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We are a rowdy group! But, I love you all.

I want to get 1099s out of the way before I have a backlog of partnership and s-corp returns to start. I already have two partnerships, one s-corp, and probably a second on my desk or waiting for me to download from FileShare. And, personal returns, but most are waiting for broker statements or K-1s, from me and from other preparers. I finished one small client's 1099s for them to sign and mail. I'm going to another client's site today and hope they still have few enough to get away with mailing -- and that he remembered to buy the forms at Staples! Otherwise, I'll be back there next Wednesday, too. I was filing my own reports and W-2s via QB electronically. All the reports seem to be accepted, but two or so federal payments were rejected. (So far, CT accepted all.) I changed my EFTPS password per IRS's and QB's instructions last September and filed 3Q reports and payments just fine in October. They say I'm not registered for EFTPS and made me go through the registration again; so now I'm waiting for a new code/temp password/whatever to show up in the mail in another week so I can change info and try again. (It would've been here this week without the MLK holiday.) I'm glad I started about the 12th.

Yes, time for another gath'ring after tax season and warm weather is here. I thoroughly enjoyed being at Rita's and meeting many of you in 2018. Rita had a great and spacious place, but unfair to expect this from her again when there may be other places we can meet. I have a smaller house, and have 45 unimproved acres about 60 miles from home, but the acreage doesn't have facilities. Depending on location, I'll make an effort to meet.

Just wait until they use the 2020 W4.

You should be able to fill in an 8879 in your tax prep software, even if you have to create a dummy return to use the name you need. But, why do you need to fill in an 8879 for a client who is NOT in your tax prep software? What are you trying to achieve?

I have noticed a few things that are not working on the ATX Max Program for 2019. I am requesting these items be implemented: 1. Form 8887 Paid Preparers Due Diligence Checklist – It would be helpful for this form to load into the return automatically if the 1040/EIC, Child Tax Credit, Head of Household, or Educational Credits are opened. 2. Anytime the income and filing status on a tax return qualify for EIC and it hasn’t been added, it would be helpful to have a black line in the “Check Return” section that flags “This tax return may qualify for EIC”. It was on the 2018 ATX Program but I do not find it this year. 3. A RED Line be added to the “Check Return” Section if the Virtual Currency Line on Form 1040 Sch 1 has not been marked. 4. On the Oklahoma State Tax Return Form 511 a very helpful line was dropped 3 or 4 years ago. On the buttons across the bottom of a Form 511 is one for “Retirement”. Clicking on that button gives you a list of all the 1099R’s in the program and an opportunity to mark them for the different exclusions that are available. Under the CSRS exclusion there use to be a list of the Account numbers from the 1099R that qualified for this credit. The list included: CSA 0,1,2,3,4 CSF0,1,2, CSA 7,8 and CSF 7,8. Only account numbers starting with these prefixes qualify for the exemption from tax. Having this screen pop up was very helpful and I would appreciate it being added back to the program.

How would someone, for the sake of discussion, be comfortable meeting the IRS data security requirements recently discussed here, while using a known outdated OS? Or, would someone be considered covered by E&O or other liability insurance if they elected to do something known to be unsafe (intentional act)?

My brand new, professionally-set-up computer is fast and pretty and now shows that I'm an ATX Supreme Guru, have six black dots (which I take it are not at all like being black balled), a green Donors sign, 5,822 posts, and am in CT. Even better, I can see which states all of you are in, because I have clients from CT to CA and many states in between and may need your help from time to time. I'm a happy camper for many reasons. One of which is all of you helpful, happy folks who are my virtual water cooler tax experts. Happy New Year!

Anyone who gets upset over $4 of depreciation has some other issues going on.

I could agree with Jack, except I get to hear of the consequences of data loss. Usually it is via computer failure, human error, or bad/uninformed human choices (such as believing someone will move all data to a new computer without fail). A few times, it has been due to actual criminal action. Change is hard, but hanging on to a two days from now abandoned operating system to avoid change seems like poor business practice (at best). Bypassing a licensing agreement is not something I would want my customers to even have a hint I would do (theft). While MS has gone outside of their stated obligation before, such as providing some sort of update, many years after abandoned, to XP, a business person, trusted with the safety of the data of others, should not expect such. Just my opinion of course.

