Practitioner Hotline

[jainen]

>>How much interest would a large refund draw if put into

Ironically, that's the same argument often used for UNDER withholding--the so-called penalty is simply a low interest rate that may (in appropriate circumstances) be too small to matter. I don't think "the vast majority of people" is a very useful guideline for individual tax planning. And the original post reminds us that interest paid or earned is not the only consequence of tax planning decisions.

[mcb39]

However, bear in mind that the original post did not mention anything about the refund being LARGE! Because, it isn't. The man just wants to know what is going on with his return and I think that he has every right to that information.

I certainly never expected a simple question to turn into a political fiasco and/or an involved dissertation on how we should or should not advise our clients. I thought this board was designed to help each other as opposed to shooting each other down. I am removing myself from further discussion on this subject.

[Jack from Ohio]

However, bear in mind that the original post did not mention anything about the refund being LARGE! Because, it isn't. The man just wants to know what is going on with his return and I think that he has every right to that information.

I certainly never expected a simple question to turn into a political fiasco and/or an involved dissertation on how we should or should not advise our clients. I thought this board was designed to help each other as opposed to shooting each other down. I am removing myself from further discussion on this subject.

My advice on this situation still stands. You can tell your client if he wants different answers to contact his Congressman. There is no known way that a taxpayer or a tax preparer can break through the IRS wall. BTW, I believe Jainen is RIGHT ON about the current situation at the IRS. Cutting budget and staff, and expecting them to do more.... Our government at it's finest!!

http://www.irs.gov/newsroom/article/0,,id=257554,00.html?portlet=107

Here is a recap....

Let me know how that works.... Our experience here (over a hundred clients) is that it makes no difference. Comparing those where someone calls vs. those where no calls are made.

This is the same organization that is going to police our CPE credits for our PTIN registration and look for preparers not signing returns all at the same time????

There is a song.... "Do YOu Believe In Magic?"