new client but not for long

[JohnH]

Hard to understand

Can't figure out why someone would abandon a valuable resource just because they disagree with what someone else says. I learn much more the experience when someone points out my own mistakes or mistakes in what others may post. So I'd just like to say that whenever someone disagrees with me, please call me out on it. I can take the heat and I hope most everyone else on this forum is mature enough to do the same.

[Bonnie]

I love the diversity here and value all the opinions expressed. I for one don't plan on going anywhere. The knowledge gained here is invaluable. We will never all agree on everything but we can all learn from each other. We can never please all of the people all of the time, but we are providing a valuable resource with this board. Everyone keep up the good work and keep posting your opinions. We are all unique and all valuable.

Thanks to everyone for your input.
Bonnie

[Jesse]

This board is a godsend! Truly appreciate the people and although I have never met any of the members I feel they are part of my operation. This time of year I get a little uptight w/ the stress, lack of sleep and mentality of some of the people I deal with but I love both giving and receiving feedback on this board. And for the majority of my clients - I love them dearly as well, but I do need to cover my butt too!

[LawrenceGR]

I'm not going anywhere

this board has been a great resource to me. I use the watermelon theory (spit out the seeds) I don't agree with everybody, but I am interested in hearing what they have to say. I have have said it before and I'll say it again there is a wealth of knowledge on this board and freely givien.

[Bees Knees]

Nobody said you have to read every post to be a member of this message board.

That's like throwing the paper away and canceling your subscription because you disagree with a letter to the editor on the editorial page.

[S T]

Sorry

Well spoken Ron

Too bad, that Lower Alamba EA decided not to stick around.

Guess our posts are not what he is looking for! I believe that most all of us on the board either post thoughts and information that could be of value to others and most certainly most all of us receive an abundance of information that has aided us in making the proper choices in preparing a tax return.

While some of the Q&A is redundant and can become boring, as you read , all of a sudden you realize, that Question or Answer might fit one of the returns you are just now working on. The fact that we can use all of the posts as a "history" is invaluable, I use it almost every day as a research tool and it has assisted greatly.

Sandy

[veritas]

Hope you stick around

MiddleAgedEAinOregon

[Snaggletooth]

Bon Voyage

Lower Alabama Old EA:

Hate to see you go. You haven't posted very often, but have had a few very insightful posts.

Most people this time of year don't have the time to shed a tear for those who pack up and leave, but I, for one, hate to see this happen.

Most of us are trying to make a living at tax and/or accounting work, and we're not purists. Some of us will go further than others at stretching the letter of the law, and there are some among us who claim this should never, ever be done. But if it was your intent to come to this board for answers from others with your perspective, be advised that you are tapping the opinions of a broad spectrum of people in our industry.

I, for one, am interested in how other preparers approach these topics and not restrict the messages to a small subset of tax people who think the way I do. I have received valuable advice, and have given valuable advice. In retrospect, I have most assuredly even given wrong advice.

The board is maintained and monitored by people who try to keep it free of vulgarity, advertising, and disrespect. The monitors do not try to corral opinions into a narrow furrow of conformity or correctness, but instead allow for the wide spectrum of practitioners who populate the real world of our industry. The board will prosper with or without you, or me either for that matter. But I cordially invite you to return and invite us to explore another forum when you find one to your liking.

Middle Tennessee Old E A

[LowerAlabamaOldEA]

Implications !

I signed up with this board to learn about "practice" situations from other professional practitioners, and read all posts on all subject that interest me.

However, I am going to have to stop reading these posts. Too many, even those from apparently experienced practitioners make me shudder!

Regarding contributions, as well as any other documentation a client may give you, if it does not look "regular" - you pick the word - you do not have "license" - again, you pick the word - to willy-nilly deduct an item, if it has IMPLICATIONS. I worry about practitioners who are always falling back on "if they are covered" in their postings. Right is right, and if something looks irregluar, you must ask questions until you are ethically satisfied, not just fall back to whether your "you-know-what" is covered. I do realize that there are levels of ethics which differ between practitioners.

I have never prepared a return in which I was "ONLY satisfied that I was covered", and I won't do one like that.

Going away. Period.

[ChEAr$]

It was a long time ago,

My neighbor's children when to Catholic school. I seem to remember her telling me that if they gave at least a certain amount to the church as contributions, they would receive a slightly reduced rate on the tuition. This was when they were in elementary school and that school was directly run by the church and on their property.
When in high school, the Catholic school was not directly connected to 1 church and I don't think that applied anymore.

Linda F

when my son and daughter attended a parochial school, and the church did spread that word.
However sometime between then (1960's) and about 1978 or thereabouts, there was an IRS
ruling on the subject. Sorry I can't put my finger on it, but it did say what we all believe here,
that such "contributions" in lieu of tuition were not deductible.

Can anyone find the cite?

