Leaderboard

A client that I've known since he was 3, called me yesterday and said that his Mom told him to fax me his W-2s so that I can prepare his tax return again. I gave him my fax number and asked him how many jobs he had. He told me that he had three, but he just wanted me to do his return for the out of state ones and he would file a return online with the other one. I calmly explained that he had to use all of his jobs for his return and can't file his returns piecemeal. I wish that high schools would teach a required personal econ class like I had in high school. We had to learn how to file a short form, reconcile bank statements and pretend to be married and figure out a budget. Most kids have no idea how to do those things anymore.

These are the top ten reasons I should have got out last year: 1. Wouldn't have had to try to operate without my well seasoned administrative assistant. 2. Tangible repair regs 3. late tax legislation (again) 4. ACA 5. Wouldn't have come in to a flooded office... 6. ...after having heard about a friends suicide and trying to mentally deal with that. 7. Form 3115 8. Wouldn't have had to scramble to get my parking lot plowed (after being closed 2 days due to the flooded office), because my guy never showed and his number now belongs to someone with limited English skills. 9. My back wouldn't have went out while trying to clean the flooded office... 10. Less stress - and more sleep Thanks for listening to me cry. it has been a very tough week

And, we all should be paying KC a consultancy fee because she keeps up with the tax law for us.

We discovered this last year: file an amended return immediately for the college student. Wait about 6 weeks for it to percolate through the system. Parent(s) return can then be efiled and will be approved!

New client came in the other day. Prepared her return with the AOC for her 18yo college daughter. efile is rejected. Ask her (again) about her daughter. Oh yea - she went to HRB. One W2 for about $1,700 (one thousand, seven hundred) with $170 withholding and of course HRB took her exemption, as well as filed for the college credit. These "well educated" kids run to HRB with their piddly W2s to get their $170 piece of their billions back, while impacting their parents who are shelling out (or borrowing) thousands to put them through college. SMH

Not the kids...not the parent's fault. "The people" don't know about exemptions. They come to us for those things. A 30-something "software architect' who made about $250,000 last year just asked me "what are exemptions?" this morning. It's the fault of the preparer. He/she should have known to ask an 18 year old college student if her parents were claiming her.

I think that many of us feel that way already. I know that I am having a very teary (teardrops) day today.. Just don't anybody look at me the wrong way. I just want to get in my car and go somewhere, but really have no place that I want to go. How erratic is that? I feel sorry for any one person who calls today to see if their return is done yet!!!!!

Frazzled - know that we may not understand (we all walk our own road), but know that I have already lifted you to the Father. He knows you. And He understands. And there is no problem or issue too large or too small that we can not take to Him. That is why I am praying for you!

Don't change the code. I don't use Drake, but someplace around the Taxable box (or even the Code box) you should be able to access a drop-down menu or link to a worksheet or other input area where it asks you how much was rolled over. Now your 1099-R matches the 1099-R and your 5498 matches the 5498.

Actually, I just enjoy doing it and feeling I'm a real part of this community. After Don's death, and moving across the country, I really value the friends that I still share things with here. It is a bonus when I'm able to help with a question or problem.

I am overwhelmed. Blew off Valentine's Day with hubby. He said, "Not even an e-card?!" So, we compared calendars and decided yesterday/Friday was doable. It meant working until 5 a.m. yesterday, but we were able to leave at noon to go to a different town, had a leisurely lunch, shopped a bit in the cold at a bookstore, chocolate shop (fudge), and jewelry designer's retail shop where hubby bought me a necklace/earrings. Were home by 6 p.m. and I worked some more. Feel a bit more behind, but a lot less cranky! And, three more dropped off today.

Every day, as I read this board, I am glad I finally retired! I can't give up keeping up with the tax law, but I'm sure not missing the time stress and the pressure.

Have the same issue; with parents who will now have to paper file.

Another example would be penmanship......ie: Cursive

The passing of a legend! Kathryn Morgan, EA, NTPI FellowEnrolled Agent, Master Tax Advisor, Professional Speaker, Teacher, technical writer, ://www.hrbtax.com/Kathryn_Morgan For those of you who haven't heard, we as a community lost one of our legends this morning. The GrEAt Harlan Lundsford passed from a bout with cancer. Harlan, in his usual self depreciating style, "retired" last year and we all assumed he was off enjoying his well earned retirement. He was actually giving it his best fight against this horrible disease. We have lost several of our legends this year, including one year ago today, Sondra Gaylord. I'm sure they are all watching over use and having a beverage while doing so. So long, Harlan! chEArs from another EA in LA!

