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Ringers

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  • State
    IL
  • Gender
    Male
  • Interests
    Horseshoes, Bowling, Blackjack, Cribbage, Teaching College Math, and....(yeah) accounting and taxes.
    Former ATX user for business since the Saber days of 1995 through 2012 and Pro Series since the Chipsoft days of 1988 for individual taxes. Now for 2013 I am using the Pro Series Power Tax Library for all returns. I love it!!!

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  1. On Jan 7 and 8 of this year, I was able to use my ID.ME account to access the electronic 1099 IRS FIRE site and also the SS site to efile W-2 forms without any problem. I filed 2 client's W-2 forms and 3 client's 1099-NEC's. When I got back from my annual 2 week cruise (I know, I know), I could no longer get on either site from my ID.ME login. I kept getting an error which said "something has gone wrong--please try again or call for assistance." I started calling on Wednesday and finally got through to the queue (instead of being disconnected) at 3:00 today, Friday. I waited on the queue for 1 hour and 49 minutes with the constant remeinder that "all of our agents are still assisting other customers--please remain on the line." Then, after the 109 minute wait, I got a recorded message saying "we will not be able to assist you today. Please call back during our normal working hours which are Monday through Friday from 6:30 until 6:00 PM Central time. Goodbye." If I cannot get through to them before next Thursday, will my clients still be subject to the late filing penalties for W-2's and 1099-NEC's even though the software fault was with the IRS and they will only accept E-filed documents? It doesn't seem fair to me. What do you think? How can I get the phone numbers for IRS in different time zones to take advantage of earlier or longer times to try to get them to answer their phones?
  2. Thank you Dan for the reply and especially the cite!
  3. A guest speaker at our Church had the check for her usual honorarium of $800 made out sent directly to a charity. Do I still have to issue her a 1099-NEC since the payment was not made direrctly to her?
  4. Thanks Lee! The beneficiaries are also my clients but were given the information by Schwab. Ringers
  5. My client (91 years old) died in 2023 before taking the RMD from his traditional IRA. The beneficiaries of his IRA have been told by their financial advisor that they will not be penalized if they do not take out what would have been the decedent's RMD for 2023 until 2024 based on a recent ruling of SECURE 2.0. I have read IRS notice 2023-54 which addresses this issue and section III seems to verify that all required RMD's do not have to be taken until 2024 by the designated beneficiaries regardless of when they were due. The original Secure 2.0 reduced the penalties from 50% to 25% and even 10% for late RMD's, but does this ruling remove all penalties until 2024?
  6. Thanks again, all, for the input. I like the idea of not amending the non-refund years, but I'm afraid I am just like Tom and want a perfect paper trail from point A to points B,C,D,E, and F if I am ever called upon to justify it. On a more practical note, it is easier to bill the client for an amended return than it is to bill for hours of account9ing time in creating a spreadsheet that leads to the amended return.
  7. Thanks Judy and Dan, I am going to file 1040-X returns for 2015 through 2021. The property has not been sold yet. The taxpayer has retired, and some of the losses allowed in some of the years will exceed his income for the year creating NOL's for the excess rental losses claimed. My major concerns were these: IRS would try to disallow the entire loss carryforward due to tax year 2015 being closed and TT would try to stonewall us. You have allayed my fears of #1, and for #2 TT claims no return was filed in 2015 but we have a pdf that the taxpayer printed showing the bright red TurboTax logo on page 1 and on a subsequent page stating that Intuit has efiled your returns on April 8, 2016 at 8:06 PST and later on the page the date and time stamp when Intuit received notice from the IRS of acceptance. I think we are on solid ground there. Thanks for your thoughts! Ringers
  8. Thanks Judy and all others! I will definitely file all of the amended returns before 4/15 of this year so as not to lose the ability to receive refunds for 2019. Unfortunately, I know the refunds for 2016,7, and 8 will be forfeit. I wonder, since the error in recording the losses properly occurred in 2016 (a closed year) if the IRS has the potential of disallowing the entire additional loss carryforward? The loss carryforwards are legitimate, as the building in an $800000 multi unit building with a business management company handling the rents and most repairs. The depreciation, mortgage interest, and taxes have exceeded the rental income since inception and both partners have usually been over the MAGI limit since 2003, so very few of the losses have been deducted on either partners' returns. Ringers
  9. The two partners have held the property as 5-/50 ownership since its purchase in 2003 and plan to sell in either 2023 or 2024. I will keep my fingers crossed that even with the increased number of "knowledgeable" IRS agents it will still slip under the radar for the next year or two. Ringers
  10. Tom- I looked at a 3115 which I have filed in the past for clients that had not depreciated their rentals, but I can't find any code for the 3115 that would qapply to a software error screwing up the loss carryforward. There have been no 1065's ever filed. Each T/P reports rent and all expenses at 50%. They started the jointly owned rental a few years before they had professional help. This year was running soooooo smoothly for me. My biggest gripe until this happened was having to remove staples from my clients' docs before scanning with my Scansnap! Was thinking of instituting a Staple Surcharge of $1 per staple.
