Discussion:Dumbest Client Department
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Death&Taxes (talk|edits) said: | 14 March 2007 |
| Clients says IRS claims they never got her return last year but they cashed the large check she sent....paper filed for many reasons. She hands me an IRS letter....letter states, or should have stated, the dummy never signed the 1040.
Original title of discussion was "you can't save them from themselves" | |
| 14 March 2007 | |
| Client comes in last year - wife still owes for 1995. I tell him (and her by phone) about 10 year statute, she says let's check anyway. I do 2848 write letter to IRS "what is her balance for 1995?". 3 months later "$0 balance for 1995"
Several more conversations - her: "Are you sure 1995 is clear?" Me: "YES". Client calls yesterday "They've levied for her 1995 taxes!!!!!!" I do nothing. He calls again today "What can we do about her 1995 taxes?" I tell him to fax me whatever papers they've got.
Husband still swears it is 1995 taxes. | |
| 14 March 2007 | |
| The sad thing - the tax balance was only $153, but with penalties and interest it is now almost $1,600. Guess when the 10 year collection statute is up? April 15. Why wouldn't the IRS want one last bite at the apple? | |
| March 14, 2007 | |
| OK, I'm handing out a prize for that one. You win. No further entries accepted. | |
| 14 March 2007 | |
| Today a client wanted to know that since a church owed them some money and they didn't accept it, could that non acceptance of the funds be considered a contribution deduction for the schedule A...
I know, no other entries, but there are times (like now) that I need to vent. | |
| March 14, 2007 | |
| My turn. Just hung up with a gal who wants to deduct the money she borrowed to pay bills for her rental, in addition to the bills for the rental!! Took 15 minutes, and she's still not convinced! In fact, she believes the guy last year did it! I showed her that it wasn't on last year's returns, and she had no response, merely kept repeating that she had out of pocket expenses that should be deducted...ARGHHHHHHHHH!!!!!!!!!!!!!!!!!!!!!!!!!! | |
| 14 March 2007 | |
| How does she deduct the money that she borrowed? Just tell her that if she want's to deduct the payments for the loan, they she would also need to record the reciept of the loan funds as income...see how long that takes her to think that one through...if she says ok then we'll know we have a winner here!!!DING DING DING!!! | |
| March 14, 2007 | |
| I should have told her, "Oh, you borrowed money? That's income!" But you just can't do that to old folks. Keeps 'em awake for weeks. | |
Death&Taxes (talk|edits) said: | 14 March 2007 |
| One doesn't sign, and then there is Dr. W. who back in 2002 called me in June to ask if he paid his taxes twice. Of course, how would I know but I asked what made him ask. He had a check from IRS for the amount of his 1040 liability....the return was filed by mail and apparently he filed both the original and a copy on different days. I asked him if he wanted me to send in my copy, but he said only if I added another check.
Imagine him operating on you, what he could leave inside!!! | |
| 15 March 2007 | |
| Teachers.... and the scary part is they're teaching our children. He stays after school and makes himself available for 'tutoring.' Wanted a deduction for his time. Told him no. Then he wanted to know if he could call himself a 'study aid' and take it as an educator expense. | |
Actionbsns (talk|edits) said: | 15 March 2007 |
| My client came in today and thought that just because she was paying me to prepare the taxes, I should toddle on off to the post office to get the envelopes weighed and postmarked. After all her previous tax preparer did that, and oh by the way, "I am paying you doncha know". | |
| 15 March 2007 | |
| Guy calls me and wants me to do his website development S-corporation return. At our initial meeting, he shows me a loan schedule from himself to the corporation starting in 2004 (he says no business until 2006). The loan schedule shows an original loan for $26,000 which he used for "programming" and another loan in 2006 for $200,000. When I ask him about this, he says he sold another company he had and loaned the money to his S-Corp.