Thanks so much for the hugs and prayers, they sure mean a lot. Sorry, Lion. You are outta luck. No electronic copy. Try a local printer. They should be able to print some for you. Rich, I may still breakdown and sell to one of the big guys after the season ends. But probably not. Hopefully after a good post season de-stress session, I will feel better. I planned to do this job until I died. But I will seriously entertain the idea of selling. Maybe I will stumble across a new career opportunity in the off season. I just cannot believe how burnt out I am, especially, so early in the season. I feel like crawling into a dark, quiet cave for awhile (maybe not, now i feel claustrophobic).

Yep, but I bet they know all about gay pride and transgender etc. Not to say those thing are bad, but schools need to focus on science and math a whole lot more then they do.

Frazzled -- ((((HUGS)))) to you! I am so glad you felt this board was a safe enough place to vent and one where you would get sympathy and support. And I second rfassett's prayers for you and for your poor friend.

Hugs to Frazzled. You are always such a positive person on this board; and seeing your smiling face is such a joy. I think of you often; every time I use one of the e-file stickers that you so graciously sent me a few years ago. I am nearly out and having a gal make me some more; but I will never forget that kindness. The warm arms of this community are holding you tight.

We're all sending prayers and warm thoughts your way. Cry. Scream at the top of your lungs when your office is empty. Turn your car radio all the way up and sing along. Throw snowballs at a tree. Build a snowman. Remember you are loved.

Just like in XL. put the courser on the line between return name and next field (mine is client #) at the very top. The courser will become a double arrow pointing left and right. Left click on mouse and hold while dragging the field longer. It only works at the end of the field dragging to the right. (dragging left shortens the field) This is assuming you are talking about the return Manager.

This should surprise none of us. This is the same thing that goes on with 1099s from the brokerage houses. January - here is your final 1099. February - here is your revision of your final 1099. March - here is your final revision of your final 1099. August - here is your amended final 1099. The same government that allows that nonsense is the same government that issued these 800,000 erroneous documents. The real news will be if they can get it right the second time. And, no, this is not a political comment pointing fingers at any party or party member. It is simply the culture in which we live.

My clients warn their kids -- and it must go in one ear and out the other, because the kids go online and file their own returns - incorrectly - anyway. It's not like they lose their puny $127 refund for not claiming themselves, so I don't know why they insist on mucking everything up.

So THAT is what the guy on the commercial is talking about....."We'll get you the biggest refund back, guaranteed!" The taxpayers with sense won't go to them, however, their child who is college student will! I' always concerned about losing tax dollars needlessly...the parents would more than likely receive 100% benefit of the credit.....the student more than likely 40%..... Yep, The guy is right! The student got the largest refund at their place, (even though he probably wasn't entitled to it)!

Agreed...It is the preparer who is to blame...they should be asking more questions....like "hmmm...you are a college student with income of $1,700...Can someone claim you as a dependent?"...But then again, asking questions is not H & R Schmuck's thing.

I used to think that someday, I would like to have the problems that you all have with being backed up. Until this year, I never had returns laying on my desk that were not waiting for more information or just signature pages from the client. Everything that came in got started that day and was done within a day if the information was all there. This year is different. For a lot of personal reasons and a lot of client personal reasons, I have a stack of returns waiting for client information, and 3 returns that I have not even started on my desk. I was going to get 3 of them done last night, but only got 1 Scorp almost done when I ran into a little bug in the software. I usually can get caught up on the weekend, but last weekend and this weekend, I have family in town and I just feel like I am sinking. I need 2 quite days to get my returns caught up so I feel inferior in the size of my practice to all of you again. Tom Newark, CA

Kids!

You will need to look at the closing statement for this loan, especially if it was a refi. They may have taken cash out or paid off credit cards etc which would not be qualified residence debt Thus part of the debt cancellation could still be taxable or have to be excluded for a different reason i.e. insolvency. It's not always as straightforward as it seems.

In this case, you may have problems. Easy enough to report the income on wife's return. No argument from IRS. The problem is, the withholding was reported under the deceased's SSN and she cannot get to it. And you cannot file a return for the deceased for the year after death and ask for a refund. I had the exact same problem a few years back and after some effort located the Tax Unit of the custodian who was responsible for issuing the 1099R. Read him the riot act, and told him he had two choices: either issue a corrected 1099R with payee's SSN on it, sending corrected copies to IRS, or issue a refund of the taxes withheld and adjust their next withholding report accordingly. (This was from instructions from IRS, BTW.) He chose Option #1 and we were able to file on spouse's return and get credit for the withholding. I would think you will have the same problem with the state. Even getting an EIN and filing through the estate, it is still the same situation. Withholdings are not under the estate's EIN either, so no credit.

No, it's a valid rollover. Report it as such. Keep the documentation Randall suggested. Client must deposit the full amount withdrawn before taxes withheld, obviously. From Pub 590 - Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. PLR 9010007 is the authority cited in TTB.

