RitaB Posted November 10, 2016 Report Share Posted November 10, 2016 New client came in to have me prepare 2014 and 2015. Mentioned that IRS was sending letters because he hadn't filed them. I told him bring the letters. OK, he brings one letter, the others he has thrown away. Well. The letter is for 2013 and Notice of Intent to Levy. "Oh, that must 2013 must be a typo..." Yeah. Right. So, I review 2013, other preparer missed the cost on mutual fund sales. I don't know how, because it was very clear, but yeah, IRS is correct and this guy owes the amount they say. I am advising him to mail a check yesterday, and also call them and sound real pitiful. 2014 is going to be a refund. If we file it right before the shut down on November 30, do you think his account will be updated, or that IRS will confiscate 2014 refund? (I know he can file 2014 now, and let them take that refund for the 2013 debt. I don't like that solution in light of the situation.) Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted November 10, 2016 Report Share Posted November 10, 2016 I think I'd wait until January or later to file 2014, to give 2013 time to be settled. 5 Quote Link to comment Share on other sites More sharing options...
SaraEA Posted November 11, 2016 Report Share Posted November 11, 2016 I would file 2014 ASP. Those 2013 interest and penalties will continue to accrue, and the refund will at least stem the additions. I cannot begin to understand why people just ignore IRS notices. Do they really think that throwing them away, into a drawer, under the car seat, is going to make the mess go away? Had one client who hadn't filed for 6 years and probably threw away 60 IRS notices until the IRS levied his paycheck. Got him all caught up--too late to collect $8k in refunds but he did get $10k for the open years. Never opened the envelopes with the checks and had to have them reissued after they expired (after I contacted him when I got the IRS notices, which I did open). Guess he got so used to ignoring IRS mail he ignored the good stuff. Three years have passed, and every year I get a frantic phone call from him to file an extension please. He still hasn't filed for those three years. Guess I won't see any tax docs from him until the IRS levies his paycheck again. 1 Quote Link to comment Share on other sites More sharing options...
RitaB Posted November 11, 2016 Author Report Share Posted November 11, 2016 1 hour ago, SaraEA said: I would file 2014 ASP. Those 2013 interest and penalties will continue to accrue, and the refund will at least stem the additions. Well, so will writing a check for 2013 and mailing it to the address on the Notice. He owes less than $900 on 2013. I don't know that it would "hit" quicker to let them take a portion of 2014 refund, but three or four days longer is not going to break him. I care more than he does. Pretty sure. 3 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted November 11, 2016 Report Share Posted November 11, 2016 24 minutes ago, RitaB said: Well, so will writing a check for 2013 and mailing it to the address on the Notice. He owes less than $900 on 2013. I don't know that it would "hit" quicker to let them take a portion of 2014 refund, but three or four days longer is not going to break him. I care more than he does. Pretty sure. Mail the payment now. File the 2014 in late January. Don't forget that ATX will charge you $5 for each prior year return you file. Raise your rate and tell him why... 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted November 11, 2016 Report Share Posted November 11, 2016 Agree with Abby and Jack. File 2013 now and make the payment. File 2014 in Jan next year. 3 Quote Link to comment Share on other sites More sharing options...
RitaB Posted November 11, 2016 Author Report Share Posted November 11, 2016 10 hours ago, Jack from Ohio said: Mail the payment now. File the 2014 in late January. Don't forget that ATX will charge you $5 for each prior year return you file. Raise your rate and tell him why... Yes, he already mailed the check for 2013 error to the address on the Notice. That was job one. Thanks, Jack, for the advice on how to charge, you know I love you. Since he's a new client, and the kind of client I REALLY love to get, there will be no scolding. Only love, or the appearance of same. He was very well organized, just late. I like November work. They moved here from a higher cost of living state, had an error on previous EA-prepared 2013 return, has pension, SS, investments. I just matched the 2013 fee, and after the $5 poke from ATX, I'm still $45 ahead of what we charge in Hickville, TN. We're all happy, happy, happy. 8 Quote Link to comment Share on other sites More sharing options...
Catherine Posted November 11, 2016 Report Share Posted November 11, 2016 3 hours ago, RitaB said: Only love, or the appearance of same. And this, Rita my friend, is an stellar example of why I always ADORE your posts... 5 Quote Link to comment Share on other sites More sharing options...
BLACK BART Posted November 12, 2016 Report Share Posted November 12, 2016 On 11/10/2016 at 9:39 AM, RitaB said: ...So, I review 2013, other preparer missed the cost on mutual fund sales. I don't know how, because it was very clear, but yeah, IRS is correct and this guy owes the amount they say. I am advising him to mail a check yesterday, and also call them and sound real pitiful. 2014 is going to be a refund. If we file it right before the shut down on November 30, do you think his account will be updated, or that IRS will confiscate 2014 refund?... I would have mailed the check too, but as far as filing before 11-30 I wouldn't count on anything getting processed. I sent them a response to a CP notice last week by certified mail with return receipt and have been checking on it through USPS tracking, It became "AVAILABLE FOR PICKUP" at the Cincinnati post office a week ago (on Nov. 4th) and as of this minute it's still laying there. I've never had one wait that long, so I assume they're pretty far behind. 2 Quote Link to comment Share on other sites More sharing options...
JohnH Posted November 12, 2016 Report Share Posted November 12, 2016 20 hours ago, RitaB said: Only love, or the appearance of same. The key to success is sincerity. Once you can fake that, you've got it made. 5 Quote Link to comment Share on other sites More sharing options...
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