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Go away...you bother me


Janitor Bob

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Client chose NOT to get health insurance.  Client had income of $24,300.  Was offered $496/mo subsidy on Silver plan with a cost of $631/mo...leaving her contribution at $135/mo...less than the required contribution calculated by 8965.  I inform client that she does NOT qualify for the affordability exemption and will be assessed the $695 penalty.  She thinks I am wrong because:

1) She could not "afford" to pay $135/mo with all of her other bills

2) Her sister makes $27,000 and did her own taxes and qualified for the exemption.

Client requests I file her return claiming affordability exemption anyway.  I told her I would NOT do that because the 8965 calculations do not support it.  Since the return is complete and I'm charging her regardless, she told me to file "as-is" with the penalty and then she'll take it to her sister to amend (claiming the exemption).  In the end, her sister (who she now views as a tax genius) will amend her return...and IRS will probably not question it...and client will get her $695 refunded.  I know her amendment will be wrong (and potentially fraudulent), but client (former) will assume I was wrong and spread that story via word-of-mouth.  sometimes I hate people

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If the sister amends, (not likely she knows the proper procedure) then the client gets that letter from the IRS, it will be the problem of the sister and the client.  

Not likely the sister will sign the return, so again, the fraudulent people have no worries about being caught, and us honest people have to jump through the hoops like we are the criminals.

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Every year, I have one customer who calls to complain, loudly, that it is my fault they have to install updates several times a year.  This person pays someone to come in and install for them.  Like I have any control over when the IRS and states publish withholding changes, when the IRS publishes the new 941, 940, and W2 forms...

I learned a long time ago, not to try to explain, as it wastes my time and annoys the other party, so I wait until they are done, hang up, and still collect their fee.

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New tax client this year and I'm looking at last years return: she owns a house in New York State but doesn't live there visits for vacation.

She works 7 months of the year and rents an apartment in Missouri.

She works 5 months of the year in New Jersey.

 

Here's the problem, they filed 3 state tax returns all as non-residents.

The W2s show her having income in the state of New York. One W2 says she made $60k total and attributes it $60k in Missouri and $60k in New York. She has another W2 from her time in New Jersey that does the same thing but the preparer did a manual override of THAT New York attribution of income. The software prints off a W2 so I know they entered it into the software. Very weird.

 

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