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My first thought about the "lack of funds" was, "Since when do we care about lack of funds? We're in debt 18 trillion. Oh, we are not cutting hot checks now?"

Got a call from a client today who got a postcard reminding her that she will be getting a 1095A which she will need to file her 2014 return. As I talked with her I realized the problem wasn't with her confusion over the form. She was divorced last year and got subsidized insurance for the rest of the year through the exchange. This year she called the navigator to sign up again and mentioned the alimony she will be receiving in addition to her wages. The navigator told her alimony doesn't count and signed her up with the same income and same subsidy. I've been to a lot of classes on this and just figured I probably missed some of the finer points so I read the regs. Guess what? Alimony sure does count. MAGI for this purpose doesn't subtract anything but adds back tax-exempt interest, any foreign income excluded, and the nontaxable portion of Social Security. Did the navigator confuse alimony with child support? I have no idea, but these folks are obviously not as well trained as we hoped. Another fine point is that "household income" includes SS that children collect (not SSI though). We are so used to reviewing that form and just telling the client the child doesn't have to file. Well, that income counts when calculating the amount of subsidy the family can get (or will have to pay back). This tax season ain't gonna be pretty.

I am telling all clients to "Expect your refund to take 6 weeks or more." When they get them sooner, I am a hero. We must stem the tide of "gotta have my refund RIGHT NOW" thinking. I do not allow my clients to beat me up over time for receiving refunds. I have the phone numbers, mailing address and e-mail addresses of our Representatives and Senators to give to people with complaints. I do not make the laws. I do not create false returns to scam the government out of millions. I do not cause the ineptitude in the IRS.

It's all going to be in Pub 974 -- which hasn't been written yet. So, in the immortal words of Zippy the Pinhead: Are we having fun yet?

The problem is that most that hear it will think that their refund comes from IRS money. That is the sad but true part of how "low information" our society has become.

In addition to the rev procs and other links above, I'll add this 44-page summary from Wolters Kluwer CCH issued this past May on the subject that is available on the internet. I saved it to my desktop earlier this year and plan to go through it again this coming weekend. It is written in a way that is easier to understand than some of the other writings I've seen, and it has some very good charts. There's one on the last few pages that summarizes the form 3115 change numbers to use, the general topic those numbers relate to, their specific purpose, and the related tax regs for easy reference.

Here is the URL to register and receive some background for the seminar. http://pages.marketing.accountingtoday.com/20150115_act_bloomberg_ws_lp.html

I'm not saying that it is true. I am saying that if I heard it; so did millions of other taxpayers who will want their taxes done before the IRS runs out of money. It was a clear statement that the IRS was short of funds and that Congress certainly would not allot them more money. Now, you all know how filers are going to take a statement like that and run with it. I looked at my husband and said, "As if things aren't bad enough, they have to go and issue a statement like that!" Some of the things they talked about, we already knew such as the fact that very few people would actually be able to contact a real person to talk to this year. They told us months ago that even we would not be able to get much, if any, telephone assistance this year. Some things are better left untold. I am not going to worry about it either; we can only do as much as we can do. Since my letters went out, my Feb appointments are filling up fast. I can only prepare an accurate tax return if I take time to research and check. Happily, my new assistant is really enthused about getting started.

Now that part of a newscast is pure comedy!! But then again, most of America will believe it!! (Sad but true)

i would think there will be huge errors on this issue. along with the elections related to rotable parts, expensing amounts under $500 etc. this almost seems like something the irs will use this years down the line as a slam dunk to hit any client under audit.

Check out this link from another tax forum for a great discussion on this matter: http://www.taxprotalk.com/forums/viewtopic.php?f=8&t=1621 also check out Rev Proc 2014-16: http://www.irs.gov/pub/irs-drop/rp-14-16.pdf#page=25 And Rev Proc 2014-54: http://www.irs.gov/pub/irs-drop/rp-14-54.pdf#page=92 Of course, when I read the regs, my eyes glaze over and I start drooling because my brain has turned to mush!

I don't know about anyone else, but the new repair regs and the "need"(?) for a Form 3115 are making my life miserable. How are you feeling about it?

Sounds to me as if the employee is covered by a municipal retirement plan. Such an item exists in Illinois for certain workers and teachers. More inquiry in the situation to client and client to employer. IMO

What I posted above is the tax code, a higher authority than any IRS pub or reg. Any instructions, pubs and regs that have already been issued refer back to 5000A as it is THE authority here. Unless it is amended in future, I think we already have the answer and don't need to wait for future publications for clarity.

The cite I have is from the U.S code, specifically 26 U.S. code sec 5000A (c )(4)(A), (B ) and (C ) - http://www.law.cornell.edu/uscode/text/26/5000A. Sec 5000A is the part of the code that is the "Requirement to Maintain Minimum Essential Coverage". (4) Terms relating to income and families For purposes of this section— (A) Family size The family size involved with respect to any taxpayer shall be equal to the number of individuals for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year. (B ) Household income The term “household income” means, with respect to any taxpayer for any taxable year, an amount equal to the sum of— (i) the modified adjusted gross income of the taxpayer, plus (ii) the aggregate modified adjusted gross incomes of all other individuals who— (I) were taken into account in determining the taxpayer’s family size under paragraph (1), and (II) were required to file a return of tax imposed by section 1 for the taxable year. (C ) Modified adjusted gross income The term “modified adjusted gross income” means adjusted gross income increased by— (i) any amount excluded from gross income under section 911, and (ii) any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax. Forgive me if I am wrong, but the way I read this is that the MAGI of those dependents has the possibility of being included, but the hurdle that stops its inclusion is 5000A(4)(B )(ii)(II) just below the big red "AND". Please, if someone has some official cite that contradicts this, please share it.

