H*ll Week

[samingeorgia]

So here I sit at 7:55 on the 18th. The phone rings. It's a client I haven't seen for two years. "Can you file an extension for me?"

Enough.

[Catherine]

So here I sit at 7:55 on the 18th. The phone rings. It's a client I haven't seen for two years. "Can you file an extension for me?"

Enough.

Enough is right.

I posted a couple days ago about a client who wanted me to claim casualty loss on termites. Got him straight on that one, got his return finalized, sent in Federal and state yesterday.

Federal got rejected. Turns out his son who just graduated college claimed himself (state went through because the son now lives in another state).

So now I have to explain this to the client, along with preparing the return for paper filing (plus the e-file rejection code and the new form we have to send along when we paper file), and explain _why_ we should do this even though it (a) makes no tax difference for him (AMT) and ( will cause headaches for the son, and © increase his underpayment penalty/interest amount because now his electronic debit payment won't go through today like it was supposed to.

I know what is right, I know what to do -- but doggone it, I just don't _want_ to right now!! I am _tired_ and expected to spend this week in my garden. My roses aren't as extensive as jainen's, but they need pruning. My peas need planting.

Can I go hide under my desk now, and come out in May? Nope; can't do that, either, as there's a deadline on how long we have to correct an e-file rejection and still be considered timely.

What do people think about fixing the return to delete the son's dependency exemption -- and then amending on paper later? Gets the tax payment in quickly -- but files a return known to be inaccurate.

My sympathies to you, SaminGeorgia, and thanks to all for listening to me whine. I'm cranky tonight. :wall:

[Lion EA]

I say whichever way the client wants, with your guidance. I can see e-filing without the son; it's as accurate as you can be now that you know the son claimed himself. Later you amend parents. Or, paper file the final way -- not that's it's really final for you since you'll probably be explaining to the other spouse and then the son what's happening. It's the 18th. I vote for the path of least resistance. But, explain it to your client (with your own bias, of course) and let him make the call or think he's making the call.

[kcjenkins]

Yes, given the timing, I'd just efile without the kid, so the payment goes through, then amend if you need to afterwards. It's not worth the stress at this point.

[Catherine]

Yes, given the timing, I'd just efile without the kid, so the payment goes through, then amend if you need to afterwards. It's not worth the stress at this point.

Thanks KC & Lion --

I got hold of the client, and that's what we did. We'll amend later - he supported the son through October, so there is NO question of who has the right to claim that exemption. The client talked to his son, who will amend his return. At some point I'll have to inquire as to whether the son has to amend his Wisconsin return (he wouldn't in Mass -- you get your own personal exemption regardless, here). I told them to have the son wait until the IRS sends an inquiry letter, so the amendment wouldn't be slowly burbling through the system while a letter was demanding immediate action with paperwork likely to be sent to a different processing center.

Catherine

[mcb39]

Thanks KC & Lion --

I got hold of the client, and that's what we did. We'll amend later - he supported the son through October, so there is NO question of who has the right to claim that exemption. The client talked to his son, who will amend his return. At some point I'll have to inquire as to whether the son has to amend his Wisconsin return (he wouldn't in Mass -- you get your own personal exemption regardless, here). I told them to have the son wait until the IRS sends an inquiry letter, so the amendment wouldn't be slowly burbling through the system while a letter was demanding immediate action with paperwork likely to be sent to a different processing center.

Catherine

He will have to amend WI also, but it's not a huge deal here. If I can help, just let me know.

[windmill]

I, too, got a call yesterday afternoon from a client whose files were in the dead files, not literally. I haven't seen him since 2007 when I filed an extension for 2007. He wanted me to file an extension for 2010. He hasn't filed since 2007..oh, boy....in our discussion...by the way, I got married Sept 2010. Well, then we have to file either MFJ or MFS...He said no no single...how is this, I said. well, her tax preparer filed her single because I didn't have my stuff ready...how did he do this??? How do you file single when you are married? I suppose file single then amend later, but doesn't that admit the previous one was totally incorrect. Any thoughts?

[mcb39]

I would probably suggest to this guy that HE go to HER preparer. I think that is totally incorrect. Are you sure you want to deal with it?

[HV Ken]

I suppose file single then amend later, but doesn't that admit the previous one was totally incorrect. Any thoughts?

I don't understand the sentiment "doesn't that admit the previous one was totally incorrect". Isn't this what an amended return is for? Fixing retuns that are incorrect. Fixing returns upon the discovery of new information. Etc.

For example, we fixed two returns that were filed incorrect (well, more than that, but just these two for this discussion).

Return 1 the filer used TurboTax - divorced in 2010 - filed HOH because ex (custodial parent) gave him dependents via 8332. We had to amend to make Single.

Return 2 the filer used a relative who files taxes for friends and family - divored Dec 2010 - filed MFJ. We had to amend to make Single (no kids in this case).

The most typical case we run into is when the college student dependent child runs out with their few thousand W-2 to H&R Block for free filing, claiming their own dependency exemption, thus costing the parents their dependency exemption, college credits, etc.

[windmill]

I understand "new information" or a late K-1, but married in Sept 2010 and filing single for 2010. How is this justified?

[Lion EA]

Sometimes our clients remember what they think they heard. Preparer might've used MFS and your former client heard Separate as Single.

[HV Ken]

married in Sept 2010 and filing single for 2010. How is this justified?

It's not, that's why you help them to file correctly with an amended return and hopefully win a new lifetime client thanks to your knowledge and superior service! Scenarios like these have become some of our most loyal clients and source for new business thanks to their referrals because they so appreciated our taking the time to educate them and fix their mess.