Need to vent!!

[oceanlovin'ea]

New client comes in this morning. She is sole prop..Schedule C business. Business in Central Florida has been bad for a lot of businesses including hers. Income down quite a bit.

She had her return prepared by a CPA firm for several years and the last 2 years by an EA. He has a job with a CPA firm now and so she looked for a new preparer.

She brings me in rounded figures....supplies - $50/mo; contract labor - $7000; and so on.
She says last year "Joe" just changed figures a little bit, that he compared what she had the year before and made some adjustments"

I told her that I needed her to make a list of the people she paid and how much she paid them during the year. Mostly paid cash to workers. I also told her that she had to add up her receipts and tell me how much she paid for supplies, advertising,etc. Not averaging per month...but actually paid.

How does a CPA and an EA who has been trained and takes their continuing education let someone get by with this stuff? It is so frustrating to have them come in and I have to tell them I won't do it that way. I told her to take a columnar pad and write down her expenses every month, to take the columnar pad and put a workers name on the top and write down every time she pays them. I kept telling her in case of audit she will have to produce the backup for these figures.

Linda, EA

[RitaB]

Can't wait to read these

How does a CPA and an EA who has been trained and takes their continuing education let someone get by with this stuff? Linda, EA

Danged if I know.

OK, let's go everybody! This is my kind of thread! Tell it all, and tell it now!

Here's mine:

The lengths people go to, to save $60.

Girl has been my client for six years. Brought in her copy where she is doing it herself, yesterday, to ask a question.

Brings it in again, today, to ask if I will "just" e-file it.

I said, "No, I have to do it to e-file it."

Really??? Two trips here, one to the library to get forms, and the time to fill it out herself was more than the $60. Good grief.

Told her she could pay me when she got her refund. If she is that broke, maybe I should do it free gratis.

Nah.

[erchess]

Win some lose some

I'm sure we all get cases like this. Every possible credential is held by some people who cannot do or choose not to do a proper job. I mean, which approach lets more returns be done in a day? DUH. We all feel that temptation.

I convert most of these situations into long term clients by explaining in great detail the substantiation they have to have for numbers on their return and the consequences of not having them when audited. Then I explain that what they are paying me for is my experience and training that allow me to guide them so that they pay what they owe and neither overpay now or have to pay significantly more down the road.

[oceanlovin'ea]

Just an added thought. Included in the contract labor was money she paid her husband in 2010. She said he let her include what she paid her husband. (They filed separate returns for that year).
I told her if you take it as a deduction, your husband has to claim it as income. She said...oh, well, I'll take that out.

Linda, EA

[geekgirldany]

I know what you mean. I often get "well he/she is a CPA, I am sure they knew what they were doing". I get more people that have been to CPAs than EAs.

One I had last year had never had payroll on his S-Corp and always did distributions. Former CPA retired and had told him he did not make enough to do payroll. I asked him what the CPA considered enough. He had no idea. He had been taking from 20,000 to 30,000 a year. I told him I would prepare his taxes but going forward he would have to do payroll. He again told me what the CPA said. I asked him what his CPAs credientials were. He said that the CPA was an corporate accountant for 30 years. Retired and went into preparing tax returns. I told him just because he was a Corporate CPA does not mean he knows how to prepare tax returns. I then added that I am sure he did seek out education on tax preparation though.

I did one year and never heard from client again about getting payroll started. If a person keeps on about that is not how they had it done in the past I just tell them to go somewhere else.

I've got one now that is giving me grief because he owes taxes. Not what I would consider much since he double his income from last year. He sent me a mail yesterday that said "Get my taxes down. I am willing to take my chances with the Feds". To which I replied "I will prepare your tax returns with the numbers presented to me in QBs using the correct and allowed tax laws and deductions."
He has already said this once. When he comes to get the payroll I am going to tell him he might want to consider another accountant.

[oceanlovin'ea]

she faxed me some figures this afternoon for the different categories...even had dollars AND cents in her amounts.

