Tuesday, May 18, 2010


* Here is a comment from a fellow blogger on my WHERE THE FAKAWI post -

I wish you all the luck. I felt extremely luck as far as GDE’s in that I only have two this year to deal with. One I expect around mid-June, the other (a fruit-loop that owns a roofing company) I expect around the first of October.

I am expanding my services and have been out of touch with everyone. I have spent my time learning new software and re-learning all the new rules as pertaining to same. I am trying to get back into the groove with everyone but doing so softly. Still learning new stuff.

I like the new car.

Bruce – the Missouri Tax Guy


I would be in heaven if I only had 2 GDEs to deal with – and none workload related!

I see that “fruit-loops” are not limited to the NY-NJ metropolitan area.

I look forward to your returning to the “groove” – and to your return to posting at THE MISSOURI TAX GUY.

* I tell my clients that if they receive any correspondence from “Sam” of any other “uncle” they should send it to me immediately. Don’t call or email first – just put it in the mail.

{As an aside many clients waste lots of valuable time trying to call me to tell me they got a notice instead of just automatically mailing it to me. If they ever did get me on the phone the first thing I would say would be, “mail it to me”.}

I recently received a copy of a CP12 notice that the IRS sent to clients (a married couple). This notice indicates that the taxpayers will receive a refund of $3,226.00. It tells them – “We are writing to you because there is an error on your 2009 Federal Income Tax Return.”

The notice goes on to say – “We changed the refund amount on Line 73a or the amount you owe on Line 75 of your Form 1040 because the amount entered on your tax return was computed incorrectly.”

FYI – Line 73a of the original Form 1040 that I prepared for the clients indicates a refund of $3,226.00. This is the exact same amount of refund the notice said they were getting.

The back of the notice includes an analysis showing “Line Item on Your Return”, “Your Figures” (the amounts reported on the originally filed return) and “IRS Figures”. The “Your Figures” and the “IRS Figures” were exactly the same.

Why the cafones at the IRS sent this notice to my clients is totally beyond me. I do suspect that it had something to do with BO’s “Making Work Pay” credit – further confusion on the part of the IRS.

The couple are both over age 65 and both collected Social Security for the entire year. The husband continues to work and earned more than enough to qualify for the full $800.00 MWP credit. However, because they each received a $250.00 ERP (economic “recovery” payment) the amount of credit claimed on Schedule M was $300.00. This is correct.

Another example of your tax dollars at work!