I, too, don't mind the attrition as I am in my last 3 years of work. I renewed my license in December for those 3 years and, at 77 then, will call it done. I spun off all business returns, save one partnership, and payroll and bookkeeping a few years ago when the other CPA working for me retired. I didn't want to continue any year round work. I kept 50-60 individuals and have let nature take its course. I still have about 50 losing a couple each year yet somehow gaining at least one. This keeps my brain involved and engaged and gets me enough money to go on great dive trips so I'm pretty happy with the situation for me. I do wonder about the future for accountants and tax preparers, however. Different world ahead, for sure.

Line 3 of the worksheet is missing 1040 line 6 capital gains. I checked the 1040 instructions and the description for line 3 of this worksheet reads: Combine the amounts from Form 1040 or 1040-SR, lines 1, 2b, 3b, 4b, 4d, 6, and Schedule 1, line 9 ATX's description omits line 6.

When I click the link, the form that comes up is not fillable but in the top right corner is a button to open in another viewer. If I click that, and open in Acrobat DC (the free version) the form becomes fillable. I am using Firefox for my browser. I don't know if that helps.

I'll take that as a "yes".

I use ProSystem fx, so the names of the products are different. I have FileShare included free with my CCH SiteBuilder website; I use it to upload returns and such to my clients, and they use it to upload their tax information to me and to return signature pages. And, CCH offers a more robust free-standing portal. If you use CCH's eSign, it automatically delivers a client copy when it delivers the signature pages for verification. Many of us have been demoing Verifyle that's free with NAEA membership and another professional membership, too. And, not expensive if purchased on its own, I think. It's great for private communication. More companies -- tax prep software, website builders, email providers, professional organizations, etc. -- are getting into this market. I hope that means that services will be easier for us and our clients to use and that prices will be competitive.

The first question is - does this have business intent? You remember the questions: Whether you carry on the activity in a businesslike manner and maintain complete and accurate books and records. Whether the time and effort you put into the activity indicate you intend to make it profitable. Whether you depend on income from the activity for your livelihood. Whether your losses are due to circumstances beyond your control (or are normal in the startup phase of your type of business). Whether you change your methods of operation in an attempt to improve profitability. Whether you or your advisors have the knowledge needed to carry on the activity as a successful business. Whether you were successful in making a profit in similar activities in the past. Whether the activity makes a profit in some years and how much profit it makes. Whether you can expect to make a future profit from the appreciation of the assets used in the activity.

I just fired a payroll/tax client, a carpet installer who I had to remind one too many times that he had forgotten to pay me. Nice guy, but now that I am easing into semi - retirement I just don't need the aggravation.

For a land contract to be initiated, there must have been an amortization schedule made out, showing interest, principal, and an itemized print out showing the whole loan. It is NOT your responsibility to keep up with that information. Use whatever basis information you can get. Let him pay the taxes. I am already growing weary of babysitting grown, (supposedly intelligent) adults with things like this. (Rant Over)

Made me do a quick count from my web site logs. (I don;t currently track W7, since it is still possible to be viable, although not at the consumer level.) As of 2020, I have at least 80 customers using XP SP2, XP SP3, or Server 2003 30 using Vista, Server 2008, or Server 2012 Not a large percentage, but for the data they are responsible for, should be zero. These are customers who are not going out of business (at least willingly) for 2020. Given my experience, the numbers will halve each year, at best. Programming wise, provided one does not use "out there" Windows API calls, there is no programming need to prevent use with XP SP2 or later. Other factors can come into play, such as my preferred installation software vendor has dropped support for XP, which will eventually mean my software will not be able to install on XP either. Like when DOS died, I will eventually have to force people to make a decision, by preventing use on certain OS's. (We only provide support and only test with current OS, and strongly suggest using only current OS.) It has only been about a year since someone asked about a DOS version, even though we stopped creating them in the last century... Going through something similar now, with installation CD's (caused by the Wayfair ruling, and the low number of those actually needing a CD). The reality of current payroll processing is an internet available computer is needed, making a CD not needed, although some claim - despite web site logs showing differently - they cannot download because they have no internet access where they are. As an old timer once told me (back when I was not the old timer), "Only worry about the 80%. If you try to handle everything the last 20% ask for, you will muck things up for the 80%." I would add those last 20% are the ones who keep you up at night, and the ones which could be costing money instead of earning money. The ~110 count are not even a tenth of a percent (thankfully), so while I absolutely appreciate their business, when I have to force them to move up or along, it will not (much) make me lose sleep. If I have a point (It is first half of January, my mind is like yours must be April 15 or whatever your deadline dates are), is some will always be pound foolish, and some will get away with it. But, as good stewards of our customers, we must be penny wise.

