Distrustful clients

[JG EA]

I had an interesting experience today. A client had so many medical bills that it wiped out their taxable income. Their broker told them to take an NOL. That way they could carry the loss forward. I explained it and they said But ___ said. I read it to them out of TTB and they said But ___ said. They thought they should have him call me. I kept working and later they said I should call him because maybe he knows something I don't. So I called him and put it on speaker phone. He said his idea again and I read him some information and he said well, that's the reason he had them ask me - to help them out in their situation.

I don't think they believed me even then.

[oceanlovin'ea]

Jg Ea

You know that brokers are so much smarter than EA's. don't you?

When will we ever be the smartest?

Linda, EA

[geekgirldany]

I've had that happen before.

This client I prepare their return while they wait. I wasn't sure on a sales tax deduction and was doing some research. While researching client told me maybe I should call my former boss (whom I have not seen in 10 years) to get the answer. I told the client to go back to my former employer to the return if they doubted my ability to prepare taxes. He backed down saying he was joking... not so sure.

I also had one that a lawyer told them (partnership) they do not have to pay any SE tax if the do a S-Corp. I explained to them why they would. They mentioned it several times... I finally told them to go to the lawyer to prepare their return if the did not think I was correct. They did and haven't heard from them since.

[oceanlovin'ea]

my experience

Have had a client since she was a teenager, close to 20 years probably.

Her and her husband set up LLC's with rental property in them. When they started out their income was low and losses were deductible. But then they started make BIG money and the losses were no longer deductible.
We had long discussions over this issue. She had a friend who is CPA and he told them the losses were deductible. I said they were. So they took their personal return to the CPA.

I still do the 2 LLC returns, give them K-1's and they take them to CPA. Okay with me. What they do with K-1 after it leaves my hands is none of my business. If they get audited, it will be the CPA's work not mine.

Linda, EA

[erchess]

Here I was in my third year in this business, working

in a storefront firm that is willing to prepare your taxes but also for a lower fee to electronically file your return that you or someone else prepared always assuming that the return with only very minor and acceptable to you changes can get through our computer system. Here I am dealing with one of these latter sort and a self prepared return. His return shows wage income of roughly 52K worth of wages and I think five dependents all cousins, nieces, or nephews so that he is getting a large refund. My computer insists that he gets a much smaller refund because of AMT. I am familiar with the term but know nothing of how to calculate it. However consultations with superiors convince me that my figure is right and he won't see it that way so I write down for him the difference between my figure and his and ask him to remember it. We agree that he will file on paper and call me when he gets anything from the IRS. In due course he calls me to say he got his refund but I ask him to remember our figure and tell him I think the IRS will be in touch. Well it turns out I am right. During the summer the IRS contacts him and asks for what he terms "almost exactly our figure" so he pays it and becomes my client for the remainder of my time with that firm in that city.