More tax news from the Potty Mouth Mama

So I called Clifton Gunderson, right? And then they called back this AM. Oh, the soft-spoken lady assured me, the form was correct. She couldn’t speak to where all the income came from (and I assured her, I’d notice that much money if it was in my checking account, it represents fully half of Randy’s take-home this year). However, it was income that the TRUST had, not that I personally had. But yet it still is income for me on my taxes, I’m not clear on why, but whatever, I don’t have time to learn Trust Law, right?

She also couldn’t speak to why it was so late in coming, but it’s not unusual for Schedule K to come out later than 1099s or whatever the form number is that you get from your employer. Most people who are expecting Schedule K just hold off on filing taxes until they receive the form, particularly people whose main income is from corporations with Schedule K.

So I explained to her that I may be unlike most of her clients. I don’t have corporations spitting out Schedule K money. I file my taxes myself. I’d be surprised if we’re not in the tax bracket that doesn’t pay taxes (though I’d have to look up how low you have to get to not pay anything). I do my taxes myself. Nobody told us to expect a Schedule K and in particular, nobody told me to expect THIS MUCH money on a Schedule K. And, especially, when we had a meeting with this VERY SAME accounting firm, my mom’s attorney, and the Trust people, I asked all three of them how this whole deal would affect MY taxes, and they said it probably would not since you don’t pay taxes on inheritance under $1million.

(And if it was over $1million, I’d HAPPILY pay taxes on it, lol.)

I was/am FURIOUS. But she was politely snotty with me about of course it was correct, but she didn’t know where the numbers were necessarily coming from. She also said that they of course had to wait on the correct information from the trust department before they could get the Schedule K put together.

So, call #2. Trust Department. They claim to have given the necessary info to the CPA MONTHS ago. But whatever, the harm has already been done, no amount of finger pointing is going to get me the Schedule K a few months ago, right?

They said they’d call over to make sure the numbers were correct.

As it turns out, they’re NOT. They’re ALL MESSED UP.

So, not only is Clifton Gunderson unable to get forms to people in a timely fashion, they also are unable to get them right. And apparently unable to check the numbers unless called by a Trust department, rather than an irate (yet coldly polite) recipient.


So now, I have to file for an extension on my taxes, and then file the taxes later.



1. They have NO IDEA how much the Schedule K will show when done correctly, and apparently they don’t plan to look at it again until later in the month. So I have no idea if we’ll be owing money or getting money back at this point. Yet the IRS kinda wants their money by Wednesday, and they don’t care that Clifton Gunderson could not provide me with accurate information. So I have no idea what to put on the line that asks for an estimate of tax due. “Um, anywhere from -1,500 to +3000” probably won’t cut it.

2. The trust is going to send in an estimated payment for me, since they screwed this all up and since I don’t happen to have $3000 in my checking account to send in just to be on the safe side. Yet the form says to staple my check to it and mail them together.

3. The efile online for free place doesn’t seem to want to let me file without giving my checking account information, which I’m so totally NOT going to do. So I have to paper file. Ugh. So now I have to go downstairs and find the right form on the IRS website and print it out and go get a stamp.

4. Do I also have to file an extension with the state? Their website gives me no information about this.


But my brother in law just paid his accountant to file his (their) taxes, and now he has to pay him AGAIN to file an amended return. That sucks, too.


3 responses to “More tax news from the Potty Mouth Mama

  1. Sorry-
    We get these late forms often enough to know some of the ins and outs…yeah, I’m that crazed tax lady…
    ANYWAY… I would say to go ahead and file your taxes as you have them prepared without the K-1. Then the accountant/trust can provide you with the info to do an amended return. Those cannot be done electronically, only paper. Our K-1’s here are separate for fed and state, I don’t know about there. also, the money is somewhere,– perhaps in trust?? and not distributed. sometimes the deceased will still file a return and the estate covers the expenses and taxes due from the proceeds. My FIL owns a small business and hubby has 10%. We never see any of the money, but as it is a C corp, the profits flow through k-1s to the owners and we pay the taxes on them. What happens is, the company (who really owes the money for their good year of business) pays out distributions to both of them to cover the taxes from the business income. We just do our taxes without, then add it in, and figure the difference.
    I’m sorry if I have confused you.. But if you file yours timely and they are still trying to fix the numbers, don’t include it until it is right. Insist that it is right and that your 1099 is corrected and a corrected copy has been sent to the IRS. If there is a problem and you hear from the IRS before it is fixed, you (or the trust or lawyer or accountant – someone who is responsible for the oops) can submit a letter to explain what happened. Hubby does that for people. If you owe, you owe, but it will usually get the penalties and interest erased. on the amended form, there is a place to explain why you are amending the return and you just put in the old totals and then the new ones in the column beside. If you have a refund now, cash the check and deposit it and then you will need to send them a check for the owed amount.l
    You may want to check with these incredibly smart professionals to see if this will happen again for 2009 taxes and then you can make a plan of attack… Whoever is paying, should be making some estimates…
    Good Luck. I was over run by clueless people today… I’m a little edgy!!

  2. add this…
    the returning warrior has corrected my previous thought. He said that penalty will occur and you cannot argue if the tax is due. BUT you may be able to have the trust give you a distribution to cover it since they screwed it up and the tax is yours, even though you have not received any of the proceeds… it could be dividends and interest… and it is owed by someone.

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