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Catherine, she finally passed all of her tests today so we are very blessed. It made a great Easter even better. She went home this afternoon. I probably won't be able to see her again until after 4/17, because even though they are only an hour away, that's more time than I can spare right now. We can video chat though!

The fact that the client got her a refund on her claim, doesn't mean that the 1040X won't be audited. If that happens, then the refund would have to be repaid - with penalties and interest. To be deductible, any contribution over $250 has to be acknowledged by an CONTEMPORANEOUS written acknowledgement from the donee org. There are no exceptions and there have been a number of court cases that have upheld this. I know of many cases where amended returns provided refunds, but were later audited with unpleasant results. It may not seem logical, and we all know the IRS doesn't do illogical things. :}

Prayers offered your your baby granddaughter, @NECPA in NEBRASKA!

Yes. I don't verify my clients' list of donations to their receipts. They don't even always give me their receipts. But they do sign my engagement letter.

That's wonderful news! Congratulations to you on the new grandchild and to her parents to have her home. <3

Many of my clients received letters. A few received corrected 1098's - some of the "corrections" were the exact same form with the amount missing, plus the letter.... go figure.

I'm Treasurer of my Church, and it is a large Church, but it is not a paid position. I didn't realize that some Churches paid their lay leadership. Interested to hear how this works in other congregations. (No, I am absolutely NOT looking to get paid, regardless, just curious.)

Me too. Tom Modesto, CA

Scan the appraisal to a PDF. Choose E-file MENU and Attach PDF. Scroll to the form 8283 click on an appropriate paper clip. In your case there isn't one so I'd go with Donee Org Ack.\ Ignore warning from ATX that your PDF is too big, and just remember this as the one time you've ever heard that in your life.

I am in coast mode and will simply coast across the finish line. I don't care what the sob story - I will not be forced into making the clients lack of planning an emergency for me. Had one in today - "Oh, we just got back from Florida Saturday (have been there since October). If we bring our stuff in tomorrow can you get it done?" My response was "maybe .....and maybe not". My thought was, "I guess the US Postal service and the world wide web does not work in Florida." Anyway, I have horsed around and got four done today. I did some of my own company accounting on Saturday. Through March 31st, our billings are up 13.25% over last year. Right there is a great explanation of why I am now in coast mode. I am flat out tired out.

Um, he's sick. My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with the girl who saw Ferris pass out at 31 Flavors last night. I guess it's pretty serious.

I never really thought about requiring a signature since there's no IRS requirement mentioning it. I don't think the absence of a signature would invalidate a written acknowledgement as long as the document appears to be valid on its surface. On the other hand, over the past few years I've sent several letters to church financial secretaries over the years advising them that the "No goods or services" language was missing from their contribution summaries. I send the letters anonymously, not because I'm afraid of their finding out the source, but simply because I want them to know my motivation is not to drum up business or engage them in any manner. I also send them a summary of the court case regarding this matter. I suggest that they check with their denomination or the ECFA about the subject of the letter. Many small and moderate size churches have volunteers doing this task. My intention is to help them rather than discourage them from serving.

A recent experience of mine involved an only child of parents recently deceased. With her inheritance, she wanted to payoff her church's mortgage of approx $142,000, and do it anonymously. No acknowledgement, but they kept their paper trail. Well, guess what happens the two years later when she has a huge income year, big tax liability: She wants to go back and amend previous year and claim the donation to church. Speakers at two different NATP events suggested that I might have a Circular 230 issue if I amended the return for her. So, I suggested she seek a specialist to perform the 1040X. She recently contacted me ahead of this year's appointment to say she's getting $22,000 in refunds.

Sometimes my clients provide me with a list of contributions, including canceled checks and receipts from the charity ... sometimes, it's just a figure. Like Abby Normal, I don't verify them either. I also have an engagement letter.

