JohnH

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.

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.