Discussion:Why do I let HRB make me question myself?
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Discussion Forum Index --> Tax Questions --> Why do I let HRB make me question myself?
| 31 March 2008 | |
| I hate that! But, sometimes the things they tell people have just enough truth to make me wonder if I'm wrong. New client this season, HRB prepared last two years. Would never have known that their vacation home was sold in 2006 (and not reported) had the client not wondered if it was somehow taxable in 2007. Apparently, when their 2006 return was prepared and they provided the sale info to the preparer, they were told by the "ugly lady" (and that's my client's words as the preparer was not ugly physically, but was so mean and nasty; can't figure that one) at HRB told them that with investment property they have two years to reinvest in something else before having to report the sale. I know involuntary conversions, but what? This was a outright sale, voluntary, of a home never rented, simply used for vacation/2nd home purposes. Am I just plain stupid?? Thank you. | |
| 31 March 2008 | |
| I'll bet the HRB tax preparer thought the home was a principal residence and was unaware that the old rollover rules have been changed, don't you think?
But, I agree with you 100%. Boy, isn't it hard this time of year when someone comes up with wrong ideas, but with total confidence that they're right? | |
Death&Taxes (talk|edits) said: | 31 March 2008 |
| Obviously she had it mixed up with the three year rule Discussion: Expenses not taken - Entertainment industry | |
| 31 March 2008 | |
| I know the feeling. A few years back, a local HRB tax office wanted to deduct child care expenses on their client's tax return. Problem was they needed my client's FEIN # to do it. Client is a dance studio and not a day care center. When I pointed out they weren't a licensed day care facility as required under IRC Section 21, they blew me off. The manager called and demanded the number and threatened me. I hung up. I had to go back to the Code Section, print it out and have it handy when they called back. They did. I read it verbatim to them. They hung up this time.
Tom | |
Taxestaxes (talk|edits) said: | 31 March 2008 |
| I have already done 3 2006 amended returns from H&R......seems they didnt itemize for individuals on their federal when they clearly had enough deductions......whats strange is they did itemize on the state? I dont know how their software works, but when I enter the info. (mortg. interest, taxes, donations) it carries to the schedule A,both fed. and state, and clearly uses them if they more than standard? I cant imagine why they didnt!! Whats more, is the price these people paid for their returns!!! Single person, 1 w2, sched F.- $300!!!! I did an amended return and he got and additional $500 - just from me itemizing for him!!! Crazy! | |
| 31 March 2008 | |
| HRB's software works great! The problem was with the preparer who overrode. I live in Oklahoma and because of the lower standard deduction in Oklahoma, many times I will override the standard deduction on the Federal because the difference in Oklahoma more than offsets the loss on the Federal. The preparer must have been from a state where you do not have to take the same deduction on the state as you do on the federal and mistakenly forced the federal to standard deduction. | |
| March 31, 2008 | |
| Or possibly altmin issue?
Lacerte gives a diagnostic, and I usually check by forcing the standard deduction. Haven't had one yet that has made a net difference. | |
| 31 March 2008 | |
| I'm glad that my client paid that extra $29 for "peace of mind", now I'm wondering if they're going to pay my fee for the amended, the penalties, interest and the significant tax due on this $100,000 gain. I'm glad for Taxes comment about the fees. The fee for the 2006 1040A one state was $245! There are no longer HRB fees, they charge as much (in my case, MORE!) as everyone else. | |
Southparkcpa (talk|edits) said: | 31 March 2008 |
| No No No.... you have it all wrong.
It's the 2 year vacation property rule. I thought we all knew that. Matt | |
| 14 May 2008 | |
| I've finally received all the info to amend 2006 for sale that was not reported and have a question about HRB's responsibility and how difficult/easy it's going to be to get them to pay penalties, interest and hopefully, my fee for amending. Anyone know how to go about this? Should I have the client call or should I contact HRB? I am totally unfamiliar with their policies in these types of situations. Thank you for any help/feedback. | |
| May 14, 2008 | |
| Contact me by email if you want to discuss further, then we can talk on the phone.
In general HR's POM policy will pay the penalties and interest as well additional tax up to $5000 for HR errors, and amend the incorrect return. The client shouldn't have a problem collecting if he can navigate his way through HR's off-season maze of closed offices and laid off tax pros to find an open office and a working tax pro. However, I'd be surprised if they'd pay YOUR fee for doing the amendment. They will do the amendment for free and probably will not sanction a non-HRB preparer to do it. The New Tax Guy... newtaxguy@yahoo.com | |
| 14 May 2008 | |
| taocpa
I don't see where a dance studio is precluded form being defined as a dependent care center under paragraphs C & D of section 21. It could qualify if it were a dance camp providing instruction for several hours a day as part of a camp or summer program. Or one could extrapolate that if the parent worked in the evening and the child attended classes for the period of time the parent worked, this could be considered child care. I would agree that a single, 1 hour class would not qualify, but a program of classes, possibly, unless I am missing something here in the code. | |