To jklcpa: Latest reply from Drake software support at 8:55 PM CST 01-13-2015: "Thank you for contacting Drake Software Support. I have passed on your request to the appropriate sources and am awaiting a response. Thank you for your continued patience."

"It appears ‪#‎IRS‬ will be holding refunds on returns with American Opportunity Tax Credits until the 201519 cycle (Mid-May) so they can verify receipt of the 1098T from the colleges and universities. Taxpayers should be informed of the reason the refund is being held and that once the 1098-T from the accredited institution is verified, the refund will be released. Otherwise, they will receive a letter (4800C) to inform them if further documentation is required to allow the education credit." Center for Agricultural Law and Taxation at Iowa State University Source: https://www.facebook.com/centeraglawandtax

I'm not going to worry about this or whether or not it's true. I may make a general statement such as "your return includes credits that may delay your refund if the IRS decides to scrutinize these credits more closely or requests documentation before finishing the processing of your return."

There was an announcement this AM on National TV that ALL refunds will be delayed due to lack of funds; as well as personnel. Of course, we all knew about the cutbacks in employees, but the refunds announcement will cause a furor. Especially when the commercials interspersed with the news are already saying "Spend your Tax Refund Here!" The next three months just keep on looking worse.

And the fees will be increasing!!

Congrats Jack!!

There are people at ATX tech support, then there are also a FEW technicians at ATX tech support. The quality and reliability of tech support is abysmal at best. Once you complain loud enough, and tick off enough people, they will connect you with one of the FEW REAL technicians there. This is a sore point with me. Two full years ago, I heard the head of ATX say... "We are going to make changes to our phone system and database such that when a person calls that does not need the basic remedial help, they will be transferred to the upper level technicians." Just like always, management will say what sounds good, but only do what some desk flyer thinks is right. Since 2007, tech support has been a HUGE waste of time when I call. Currently, instead of calling, I blanket e-mail several people at the top. I have about 7 email addresses for people in the tech department and higher. Eventually, to get me off their back, they have a top tier tech call me. This way I don't stay on the phone for hours wasting my time while a 4th string CUSTOMER support person googles the problem and reads me answers. Rant over.

What about that partial roof replacement that's still on the books but a decade later the whole roof was replaced? I just got a new client with pages and pages of his depreciation schedule, every line reading "equipment." Does he have three furnaces still being depreciated? Dozens of computers, many now in the hands of his children? He's an artist and has no idea. Extensions. Lots of extensions to give me time to ask lots of questions.

ok, since we are hijacking this thread to a thread about banks, here is my personal experience. I did a refi just last Monday. at that time they did an appraisal. The bank screwed up since I wanted a Heloc at the same time. so the heloc is now scheduled for next week. But first, the bank is insisting on a new appraisal. The bank is eating all the expenses of the Heloc so I don't really care but do they think the property value changed in 2 weeks enough to warrant a new appraisal? I am just annoyed that I will have to stay home for this one morning.

some people [lecturers] are recommending to adopt the new regs going forward and not back, since this would be a near impossibility. I haven't decided what I am doing but no matter what, the client will be signing off on what is done in my engagement letter.

I have to look to see where the backup file folder is located. I will post that when I locate it. 1. Install 2013 on the new computer using the downloaded file from the website. You will need your installation codes. 2. Copy the backup file to an external drive. 3. Copy the backup file from the external drive to the hard drive of the new computer. Location is unimportant as long as you know where it is. 4. Open the program on the new computer. 5. Choose backup/restore 6. Follow the steps directing the program to the backup file you just moved. 7. Depending on the number of returns, it may take a while to restore.

Rita, I can NOT fault your reasoning!!

And, probably, if that is the case, many of us will volunteer to prepare the return pro bono.

Too bad the IRS won't slow down the refunds on returns with EIC, at least until W-2 income is verified.

In light of the circumstances, I see no reason not to have both.

That should take care of it. I just don't want David, or anyone else either, attacked for posting something that is publicly available online. Even if it was public by mistake, that mistake was not David's it was Drake's. Peace, Judy and Jack. Lion, I like Moscato d'Asti with dark Chocolate myself ! I'm not waiting for a birthday either !

We discovered on New Year's Eve that Prosecco goes great with chocolate. Hubby's birthday is today, so maybe we'll do that again tonight. Or, is red a good pairing with dark chocolate? Did you see the 60 Minutes re pot pairings with food and drink?

Well, I could use some chocolate. Just sayin.

Drake organizer is NOT available online. If you look at the bottom left of that page you scanned and originally posted, do you not see the words "Copyright 2014"? That is why I removed your attachment here...twice, not because I don't want to share useful materials with others here. I'd have shared it myself if it was legal to do so and wouldn't be a violation of the TOS I've agreed to. I'll agree with you that Drake customer service is wonderful. Maybe you should ask for their permission before sharing copyright-protected materials. I'll send Drake an email to let them know. Thanks.