I used to argue that jerks go high increases so that I was okay putting up with their jerkiness. About 3 years ago I fired all the jerks (only a few really) and oh my goodness life is more enjoyable. I can't think of a single client I wouldn't want to sit down and have a beer with. Have a client who did freak out that I had a 1099 on his tax return for a dividend. It was a mutual fund he insisted he didn't own and had no clue where it came from. About a month later he called to apologize, he'd found it. How does one forget a $50k account?

Good comments from those who have ventured opinions. The IRS has not improved their level of quality either. You would think after the cuts of 2013-14 they would realize just how bad they have become. More support for Catherine's comment about representation. The speaker at my last seminar was from Illinois, and he stated their were NO trained IRS auditors south of Springfield in his state. The IRS has issued a requisition to hire one college graduate to fill the need. The graduate needs a degree in anything, not necessarily a degree in accounting or taxation. This level of expertise explains why you have to be referred to a couple tiers of supervisors in order to intelligently discuss anything when you call in. I'm thankful for the clientele that I have - I have not gravitated to the February crowd, and leave myself exposed to the fleeing public described by Pacun. He emphasized with several examples that our customers' own interests would prevail over personal service.

Just like in the real world, many fail to follow leach laws because their four legged friend is "friendly", "always minds", "is not a danger", "is tiny", or whatever. Does not help those folks when they get ticketed, or at least twice a year, I am forced to pepper spray their four legged friend because of the human's stupidity. To me, "laws don't apply to me attitude" needs to be corrected (and we can all try to change laws we do not like), especially when one is presenting themselves in a manner to represent others, such as the CPA in this example.

Medlin, I think Edsel's quote is how most of us feel about you -- you know many things and many of us are glad you're here to interpret them for us. But for many of us, I don't believe your plan/plans will work out. For example: While most large companies will simply turn over the problems to a large CPA firm, the majority of businesses are small. Many of their employees WILL ask their employer what to hold out. Practically nobody is going to pay you $50 to fill out something they've never heard of and probably care less about. Employers (and employees) are rushed anyway and they won't take somebody out of service for half an hour to go over it, plus they're unaware/uncaring about who is practicing unlicensed tax. I wouldn't be surprised to see this substitute W-4: a cafe ticket with the following scrawled on it - JOE BLOW 444-55-6666 "HOLD OUT 10% FOR TAXES." But, anyway I expect to see the whole mess scrapped next year. Even IRS employees probably already hate it & the 1,001 crazy questions they'll have to try and answer.

Danny, this site is for tax professionals only, most of whom use ATX software. We don't help the public here, and you would be better served by consulting with your own tax preparer on how best to handle your situation.

Merry Christmas! Hope Santa brings you everything you want!

Merry Christmas, and best wishes for the upcoming tax season. God Bless Us, everyone!

Guy shows up today with a 1095-A after I threw away my accumulated 10 or 20 pound stack of O-facts last month (I just thought I was through with that junk). Oh well, it's a (sort of) short form (8962) that Turbo didn't get -- now if only he was a millennial instead of 57. But I guess we're still in practice (at least 'til we kick the bucket).

