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In regards to @JimTaxes' item #4, we were told that a printout from the bursar's office and/or proof of payments made from the client are also required. Why? Because it's well known that far too many 1098-T's are actually candidates for the Great American Novel and bear no resemblance to reality.

The IRS SB/SE had a webinar last week that I attended. From what the IRS experts said, due diligence has not changed it just now applies to CTC and AOTC. Basically, they said we have to ask sufficient questions to satisfy a prudent person that the information provided is consistent, correct and complete. If we have any reason to suspect it is not, we must ask additional questions and for additional documentation. They cannot tell us what questions to ask because it varies from situation to situation. If we feel the need to see any documents, we must retain copies of those documents. We must attach Form 8867 to all returns. No problem if e-filing; however, if a paper return comes in without the form it is our fault even if we provided the copy to the taxpayer with instructions to send it as part of their return. Penalties are $510 per return per credit. So a single return could generate $1530 in penalties if all three credits are involved.

Remember how noisy and slow dot matrix printers were? You had to have a sound chamber around them to keep your hearing. I remember going from a 4 minute per page dot matrix to a 4 page per minute laser printer. It was nirvana.

Don't know if the passwords will link between yearly versions, but this is a new IRS requirement for ALL software. Some have been more enthusiastic about putting requirements into action than others. QB does the same, now. Every three months change it; no way around it. I tell you, the more they regulate "information safety" the more I start to think it's time to go back to paper and pencil. Clay tablets and cuneiform? Those old Babylonian records can still be read (and believe it or not many of them are tax records lol).

This issue is very much a moving target and I won't make any assumptions about timing. The one major experience we have in this area is the silliness that surrounded the $100 per day penalty, which for most employers was rescinded retroactively (although there was no mechanism for initially imposing it, as there is with the coverage penalty). If I have any clients who are significantly affected by the penalty, I'm going to suggest that they file an extension and let's see what happens in the coming months. That will be cheaper for them than paying me to amend a return if the rules change in their favor later in the year. Of course if they have a significant refund in spite of the penalty, then they probably won't go for that. But at least they will be on notice that if they just can't wait, and if things subsequently change, the the additional work won't be a freebie.

Definitely! Looking forward to it. I'm ready for your performance.

I'll share Elrod.

And I'm in (long-ish) driving distance from @Lion EA so if she warns me I'll drive down to watch!

I could do Facebook Live. I think I then can post the archived video on Facebook also. Elrod certainly deserves a large audience.

I remember re-inking the ribbons; boy was THAT a messy job! We had an ancient manual typewriter at home and the ribbon was in good shape but needed re-inking on occasion.

Live stream? Web cam?

COURT JESTER!.....WoW!..... Lion It would be a fantastic career move for me.....Can I bring my gitfiddle?

I'm still absorbing some of the new features in Drake, but several look very interesting on the surface. Their Fixed Asset Manager is supposed to be greatly improved and customizable. They now offer a pop-up menu at the top of the screen for navigation and several other features. And a right-click gets you lots more options this year. Many years ago I read an article which said you should always right-click anytime you are working on a document of any type, just to see what's available. I use right-click in Word and especially in Excel, so it's nice to see this feature being expanded in Drake. Here's a link: https://drakesoftware.com/service-learning/videos/new-features-for-drake-tax-2016/

Patience is a virtue, so they say. Today, I saw that both were accepted Jan. 24. Whew! Now on to the next worrisome project.

I don't know if I can make it during tax season - maybe a special performance after?

Archival software utility fee?

Dear Medlin:

John, Like you, I am new to Drake this year as well and do like a lot of the features. Especially the support, it is fantastic. The link below might be helpful. This is a list of hot keys to use in the program. For instance, I did not know how to remove a form that I had already made entries and then deleted the entries. The form wouldn't go away. One call to support and I got the link below. Will be very helpful for me. http://kb.drakesoftware.com/Site/Browse/12130/Drake-Hot-Key-Shortcut-List?Keywords=hot+keys

I OFTEN get asked how an employer should handle an advance. I say don't. (Note, some localities do not allow an employer to deduct items, even an advance, even if the employee agrees.) Separation is one issue. Legally collecting even while employed is another. In most cases, unless there is interest and repayment terms, it is simply pay, and needs to be taxed at time of disbursement. (Tag agencies frown on money going out untaxed, caused, facilitated, or because of employment.) I would not suggest an employer 1099 it. It was because of employment, it is wages. The employer needs to pay their part of the taxes, and issue a proper W2 (and amend the quarterlies probably).

I have had this happen several times over the years, B I would simply do the 1099 for 2016, providing the payment was made in 2016. Even if it was an advanced payment, hinged on employment, under the circumstances when the individual is gone, the only alternative is a 1099.

We asked all our clients for a copy of their Driver's License. All states. This requirement will grow each year going forward. I know it is a difficult thing to do, but it is currently required for 3 states, requested by 3 more. (s)

I agree John, a moving target. I think I had 2-3 last year. I don't think we can do anything other than prepare the returns with the penalty and go forward as Jack said.

Wonder what that return looks like? Gross Income: $ 33.00 Amount withheld: -0- Balance of Tax Due $ 33.00

Some states have a very low filing threshhold. I think in PA it is $33.00

Hmmm, you might want to post that on the ATX blog site, see if you get a reaction.

Now at 3 hours.....

You all write such kind words.... I simply thought that since I retired, I was more of a nuisance to ya all. This time of year, as I well remember, is a very stressful time for income tax preparers, and I am with you all in spirit. After 38 years...I do not miss it. I will bop in from time to time and and hopefully leave a... Or two.... Bless you all... Elrod Thank you....FNDY, TAG, CATHERINE, CHRISTIAN, DANRVAN, GAIL, J.B., FRAZZLED, SFA, NECPA, MARGARET, SARAEA, and anyone else I have missed.