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  1. Today
  2. House Ways and Means Committee has proposed putting a padlock on the back door.
  3. Yesterday
  4. I had experienced no problems for some six years apparently using an incorrect PTIN. Having been conditioned to believe that an incorrect filing would produce an error message advising me of any mistakes in entry and having received none I thought everything was just fine. My offhand guess is the error occurred when improvements were made in the PTIN system. I ask the agent for an ID which he provided and pointed out the Service did not call people further asking why I had not received a written notice. They apparently had just discovered the error and as we were in the midst of the filing season wanted the number changed as quickly as possible. He provided a number to call him at and after checking what he had said I changed the number and called him back to advise him the number was corrected. He assigned no blame to me and sometime afterwards I received a letter from them. I chalked it up to the wonderful working of our government and soldiered on.
  5. I guess I have been fortunate. I just had the first client who just received an IRS letter telling him that he had balance due because according to their records he received the first stimulus rebate while he claims he never received this rebate. I told him to review his checking account records again and gave the IRS phone number to call. Other than that I told him there was nothing I could do.
  6. I guess i would rephrase my response a bit differently. The IRS is not in control of the majority of what has happened and is struggling to deal with the current situation. While it can be very frustrating, all we can do is explain it to our clients.
  7. I just spent an hour writing a letter to the IRS and going to post office for my personal tax return, I would be lying if I'm expecting them to drop everything to adjust my account, but I will cross my fingers.
  8. RIGHT! Always seems like it is our fault and we have to fix. makes retirement look appealing. Do clients bug the franchise tax people like they do us?
  9. Telling clients to keep calling, or to be patient, depending on the urgency of their issue with the IRS. That I will work on it after 15 October. Very frustrated with the client calls/emails/texts during these last 3 or so months when I'm trying to prepare returns before 15 October. Very time-consuming at my busiest time of year! The IRS is broken. Why does the buck stop in my lap?!
  10. No criticism intended! The point is just clarification that the number of returns under manual review was only 780,000 - not the entire 8.5 million backlog. Even so, it will take the rest of the year to clear them.
  11. Clients are getting letters, I am reponding, clients receive more letters. I am calling, IRS can't answer, too many calls. Client got letter "notice of intent to sieze" We responded to the first letter months ago, received no reponse, now , notice to sieze. Several clients didn't get the amount of refund that they were entitled to, letters say could be one of 3 things, or 2, or 1. ID verification has been a problem. No one can be reached. What is everyone else doing?
  12. ILLMAS