Thank goodness, I check each year, even when I have a copy or it's a state that rolled over. Discovered last summer that a client in Singapore had lost his license, so got a new one when in NY -- with a new number!

ATX

I download Pub 15-T to see what they did with the withholding tables. It has both the old W4 method and the new. The old W4 is basically the same with a standard deduction of 3,800 for single plus 4,300 per allowance, so that claiming single 2 gets you to an annual exclusion of 12,400, exactly the 2020 standard deduction. The new W4 tables don't have an annual table, so I used the monthly table for single without the 'two jobs' box checked on the W4, and the standard deduction amount is 1,033. Times 12 = 12,396. If you check the box for two jobs, it cuts the standard deduction amount in half (517 x 12 = 6,198). I wish they had built a little cushion into the new tables by using, say 10,000 for the standard deduction because I'm afraid this is going to cause a lot of people to be under withheld, especially hourly workers with varying hours. I'm going to recommend that people enter extra withholding on the new W4 more often than not, so they don't get mad at me when their refund is a lot smaller or nonexistent.

Doesn't look like it integrates with QuickBooks. This one does: https://www.tax1099.com/Intuit

The current Microsoft provided tool for always on. Random other tools, none based outside of the US, for weekly/monthly (whatever makes you comfortable) double checking. I insta;;, then uninstall the random tool. I would not suggest having two tools "on" at the same time. Before even starting to "believe" and warnings, I would do an update check on the tool reporting the issue (they are updated at least daily if they are worth using), and I would check the file with the "reported" issue against virustotal.com Personally, I do not use heuristics, as the results are, to me, like a WAG, hoping to show you the tool is worth paying for. Heuristics, to me, is roughly the same as palm reading for stock tips. Maybe you get lucky, but most likely, it is an unneeded annoyance (at best). Whatever you choose, look for any "rankings" on false positives. False positives are costly to deal with. A good firewall, with good settings for outgoing connections and easy to use reporting, is a good thing as well. Will let you watch for any missed items causing you to be part of a botnet.

We might be boring, but we never stop learning If you are using ATX payroll package, you will need to print out the form 1096, along with the 1099s and Copy A at minimal to give to your client. Also when ready to print, make sure on the pull-down menu to select 1099MISC to be able to print everything at once.

that makes sense to me! Thanks for your help!

It's been awhile. The license is free. Let me see if I can find an invoice with the pay-per-client fee and get back to you. It used to be inexpensive, such as $3 for verified signatures and $1 without. (Although, CCH charges me more for everything because I'm using ProSystem fx. I've been tempted to buy the cheapest ATX each year, not to use, but to get the lower prices on all the extras, such as web site, portal, etc.!) Just pulled out my November invoice. For a late filer, I paid $5 for Esign, with tax $5.05

The category is determined by the main form in the return. If you add a 1040, it will be under individual.

I charge by the hour for these types of clients and if they are new, I get a deposit up front.

@DANR Speculation - " ideas or guesses about something that is not known". (Merriam-Webster) It is also called 'crossing your bridges before you get to them. Your second comment is an assumption. Wouldn't if be better to let Darlene speak for herself.?

I don't think MSE is baked into Windows, it is a separate application. Many expect at least some updates, but MS's official policy is no more (for consumers). MS has, in the past, provided updates, such as one for XP long after it was abandoned, but hoping is not really security (to me). I am a realist. Many will not change anything until forced. Dealing with a customer, today, who insists because S Corp Shareholder Insurance is deductible on the personal return, there is no harm not accounting for it properly as wages for withholding calcs. They are ignoring the payroll regulations. Another case of an owner/employee forgetting to treat all employees "hands off", with no consideration of the employee's personal tax situation. The tough part is they are telling me their CPA (and tax preparer) is relying only on 2008-1 for guidance, and is not considering the payroll processing aspects. I suspect their experts are only being asked about "tax filing", not "payroll processing".

I think it just goes on Schedule D & 8949

All good here.

