All Activity

You do not report an amount like you do on a NJ-1040X. You need to take the corrected return less the previously filed return to come up with the new amount due. My guess is that NJ will add the two payments together which will equal the corrected return.

Send in the "agree in part" and send in any specific schedule (such as C, with auto worksheet, overall tax calculation too maybe) that supports the disagreements. Nothing else; don't send a 1040X or even a full amended 1040. Because what Tom warns of is real. Give them enough information so that the only sensible action for them is to agree with you, but not enough that a new-hire ninny could make worse trouble.

A good example is driving aids. I go through a weird 5 way intersection often. There is no reasonable way self driving can handle this particular spot because of some wonky factors. Another is a situation where the light is on the wrong side of the road because of a curve. While I don’t use driving assist in town, the “green light” beep or lack of is a fair indication of the struggle at theater two locations. Another is how driving maps have misinterpreted a construction zone for months, and direct their users to a closed ramp. Or how in Hawaii, driving map software has a flaw which sends people to a boat ramp, and how there was call for the ramp to add signage and lights (instead of outcry about the software?). The point is the reader/user must still consider the accuracy and hopefully have (now un)common sense.

For me, unless there is documentation of the information which makes up what the ai learned, it seems the ai is feeding whatever it scrapes from web sites, likely violating copyright. Clearly, “news” articles are already polluted. Meaning I can read usually reliable sites and can often find articles which could not possibly have been human written or edited. (Specific topics with clear errors.) since nearly day one of our web site, I have actively blocked scraper access as best I can. Before ai, the biggest scrapers were those who were looking to compile data to sell to others, and those who sell anti-plagiarism tools.

In today's world, we are fortunate he received that sentence and not a week of probation.

15 months is all that he got? That seems light for such blatant, intentional fraud.

I have included a completed Sch C ( including related forms , if necessary) and 1040X with "DO NOT PROCERSS. SUPPORTING INFORMATION ONLY" written in large letters on the top in the past with no issues. Have also done this when clients have forgotten to give 1099-B's.

Back 20 years ago when we had competent IRS processing agents and an effective PPL, I would have agreed with you. I would rather get a Notice of Deficiency and file a tax court petition than to send in a tax form that I don't want them to process... Tom Longview, TX

If you think a 1040-X may help clarify the situation, you can write on the top of it "DO NOT PROCESS--FOR COMPARISON PURPOSES ONLY"

Have you considered filing Form 8857? Been a long time since I've filed one but somewhat similar situation--didn't think my client had much of a chance (she was an accountant) but she was granted an equitable settlement (responsible for half of the debt).

I agree, filing a 1040X is not the correct response.

Isn't there a spot on the response form for "agree in part"? What I would do if it was my client is prepare the X to calculate the amount due. Send in the amount you calculated with the response form and an explanation of what you calculated. Don't send in the X as it will cross paths with collections. You may have to wait for the final assessment to appeal if they don't accept your explanation. Get your POA in as soon as you can (make sure you mark the box to be copied on correspondence) and attach the signed copy of it to your response form when you send it in. Others may disagree with this approach, but I think it is quicker than mucking up the works with an X. They are waiting for a response, not an amended return. Tom Longview, TX

This is always a perplexing one for me... I have a client who neglected to tell me he somehow has 2 Uber driver accounts. So the IRS recently sent him a CP2000 owing over $15k, including a "substantial tax understatement penalty" of just over $2k doe not reporting a 1099-K and 1099-NEC related to the 2nd account. The letter provides an option to either agree with the changes or disagree and submit evidence. Response can be mailed or faxed. Well obviously he needs to file a 1040-X because none of his expenses (i.e. ALOT of mileage and Uber fees) were reported on his original return, so he will owe a lot less. My question is, should I e-file the amendment, or fax the 1040x it with a copy of the letter? Or do both? Finally, should the CP2000 be referred to in the 1040X explanation?

ed: two or three states.

This could be a can of worms. Was the IL income included in the Federal income? Was the client a resident of IL or WI? I would amend because WI is really picky about these two or three returns. Or, is reciprocity involved?

Probably a lot or most of them. That seems to be the racket of choice these days. And to think that we beat ourselves up and worry over the little things; at least I do.

@GLGACCT If I could bother you for one more question? How do I show the amount paid with the originally filed return. I keep going in circles in my mind on how to make that happen (I know, small mind, small circles). Thanks for your help. It is very much appreciated. Tom Longview, TX

We have a big problem here with thieves crawling under cars with a saws all and removing catalytic converters. They will hit apartment complexes, college campuses, and other large parking lots, stealing the convertors. Wonder how many stolen convertors they purchased!

It will be interesting to see if Intuit can filter out the creative garbage that our CLIENTS create so we can get useful information from QB..... Tom Longview, TX

Client entered the military and was married at the time. The now ex-spouse had POA to take care of his affairs. At this point the ex-spouse refuses to cooperate. The federal return for both years in question are correct, both years contain two states. One year prepped by a pro and is correct. Still waiting on documentation from the other year from one of the states to see if the return was filed correctly or an amendment is needed. I've been looking for some relief for this guy as the ex expects him to pay all the balance due plus the penalties. I think he' stuck because of the POA. The window to change from MFJ to MFS is long gone. Opinions please.

Ya know, I always wonder what people are thinking when they engage in the unscrupulous activities. Do they think they won't get caught? I guess living the good life isn't so good right now. Will the IRS ever get their money from this guy? Now I laugh, I alerted a CPA of a client of mine about miss classifying an account so there are no questions in the event of an audit. Seems really trivial compared to this. I hope this guy prepared his own tax returns and didn't take anyone else with him.

" INTU +1.28% on Tuesday announced a big push into generative artificial intelligence software, with new experiences to be added across the company’s business lines, including TurboTax, Credit Karma, QuickBooks, and Mailchimp. Intuit (ticker: INTU) CEO Sasan Goodarzi thinks this could be a game changer, one that will fulfill the company’s mission, laid out more than four years ago, to “become the financial assistant in the pocket of our customers…to help them make decisions, put more money in their pocket and help them thrive." It will be interesting to see if Intuit can filter out the creative garbage that AI creates in addition to the useful information?

Always glad to see these cheaters get caught and made an example.

Just add it. You might need to disconnect the state from MeF, but it should work.