The original dates IRS put out there were all estimates. The actual date of the "Extender bill" was signed on 2/9/18. Then it was several days after that when IRS acknowledged the PMI was deductible for 2017. I immediately started using the PMI when the client brought in a statement from the bank (or called the bank from my office) giving accurate figures. The few returns that were filed prior to the Extenders bill will be amended after April 17, 2017. Am I concerned that IRS might be confused as to why the PMI was included on a return so soon after they announced the inclusion of it...?..no, and I see no need to worry as they of all people should understand this rollercoaster tax season. We once had the same thing happen, and I followed the same procedure with the PMI and haven't heard a word nor do I expect to. And, to answer your last question, Judy, nothing was attached to my returns in regard to the PMI. I wouldn't dare write anything myself as I'm too afraid I would go off on a tangent for Congress signing retroactive laws AFTER TAX SEASON HAS STARTED! Whatever happened to the good ole days when the laws were passed much earlier in the year thur IRS had time to digest them and issue their rules and regulations BEFORE tax season and not DURING it! Hope everyone has a joyous and blessed Easter! Cathy

PMI was extended at the last minute, some of my clients received a corrected 1098.

In an upcoming release this will become a permanent change. The IRS is requiring proof of the basis calculation going forward. They want to see a PDF attached of the basis calculation for all S Corp interests. https://community.atxinc.com/forums/permalink/261706/261703/ShowThread.aspx#261703 Me: About. Damn. Time. Over the years I've gotten many S corp returns where the prior preparers were deducting losses in excess of basis, and not showing distributions in excess of basis as capital gains. Also, will be nice to have finally basis calcs for K1s from other preparers and for new S corp clients, although I won't really trust the calcs.

Happy Easter everyone! We will go out to eat with my Mom and a few cousins and then I will be back working. I have slacked off some, because our son came home yesterday afternoon and I wanted to spend some time with him. I'm also stressed because our new granddaughter is still in the NICU after 8 days and she is still having trouble feeding and her oxygen levels are too low, especially when she is sleeping. They are doing a sleep study tomorrow night to see if they can pinpoint a problem. We just keep praying that she will make a speedy recovery.

I've never had 1099Ks that add up to more than sales per the businesses books, due to sales that aren't on a 1099K, but if that ever happened, I would report the 1099K total and back out the difference somewhere. You should be our test case to see if the IRS is even matching 1099Ks. My guess is that they are not.

"The "solution" is to print page the missing pages and merge them into the return. " This is going on a post it note on my monitor.

Only 2 done today. I feel like I'm slacking off. Are we all racing to the finish line (or crawling and dragging ourselves across it?)

I think Lion's time includes the other assembly time too. If her printer was *that* slow, I hope she'd be buying a new one.

Yeah, I haven't seen where a board member is paid and it sounds like you are at that level. My sister in law worked as a youth minister - it was a 24x7 type job with kids calling and stopping by her house at all hours. People then acted like she should do it for free out of the goodness of her heart. Since she quit (her kids got old enough to no longer be involved) they've had a series of ministers quit and every year they ask her to come back as they find another replacement. It's probably like being a teacher - nobody gives them the respect they deserve for what they have to put up with.

The large church donation produced a carryover to the next year. The anonymity sought was from both leadership and the congregation. She initially produced an acknowledgement letter, two years later, undated, not contemporaneous. And I advised her it was unacceptable. Thanks for sharing

Wrong, i had a client audited for this. These audits are all done out of Washington DC, gifts of appreciated property. Funny is that my client donated a collection of rare items and the IRS agent told me that when he contacted Sotherbys, Smithsonian and I forget the third place, that they told them that my client is the leading expert to appraise these items. We did have an outside appraisal and they eventually accepted it with out too much back and forth.

Yes. No.

