Margaret CPA in OH Posted April 4, 2014 Report Share Posted April 4, 2014 This has really been the year for nitpicking questions. Clients file MFS so I have to split everything, of course, with most things jointly held. But for some reason the Average Tax Rate on the Tax Sum/Carry form shows his rate at 18,76% and hers is 18.3%. He wants to know why. Their incomes are close, hers is about $2750 higher but tax is just $40 higher due to bracket. He thinks her rate should be higher. I have no explanation and the field doesn't jump to the calculations. Cap gains rates do not factor here. Any ideas besides telling him a computer error and to white it out? Oh, he just now noticed that there is a possible deduction on A for safe deposit box and wants to know if the feds want the information in case they are hoarding a bunch of money. I think he's serious but am afraid to ask. Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 4, 2014 Report Share Posted April 4, 2014 Good grief. I'd be grinding my teeth, too. I don't know what you tell THAT guy. If you tell him computer error, he'll want you to do the returns by hand and run a tape! Holy missing crap, People! Every other one I touch has stuff missing. Why not give me the entire 17 pages of your 1099? They really don't know what you made on your mutual funds if I don't tell them. Really, remember that letter you got when you tried to do this yourself? Same thing then, too. 1 Quote Link to comment Share on other sites More sharing options...
JohnH Posted April 4, 2014 Report Share Posted April 4, 2014 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. 6 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 4, 2014 Report Share Posted April 4, 2014 Construct an extensive, exhaustive document with the processes the software and tax regs use to establish those percentages. Then when he comes in, start at the top as if you are a teacher, and make him understand every detail... I will give him 5 minutes tops.... Then make him sign at the bottom saying he understands everything on the page. (before you e-file of course) 4 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted April 4, 2014 Author Report Share Posted April 4, 2014 Thanks, pals, I knew you would understand... Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 4, 2014 Report Share Posted April 4, 2014 the truth is one of them probably has qualified dividends or cap gains taxed at a diff rate which throws off the total percentage. and personally, I think he is right about the vault.....probably 50 years ago they found people who had them upon death based on the tax deduction for it. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 4, 2014 Report Share Posted April 4, 2014 Or just tell him that 'rate' is a compilation of a lot of different calculations, and most differences involve rounding differences at each step, only the final number is carried out to that level. And that you will be happy to show him a worksheet detailing it, BUT not until May, and it will cost him $XXX due to the time required. 4 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 4, 2014 Report Share Posted April 4, 2014 The average tax rate on the ATX Tax Summary sheet was nothing more than simple division as far as what I saw in past years. That page takes the total tax and divides it by the taxable income to arrive at the figure shown as the average tax rate. Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 4, 2014 Report Share Posted April 4, 2014 The average tax rate on the ATX Tax Summary sheet was nothing more than simple division as far as what I saw in past years. That page takes the total tax and divides it by the taxable income to arrive at the figure shown as the average tax rate. Shhh!!!!! Margaret's client does NOT need to know this!! 1 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted April 4, 2014 Report Share Posted April 4, 2014 None of the clients need to know that. A great many of them are impressed with that page. It generally relieves them from having to read the rest of the tax return, which they don't usually understand anyway. 1 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted April 4, 2014 Author Report Share Posted April 4, 2014 Client just replied to my near snarky replies to his queries. Thank you for your answers, you will see a few comments below but they are just meant to be responses to your reply which I found to be humorous on what are minor matters. Sorry for wasting your time at this time of year. We will get the paperwork back to you this evening. I feel a little bit better now... 3 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 4, 2014 Report Share Posted April 4, 2014 And I've got a bunch of folks who want to file by 4/15 (don't want extensions) who are NOT giving me the last bits I need. I'm ready to dope-slap the lot of them and WILL hike their bills. Sending me the exact same consolidated 1099 that I already have will NOT supply me with the missing basis information on those two stock sales. Sending me the same information on summer care for the kid who's too old will NOT supply me with the missing info on the younger one -- I understand calling the wrong name when someone has left a mess in the living room, but when you are asked for info on Ron and give me a duplicate of the info on Hermione you're not paying attention. Or you've watched Harry Potter too many times. Et cetera ad nauseam. Argh!! 5 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 4, 2014 Report Share Posted April 4, 2014 And I've got a bunch of folks who want to file by 4/15 (don't want extensions) who are NOT giving me the last bits I need. I'm ready to dope-slap the lot of them and WILL hike their bills. Sending me the exact same consolidated 1099 that I already have will NOT supply me with the missing basis information on those two stock sales. Sending me the same information on summer care for the kid who's too old will NOT supply me with the missing info on the younger one -- I understand calling the wrong name when someone has left a mess in the living room, but when you are asked for info on Ron and give me a duplicate of the info on Hermione you're not paying attention. Or you've watched Harry Potter too many times. Et cetera ad nauseam. Argh!! Finish it with $0 basis (which is what they provided) then call them with results. I'll bet you get their attention.... 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 4, 2014 Report Share Posted April 4, 2014 Finish it with $0 basis (which is what they provided) then call them with results. I'll bet you get their attention.... Have done that in the past, as well. Usually works! That guy actually found his info. Newest nonsense is a "nervous Nellie" who knows bupkus about taxes and plays stupid until she gets her electronic review copy (lives in another state... another story) when all of a sudden she wants details about nothings - while still demonstrating her ignorance and lack of perception. Latest: she thinks I made an error leaving the total tax due from an "earlier version" because it is not equal to tax minus withholdings -- completely missing/ignoring the PENALTY amount just left of the total due and which is the difference between the subtracted amount and the actual amount. Just bumped her bill $50 for that email. 3 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 4, 2014 Report Share Posted April 4, 2014 Have one that was in a hurry due to existing payment plan. I bumped her up a few spots and completed her a few days ago -- except, she's been picking out details to argue about, insisting they had more w/h last year ($3,500 less) and that they never took out $20,000 in retirement funds and why do they owe more (w/h @ 10% on 28% rate + 10% early w/d + 6% CT + 6.65% NY) while all the time not getting me Goodwill values. I put in the $521 from last year, but they gave four times with long lists, so I think they have a good deduction there if they'd just get me the numbers. I sent the the link to the Goodwill calculator. I'm trying to get people to give me the "new" value too. When they're here, they look at my ceiling. But, when we're doing them over the phone/email, they don't find any numbers on their ceiling, I guess. 1 Quote Link to comment Share on other sites More sharing options...
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