I purchased Drake Accounting with the tax prep bundle when it first became available and have ever since. I stated with very small clients using only maybe one or two employees. For various reasons, at the end of the year, the W-2/W3 filings were always completed on the BSO site using accuwage manual entry. Last year I took on larger clients so manual entry is not what I run to the desk to do. I discovered this morning that Drake is not able to transmit the created W2/W3 file. From support, I guess this is a feature they are working on. So, in the meantime, from within Drake the W-2/W3 file is created that you can browse to when on the BSO site. If anyone needs this, I am understanding the steps may be subject what computer you are using or where the Drake files reside. The steps are posted below. I'm saving this for next year as 2020 is still not operational either. I did put a note at the bottom for NC users. I also found Drake creates the .txt file for the ridiculous e3NC form. What a blessing to not have to waste time on NC DOR with creating a .txt file or manual entry. I hope this helps someone. I think the data path is the same in 2020. Drake Accounting End of Year W2 File Path 1. Report – W2REPORT txt file. a. Open the drive where Drake Accounting 2019 resides. b. Click on the Drake Accounting 2019 folder. c. Click on Clients folder d. Click on the specific client ID. Example: Client 015 is Someone & Sons Lawn Care. All you will see in this step is the client number. e. Open the Efile folder in the next window f. Click on the Federal folder g. The file W2REPORT_015txt is the folder that you want to upload to accuwage with BSO. The _015 again is the client ID To make browsing to the folder from the BSO site easier, you can open the txt file and save it to another location. Just to note: If you are in NC and have to upload the e3NC form. The W-2 file upload is created in Drake. Just use the same path as above through step f. Instep f, click on the NC state folder. I am not sure what other state filing requirements are but this works well for NC. Eliminates all the crap creating a .txt file to upload.

Thanks, good idea! I had forgotten about this form. And since NY doesn't allow any writing except a signature, this should, I hope, suffice.

A few years ago (for a couple of times), there have been similar postings and I have always argued that this market is going away faster than the aging tax preparers. I have said in the past that Turbo tax is a very strong competitor and if you add the IRS free efiling, we are going to be out of business really soon as clients die or stop working. The response I have gotten on this forum has been: "this year I had to amend 3 returns that were prepared in Turbo Tax.... Turbo tax keeps my business busy". Internally, I have laughed because amending 3 returns is nothing is comparison to the millions of people that used Turbo Tax. We normally amend 3 returns of our own every year, don't we? Other.... "incredible" tax preparers said "I provide service and personal care for my clients"... I told then that when Amazon came on board, retailers said that they provided personal care and Amazon was not a threat to them because of the personal touch that was provided to clients with each purchase. YOU know the answer to that. I will add something... My daughter is faster on her Iphone than myself on a computer with keyboard, mouse, keypad and huge monitor. Millenniums just click and click and can efile their simple returns while I am still verifying numbers and that the address is correct. Think about this... millenniums don't like to to wait on line at a restaurant regardless of how good the food is and what makes you think they will be willing to wait for this old man to prepare their taxes? It is like me hiring someone to help me and can only type 5 words per minute with two fingers and looking at the keyboard. In any event, I do believe this line of work if fading away and suggesting my clients to have another extra line of work is an EXCELLENT idea and we should do the same.

Regarding the IRS free program, IRS dropped the wording of how they would not be in the tax prep business.

Thanks Judy - and a great Holiday season for you. The change is from Accrual to Cash, and you've explained that this is not automatic. I'll know this without reading the 343 pages. My cohort promises there will not be a user fee. We'll see.

To be clear, David is asking about the ownership questions on the 1120's Sch K, questions 4a and 4b shown below for the stock that was purchased by the 401(k) plan:

Gotta wonder what that electric bill will be. Anyway Merry Christmas to all. Can I say that??

I figured out how the get the QBI for a specified service business to show up on the QBI Deduction - Service tab. On the Activities tab, you have to check both the qualified business box and the service business box. You still have to provide the income for a Schedule C business in the Income/Loss box on the Activities tab. If an S corporation's income needs adjustment from the K-1 reported QBI amount, you would adjust the amount that shows up in the Income/Loss box. I think all ATX needs to do is provide a way to aggregate activities if that is desired.