[GRC120]

What does your "gut" say

Hello, I agree with ST, this could be an opportunity to get a good new client. I had a similar situation where someone gave me documents that were obviously photocopied and the dates where crossed and and the current year's tax filing date were handwritten in. Te documents related to a large charitable donation that was deducted on their tax return the previous year. That pointed me to integrity. Could I trust the client? What was their response? Is this case it was anger that I even questioned what they gave me and I said "goodbye". They went to another CPA and he knew me and called me with the same issue. He said "goodbye" too. If you point out the obvious mistakes in last years returns and this person wants the errors fixed and wants to be a good taxpayer and play by the rules and fix the return and come clean then I may take a chance (but I would also look back a couple more years). So many people think they know what they are doing and they get advise from the Seven-Eleven clerk who sells slurpies instead of listening to a qualified tax preparer (I had that happen to me with a client as well). I told him to have the Seven-Eleven clerk prepare the tax return for him. If you save him from an embarassing IRS audit and potential jailtime, he may be your best customer and pass the word around and you will get more business. If he doesn;t want to address last years return he has an integrity issue and I would run as fast as the "road runner" from this person. Trust your "gut" feeling when you talk with him. Good luck and let us know how you make out.

[taxxcpa]

Auditing

What I am really struggling here with is that I don't remember the last time a client gave me, with last year's self prepared return, anything that would explain the numbers on it. I have trouble getting them to keep the returns and trying to get them to keep, let alone give me, the underlying records, continually has my head making a thud on the desk.

I also have clients who successfully make money in endeavors that I associate with normal or above intelligence but have none the less convinced me that their understanding of taxes is sufficient to cause errors such as you have encountered. I would explain to him what is wrong and offer to both amend last year's and do this year's correctly. There is a reason he came to you instead of using Turbotax again and that reason could have him open to the truth.

And finally, could the Taxes on Sch A be something that is deductible but belongs on a different line such as foreign taxes or State Income Tax withheld or paid as estimates? And do you know that his kids attend the Catholic School, that they are not on a free ride scholarship, and that he did not in fact make a donation to the school? My point is that I was in college with people who would not have been admitted let alone given as much in grants as they got if their parents had not been significant donors to the institution. Private schools do that starting with preschool.

Reminds me of when I was a Gas Revenue auditor. Our goal was to find $ 1 million per year. I always said that if anyone thought they weren't coming up with enough findings, all they had to do is look at Gene B_____'s records and they were bound to find something.

[oceanlovin'ea]

My neighbor's children when to Catholic school. I seem to remember her telling me that if they gave at least a certain amount to the church as contributions, they would receive a slightly reduced rate on the tuition. This was when they were in elementary school and that school was directly run by the church and on their property.
When in high school, the Catholic school was not directly connected to 1 church and I don't think that applied anymore.

Linda F

[newbie]

that if the charity gives him a receipt for x dollars and states on the receipt that he got nothing or nothing but intangible religious benefits in return for his contribution, I am going to deduct the contribution on Sch A and not ask any more questions. That receipt protects me and my client and if necessary the IRS can have a court fight with the charity. I realize that if the charity loses the deduction will be lost and the client will need to pay additional tax and interest but there should be no penalty for the client or me because it was reasonable for us to rely on the charity to guide us.

And by the way there is always a reason a school can get by with giving a scholarship to a particular student if it wants to. The student could play a sport or an instrument or be a member of some group that is under represented demographically at the school or just be exceptionally bright or well prepared for the next level of school.

If the church really did give a receipt indicating nothing was given in exchange for donation your not going to have issues, but if the receipt says tuition I think your in trouble. I don't think the church would be stupid enough to jepordize its charitable status by giving receipts that are really for tuition marked as charitable contributions. And by the way there is no denying a school can give a scholarship because of a persons talent or ability or whatever else, but you don't have the flip side of someone trying to take a deduction in leu of the tuition not paid.

[ChEAr$]

Well, it's like this

that if the charity gives him a receipt for x dollars and states on the receipt that he got nothing or nothing but intangible religious benefits in return for his contribution, I am going to deduct the contribution on Sch A and not ask any more questions. That receipt protects me and my client and if necessary the IRS can have a court fight with the charity. I realize that if the charity loses the deduction will be lost and the client will need to pay additional tax and interest but there should be no penalty for the client or me because it was reasonable for us to rely on the charity to guide us.

And by the way there is always a reason a school can get by with giving a scholarship to a particular student if it wants to. The student could play a sport or an instrument or be a member of some group that is under represented demographically at the school or just be exceptionally bright or well prepared for the next level of school.

at least for those of us (EA's etc) who are under the strictures of circular 230.

We can't ignore something like a Catholic church receipt of 15,000$ when we have reason
to suspect that it might actually be in lieu of tuition. We are bound to ask probing questions.
And to look client straight in the eye when asking, too.