Discussion:I'm baffled, and PBR doesn't help.
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Discussion Forum Index --> Tax Questions --> I'm baffled, and PBR doesn't help.
Harry Boscoe (talk|edits) said: | 11 October 2009 |
| My new client gave me a copy of their 2008 Form 1040, prepared by another local CPA, using a software package that I don't recognize. MFJ, two kids, Sch C and the usual Schedule A stuff. Schedule D but the gain there is only a coupla hundred bucks. Paper return, not e-whatever.
Here's the rub: Line 43, taxable income, is $99,043 and Line 44, income tax, is $10,067. By the Tax Tables, the tax should be $17,444 minus a coupla bucks for the LTCG. There's nothing "unusual" about this tax return except that the tax on Line 44 appears to be understated by about $7,400. The return was filed back in May, and the client says they've received no correspondence from the IRS about this glaring discrepancy. Anybody have any insight on this? I'm totally baffled. Even PBR doesn't help this one... | |
| 11 October 2009 | |
| Harry, The IRS can't do the math till the data is entered.
So, sit tight, enjoy another PBR, expect a little something after the Superbowl. | |
| October 11, 2009 | |
| Harry, I can get close if there's about $ 60,000 in LTCG instead of W-2 or Sch C income.
Is there a Sch D computation with the return? Even if the cap gains shown are low, perhaps the prior preparer tagged something wrong. ICOUNT has a good idea....but that's a LOT of Qualified dividends. How much are the total dividends on the return? | |
| 11 October 2009 | |
| (could also be a huge input error using qualified dividends - higher than ordinary dividends, for example) | |
| 12 October 2009 | |
| On the line 44 for the tax was there a different or special box checked? Just curious. Are you going to give us the answer to the problem or isn't there one yet. | |
| October 12, 2009 | |
| Homework question from Harry !?!?! Shirley you jest <W>
(I want to hear the rest of the (Kevin's) story - sounds like BTDT...) Couldn't resist - I just tried it in Lacerte and whew, got a major diagnostic. I know, I know "software is not a substitute, etc" but it is nice to have the backup to help catch those things | |
| 12 October 2009 | |
| What evidence do you have that the return was actually filed ? Was there a refund a client has a record of deposit ? If there was an amount due was check cashed ? IRS should have processed this by now . I think a phone call to IRS with you present or POA would be appropriate under the circumstances . | |
| 12 October 2009 | |
| Harry - are you signed up for IRS online transcript delivery?
If so, you can check the status of the return on the IRS website without having to make a call. (You do need POA on file, though.) | |
Harry Boscoe (talk|edits) said: | 12 October 2009 |
| Thank, guys and gals, for the helpful hints.
According to my new client, she got her refund in full. According to my new client, she didn't get any notice, or whatever, from IRS. According to my new client, her prior preparer is wonderful. Uh...? According to my new client, I will come back in the next life as an aardvark. According to my new client, Tim Geithner is "really really cute and cuddlable." I will let you know when the smoke clears what the heck went wrong with her tax return. She's not a model of clarity and linear thinking. | |
| 12 October 2009 | |
| If he isn't now, I bet her husband wishes he were employed on a fishing vessel.
You might ask her how you can get an upgrade, in the next life. maybe the prior accountant is now deceased and all tax preparers as aardvarks. Good luck when you send her a bill, or whatever. | |
| 12 October 2009 | |
| " prepared by another local CPA, using a software package that I don't recognize...not e-whatever."
Software could be Adobe Reader with form fill. The closest that I can come to the answer is using a tax table or rate schedule and using $69,000 +/- rather than $99 +/-. Obviously, the cleint or prepare could have worked backwards from the desired line 69 or 75 :). Since it was not an e-file, tax payer could have opened a pdf file and made modifications. By the way, PBR is a 4 letter word in our area ... they have never been forgiven for closing the local brewery ..even if it was 20+ years ago. | |
