JohnH

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. 

Look at the bright side. At least the SOL is running on all those returns sitting in trailers.

Sound like a case of trying to turn lemonade into a lemon.

On 4/20/2021 at 7:28 PM, Abby Normal said:

And the fact that your DL# NEVER CHANGES. At least not in MD. I've had the same license # since I was a teenager.

I have always had the same DL# as well.  It’s six digits long. In the intervening years, NC added another digit to all license numbers. 
 

Now, whenever I give my license number, the person almost always asks for the “last digit”.  Sometime they even insist the number isn’t long enough, plus they don’t believe me when I tell them to add a “0” at the beginning. So I have to explain that I’m so old my DL number should be close to 0000001. 

Extensions plus extra charges. 

15 hours ago, Catherine said:

I am 100% with you on the first and the third, but less so on the second.   I have several friends who were only children, and I am "aunt" to those now-grown kids and refer to them as niece or nephew.  It's a courtesy title. 

Interestingly enough, in centuries past, "niece" or "nephew" was used as a euphemism and familial acknowledgment for an outside-of-wedlock child.  It was especially commonly used by members of the Catholic clergy, who were not allowed to marry.  

And in some cultures "Uncle" & "Aunt/Auntie" are honorifics, generally used to refer to any respected older (but unrelated) person.

IRS got their banking info from SSA. 

That’s pretty creative. There’s no limit to the ability of some clients to gum up the works, is there?  

Surprising how little publicity there seems to be about the extension of the March 31 PPP2 application date out to May 31. I would have expected this to be a big news item.

I'll bet sooner or later we will have this conversation with someone:

CLIENT:  I've got $300 worth of receipts for masks & stuff we can take above the line.

PREPARER: That won't help.  You're confusing masks & stuff with contributions.

CLIENT:  But my hairstylist said...

PREPARER:  Sorry, your hairstylist is wrong.

CLIENT:  (S)he's pretty smart about this stuff. Can you look it up again, just to be sure?

Listening to today's news, now I'm wondering how many clients are going to be keeping every receipt for hand sanitizer, masks, sanitizing wipes, etc because IRS announced today these are deductible as medical expenses.  

On 3/18/2021 at 5:18 PM, Gail in Virginia said:

Gee, Rita, you don't have anything else going on right now but this one tax return to do, right?  In late March, early April I am sure we all work on one return until it is finished completely, then put it away and work on the next one.  And we get them all done the same day we start them.  Right?

Besides, every client always says “My situation really isn’t all that complicated.” We can believe them. And all you need to do is press a button to send it - right? 

I don't have a lot of clients who filed for unemployment, but of those who did, I've prepared extensions as soon as the info came in.  I don't intend to look at them again for at least 3-4 weeks. 

11 hours ago, Randall said:

I was wondering if it would trigger something.  This whole ppp thing is another world.

And we haven't even started a conversation about claiming losses and basis limitations for S-Corporation shareholders.  Some VERY interesting & unusual stuff can take place in that space.  

I received a 4883C in early Dec 2020.  (Not the same as the inquiry your client got, but similar I think).  The agent I spoke with couldn't or wouldn't explain why I received it.  Anyhow, we got the identity verified and all was well.  But it spooked me, so this year I opted in to the ID Protection PIN program as soon as it was available.

I'm printing out this thread for further review & consideration.  Very interesting discussion, and may be relevant to a client situation I know is coming up shortly.  Many thanks for all the comments. (I love this forum) 

Bonnie:  Based on the info provided, I'd probably tell him I'm not interested in doing his work. And he needs to act quickly since the penalty clock is running.  He qualifies for the "needs to be somebody else's problem" category for at least 3 reasons. Right now especially, this should be all about what's best for you, not about solving self-inflicted wounds for problem clients.  

I'm pretending it hasn't changed.  Still filing extensions before Apr 15, unless the client info fails to show up.   A month is something, but not much. 

6 hours ago, joanmcq said:

File your extensions now while you have the energy to do so.  For everyone.  Then if you have the energy to complete them, no harm no foul.  That way you are covered if either you or your husband have worse than a mild case.

Solid advice.  Extensions are life savers and sanity checks, especially at this time of year and in these unusual circumstances. 

4 hours ago, Pacun said:

Quickly seems a word of the past. 

Really.

Give them this video:

Rita, so sorry to hear of your loss.  Praying for the grace and peace of God which passes all understanding for you and your family.  

Imaginary conversation next week.

CL: (Monday) "When do you think I'll get my $1,400?"
ME: "Maybe Friday"

CL: (Friday) "Hey, it's Friday and I didn't get my check!"

ME: "Oh, sorry. Did you think I meant THIS Friday?  I did't say WHICH Friday - we still have 40 of them to go in this year alone."

Just now, Possi said:

 

Knowing that this is coming, I will encourage those still coming to wait to file, but I have already done so many it will be difficult to pick them out right now. I need to, but it will be challenging. 

Don’t worry. As soon as they read the news or talk to their friends they will be calling YOU.