Is that actually legal though? Aren't they required to keep tax records for a certain period of time since they're an authorized e-file provider? Seems like there should be some regulation about this.

There's a difference between what's legally required and what they promise customers. Tax preparers are required to keep certain information for their compliance purposes, but that doesn't mean they're required to make it available to customers indefinitely. Their terms of service (which nobody reads) actually states they only "strive" to maintain access to returns for 7 years but make no guarantees. It's buried in the fine print. The IRS requires them to keep certain records, but that's for audit purposes, not customer convenience.

TurboTax Audit Defense is completely separate from their data retention policies. It's basically just insurance that provides representation if you get audited. I paid for it too thinking it included document storage, but when I called about missing returns, they told me it was completely different departments and services.

They are definitely operating across state lines - they fundraise online and claim to do work in at least 6 different states. That's a really helpful tip. I'll look up the charity regulators in each of those states and file complaints there too. Do you know if there's any way to coordinate these complaints so they don't just get treated as separate issues?

There's no formal mechanism for coordinating multi-state complaints, but there are a few approaches that can help. First, include in each complaint a list of all other states where you're filing, with contact information if possible. Many state regulators communicate with each other on multi-state cases. Second, there's an organization called NASCO (National Association of State Charity Officials) that facilitates coordination. You can't file directly with them, but if you mention in your complaints that the issue spans multiple states, regulators may utilize NASCO channels to coordinate. The most effective approach I've seen is to get one state really engaged first. Once one state regulator takes significant action, others typically follow suit or join forces. Focus your most detailed complaint on the state where the charity is registered or where they claim to do the most work.

The Wayback Machine is great, but also use archive.today for social media posts that the Wayback Machine might miss. I'd also suggest recording any phone calls with the charity if you're in a one-party consent state.

That's an excellent suggestion about archive.today - it's much better at capturing dynamic content like social media. About recording calls, always check your state laws first. If you're not in a one-party consent state, you can still take detailed notes during the call and immediately write down what was said afterward. Date and time stamp these notes. Courts have accepted contemporaneous notes as evidence in fraud cases when recordings weren't legally possible.

This breakdown is really helpful. Is there a diplomatic way to figure out which type of accountant I'm dealing with without offending them? I'm paying good money and want someone who falls into your third category.

Ask them about a recent tax law change and how they stay current on updates to the code. Good accountants will mention specific resources they use to track changes to primary tax law. You could also ask a specific question about your situation and request the citation to the relevant code section. Be direct but respectful - "I'd like to understand more about the underlying tax code for my situation. Could you point me to the specific sections that apply so I can read more?" A good accountant won't be offended by this. They'll appreciate a client who wants to be informed. If they get defensive or dismissive, that tells you a lot about which category they fall into.

As someone who's been in practice for 25 years, I can tell you that what they teach in school and what happens in the real world are very different. Most accountants use specialized tax databases and software. Nobody has time to read the entire IRC for every client question.

Do retirement home costs count as medical expenses for the deduction? Or only the actual healthcare portions? My grandmother is in a facility that provides both housing and nursing care, but they don't break it down on the bill.

Great question about retirement home costs. It depends on the type of care being provided. If your grandmother is in the facility primarily for medical care (like a nursing home with medical staff), then the entire cost can potentially qualify as a medical expense. However, if it's more of an assisted living situation where she has an apartment but some medical services are available, only the portion of the fee that's specifically for medical care would qualify. In that case, you should request an itemized statement from the facility that separates out the medical portion. Most reputable facilities are familiar with this request and can provide documentation for tax purposes.

I went through this last year with my father-in-law. Keep ALL receipts for everything you pay - rent, medical, utilities, food, clothing. I created a simple spreadsheet showing his monthly SS income versus all the expenses I covered. Also get a signed statement from the retirement home showing you're the one making payments. I wasn't actually audited but my return was held for review and they requested this documentation. Once I sent it all in, they processed my return with no issues. The documentation is key!

Can you explain more about the "cost of goods sold" method vs other options? I'm just starting an eBay business and trying to set things up correctly from the beginning.

Sure thing! With the cost of goods sold method, you're tracking your inventory as an asset until it sells. When you purchase an item for $50 to resell, that $50 isn't an immediate expense - it's just converted from cash to inventory. Only when you sell the item does that $50 become an expense through COGS. The other main option is cash basis accounting where you might immediately expense small purchases. But for a reselling business with significant inventory, COGS method gives you a much more accurate picture of your actual profit and prevents the issue the original poster was worried about with "double taxation.

I used it for about 6 months for my eBay store and honestly found it lacking for inventory management. It doesn't handle COGS very intuitively. I switched to GoDaddy Bookkeeping which works better with eBay specifically - it categorizes inventory purchases correctly and has better reports for quarterly tax planning.

Thanks for the tip! I'll check out GoDaddy Bookkeeping. I'm finding QuickBooks frustrating because it's not giving me a clear picture of my actual tax liability when I'm buying and selling inventory at different times. I need something that will help me calculate my quarterly payments more accurately.