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I am curious. What is your typical turn around time on returns at this moment? I'm at the blown away stage, and when I get done with this payroll, I'll be working on people who dropped off 2/06. Most of my clients are just fine with that, and later some will be waiting 10 - 14 days or so. This one #$%^& gives me grief every year, and I'm about to fire her @$$. She dropped off Monday and is calling me today to see what the status is. Uh, the status is you are about to be hunting a new tax preparer. Yes, I know. I'm not charging enough, cut her loose, all that. Peace and blessings. Carry on.

One of my colleagues from Florida, an NAEA director, received this email from the IRS commissioner a couple of minutes ago Dear Mr. xxxx, Thank you for your message. I thought you might be interested in the following press statement which we just released. Best wishes. John Koskinen Media Relations Office Washington, D.C. Media Contact: 202.317.4000 www.irs.gov/newsroom Public Contact: 800.829.1040 IRS Makes it Easier for Small Businesses to Apply Repair Regulations to 2014 and Future Years IR-2015-29, Feb. 13, 2015 WASHINGTON —The Internal Revenue Service today made it easier for small business owners to comply with the final tangible property regulations. Requested by many small businesses and tax professionals, the simplified procedure is available beginning with the 2014 return taxpayers are filling out this tax season. The new procedure allows small businesses to change a method of accounting under the final tangible property regulations on a prospective basis for the first taxable year beginning on or after Jan. 1, 2014. Also, the IRS is waiving the requirement to complete and file a Form 3115 for small business taxpayers that choose to use this simplified procedure for 2014. “We are pleased to be able to offer this relief to small business owners and their tax preparers in time for them to take advantage of it on their 2014 return,” said IRS Commissioner John Koskinen. “We carefully reviewed the comments we received and especially appreciate the valuable feedback provided by the professional tax community on this issue.” The new simplified procedure is generally available to small businesses, including sole proprietors, with assets totaling less than $10 million or average annual gross receipts totaling $10 million or less. Details are in Revenue Procedure 2015-20, posted today on IRS.gov. The revenue procedure also requests comment on whether the $500 safe-harbor threshold should be raised for businesses that choose to deduct, rather than capitalize, certain capital expenses.

Reminds me of when I was in the Air Force. Stayed constantly depressed because every time we had mail call I had a couple of "Dear John" letters.

So if everything is still classified correctly and I'll have a $0 841 adjustment then under Type of Accounting Method Change Requested I would select "Other" then type something like. "I'm satisfying the new and STUPID Tangible Property/Repair Regs" Or should I say something else

I am working on returns that came in on Feb 2; there were a few exceptions for people who were leaving town, etc. Returns were flying around here today like no other day yet. My assistant couldn't even leave because three cars were in the driveway blocking her in. One and Three had appointments. Two was a drop-off. Total craziness. Thank God for my girl. She is taking so much weight off my shoulders and keeping me sane. When I mention an appointment in March, many of them almost go ballistic. At this point it is either that or find someone else. At this precise point, I really don't care.

Until last year, I promised and lived by a 10 day turn around. There were very few exceptions to that rule on the back side. We often delivered them a couple days ahead of time - especially in the early going. With my pacemaker implant in October of 2013, my wife's step-dad (an extremely dear friend to her and I) passing away February 6th last year, and my learning new software last year - it seemed to be a good time to stop promising. Today I worked on a couple that came in on January 27th. Tonight I will work on a couple that came in on February 3rd. I learned last year that the vast majority of my clients are just happy to get their crap out of their house. Some have asked this year when to expect my call and we are telling them a couple to three weeks and no one has balked. As the season goes on, we will be quoting three to four weeks. We are moving up our drop dead date this year a week to March 16th. If the info is here on or before March 16th, we will do our best to deliver the return on or before April 15th - but no promises.

By your reasoning, Pacun, it makes sense for anyone to pay the penalty rather than purchase health insurance as long as the penalty is less than the cost of the health insurance. Nobody, no matter how healthy, can be sure they won't get sick or be in an accident and need medical care. That is why we have insurance. And when people without insurance get sick or injured and need care they can't afford, many times hospitals and medical practices wind up providing that care without getting paid. And that drives up medical costs for all of us.