Is attaching something to a return one of the subjects Abby is going to teach us at Rita's bbq? But I think I need the instructions before June 23rd. Any help is appreciated. Tom Modesto, CA

I'm also coasting. Got the bulk of my work done, all repeat clients. I don't take on new clients anymore. But still have about 20 of the usual laggards that I plan to do 1 or 2 a day, some extensions, and try to finish the 5 or so that are done, just waiting on an OK for a SEP or IRA as they try to find the funding. I think I'll make an appointment for a massage, I haven't received the masseuse's package yet, maybe my aching back will remind her.

At 30 pages a minutes that's 1,350 pages. I'd just give them a PDF.

Did your client amend both years? The year of the original contribution removing it, and then the "new" year of the contribution. I would have gotten the acknowledgement for the $142k in the first year. That is too big a number. "Anonymous" can mean no public notice, but it can also mean that it stays within top leadership and the donor. I would have the client come in, and then fire them. Did that this year. Client amended last years return. Because turbo tax is good software and let him do it. Shove off, A-Hole. Rich

Not that I won't be here tomorrow working. But there was a time when the kids were young that I would leave early on Good Friday and we would do eggs and make things on Easter Saturday and visit the bunny. At least this year I have promised not to work on Easter Sunday. May the bunny fill your basket full of extensions!

Your client was audited because the numbers on the return triggered some program to kick it out for review. That does not mean that the IRS looked at the PDF that was attached to the return.

I had clients that received letters from their banks with the mortgage insurance premium amounts instead of corrected Forms 1098. I can see clients ignoring the letters.

Happy Resurrection Sunday !

Attach as pdf to return. That way - if they process the return - you KNOW they got it. If you like the belt, suspenders, duct tape, and staples approach, then mail it too.

A Happy and blessed Easter to all! And a wonderful Passover (yes, I know I'm late) to those who celebrate - next year in Jerusalem! Yes, Passover is near Easter - where else could it be! He is our Passover and our FirstFruits, to the very day. I worked yesterday and today but tomorrow I won't go near a computer (unless it's to watch a video). We will have our annual Easter "Cupcake Reception" after service; I have two dozen mini-cupcakes in my car to bring along (store-boughten, I have NO time to bake!). It's also our anniversary (15 years) but Doug has been sick with a sinus infection and I have a cold, so we'll probably delay any celebration until we're up for it.

Happy Easter everyone

Buona Pasqua!

Being mezza e mezza (half and half) I get to eat chocolate covered macaroons and marzipan, and Easter pie, I love these holidays, but Monday I diet.

And the waiting forever on them so we can finalize a return. Just because they owe a lot they think if they wait to the last minute it will change. A good zap to goose them a little.

Accountants have to multitask during tax season!

Taser would be fun and multi-purpose too. We could zap those trying to escape the "Rita" hugs. Dog shock collar would work too. Give 'em a jolt with every stoopid question or annoying comment.

ZAP! If only I had that kind of unlimited zapping power during tax season. It's only 4 months a year, although I might need a bit of that to survive October. Maybe we can do a per-zap basis around then? Where can we buy this???? And if we can, that's definitely going in as a business expense.

And Happy Easter to everyone here. Our office is never open on Good Friday but I work and am finishing up a couple of complicated returns today. I will work on State Corporate and Partnership extensions tomorrow as well as do our monthly billings. And then I will take the rest of the weekend off. Up early Easter morning for a sunrise service at the local church camp followed by a wonderful brunch and great fellowship, Then it will be time for me to head to the couch for my Easter nap! A Blessed Easter to one and all!

I am working Saturday and Sunday, but I will do egg riddles, hide eggs, stuff a basket for my son (thank you, Amazon), and go to Church, egg hunt, and cook brunch for my family. A blessed Easter to all!

Thank You....Happy Easter to you too......And all the folks on Here.....

Tag Team Tax Services, LLC

When I become President and make the rules, everybody will open their own mail and dispose of all of the envelopes before it gets to the accountant's office.

I finished a monster today - one client with a 1040, 3 S-corps and 2 partnerships. I'm mailing him about 18 pounds of paper.