed. I filed my first one this year on March 4. Everyone whose info comes in after the cutoff date automatically goes on extension. By doing that I'm usually very productive in the weeks running up to Apr 15 because I'm not making frantic calls pleading with them to let me extend their return as the date looms. Having the extensions in place allows me to actually keep working, and many of the extended returns are finished by or before Apr 15. (No harm, no foul for an extension which was filed unnecessarily). I don't do anything on the actual date of Apr 15 except review extensions & go home early. (Sometimes I'll prepare one or two just to amuse myself, but that's unpredictable and irrelevant) April 15 is an artificial date which people impose upon themselves because they don't understand how flexible the rules really are. For them, the Apr 15 song & dance is some sort of silly game they like to play, and they want their tax preparer to play it with them. Maybe it makes them feel special and makes the preparer feel especially needed. I'm moving toward retirement and some things I just don't give a hoot about. Clients who don't plan ahead just aren't my problem. This is just how I operate - your mileage may vary if you try it. One thing I have learned over the years is that many clients are kind and considerate, but many more of them will work you till all hours of the day & night and will create all sorts of anxiety if you let them They don't intend to drive you to an early grave or stress-related illness, but that's what they will do if you allow them. So at some point each tax preparer must decide whether they are going to run their practice or are they going to let their clients dictate how they operate. I've found it's much easier on the blood pressure to run my practice myself. For those clients who don't like how I operate, they can find some stressed out, sleep deprived martyr down the street - there seem to be plenty of them.

This situation certainly justifies reporting the preparer to the IRS, but you might want to check with your E&O carrier before taking that action. You may be sticking your own neck out for no good reason. If you feel compelled to do something, give this form to the client. If he is truly innocent of any complicity in this matter, he will file it. http://www.irs.gov/pub/irs-pdf/f14157.pdf

If you mean cutoff date for extensions, mine was over a week ago.

I'm sure he deserves whatever you do to him - I will testify at your trial if necessary.

Riding an elephant is easy. It's the getting on and off that's so difficult. But still a whole lot easier than getting the right numbers for an 8283 from some clients.

What if you told them to take the amount they would PAY for it at a garage sale. Think the number would change? :)

Thanks. That's what I already told him to do.