Christian Posted May 11, 2021 Report Share Posted May 11, 2021 I have completed my own federal tax return for 2020. Surprised to find I am due a small refund. The Service in the last few years has been assessing a penalty the first of which was excused by the Practitioner Priority Service for the 2018 return. The tax law changes that year excused it. The IRS rep said at the time my first time waiver which had never been used was still available for future use. Last year I got another one but just let it slide as it was not all that bad. This year I suspect they will likely find some deficiency or other so I plan on using my first time waiver which I surely qualify for. My question is do I wait for the notice to come or send in the Form 2210 with the return requesting it ? Formally I never had this problem but with increasing good fortune I now see I need to track my income quarterly and make needed adjustments which I will do for 2021. Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 11, 2021 Report Share Posted May 11, 2021 The first penalty was probably excused without the need for the waiver because it was deemed insignificant by the person who handled your request. You might want to consider whether that's the case this time, based on the amount of the potential penalty. If a hurried IRS employee processes it as a First Time Waiver, you've slammed the door shut for 3 years. You could find yourself in need of a significant penalty waiver with lots of money at stake at some point in the future but unable to get it because you wasted it on a few dollars of penalty reduction prematurely. 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted May 11, 2021 Report Share Posted May 11, 2021 Play a joke on the agent when the waive the penalty that you are just pennies away from becoming a millionaire, this really to happened to a tax preparer that increased their fees like by $5. His client complaint that they didn’t pay this fee the prior year and why the increase bla bla.... the preparer said fine you can pay the same as last year, his client in turn said, I am saving as much as I can, I am just pennies away from becoming a millionaire 1 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted May 11, 2021 Report Share Posted May 11, 2021 And, THAT's why I need to raise my fees, no matter how much clients complain! 3 Quote Link to comment Share on other sites More sharing options...
Catherine Posted May 11, 2021 Report Share Posted May 11, 2021 For some years now, when people ask if my fees are negotiable, my response has been, "Yes, but only UP!" 3 4 Quote Link to comment Share on other sites More sharing options...
Christian Posted May 11, 2021 Author Report Share Posted May 11, 2021 Interesting you bring this up. My fees are not unreasonable. I went up some $25 on a client who I had just given his return which will get the couple a refund in excess of $10,000. I simply told him that I considered investing $225 dollars to get a $10,00 return was a good deal. He mumbled he had not got back a like amount from last year they being victims of ID theft with the 2019 return still in process. I kept silent as I had read the letter sent to them by the IRS which pretty clearly indicated his new wife had herself filed the return with her social as the primary social. And this from a marriage his mother said was "A marriage made in heaven." When you wait to become 40 years of age to marry a dingbat with two like minded teenage daughters I should have expected little else. 3 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted May 11, 2021 Report Share Posted May 11, 2021 Double your fee and hope he goes away! 4 Quote Link to comment Share on other sites More sharing options...
Catherine Posted May 13, 2021 Report Share Posted May 13, 2021 On 5/11/2021 at 6:55 PM, Lion EA said: Double your fee and hope he goes away! Triple it and ensure he leaves! lol 2 1 Quote Link to comment Share on other sites More sharing options...
Christian Posted May 14, 2021 Author Report Share Posted May 14, 2021 Well he relented. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted May 15, 2021 Report Share Posted May 15, 2021 On 5/13/2021 at 8:02 PM, Christian said: Well he relented. That doesn't mean you have to take him back! 2 Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 15, 2021 Report Share Posted May 15, 2021 There are some clients you just can't charge enough to make it worthwhile to fool with them. 4 Quote Link to comment Share on other sites More sharing options...
Catherine Posted May 15, 2021 Report Share Posted May 15, 2021 13 hours ago, JohnH said: There are some clients you just can't charge enough to make it worthwhile to fool with them. Ain't that the truth! I took one this year - referral from existing, good, clients. She's poison, and is now trying to poison the good clients against me. Trying desperately to think of how to get rid of her in a way she'll believe (she's a leech, whining and constantly begging me to call her, because she wants me to explain what was perfectly clear in email - I can't understand it for her and there are no words of less than one syllable). At this point I almost don't care about keeping the other clients - if they're dumb enough to believe her words about me, when they've been with me for over a decade, then maybe I don't want them, either! 5 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted May 15, 2021 Report Share Posted May 15, 2021 29 minutes ago, Catherine said: there are no words of less than one syllable Perfect. I must remember this. 2 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted May 15, 2021 Report Share Posted May 15, 2021 Quote Link to comment Share on other sites More sharing options...
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