  11. A current client of mine and his friend each own 50% of a large apartment building. All income and expenses are split 50-50 on each persons individual returns and have been since 2003 when they purchased the building. I prepared the return for the other partner in 2012 and he has prepared his own return since 2012 using a software program which we who use Intuit's ProSeries refer to as TurdoTax. Because my client and he are thinking of selling the building, he asked me to again prepare his taxes for 2022 to get an idea of his tax liability on a sale in 2023 or 2024. I asked him for his 2021 return in TurdoTax just to see if the depreciation and loss carryforwards on his returns were the same or very close to the depreciation and 8582 carryforwards from my client. Both he and my client had MAGI's of over $150000 for just about all the years. I was shocked when I looked at his 2021 return and found no 8582 at all while my client had an 8582 unallowed loss carryforward of about $170000! So I asked the partner to send me the file copies of all of his tax returns from 2013 through 2021. ProSeries lets you instantly transfer any year of TurdoTax to the same year in ProSeries, thus saving a lot of work when you have to do amendments of a poor soul who was caught in the TurdoTax web. However, even though 2013 ,2014, and 2016 transferred flawlessly, 2019-21 all came up with errors that ProSeries could not figure out and would not transfer over. I was able to go into the client's TurdoTax folder, and it showed all of the 2013 through 2021 tax files, pdf files, and everything else for each year EXCEPT FOR 2015. When I clicked on 2015, the message came up that the client must not have used TurdoTax for 2015 because no file exists. TurdoTax technical support cou9ld not get their screen sharing program nor theoir BACKUP screen sharing program to work, but they assured me that 2015 was NOT done with TurdoTax!!! Later the agent said that Intuit only stores 10 years of files, so that 2015 would no longer exist anyhow??? When I reminded her that 2015 was less than 10 years ago, she put me on a brief hold to confer with an associate. When she came back, she said that she had erred and that Intuit only kept 7 years rather than 10. Doing the math for her again, I show3ed her that 2015 should still be there. She could not screen share with me--if she had been able to she would have seen ALL of the actual tax files dating back to 2013 neatly arranged in my client's file!!! The fact that I was being lied to by TurdoTax really got to me and I said "Look, what we have here is a $150000 error on the part of your program, which will represent approximately $50000 of Federal and State tax reductions for my client. Under the 7 Year 100% TurdoTax Guarantee, they are going to have to write him a sizeable check, since even after I amend all of the years from 2016 through 2021, three of those years are now closed for refunds. Since the year n question, 2015, "lost" that large loss carryforward, the IRS may not even allow us to recapture that loss at all!!! She then disconnected the call after an hour on the phone as a conference call with me, her, and my client. We had to call back and go through all of the same material again. Finally, I got an agent to escalate the call to the managing supervisor of TurdoTax, "James." James was able to get the screen sharing to work, finally, and I showed h8m the files in my clients TurdoTax folder. James also noted that for 2015, no files existed and so he must not have filed with Turdo in 2015. Fortunately, my client had saved a 2015 pdf of his return which I opened on my screen for James. There was about a minute of silence. The 2015 pdf had as its first page the 2015 1040 with a big red TurdoTax emblem on the page. Page 44 of the pdf stated "intuit has efiled you return on April 6, 2016 at 8:06 PDT with the IRS. Farther down the page was the statement that "the Intuit server has received notification from the Internal Revenue Service that your Federal 1040 has been accepted." Then I showed him the 8582's from 2014, 2015, and 2016. A loss of $142196 was shown as unallowed on the 2014 return. The loss carried