Discussion:Same as last year
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| Revision as of 21:40, 10 April 2008 Shaunna (Talk | contribs) (No! He emailed) ← Previous diff |
Revision as of 21:42, 10 April 2008 WPCPA (Talk | contribs) (Tell him of the) Next diff → |
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| {{ForumReplyPost|UserID=Shaunna|Date=10 April 2008|Text=No! He emailed me that the amounts are the same as last year. I just asked if he is around via phone so I can talk to him briefly and explain what is going on. So, I will tell him that he needs to email me the information - whatever it might be. correct?}} | {{ForumReplyPost|UserID=Shaunna|Date=10 April 2008|Text=No! He emailed me that the amounts are the same as last year. I just asked if he is around via phone so I can talk to him briefly and explain what is going on. So, I will tell him that he needs to email me the information - whatever it might be. correct?}} | ||
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| + | {{ForumReplyPost|UserID=WPCPA|Date=10 April 2008|Text=Tell him of the new $5,000 Penalty - and raise his Fee.}} | ||
Revision as of 21:42, 10 April 2008
Discussion Forum Index --> Advanced Tax Questions --> Same as last year
Discussion Forum Index --> Tax Questions --> Same as last year
| 10 April 2008 | |
| So, with this new rule of more likely than not, if a client says to me that there Sch C expenses and mileage are the "same as last year", can I buy that? Do I need to add a statement that indicates this is the info that they gave and based on the client I believe this to be true? The client is desparate for money and is an artist so these little details they could care less about. I am only concerned about my portion of "more likely than not". Suggestions? | |
FriendLeeCPA (talk|edits) said: | 10 April 2008 |
| I have my clients in that category write up a general "P&L" (handwritten or whatnot). Post in the file. I will not accept a verbal, "Same as last year." | |
| 10 April 2008 | |
| Would an email from me to him listing the amounts be sufficient? He really has no clue about this stuff. | |
| 10 April 2008 | |
| An email from him to you, not you to him. Its his return, your butt. If he cannot come up with amounts neither can you. | |
| 10 April 2008 | |
| What about the Standard "reasonable basis" for accepting Documentation - is it reasonable that every year is the same?
I think you have to look beyond what last year's were - and you have to take his motovation into account his state of desparation for money - you could get him to "care" if you would inform him that he must provide you with proof of payment to qualify a deduction. | |
| 10 April 2008 | |
| I've had quite a few of these this year, and am hoping to come up with an idea to send out to them over the summer (not that they will use it any more than they use the organizer at tax time). Why do they bring the organizer back in their packet - completely blank? Some of them didn't even open the envelope.
It's late in the season, and I can take off on a tangent in any direction from my soap box by now. I don't understand how these Sched C clients can have no clue or not expect to have to take any responsibility for their numbers. Well, I know how my clients expect that - I took over a business from a retiring preparer last year, and he did "same as last year" for a good majority of them. And what's worse, I'm afraid that if we have to answer questions to the IRS, the client will say the same thing - and, of course, to them it will be my fault that they don't have a clue what they are doing. | |
| 10 April 2008 | |
| It is actually reasonable to have the amounts basically be the same. He workeda the same places and his rent did not go up, nor did his phone bill. The poor guy. I feel for him and want to make sure I cover myself. | |
| 10 April 2008 | |
| Mdw - I agree completely. I don't have $25k just lying around you know. | |
| 10 April 2008 | |
| Shaunna - it is not that the amounts are basically the same - not the central issue - in my humble view - its your hide that needs protecting from the new provisions in Circular 230 section 10:34 - where you are liable for a penalty up to $5,000 for signing as the paid Preparer a return - deemed "reckless" and that withing the discretion of the Agent to call.
Is the risk worth it to you? | |
| 10 April 2008 | |
| Most Sched C expenses probably really are about the same from one year to the next - insurance, legal, etc. But most of my people seem to really have no idea. If they are keep track of their business and it comes out without much variance it would be one thing, but when I ask them they seem to stare up at the ceiling and either pull out some completely unreasonable number (rounded up to the nearest $1000, of course) or say something like 'what's the legal limit?'
Then, I've had a few people go the other way, too. One called me 3 times because she didn't want to mail in her returns wrong, and she was coming up with $2 less on the federal withholding. I explained that when I enter the information, I'm rounding each W2, and she was totalling them all, rounding once and putting in the total. She was calling the IRS to verify that that was OK. | |
| 10 April 2008 | |
| No! He emailed me that the amounts are the same as last year. I just asked if he is around via phone so I can talk to him briefly and explain what is going on. So, I will tell him that he needs to email me the information - whatever it might be. correct? | |
