Making Work Pay Credit / I don't think this is what they had in mind

[mblatour]

I've been thinking about all of this a lot over the past few days.

I think the new tax table deal could be a real nightmare come next year. The withholding tables I mean. I plan on drafting up a letter to all of my clients in the next couple of weeks explaining the possible scenarios where people might receive TOO MUCH back over the next 9 months; and therefore OWE next year. I want them to be informed so that they can make a change to their withholdings; if the need be; so that next tax season I'm not dealing with a bunch of P.O'd clients who owe.

I for one can think of several scenarios where this could be a bad result for clients. A lot of my clients depend upon my advice for their withholdings so that they can get a refund back or break even; depending on what they are going for. People are broke right now and this could really upset a lot of situations next year, when its likely after another cruddy economic year they will be more broke.

No one's paying me to do this, but I think it'll be time well spent so that I'm not stuck dealing with the stress of it next tax season.

Becky

[Jesse]

[QUOTE=Jiggers;77627]

Also got the first two letters where I missed the RRC. I just gently asked, "Oh, did you give me that letter saying what you got, and I missed it? I'm so sorry." Both were super nice: "No, we forgot all about it, it wasn't your fault; we're just happy we got back more, just wanted to see if it was for real."
QUOTE]


You don't check or verify the amount with the IRS website for each client? Takes less than a minute, which is less than having to explain the letter.

As far as the stimulus, although some prefer to let the responsibility fall upon the client, I think it's seconds well spent to check it out per the IRS site.

I just had someone call and said their employer is offering them to stay with the current w/holding or change to the new tables. Is this possible? I would think calculating payroll would get pretty complicated.

My suggestions was if they are happy with the refund and don't anticipate any changes for 2009 to stay as they are.

Now I'm thinking maybe they misunderstood and were asked if they would like to fill out a new W-4 to change the status?

[Jiggers]

Rrc

[QUOTE=RCooper;77626]

Also got the first two letters where I missed the RRC. I just gently asked, "Oh, did you give me that letter saying what you got, and I missed it? I'm so sorry." Both were super nice: "No, we forgot all about it, it wasn't your fault; we're just happy we got back more, just wanted to see if it was for real."
QUOTE]


You don't check or verify the amount with the IRS website for each client? Takes less than a minute, which is less than having to explain the letter.

[RitaB]

I do a few payrolls, and this is gonna be a headache. Guy was nervous cause his FIT went from $14 to $0. Filled out a new W-4 to have extra $20 a week withheld. I don't think that's what they had in mind, but I think that's the way it's gonna go.

Also got the first two letters where I missed the RRC. I just gently asked, "Oh, did you give me that letter saying what you got, and I missed it? I'm so sorry." Both were super nice: "No, we forgot all about it, it wasn't your fault; we're just happy we got back more, just wanted to see if it was for real."

If I never hear the work "stimulus" again, it will be too soon. I did hear someone, maybe Laura Ingraham on FOX, say "porkulous" yesterday. That's a keeper.