I hate it when I find my own mistakes!

[Possi]

I have a couple that have been together many years. They have 2 children and are expecting a 3rd.

They are not married.

I split their return last year by doing the most beneficial thing... Gave him the kids and gave her the Sch A.

Well, guess what is on her W2 this year that I NOW see was on her W2 LAST year.... Yup... Dependent Care Benefits to the tune of $5,000.

Now I will need to change BOTH FRIGGIN' RETURNS before she gets a love letter from the IRS.

arggggggg

[Dusty2004]

Better that than the alternative

If they get a nasty gram from the IRS it is always worse than you finding it.

Dusty

[tacks]

Strongly agree with Dusty on this. Way better that you find your own mistake as opposed to the IRS or someone else finding your mistake.

[Possi]

SO true

So true! I am working with it now so thaT they don't get that love letter....

This is the second time in 15 years that I have missed dep care benefits.

This is so much worse because it changes 2 tax returns. I have to take at least one child off his return and put it on hers to negate the dep care benefits.

But, she has to give the exemption back to him because she phases out of the exemption and it will cost them an extra 1k MORE...

I'm in the doghouse bigtime. And I'll pay the penalty and interest on this one.

The ripple effect of this is making me sick to my stomach. I just want to cry.

[PIGLEE]

My biggest mistake was when a client cashed in LOTS, and I mean Lots of Savings bonds. When I looked at the bank 1099, it listed several accounts she had, and I put them in line by line, and skipped the last line, I THOUGHT IT WAS A TOTAL. IT WAS THE SAVINGS BONDS. Then I thought that we could use the stepped up basis for the inherited bonds, (she had held them for about 10 years after inheriting them). Was wrong again. I was sweating blood, she was upset, but after going to a CPA last year, she came back to me, said I knew more of what I was doing. (she had 3 amendments on the year the CPA did). I will do hers free for several years, it is worth it. She even gave me a little gift this year.

I always face up to my mistakes, little or big, I never try to blame anyone else. It has always worked in my favor. I think we need it to happen once in a while (but I like it to be a little one) it keeps us sharp, and from getting lazy.

Good luck with yours, we always try to do our best with our clients, but sometimes we miss something.

[Peachie]

We are humans Piglee,

not machines. We never intentionally make mistakes as referenced by your returning client. I agree, own it, correct it and move on.

Peachie

[Possi]

Yes...

... and first thing TOMORROW, I'm going to do just that... deal with it, do some freebies for them and move on...........

[Uncle Sam]

Finding Mistakes

This past tax season - I noticed a mistake I made on the 2008 return.

I accidentally put the Medicare Withheld from 1099-SSA into the FWT box.
Return was filed on time - no extension.
(Surprised IRS didn't notify client yet).

So right while I was working on 2009 - I amended 2008 - and told client - when he gets notice from IRS of interest - send me the bill - I'll take care of it.

[Possi]

The only way to go...

It really is the only way to go. When I found it, I just had to get on board and spill my guts. I was so upset. I feel better now.

That particular client was new last year and for some reason, everything I did for her seemed to have a cloud over it. Some people carry an "aura" of doom.

She'll either "fire" me or we will become good friends. God has a way of working it out for the best.

So glad I have the watercooler when I'm stressin'..... thanks....

[jimenright]

can't pass dependents

I don't think you can pass dependents back and forth for the best tax benefit. Read the "Tie Breaker Rules" TTB pg 3-17. They are either dependents of one person or the other depending on how they fit the dependency rules. They can't be shifted to one or the other.

It's the same with itemized deductions, they go to who is reponsible for paying them. You can't pass them around either.

[newbie]

They both would have qualifying children so if they agree to it either can take the kids, if they disagree the tiebreaker rules would come into play. They can't split the benefits that go with the kids, it's all or nothing, so one can't claim HofH and the other take the kids.

[Possi]

There is no argument over the kids....

They all live happily together, they are just not married. They should be able to put the kids wherever it benefits them the most as long as only one claims HofH and the other claims single. No tie breaker involved.

I know, I know, the one who paid over half the cost of keeping up the home gets HofH status. And only one is getting that status.

I'm going to include a letter requesting abatement of the penalty to soften the blow. I'm really trying not to let this ruin my otherwise successful tax season, but I have to tell ya, it ain't easy.

If it were any other client, it would not be so hard to take, but this is a difficult client at best, and I feel bad for them... and for me...

[RitaB]

That's who it happens to

If it were any other client, it would not be so hard to take, but this is a difficult client at best...

Seems like that's how it works, huh?

Got a new client, (construction, my favorite, right after beautician), whose return was VASTLY different than 2008, and of course the difference between a $33,000 LOSS and a $25,000 GAIN on Sch C was completely lost on them. When I finally had them convinced it wasn't ME, I realized I had failed to include about $10,000 in income. Issuer had changed to an LLC mid-year (probably one of your PITA clients), so there were TWO 1099's from them, and I didn't notice.

Yeah, that was not good. I didn't have to amend cause I realized it before I gave them the return, but another $3,000 in tax... SOOO not cool. By that time, I was just fed up, thinking they'll just go back to other preparer, so I kept the explanation short and sweet: "Hey, I failed to add this 1099 income, my bad."

There is no pleasing some clients. I had also tried to show them the silver lining regarding a truckload of education credits they received. Their response: "Yeah, well, Junior graduated, so we won't have THAT next year."

Uh, no, but you WILL have $15,000 in your pocket that you didn't have to spend on tuition... Blank stare. No light bulbs anywhere.

[Possi]

Blank stare... hahahaha

Thanks, I needed that.

Now, I'll make that phone call....

=(

[RitaB]

Well, then

Thanks, I needed that.

Now, I'll make that phone call....

=(

In your case, you'll have to just picture the blank stare, but the vibe will actually come through the phone line.