He then gives me a sheet for 2006 that shows: Income - $45,000 Loan repayments - $13,000 Expenses $26,000 (I'm rounding) and wants me to do his return while he is waiting. Now I'm suspicious, but ask for his 2005 personal return. When I see that he had a schedule C company (for the same type of business) I ask him if this business is still going (he made $15,000 in 2005). He says, no, he sold this business to his S-Corporation for $200,000! I guess I should have seen the red flag in the beginning when he said he wasn't happy with his former tax preparer because of some of the things he wanted the guy to do. | |
| March 15, 2007 | |
| 20-something guy comes in with a 1099R for $6,000 distribution from his IRA.
Me: "Why did you do that?" Him: "My brother had a hot stock tip." Me: "Did you know that you can buy stock in your IRA?" Him: "Oh!" Me: "So how did it do?" Him: "Company went broke, lost it all" Me: Thinking to myself 'You lost more than all' | |
Death&Taxes (talk|edits) said: | 15 March 2007 |
| After lightening a couple's wallet 10K on the unavoidable profit on 1980s stock that ran into the buyout of Knight Ridder, clients ask about the advisability of selling their dot.com meltdowns, bought circa 1999, in 2007 You know, stuff like Lucent. Worse yet, they live in NJ, where if they take losses, they can't carry them forward. But didja ever notice it is blunderers like this that a forgiving God will grant Lucent a rise like a Phoenix so that they will make a profit. | |
Bottom Line (talk|edits) said: | 15 March 2007 |
| Just fired a client for lots of reasons but he insists that you can take insurance and repairs of your personal residence off your taxes. Also insists that his S-corp can pay for his four months per year of in-patient psychiatric hospitalization and that it's a dollar for dollar deduction. I explain "No, can't take any of that." He says, "That's not fair." I say, "Call your Congressman." Last I heard he's curled up in his house in a fetal position. Yes - he has "issues". | |
Bottom Line (talk|edits) said: | 15 March 2007 |
| Believe me I've thought about it. (I'm serious). Fortunately he doesn't know where my office is much less where I live. He knows my husband's nickname but not his given name and doesn't even know what town I live in. | |
Death&Taxes (talk|edits) said: | 15 March 2007 |
| BL: I have always observed that Black women over the age of 65 think they can write-off home repairs and improvements. They will always list them. But that is not being dumb; your client has a level of sophistication, forming an S and all that. These people are just following an urban tradition. | |
| March 17, 2007 | |
| Just got the run-down of a client of somebody else in this office.
44-year old wants to buy another house, but is not able to sell his current house. So he draws $170K off his IRA to put as down payment on the next house. Client is in 33% Fed, 9.3% CA, plus 12.5% early distribution penalty. I know somebody named Nikko that lends at cheaper rates than that. You all know the "rule of 72". Let's assume 6% interest, so the client's IRA will double every 12 years. He just robbed his retirement of $700K. | |
| 17 March 2007 | |
| DT - another urban tax legend: I have a client that, in addition to listing his postage to mail last year's tax return and mileage to get taxes done, always lists the drinks he has at the bar next door after picking up his taxes. He says he needs the drink after seeing me and wouldn't have had as many if it weren't for owing the taxes. Whady'a think? Ordinary and necessary??? LOL | |
| 17 March 2007 | |
have no problem with the postage...but would have to limit the drinks to 50% 
| |
Death&Taxes (talk|edits) said: | 17 March 2007 |
| I have one who flies up from Atlanta to Philly (and boy are her arms tired) and lists all the expenses, but I think it is one day for tax prep and five for the Atlantic City casinos. | |
| 17 March 2007 | |
| GLM, I told him he could deduct twice as much if he took me along and bought. | |
| 18 March 2007 | |
| New client - "I need you to file a zero tax return for a non-active S corporation... all of my income and expenses for my business are to be put on my personal tax return - Schedule C." I then realized both the corporation and Schedule C were for the same type of business so I asked her why she had an S corporation, but wasn't using it. Her response, "Someone told me that an S corporation would limit my liability." Ahhhh...well not if you don't run the business through it.....here's your sign! | |