Good one, John. She actually left a message. I had someone in here, and I never answer the phone when a client is here. I called her back, she didn't answer, and I told her that I'd call when I got the return done, but if she needed to pick up her forms and take them elsewhere, that would not be a problem for me, no hard feelings. I will be sending her a Dear John (no relation) letter later.

I always seem to have good Friday the 13ths! There will be several alcoholic beverages in my near future!

.06 While some small business taxpayers may choose to file a Form 3115 in order to retain a clear record of a change in method of accounting or to make permissible concurrent automatic changes on the same form, other small business taxpayers may prefer the administrative convenience of being able to comply with the final tangible property regulations in their first taxable year that begins on or after January 1, 2014, solely through the filing of a federal tax return. Accordingly, for the first taxable year that begins on or after January 1, 2014, small business taxpayers that choose to prospectively apply the tangible property regulations to amounts paid or incurred, and dispositions, in taxable years beginning on or after January 1, 2014, have the option of making certain tangible property changes in method of accounting on the federal tax return without including a separate Form 3115 or separate statement.

Nice KC - I got home to a driveway packed with up to twenty inches of new and drifted snow last night. Yes - the truck is stuck - AGAIN!!!!! I was able to use the snow blower and make a path around it so we are good. I found out last night that sitting on my tractor with the snow blower with temps at about 4 degrees and wind chills in the minus teens (which means it was kinda windy) is something I do not want to do all that often. However - my wife says there is no bad weather; just bad clothing. I still need to work on that.

Yeah, I'm a couple weeks away at least for anyone dropping off today. And, two big ones arrived via UPS and USPS. One included her two sons (one going to college and working in OH -- Hi, Jack!). Her 2013 return done elsewhere and her 2014 lists for me include deductions such as medical (health and dental premiums and HSA) paid via payroll w/h, HSA contributions via payroll w/h, and donations that don't separate cash/check from Goodwill. She's not going to be happy with fewer deductions than last year. Oh, and two WDW uncashed dividend checks for her children. The other client left me for HRB for a year and is returning with multi-state rentals. Was fired so lots of things without w/h such as unemployment, 401(k) withdrawals. and my first 1095-A !! Marketplace insurance started in May, so have to see if she was still covered by her employer earlier in 2014. She included the letter from the Marketplace with a very long list of documents she need to provide by 18 February to renew. I hate people that don't open their mail. Oh goody,

Not Quite. She loved him, they enjoyed life together. The kids were close to mom, but did not like the boyfriend. They are doing their best to uphold her wishes. But they don't like him and never could see what mom saw in him. Tom Newark, CA

NO! Go directly to jail. Do not pass go. Do not collect $200. Strictly prohibited.

Rita: Whenever she calls, just tell her you pulled her return out of the stack to give her an answer, but you don't remember where it was so now you have to put it back on the bottom of the stack. After the third or fourth call, maybe she will get the message.

See: http://content.govdelivery.com/accounts/USIRS/bulletins/f10edf?reqfrom=share

This is the best damn news I've had in weeks.

Not true. We don't know this ^ unless we ask what is included in that $6000 of tools. What if that mechanic purchased a new Snap On tool tool box included in that $6000 figure. Just the bottom portion of those boxes start around $2800 and go up from there? Middle quality around $5-6,000. Top end is more. There are tops for those too. There's a reason why companies like Snap On and other offer financing. Mechanics getting into the trade can easily spend $10K or more just to get rolling with the job. ETA - I was typing when JMovichEA responded. I agree with him. I was responding to MaxW. I know all about mechanics tools because my husband was in the trade for 42 years.

Even if the Repair/Cap rule were to be used, there is little likelihood of any item being over $500, since they are hand tools.

This is bringing my 3115 filings down to three that I can think of! This almost feels like Christmas!

Thanks to everyone especially Judy and Catherine for explaining this further. You all help so very much at the most crucial times.

