The mother of all stupidity

[Jiggers]

Corporate client who insists on doing their own bookkeeping.

When I did the corporate return last year, I gave client 13 journal entries to post as of 12/31/09.

The client did. Debits as credits, credits as debits.

Then didn't close out the year to retained earnings and the year-to-date income includes 2009 income.

They did go on extension.

The meter is running on this one.

[AZ-Tax]

The mother of all stupidity

Ahh...Jiggers, you opened up a can of worms now. On my tax organizer I ask of each dependent: months + days dependent lived with TP. I had one client enter: 18 yrs Another client 14 yrs

[RitaB]

May I?

I just had a recently released jailbird (and ex-husband of my client) argue with me for 45 minutes about splitting dependent tax benefits. He said you can't do it, and he knows this because he has been on the phone with IRS all day. It's his year to take the exemption and CTC, and the dumb@$$ just needs to tell Turbo Tax that his daughter did not live with him (in jail, no less).

[oceanlovin'ea]

Thanks for the laughs today. I really needed it today. Not a good day. Dental issues.

Your clients make mine look not so bad.

Linda, EA

[Jiggers]

Sam corporate client.

Read about Section 179 expensing. So all office computers are listed as office supplies, not as assets that need depreciation/Sec 179.

"Isn't that the same?" she said.

Markets HSA plans as part of their business and has HSA plan's for their employees. W-2's were not marked with the corporations contribution to the HSA. She didn't know.........

[taxxcpa]

Reminds me of an error I made

Corporate client who insists on doing their own bookkeeping.

When I did the corporate return last year, I gave client 13 journal entries to post as of 12/31/09.

The client did. Debits as credits, credits as debits.

Then didn't close out the year to retained earnings and the year-to-date income includes 2009 income.

They did go on extension.

The meter is running on this one.

Once I wrote an accounting procedure for my company's accounting manual and explained how to journalize something--and reversed the debits and credits. Later I noticed that I had them backwards and told my supervisor that we needed to correct it.

He said, "Let's just wait and see if anyone notices."

Nobody ever did.

[Jiggers]

Where do they come from and how do they find me?

Client has church contribution statement and stack of checks.

Church statement is $600.00 less than the total of her checks.

I looked at the checks and found one check for $500.00 - "Reimbursement of 2010 Organist Fees".

My client is donating her fees received for playing the organ.

So I proceed to put on a schedule C the $500.00, no expenses, subject to SE tax.

"Whoaaaaaaaaaaaaa!", she says, "it isn't taxable and I don't have to report it since I didn't get a 1099".

So I had to explain to her that isn't the way it works. She should have just not received the fees for playing the organ. She argued that if she did it that way that she wouldn't get a deduction for the $500.

Back to square one and out the door.

[RitaB]

Amazing

[QUOTE=Jiggers;118880]"Whoaaaaaaaaaaaaa!", she says, "it isn't taxable and I don't have to report it since I didn't get a 1099".QUOTE]

Amazing how prevalent this attitude is.

I always tell them, "Hardly anybody gives me a 1099. Do you think I don't have to report what I made?"

Unfortunately, I can see the wheels turning in their heads, and I realize most of them are thinking, "I wouldn't."

[BP.]

Client- "What's my tax bracket?" Me- "28%"

Client is dismayed, thinking all income is taxed at 28%.

I give her my little tax bracket spiel, with TTB as visual aid, you know: "The first la-de-da of income is taxed at . . . blah-blah-blah." She's nodding like she gets it, then says:

"So what you're telling me is my husband should get his bonus in the beginning of the year instead of the end, so he pays less tax on it."

[JohnH]

[RitaB]

And, that's when

"So what you're telling me is my husband should get his bonus in the beginning of the year instead of the end, so he pays less tax on it."

Hahahahaha -

And, that's when I would completely give up and say, "Yes, for God's sake, take all bonuses at the beginning of the year. I'm so glad I got through to you. No wonder you make more than me."

Wow - that was funny, BP.

[Mo Sheets]

Brings to mind another funny.....

Years ago, I worked at a very upscale private college. We had a check cashing limit of $200.00. A student came into the Business Office and wanted to cash a check made payable to her for $350.00. I pointed to the sign which addressed the check cashing limit. She then asked "Can I cash only half of it?"

Here's YOUR SIGN!!!!

Thanks again for the laughs.

Mo

[geekgirldany]

Deer In Headlights

When clients come to pick up returns I always go through the first two pages of the 1040. Explaining adjusted gross income, standard or itemized deductions, credits, etc. I also show them where certain income items come from like rentals, scorps.

I can just see this glazed look in their eyes. They don't half understand what I am talking about. Several have said their prior accountant just told them how much they owed or the refund and showed them where to sign.

Maybe ignorance is bliss

Had a firefighter today say a friend wanted him to go to his preparer in South Georgia about 100 miles away because "she deducts everything.. hair cuts, food, mileage, cellphone". I told client that she might be but some may not be correct. She also may be telling him she is deducting it and because of the 2% limitation he does not get it. He told me that is what he thought. But wanted to ask me. Told him to ask me any questions he wants you never know.

[ChEAr$]

When clients come to pick up returns I always go through the first two pages of the 1040. Explaining adjusted gross income, standard or itemized deductions, credits, etc. I also show them where certain income items come from like rentals, scorps.

I can just see this glazed look in their eyes. They don't half understand what I am talking about. Several have said their prior accountant just told them how much they owed or the refund and showed them where to sign.

.

I've always since going into business tried to explain the return to clients, whether or not they get that "glazed look" as dany puts it. Most often is it on the screen while I;m checking it over before printing their copies, since I do maybe 85% of mine at one sitting.

I've never understood how some preparers, many CPA's included, have client just "drop their stuff off", and fail to sit down with client face to face for a factual interview.

[oceanlovin'ea]

I got a new client this year because the previous preparer never talked to him and answered his questions. The first time they came in, we just sat and talked for 30 minutes. He asked questions and I answered them. He said his friend that recommended me was right. I really knew what i was doing. He was extremely pleased.

I always go over their return with the client when they pick it up....glazed look or not. If they get to glazed, I go back and make sure they understand. I have caught mistakes by doing this so I will always do it.

I love your stories. They have me LOL.

Linda, EA