    2019 1099s

    FYI - The IRS has not processed all of the 1099s for 2019 yet. I received a notice that they don’t have any records of my withholding and now I owe a ton One of my client is going through the same, one of their contractors had withholding and they received a notice, called with a POA on behalf of my client and their contractor, IRS has no record of 1099s on file for 2019 and 2020, they were backlogged etc…. So be ready for calls from clients
  13. I am going through a similar scenario with a client. Discovered about a month ago that they have been contributing to a ROTH since forever. Fortunately it is just the past couple of years that have been excess. He was active duty military ... so was never close to the max until 2019 when he retired and had military retirement and civilian job that put him over. Apparently he never felt the need to tell me about the ROTH or provide any statements or 5498s... even though my worksheets ask these very questions... He was able to recharacterize 2020 and 2021. He withdrew the 2019 contribution. I had thought that he would have to withdraw contributions plus earnings for 2019. With some research, I found that once it is past the due date of the return, they just have to withdraw the excess contributions but not the earnings to cure the excess. the 6% penalty applies until the excess is withdrawn. for your client, the $92k distribution would likely cure the excess, but they would owe the 6% for each year since the excess contribution was made. Indeed! why has the IRS never caught this!
  14. Am I the only one who has clients who have Roths and never think to tell us? A client took a $92k Roth distribution this year. All I knew about the account is that there was a big conversion amount in 2019. This year I finally saw my first 5498, which showed a balance twice as high as the conversion so I worked with the FA and discovered that the account existed since 2004! The FA could only give me the last 10 years of contributions and one other conversion. I did a ton of historical research on AGI and contribution limits. For most of those years AGI was way too high to contribute to a Roth. There were no annual backdoor Roths. How did this client with seven-figure incomes some years get away with this? I know IRS pays attention to the 5498s because clients have gotten letters saying they didn't contribute to an IRA when their tax return said they did. ("Gee, I thought I did.") Do they not check those same 5498s for excess contribs to Roths??? Anyone ever had a client get caught doing this?
  15. Last week
  16. I assume that you didn't have any problems filing returns with the wrong PTIN? In which case what is the point of having one? Strange that you got a phone call instead of a letter? How would you know it was really someone from the IRS calling you?
  17. Have no fear Bart. The inscrutables at the Service will eventually right the ship. In 2020 in the middle of the pandemic my phone rings and an IRS agent informs me that my PTIN is incorrect and has been so since 2014 !! He was unable to provide any reason for this being so but said I needed to change it post haste which I did immediately.
  18. I am sure that will help in catching up on the paper backlog they currently have. /S
  19. Oooooooooooooh ! Gee Max Sie hast meinen Tag gemacht.
  20. "The Internal Revenue Service plans to close its paper return processing center in Fresno, California, permanently at the end of this month, so taxpayers and tax professionals in some Western states will need to begin using a new mailing address. With the change, taxpayers located in Alaska, California, Hawaii, Ohio, and Washington state who previously filed their federal tax returns with Fresno should now mail their returns to the Ogden, Utah, processing center. The Ogden address for filing paper individual returns is: Department of Treasury Internal Revenue Service Ogden, UT 84201-0002 The IRS plans to maintain a presence in Fresno with many other operations still working at full capacity, but the impending consolidation will enable the IRS to streamline operations and make better use of existing space. When the consolidation was announced in September 2016, there were approximately 3,000 employees who worked at the paper processing center in Fresno. Since that time, the IRS said it has taken steps to provide training and find continued employment opportunities for many of the impacted employees. Others have chosen to retire or separate from the IRS. The agency is also maintaining a Fresno submission processing consolidation update page on IRS.gov."
  21. Acutally, I'm in no rush to send them money, but I too like to get ready for tax season. Call me a pessimist but, as you know, we must have the PTIN to do taxes, so I like to get a jump on it if possible. Rarely (but sometimes), the IRS site has stated that my ID and/or password (known to me to be correct) is wrong, or that the computer's down, or for some reason they ae unable to process the application at this time. If their damn 1980 computer doesn't work, IRS is, of course, incommunicado. That leaves the paper option available by mail (probably as soon as the unprocessed 10 million return backlog is cleared) and doubtless, you would receive the OK by next July. P.S. I'm presently unable to process any critical responses to this hogwash. Check back later and let fly. _____________________________________ Just because I'm paranoid doesn't mean they're not after me!
  22. I was quoting news articles which are of course 100 % correct I followed your links but what is your point ?
  23. If she's truly a resident of both states, there might not be "any way around it." I run into that with NY and CT from time to time. Follow the money AND follow the timeline.
  24. I don't think that's correct. Current status of the backlog is available here: https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue which is where the 8.5M number came from. Further details were communicated here: https://www.irs.gov/pub/irs-utl/operationsstatus.pdf Highlights:
  25. I don't understand the rush to send in your money. I do it every December as part of getting ready for tax season.
  26. Do any of you CA people have experience with taking the credit for state tax paid to VA? MY client is a dual resident. She works in VA, owns a home and spends more than 183 in VA. However, she still has close ties to CA: owns a home, files jointly with husband who lives in CA and receives a CA pension. She has spent well over 45 days there in the past two years so she does not qualify for the Safe Harbor. Both states tax all of her income because she is a resident of both states. VA instructions say that she takes the credit on the CA return for the tax on her income. CA instructions say that she can only take the credit for VA source income. therefore the pension is taxed to both states with no credit relief. Am i interpreting this correctly? Is there any way around it. I would appreciate any guidance anyone can offer. Thanks!
  27. Max W

    Form 2210

    If you are referring o the first time penalty abatement, the estimated tax penalty is not subject to abatement.
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