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I don't understand why it's more logical to hold out more from the person with no penalty to pay, but yeah, it's up to the taxpayer to handle this stuff. If they need our help figuring it out, they should ask us. And if they see that somebody dropped the ball, they can always send in estimated tax payments, as KC said. They are without excuse. Taxpayer should have picked up the phone and asked you what to do if they didn't know. Sorry to seem harsh, but good grief, taxpayers, take some initiative.

I am hurt. Apparently Casey did not want me, I have not heard from him.

I wouldn't blame ATX. The scammers probably got the contact info from the IRS's public preparer directory. I got the same email and haven't used ATX in some time. Is there a way to opt out of the directory? I don't want or need and can't handle any more new clients. Especially the cranky ones who come in this time of year. They're disorganized (which is why they're so late), typically owe lots of money (which is why they avoided coming in earlier) and IT'S ALL OUR FAULT.

I could be wrong here, but with a SEP the % contribution to the SEP can't discriminate and must be the same for all employees including him, so if the business has a loss, he can't contribute to the SEP for this year for anyone. A SIMPLE would eliminate this problem and the wife could elect to contribute any percentage of her salary up to 100% of it, and is not affected by the company's profit or loss situation. Wife could also get the employer match. However, this isn't available to this taxpayer for the 2014 year because SIMPLEs must be set up no later than 10/1 for that tax year, and technically the employee portion of the contributions must be made no later than 30 days after the end of the month the deferral was made. The employer match can be paid later, I believe up until the due date of the return.

It is up to the client to ask for them to withhold more, if needed. Or to make estimated payments, if they prefer.

Pacun, it is not that your cite was wrong, rather you were reading it wrong. the key part you ignored is the very start. "Taxpayers, who were married during a taxable year and filed a joint return for that year," Giogis was asking about a couple who were NOT EVER MARRIED. Thus you are not 'electing' between two legal options, you are correcting a filing status they were never entitled to use.

What makes you assume they "think" ?

Sorry, but just because others do it wrong does not create an exception. Each state has it's own rules for how much you can earn before you have to file, but if you earn enough in any state that has an income tax, you have to file if you want to stay legal.

I'm not "blaming" ATX, but I think this fisherman is fishing from this pond. I got my email today. I knew it was a scam.

Yes, the whole loss shows on the 1040 and then you calc the NOL and can carry that back 2 years or elect to only carry it forward.

An old dog teaches a pup........... http://i.imgur.com/QblQ8cO.webm

I followed up and I now have a new client named Beth from Sidney, OH...she is wondering why none of you other losers wanted her.....Beth has yet to exlain why she did not contact a Sidney area preparer to begin with....instead choosing a preparer in Wyoming.

The parent claiming the student as dependent is eligible for education credits. Nowhere in the education credit rules does it mention passing, attending or completing in order to be eligible. The word used is "enrolled."

I like: "Dear ex-client, It has been real. I have chosen for you to no longer employ me. Good luck to you now and in the future. Sincerely" The others have posted some excellent suggestions and clearly more professional than mine. Mine is short, sweet and to the point - and removes any finger pointing - and removes all editorializing - and removes any doubt about the point. KISS

You can't amend from joint to separate after 4/15 or extended due date, but if joint was an error, you can amend anytime you want.

Well - I guess you must have been too hard on it and it does not WANT to work for you. No experience with MS, so I can't help you.

You don't have to audit your client, so if he says he doesn't think spouse filed, then go with that and let him itemize. If the spouse did not file/had no income, can't he claim her as a dependent on his MFS return? One of the very few exceptions to not claiming spouse as dependent? And, if the major mess is depreciation, I agree to use 3115 instead of amending all those prior years. Unless you have other major reasons to amend anyway. Innocent spouse? Or, is it injured spouse? For back returns and current. Don't feel guilty if you don't have time to research the multiple problems for multiple years for a new client. Do what you can and let the rest go until after tax season.

I didn't get one either and now I feel all left out! Pout.

That would be a stock redemption and no 1099 required. Just my first thought. Tom Newark, CA

Have you tried placing curser in the filed and then from menu, try restore field. Which will remove your email from the field. Then save and retype the email address. hope this works.

https://fbcdn-video-c-a.akamaihd.net/hvideo-ak-xat1/v/t42.1790-2/11060432_951703181531257_1712241889_n.webm?oh=1a347e3b3669481d9b239d90f4fc76cf&oe=5515AEF3&__gda__=1427485107_200673da5209487299655cb575775f9d

Yes Tom, I realize that, I was only answering about the SIMPLE because someone else mentioned it and it isn't even possible to have that for 2014 anyway. SEP is the better choice for your client, as long as the company has a profit that allows for the contribution. i do have 2 clients where the simple is the better choice because the owners don't want to cover all of their employees. One of them didn't believe me that the simple would be better than a 401K in their case. This one client chose the 401K that first year because they thought that they'd be able to contribute the higher limits only to be told that their contribution for the highly compensated owners was severely limited because the plan was top-heavy. The 2nd year went with the simple.

This is a constant and ongoing battle with clients. "Please, please, have more withheld!" It is often the fault of the software. I don't know how many times this week I have tried to explain the difference between the days when payroll was done by hand and we figured percentages; as opposed to these days of technology when the software doesn't recognize you as a human person with a "situation"!