Maybe she will get the idea of what to do. It is really disheartening for them not to have been told the correct way to keep their records. You can't just let them keep doing the sloppy job year after year. You have to educate them.

This is one I will definitely have sign a letter of agreement. I don't want her to come back and say I was at fault in any of this mess.

Linda, EA

[Burke]

I just love the ones that say, just do it -- I'll take my chances. Problem is, now they are taking chances with my career, life, money, etc. etc. So I tell 'em to take a chance with somebody else.

[BHoffman]

I like a good vent

I made a BIG DEAL about W9 forms very early in 2011. Now, it seems to be a BIG DEAL getting them from one client so I can prepare the 1099-MISC forms for the subs and vendors.

tick...tick...tick

[Gretel]

Another vent

Just got 3 years worth of copies for new client - S-Corp and 1040's. Guess what: He paid taxes twice on all his distributions, since the total annual amount of distributions what entered on Schedule D as capital gains. No, he never was even close to zero basis.

[ToddFogelberg]

Educate 'em!

I agree with the poster who states that you gain clients for life when you educate them and explain why we don't take short cuts. Deep down she know that what she was doing was wrong, with regard to round numbers and poor records. Arm her with checklists for next year and you'll have a client for life!

[S T]

1099 Forms

While I am issuing 1099 Misc Forms - and it is always a "struggle" to obtain the info from the Biz Client to accomplish this - even though W-9 forms are supplied

I just received an email alert from one of my subscriptions - which says in part
"Effective for 2011, 1099 Misc forms do not have to be prepared for payments made using a credit card or through 3rd party networks, such as PayPal. Those payment should be reported to the recipients by the CC companies and 3 rd parties on 1099K

I just had a "flash" and thought I wonder how many of the Small Biz people issuing 1099 Misc forms understand that the forms they issue to MY Biz client should not include any credit card payments made?

I have one Biz Client in particular that receives regular monthly payments on Credit Card Processing from about 50% of his customers. What do you think the odds are that those payments are going to be duplicated on 1099 Misc and 1099K?

Reconciling on the Schedule C and Accounting is now taking on a whole new meaning!

Sandy

[joanmcq]

Well, now you can look like a hero!

I had one audit client that I told had to amend his state return after we got done with the Feds. I explained how the IRS would notify CA of the increase in AGI, but it would take at least a year for the FTB to issue a letter if he didn't amend, and the longer he waited, the more interest he would be charged. He said "I'll take my chances with the FTB".

Famous last words. And then had the audacity to complain about the interest & penalties being higher "why did they wait so long then to send me the letter?"

[DTS]

Linda

Sounds similar to a new client I was going to take on last week. She hadn't filed since '05, has a decorating business. I did a rough calculation from income transcripts from the IRS and her expenses. $90k net loss and I told her I had a real problem with it and to please tell me where that add'l money came from to pay those expenses.

She got all puffed up and acted like I called her a liar or something. I was very polite!

[geekgirldany]

Here is another vent. Business client came in to get 1099s. I hate to see him come because he runs his mouth. Another client comes in a few minutes after him. I handed her stuff and she gave me a check and left. Well while I was doing that he called the utilities company to fuss them out about his bill. For 30 minutes he sat there. I heard it all. I tried everything to get him out. Trying to hand him his envelope multiple times. Going to the door. Doing other work. He just would not leave. He finally finished and told me "that is how you take care of business". I told him I did not appreicate him taking up my time. For him to do his personal calls somewhere else. It was like I did not say a word to him.

He then got his phone back out and proceeded to show me two pictures of "demons" he saw while watching Xfactor tv show. He took pictures of it! Geez I have a few goofs coming to me. I told him that was a bunch of bull. Told him I had to leave now. He finally left.

[oceanlovin'ea]

Getting worse

I really think clients are getting worse every year. I love almost all my clients. I have gotten new ones that I just love. BUT there are some real crazies out there and I think they are finding us.
Or some people just have so many problems they are at their wits end. And we hear all about it.

Linda, EA