Telephone excise tax refund

[veritas]

Four years

losing money? They need a therapist not a cpa.

[JG EA]

Yes, it is

ST

I agree, it is very refreshing. I am many times amazed at how honest clients actually are. It certainly makes doing their taxes a pleasure.

I am now at the point where I can pick and chose new clients and I ask alot of questions before agreeing to take them on.

Even so, I have some problem clients who may be honest, but are so slow about getting me information it makes my life so hard. Right now I'm waiting for books from a client that has a dozen or so 1099's to send and I don't have any information for November and December. I'm in a panic as to how to get these done, and then I remember - it is not my problem - it is theirs and so I don't need to rush to finish.

But that is beside the point. A slow client is much better than a dishonest one who is looking for ways to trap you.

Other things:

I am doing a return right now and they want to claim the 4th year of high losses on a Schedule C. I have discussed hobby losses, until I'm blue in the face, but they really feel strongly that it is a real business. I believe that they feel that way (and there is evidence that this is so) but the whole situation bothers me. So, now they are going to start a corporation and they were advised to get a CPA. Normally I would discuss the merits of an EA, but not this time. I said I agree, that would be a great idea.

By the way, did you ever get that Sales Tax Worksheet (more detailed) that you wanted last year? (For line 10).

JG

[S T]

Calling Area

JG

I would guess what you say is probably true! No one outside their local calling area.

But for a client (t/p) to say no we don't qualify instead of asking us to apply the credit is really refreshing!

I have already had "tons" of emails forwarding the various media releases, etc. about the credit.

Sandy

[JG EA]

Infer

Isn't refreshing to have an honest client!

Sandy

I can infer from this that honest clients do not have any friends outside their calling area.

[S T]

Honest Client

Isn't it refreshing to have an honest client!

Sandy

[DonPriebe]

Honest LOL

I had a client today who said she didn't want the $30 credit. She had read about it in the paper, but said that she absolutely did not make any long distance calls for the past five years, so she didn't deserve it.

[BOB W]

Yep.....

..... I just checked my program and there is a question that needs to be answered, sorry for my previous comment.

[Donanita]

?

The program I use (Taxslayer pro) also automatically put the correct amount according to the exemptions claimed.

I also use TaxSlayer Pro and there is a question Does the client quailfy for the credit. You have to answer yes or no. I haven't had it automatically put on the tax retrun without answering the questions.


Also I have some students that are now claiming their exemption and have lived at home and never paid a phone bill so I answer no to the credit.

[ChEAr$]

It does matter

...... don't think it matters one way or another.... Take the credit.

If a client didn't have a phone during the affected time period, he/she doesn't get the
credit.

At least Taxwise has a block to check, yes or no, to compute the credit. I set up
default to "yes", but do question client and override that if necessary.

BTW, did y'all see the IRS pronouncement about how they're scrutinizing this credit?
Seems like that are some people out there, preparers included, who are milking this
thing for all it's worth and for as much as they think they can get away with.
In many cases, it's apparent to IRS that people are using their total phone bills for
the period.

I'm wondering now if that's part of the reason why IRS announced just today at 2;50PM
ACK files are held up. Makes you wonder.

[Brad Imsdahl]

Please correct me if I am wrong here. From what I read, I think they only charged the excise tax on long distance calls. So what about if someone was billed for a cellular phone service between 03-06. But he has never make any long distance calls with it. Does he still qualify for the credit?

Cellular phone service where long distance is included in the monthly fee is called "bundled service." The credit applies to long distance as well as bundled service.

[JON]

The credit is

is a result of your credits unless you overide for actual 8913.

[BOB W]

I .........

...... don't think it matters one way or another.... Take the credit.

[Ken]

Phone tax

ATX automatically places the refund on the Form 1040 whether you have ever had a telephone or not.

The program I use (Taxslayer pro) also automatically put the correct amount according to the exemptions claimed.

[Joe Btfsplk]

ATX and telephone tax

ATX automatically places the refund on the Form 1040 whether you have ever had a telephone or not.

[jainen]

actual amounts.

>>paid just a few cents of excise tax<<

As long as you paid some tax, you can take the standard credit without calculating actual amounts.