The bitter cold is supposed to hit CT this weekend, colder than in two decades. Our electric usage is higher than a year ago, harder to tell about our oil. Except for one of the storms, we received less snow than predicted. I'm going to hunker down and get a 3115 and attachments done this weekend for an anxious client -- after a webinar starting in a few minutes by KBKG on Final Tangible Property Repair Regulations "Repair vs Capitalization Regulations"

Terry, this transaction actually results in the recipient being taxed on the difference between proceeds and exercise price, and is ultimately taxed at ordinary rates because it is considered compensation on his W-2. Here's how it works: He got $44K. That is proceeds. Report on 8949. The basis has two parts. It is the exercise price shown on the paper from Morgan Stanley, the gross amount before withholdings, AND ADD TO THAT... The basis ALSO includes the amount shown on his W-2 because he is going to pay tax on that at ordinary rates, so he gets to use that as basis too. Those 2 figures added together should come out to very close to the proceeds because there were some trading fees or transaction costs to sell the stock. That will generate the small cap loss that everyone is talking about. Yes, you need the 8949 to report the part that is the cap loss from the transaction fees.

I've heard all kinds of things about the snow.  I've heard 6-11 from one source and 12-18 from another, but I'm not going to be up here to deal with it when it hits so I'll have to figure out how to get it taken care of while I'm away.   There is relatively little snow on the ground up here right now, and I'd would gladly take more if it meant we could catch a break from the cold.  It's been -20 or lower almost every morning for the past month, and I'm definitely going a little stir crazy.  You know it's been cold when you wake up to zero degrees and no wind and it feels damned near tropical.

Good luck this weekend, Catherine, and everyone in the path of the next storm.

Correct, Christian.

Cost basis is what he paid, either out of pocket or withheld by MS, plus what he paid tax on via his W-2. In a same day sale, if 44k was his proceeds, then his basis was probably 44k plus fees for a small loss.

I forgot to mention - planning to file my first extension tomorrow.

Spidell News AICPA provides hope for practitioners struggling with Form 3115 February 11, 2015 In a News Update, the American Institute of Certified Public Accountants (AICPA) announced that the "IRS and Treasury are considering our recommendations to provide relief from the reporting requirements related to the repair regulations. We are hopeful they will release some form of relief for small businesses in the next couple of weeks." (www.aicpa.org/publications/newsletters/aicpanewsupdate/pages/20100210-specialnewsupdate.aspx) The relief the AICPA has requested includes: Make Form 3115 and the IRC §481 adjustment optional; Make the rules prospective; Accept a statement in lieu of Form 3115 to acknowledge compliance with the regulations; and Raise the de minimis safe harbor from $500 to $2,500. The AICPA advises that practitioners may consider the option of temporarily suspending all related work in hopes of IRS relief. Spidell was unable to get any confirmation of this information, but we will keep you posted as news develops on this issue

Issue Number: 2015-2 1. New on IRS.gov 2014 Pub 531, Reporting Tip Income 2014 Form W-4, Employee's Withholding Allowance Certificate 2014 Pub 17, Your Federal Income Tax (For Individuals) 2014 Inst W-9, Instructions for the Requestor of Form W-9, Request for Taxpayer Identification Number and Certification 2014 Pub 15, Circular E, Employer's Tax Guide 2014 Pub, 15-B, Employer's Tax Guide to Fringe Benefits 2014 Pub 15-A, Employer's Supplemental Tax Guide (Supplement to Circular E, Employer's Tax Guide, Publication 15) 2014 Pub 15-B, Employer's Tax Guide to Fringe Benefits 2015 Pub 15, Circular E, Employer's Tax Guide 2015 Pub 15-A, Employer's Supplemental Tax Guide (Supplement to Circular E, Employer's Tax Guide, Publication 15) 2015 Pub 15-B, Employer's Tax Guide to Fringe Benefits 2014 Inst 8959, Instructions for Form 8959, Additional Medicare Tax 2014 Form W-9, Request for Taxpayer Identification Number and Certification 2015 Form W-2, Wage and Tax Statement (Info Copy Only) 2015 Form W-4P, Withholding Certificate for Pension or Annuity Payments

That's just Quality Control checks, not a benefit.

People like her are becoming more and more common place. There isn't any shame anymore either, in fact some are proud of the way they live.

BTW, the code V means they are NQSOs.

