deliquent 2012 and 2013 return

[TAXNJ]

How

No, he's not telling them that; he's telling them this:



it's not much more than the cost of a loan on a good-rate credit card. Still, I think I'd have a hard time convincing my client (who's run up $1945 in FTP charges so far) of it, notwithstanding the fact that he's a 1099 construction worker who's been adding about $3K per year in unpaid taxes for the past five years might have a lot to do with it.

How & what would you tell the client?

[Black Bart]

Well,

How & what would you tell the client?

I suppose I should tell him the same thing you might, i.e,., "Rules are rules, business is business, and charity is charity. I sympathize with your plight and here's five bucks if you need lunch money; the best of luck to you and there's the door."

[JohnH]

I understand. He has a bad habit that he's going to have to break at some point. Even if he's under the $25K, at some point IRS will put an end to it because he's snowballing the debt. But that $1,945 really is no different than interest he'd have paid on a loan. IRS just puts the "Penalty" name on it to make people think differently about it and hopefully scare them into paying up. Obviously it isn't working in his case.

[TAXNJ]

Can't change

I understand. He has a bad habit that he's going to have to break at some point. Even if he's under the $25K, at some point IRS will put an end to it because he's snowballing the debt. But that $1,945 really is no different than interest he'd have paid on a loan. IRS just puts the "Penalty" name on it to make people think differently about it and hopefully scare them into paying up. Obviously it isn't working in his case.

JohnH

you can not help people change if they don't want to change. You can offer to the client alternative payment plans and let them decide (just the analysis you did on this post is worth another consultation fee! and hope you get paid).

BOTTOM LINE: tell them, your gonna owe big time with interest and penalties plus the tax you owe and they want their money.

[JohnH]

This issue of people not following advice reminds me of a conversation I had at church many years ago. A church member had asked me for advice on how to handle applying for a FEI# for a subsidiary ministry. I had told her she should not do that, but rather allow the ministry to operate under the umbrella of the church's tax exempt purposes.

A few weeks later I was conversing with another church member who was a commercial banker. The aforementioned lady came over, interrupted our conversation, and said she just wanted me to know that she asked another accountant for an application for a FE#I. Since he gave it to her, she went ahead and filed it and IRS had sent an FEI#. She assumed that since the FEI #was issued by IRS with no questions, it was OK to proceed with using it. I simply told her that was fine as long as she was willing to live with the consequences (which could have been significant).

When she walked away, the commercial banker asked if it bothered me when people don't take my advice. I told him that people pay me all the time for advice they don't follow, so it doesn't bother me at all that someone fails to follow advice I give for free. I still have that same attitude about both groups.

[Black Bart]

Ha-Ha.

This issue of people not following advice reminds me of...I told him that people pay me all the time for advice they don't follow, so it doesn't bother me at all that someone fails to follow advice I give for free. I still have that same attitude about both groups.

You are indeed a card and a fine fellow, John. Thanx for the intervention ("Blessed are the peacemakers" or something like that, isn't it? ). Plus, I learned
something from your "dissertation" (it was just fine). I'd like to discuss my guy's penalties with you a little more, but will do it later since this is JenMO's post (even if she was battered into submission for asking a question). It's getting kind of like going to the principal's office around here to do that.

P.S. to NJ - I'd like to revise my suggested statement to the delinquent. Withdraw the offer of "five bucks, sympathy, and (there's the) door". Substitute instead: "A glass of water, a kind word, and don't let the door hit you on the way out."

[TAXNJ]

Charity

P.S. to NJ - I'd like to revise my suggested statement to the delinquent. Withdraw the offer of "five bucks, sympathy, and (there's the) door". Substitute instead: "A glass of water, a kind word, and don't let the door hit you on the way out."

Glad you changed your mind on the "five bucks". Given to a needy IRS approved charity is better plus you may get a deduction than the original way of giving the "five bucks".

[mscash]

He should have received bills six to eight weeks after the returns were filed. I hope you have proof of filing because if IRS lost the originals and you can prove it the assessment statute is running

[Black Bart]

Glad you changed your mind on the "five bucks". Given to a needy IRS approved charity is better plus you may get a deduction than the original way of giving the "five bucks".

I didn't say that I would tell him that; I was originally suggesting that you might give him the "business is business and charity is charity" speech plus five bucks, but decided that you'd think that was a little too generous and I should lower it a bit for you.

As to what I would say and do, I think I'd do nothing for now but wait and see if they came to the office and asked for new mailing copies.