I believe you need to amend the return for the year in which the remaining points should have been written off, not add them to this year. And possibly the years since.

Examples of our education system at its finest!! (s)

Income because the SSA has a specific order it pays the funds out, and it paid directly to the son and not the estate. The order of payment is included in the link you provided to SSA's form 1724. The son filled out that form and he must have indicated that he had the right to receive it, if he didn't and if it should have been included in the estate to be distributed to all beneficiaries, then he should have filled out the 1724 for the payment to be paid to the estate. Social security benefits are one type of income paid that is IRD. IRD retains the same character on the recipients return as it would have been reported on the original owner's tax return. SSA doesn't issue 1099-misc. Anyway, if the son's income is high enough that 85% of his own SS is being taxed, at least he is getting a break of 15% of the parent's SS not being taxed also.

Even many college students don't know those things, sad to say.

I've had several clients donate appreciated P&G stock over the years, most of which was part of the company stock purchase plans. They have provided me with the basis, I look up FMV date of gift, list on 8283. So far, knock wood, no surprises. Well, one surprise. A couple of years ago one gift had a lower FMV than the basis. I advised her that she look at the value in the future, realize losses first, if any, than donate. She never imagined it would happen.

NO Gift tax in NY anymore

Hey, Frazzled, do you have those stickers electronically? Is it a file that you print out on labels? Since the IRS no long prints their e-file stickers, I am down to my last 12. I'd love to have a copy of your file, if stored that way. If so, can you post it here? I think I just added to your stress. Feel free to include a few bad words on some of the stickers!

He didn't inherit it. It was income, should've been to the decedent, so is to the recipient. IRD.

Thank you all. I had put the # of days. Once that was taken out everything fell in place.

Life is short.... Enjoy it now...before you're too old/sick Sell.... I think next year will be worse...when we'll need to input all those medical insurance forms.

Frazzled, needed hugs ((( ))) for you. That's too much for any one person. So glad you could share here and know we understand. I'm especially sorry for the loss of your friend. Do try for a little extra sleep.

Wow. That sucks. Hope you get some breaks soon. Sending you positive energy! And hugs!

Here's the direct link to Maryland's page if you're doing any MD returns. Edit: Click on Helpful Tools & Resources.

Thank you for the news; Harlan was indeed a great guy. We are diminished.

Rollover...put it back into an account within 60 days

The client should contact Social Security and let them know that the parent is deceased. All payments should have stopped after the parent died and if the client received anything he may have to repay it.

I received an announcement yesterday from Virginia that they had passed legislation to conform to December 31, 2014. TAX BULLETIN 15-1 Governor McAuliffe Signs Bill Advancing Date of Income Tax Conformity to December 31, 2014 February 19, 2015 Conformity to the Internal Revenue Code for Taxable Year 2014 Under emergency legislation (Senate Bill 1044; Chapter 1 of the 2015 Acts of Assembly) passed by the 2015 General Assembly and signed by Governor McAuliffe on February 16, 2015, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code will advance from January 2, 2013, to December 31, 2014. Tax Bulletin 15-1 provides taxpayers with directions on how to reconcile this legislation with their 2014 Virginia income tax returns. This legislation allows Virginia to conform to federal tax legislation enacted during 2014 that would impact the filing of Virginia income tax returns, including the Tax Increase Prevention Act of 2014. Virginia will continue to disallow federal income tax deductions for bonus depreciation allowed for certain assets under Internal Revenue Code ("IRC") §§ 168(k), 168(l), 168(m), 1400L and 1400N; the five-year carryback of federal net operating loss deductions generated in Taxable Year 2008 or 2009; federal income tax deductions for applicable high yield discount obligations under IRC § 163(e)(5)(F); and federal income tax exclusions related to cancellation of debt income realized in connection with a reacquisition of business debt at a discount after December 31, 2008, and before January 1, 2011. To view the details of this Tax Bulletin, click here. If you have additional questions, please visit the Department's website at http://www.tax.virginia.gov, or contact the Department at (804) 367-8031 for individual income tax questions or (804) 367-8037 for corporate income tax questions. Back to Top

I'm easy at a couple of weeks - and that does NOT include the returns with stuff missing. Post-it notes, yes --- but I am now also doing copious electronic notes in the file where all the clients' stuff is kept. Belt, suspenders, duct tape, and staples...

I think not only is there a lot more stuff in there, but I swear that my gray hair is a result of the interior little gray cells leaking out taking much valuable information.

2 Weeks seems about right in this office as well. But I've already prepared one extension and plan to file several more the first of next week. March 13 is going to be my drop dead date for extensions this year. After that date, everything goes on extension as it comes in the door. (The only exceptions are the very simple ones). Keeps life manageable...