We issued a 1099-misc on behalf of one of my business clients. The mom of one of the independent contractors calls me and tells me she is experienced in preparing individual and corporate taxes and told me we issued the 1099-Misc incorrectly. I replied how is that. She said the amount should have appeared in box 3 vs. box 7 for I don't have a box 7 on my Tax Act software. I told her Tax Act is lower priced software and is probably limited but you are free to report as other income. Then I said if you have experience preparing taxes, you should be familiar with Schedule C. Her reply, my daughter does not have an EIN #. I replied you don't need to have an EIN for a Sch C, it will default to the taxpayers SS#. Her reply, she does not have enough to itemize. I told her Sch C and itemizing are unrelated. Her reply, your not very nice and hung up.
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And she prepares corporate taxes? My, my. -
"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Weird phone call
I have received calls from people saying I do my own taxes but I have one question. Do I just add my 16 year olds W-2 to my tax return?
They should not be doing their own taxes.Comment
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Not the software fault
FWIW: TaxACT has the same option (for Form 1099-MISC) for both Box 3 and Box 7 of a Form 1099-MISC. They take you directly to a Sch C (or Sch F) input page. . . . .and Box 3 gives you the additional option of linking to Form 1040 line 21 worksheets. But anyone with reasonable tax knowledge can get to those same locations without dealing with any tax software "Q&A scenarios."
FEComment
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The older I get
Yes, the older I get, the less I say to these people. I do a whole lot of nodding and ignoring when clients say, "Here's all my medical expense, and my real estate tax, and the remodeling on my house, and..." You pick your battles. And I do a lot of white flag waving. Callers frequently get, "No," and eye rolls.Last edited by RitaB; 04-01-2014, 10:16 AM.If you loan someone $20 and never see them again, it was probably worth it.Comment
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Lady got mad at me when I explained she couldn't deduct sending her dog to a kennel while she was out of town for work. Somehow she came to the conclusion the IRS thought it was reasonable to leave the dog at home alone if they weren't willing to give her a deduction.
Haven't heard from her this year yet, hoping she's moved on to another preparer. I get 4-5 calls during the year asking if things are tax deductible that make absolutely no sense why they would be.Comment
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I heard THAT
I hate those calls; it is so hard to prove a negative. And I hate the thought of them thinking I must be wrong. Let it go, Rita. Let. It. Go.
On the other hand, we subsidize low skill and/or low ambition and/or cheaters having children, which makes zero sense. And I'm still mad about my pastor getting to deduct his housing costs. And double dipping with the mortgage interest and property tax on Sch A. So I guess the only stupid question is the one you don't ask. Or check out online with Google and without calling me. Please.If you loan someone $20 and never see them again, it was probably worth it.Comment
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Mine this year was from a long-term client. She got her tax return (had to mail out of state) and couldn't understand why her refund wasn't more. She retired, no earned income, and the only withholding was out of her pension(s) = $209. I pulled the return and told her she got back everything she paid in, so that was that.
"But", she says, I had a LOT of deductions this year."
"Yes, and I took all those. That is why you got it all back." (Actually, she didn't even need to itemize, but I didn't get into that.)
"But, I don't understand why I only got $209."
"Well, it's because that is all you paid in. You can't get back more than that."
"I guess I just don't understand taxes. I had all those contributions.....etc, etc."
And on and on we went. I said "You do understand you are getting back the money you paid in, and you got all of it, right?"
No, she still does not have a clue.Comment
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Have a Neck Problem?
Years ago - I had a client come to my office with a bunch of questions before I started in with the tax prep.
To every question I nodded no.
The client then asked whether I had a problem with my neck.Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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