15 unusual sets of animal friends; multiple pix of each. LOVE how the eyes are so similar in #4. http://fellowshipoftheminds.com/2015/03/27/15-unusual-animal-friendships-that-will-melt-your-heart/

Reminds me of an ad I saw a couple weeks ago, some of the same pairs of critters, I think  

The question is really if the school would still consider this child an enrolled student for the month of May since this child stopped attending in May. It is possible that this child will be considered a student for the full semester after a certain date (where the student may not drop or change courses) and the fact that the student stopped attending and didn't complete the course may be irrelevant. I think KC had the right idea to check with the school or its website for its policy of uncompleted courses and when the person ceases to be a student.

I gotta stick with KC and Lion on this one. Also the clients should request to amend and they don't have to if they choose not to. However, it is the right thing and I like the idea of documenting this and having them sign that you advised them to amend the returns.

The amount that is considered wages in ESPPs is the discount that the shares were purchased for. If held for a certain amount of time (qualified disposition), most if not all of the discount is capital gain, not ordinary income. Income is not going to be recognized, therefor, until the shares were sold.

You have suspended losses from a PTP and it just carries over on the worksheet till next year or when you have profits or sell the activity. Nothing should go from this to 8582. When you sell it the suspended losses (if the proper boxes are checked at the top of the input screen) will flow to page 2 Sch E.

Catherine, Try this...several additional places to look, hope it helps ya. http://www.mineralweb.com/owners-guide/leased-and-producing/oil-and-gas-royalty-statement/

Oh my gosh, this one should be labeled "Laugh of the Day" !!!!

I once asked a client her occupation....and she told me that she didn't want to discuss her life with me. Remember the "paper filing days"....and putting the returns in the wrong envelopes!

His contributed value would be the same as his cash surrender value, which is probably the same as what the insurance company reported to him. Check with insurance company. Also be aware that some may be taxable to him.

Don't start with that 50 shades of grey stuff. I would never lay a hand on you or any other woman. And this is a family friendly forum. Lets keep it that way. Tom Newark, CA

Regrets? I've had a few. Here's an article with some samples, sorry got nothing on my computer at the moment. I like vague, and I don't recommend another preparer, unless I really want to stick it the client and I recommend the hateful woman who overcharges. I like the "It's Not You, It's Me": http://www.nicholasreese.com/problem-client-scripts/

I agree, and from what the OP wrote, wife will file because of the unemployment income, but her penalty for lack of insurance will either be much lower or eliminated entirely. Run the returns both ways because filing MFJ even with the penalty included may still give the overall lower tax compared to each filing MFS. The OP didn't provide enough info about the return to make that determination.

Household means ONLY the persons included on your 1040. So, it would work what the original poster said about the wife not being hit with a huge penalty if using only her income.

In ATX, complete disposition of passive activity or ptp is just above the final K-1 box on the K-1 (1065) input sheet.

Well, sweetie I can be as contrary as the next guy, and I did find in the Instructions that one purpose of Form 1040-X is to correct 1040. They filed incorrectly. They need to correct 1040. They're not trying to amend MFJ to MFS, they're not married. They're single. http://www.irs.gov/pub/irs-pdf/i1040x.pdf

Well there was an additional entry to remove/credit the sale receivable but for some reason the website is giving me a message that I don't have authority to edit my post. You get the point.

Unless the S-corp had been a C-corp prior there are no built-in-gains. To keep it simple, as you say, here are the entries on the books of the S-corp: Credit Sale of building (repo= proceeds + COD) $500k Debit Receivable from Sale $500k To record sale Credit Cost basis of Building $500k Debit Mortgage of Building debt relieve $500k To remove building and mortgage Therefore, there is no gain or loss to pass onto the 1120S-K1 Gain or loss is for the shareholder's 1040 to determine based upon receiving nothing verses his basis in the shares of stock of the S-corp.

I was not aware that the definition of married had changed??? If they filed MFJ, you will need to amend twice changing each to single. Charge them plenty!! If they have not filed, be wary of taking them on as clients...

I believe the following from IRS Publication 525 will answer your question: Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are excluded from income if the insured is terminally or chronically ill. Viatical settlement. This is the sale or assignment of any part of the death benefit under a life insurance contract to a viatical settlement provider. A viatical settlement provider is a person who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill and who meets the requirements of section 101(g)(2)( b ) of the Internal Revenue Code. Exclusion for terminal illness. Accelerated death benefits are fully excludable if the insured is a terminally ill individual. This is a person who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification. Exclusion for chronic illness. If the insured is a chronically ill individual who is not terminally ill, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Accelerated death benefits paid on a per diem or other periodic basis are excludable up to a limit. This limit applies to the total of the accelerated death benefits and any periodic payments received from long-term care insurance contracts. For information on the limit and the definitions of chronically ill individual, qualified long-term care services, and long-term care insurance contracts, see Long-Term Care Insurance Contracts under Sickness and Injury Benefits, earlier. Exception. The exclusion does not apply to any amount paid to a person (other than the insured) who has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the person, or Has a financial interest in the person's business. Form 8853. To claim an exclusion for accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853 with your return. You do not have to file Form 8853 to exclude accelerated death benefits paid on the basis of actual expenses incurred.

I would send the e-files, assuming they signed the 8879, and act like you don't know a thing about the goof. And it is ok to kill that client.

Is this the final trust return? I think the return needs to be marked 'final' in order for the capital gains to flow to the bene's k-1's.