Issue Number: IR-2015-29 Inside This Issue IRS Makes it Easier for Small Businesses to Apply Repair Regulations to 2014 and Future Years WASHINGTON —The Internal Revenue Service today made it easier for small business owners to comply with the final tangible property regulations. Requested by many small businesses and tax professionals, the simplified procedure is available beginning with the 2014 return taxpayers are filling out this tax season. The new procedure allows small businesses to change a method of accounting under the final tangible property regulations on a prospective basis for the first taxable year beginning on or after Jan. 1, 2014. Also, the IRS is waiving the requirement to complete and file a Form 3115 for small business taxpayers that choose to use this simplified procedure for 2014. “We are pleased to be able to offer this relief to small business owners and their tax preparers in time for them to take advantage of it on their 2014 return,” said IRS Commissioner John Koskinen. “We carefully reviewed the comments we received and especially appreciate the valuable feedback provided by the professional tax community on this issue.” The new simplified procedure is generally available to small businesses, including sole proprietors, with assets totaling less than $10 million or average annual gross receipts totaling $10 million or less. Details are in Revenue Procedure 2015-20, posted today on IRS.gov. The revenue procedure also requests comment on whether the $500 safe-harbor threshold should be raised for businesses that choose to deduct, rather than capitalize, certain capital expenses.

Sounds easy, Right? Consider this - unless the client has the actual stock certificates that he can transfer to mom, the gifted stock is going to show up on his 1099B from the broker at the end of the year as a taxable transaction to the client.

Thanks, Joe and Ken!

Just read those releases in my email. I thought I might be hallucinating, so thanks, Lynn, for the confirmation! I have a little more courage now and just might make it til 4-15! Cathy

Rev Proc 2015-20 attached. Rev Proc 2015-20.pdf

Like Judy said -- yes you still need the Sch D & 8949 to show the capital loss (=transaction fees). And you are very welcome! Folks here have given me priceless advice and instructions; I'm glad to be able to give back a little.

We woke up to 22 degrees this morning. Some people are complaining, but not me. Compared to what you folks are enduring, this is a heat wave.

Add the W-2 Code V amount to his cost.

What Lion said. When there is a same day transaction, the gain is put on the W2. You end up with a loss equal to the broker fees. Tom Newark, CA

Today between appointments I finished some returns dropped off Feb 3. Doesn't sound too bad, but there are now 20 in my in-box and lots of appointments in the coming days. Four were added just today, so who knows what their turn around time will be. Anyone notice that a lot more of these early filers owe? I keep stack of envelopes for the federal and state payment vouchers in my desk but I usually don't use many of them until March. This year it seems that I hand one out for nearly every return. I've already done the ACA form for clients who lacked insurance for a few months of the year. I just did one for clients who got married during the year and one had an insurance subsidy. Anyone notice that the Pub that is supposed to help us through these unusual situations is still "under development"? I actually dug up the Regs and followed the example with my own math (charts for poverty level percentages, middle cost silver plan, etc. spread all over my desk). When I was done I checked it for theory, which is about all I got out of the myriad CPE hours I took on the topic. Then I had to figure out how to make the program do it right. I just wanted to ease into the ACA--you know, check the box that everyone was insured for my first dozen returns and then maybe someone with a month or two lapse. The complex situations that our courses just breezed over (because not even the curriculum writers could figure it out) just had to be my initiation to the ACA.

Thanks, cbslee

I think there is also language in the new rules that larger amounts of repairs may still be considered repairs. Just because it's a higher dollar amount doesn't preclude it from being a repair. I don't have the reference handy but something about if the repair is expected to be incurred again within the life of the asset. And if the 2nd repair event does not actually occur, that doesn't mean the original repair was not a repair.

Ron, thank you, thank you! That gave me the clue to find it in my software where it was listed immediately below the other one (you know, right where it should be ) and the last words of the title were cut off so that I didn't instantly recognize it. I'm so tired already, what will I feel like a month from now?!

Sometimes, I would like to secretly record something like that and send it to the 6 O'clock news and see if they would air it. Tom Newark, CA

I'll just add one thing I don't think anyone mentioned. If you file it before the deadline, it is NOT an Amended return, it is a Superseding Return. A tax return filed subsequent to an original return during the filing period supersedes it as the return of record. The filer must indicate that the return supersedes the original return on the return. A return filed after the expiration of the filing period is referred to as an amended return and does not supersede the original return. A Superseding Return REPLACES the original return, and is thus treated as 'the original'.

And throw in some "ordinary and necessary" and we can have a party! How lame is that?