to the 8582 for 2015 on the pdf was EXACTLY - $142196. The 2015 current rental loss was -$12834. The total loss available was thus -$155030. Based on his MAGI, the allowable loss on the 2015 return was -$10730 (remember this number!). His unallowed loss to be carried forward to 2016 was therefore -$144300. I then showed him the TurdoTax 8582 for 2016. It shoed a prior year unallowed loss of -$10730!!!!!!!!!!!!!! Over $133570 of rental loss carryforward had been WIPED OUT BY TURDOTAX!!!! Another long moment of silence by James, who finally said "I am surprised you have been so calm with us. I would be out of my mind!" He understood the program, he understood accounting, he understood rental losses, and he understood that he was not high enough on the chain to do anything about it. I also mentioned to him if the 2015 program had glitched for other rental entrepreneurs and perhaps there was a whole niche of TurdoTax users who had not noticed their accumulated rental losses evaporating because it was not their job to know tax. Maybe my client's removal of $133000 of useable loss was just one of perhaps hundreds or thousands of Turdo users. We set up a conference call to the number he had given us, now having been on the phone for over 4 hours straight having gone through 3 battery recharges on my cordless phones. Nevertheless, I set up a call to Intuit Corporate. The phone was answered by a machine telling us that we should probable be talking to TurdoTax, or Quickbooks, or Mint, or other thins, but to leave us alone. It then put us on a hold, we got to hear 7 minutes and 4 seconds of music, after which we were cut off. I called the number again today, was told again to bother TurdoTax or one of the other Intuit entities, and then told to press 0 for an operator to continue the call the Corporate. After 15 rings, the phone was answered by A SECURITY OFFICER. He said I had the correct number, but no one from corporate was in (!!!!!) and there was no way he could transfer the call. I then wrote an email to an address which is supposedly someone in corporate per the Intuit website, so I will see what happens next. Thanks for letting me vent and letting my blood pressure get below stroke stage. Any suggestions? As always, I value your combined wisdom and experience. I myself have been doing tax returns since 1971 and began using ProSeries when it was called "Chipsoft" before Intuit got their greedy hands on it. Ringers
  12. Thank you, Judy! I read and re-read those instructions last year, but I missed that paragraph. Ringers
  13. My client is an IN resident partner in a NJ rental property as well as an owner of another NJ rental property as an individual. In 2021, both the partnership and my client sold their rental properties with profits. On the NJ Partnership return, an amount was paid to NJ as a “non-resident partner’s income tax.” When I file my client’s individual NJ non-resident return to report the NJ income on the sale of his individually owned rental property, do I also include in his NJ Non-resident return the profit he made from the NJ partnership? If so, how do I account for the tax already paid to NJ on his behalf by the partnership?
  14. A client of mine got a 4 page letter from the Illinois Department of Revenue yesterday that they were reducing his Illinois overpayment from $1888 to $1886.60 due to errors in the return. Looking at their explanation, it showed that they charged the client $1.40 for the late payment (by 5 days) of his 2nd quarter estimated tax payment. Really! Since his overpayment was applied to his 2022 estimated taxes, we now have to reduce the amount applied from $1888 to $1887 (rounded off). Was all of the postage and form corrections worth the $1? I know my state is in debt, but things such as the above are part of the cause rather than part of the solution. (smh) I have been preparing taxes since 1972, and this takes the prize for the smallest adjustment letter ever received!
  15. Thank you. Is the nonresidents tax due reduced by his share of the PTE and does the resident partner get a credit on his NJ return for his share of the PTE?
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