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Problem solved. Solution: 1. Duplicate tax return. 2. Recreate efile. 3. Transmit Return was accepted within an hour.

It's my understanding that the SEP IRA becomes the property of the recipient the moment the money goes into the account. The recipient is then free to do with it what they wish, which would be to leave it there, transfer it to another IRA, or withdraw it (incurring the appropriate penalty and tax of course). But I don't have a cite, so maybe someone else will jump in if there is a need for clarification. I did have a client one time who would put money into SEP plans for himself and his employee, and each time the employee would withdraw the money the very next day & spend it. The plan trustee never balked at doing this.

That is a very informative site. Well worth bookmarking for those times when clients ask questions about savings bonds. The $10K per year limit on EE beds with a guaranteed 3.5% rate at maturity seems low, but a couple in their 40's building a bond ladder would certainly want to give it some careful thought. It's strictly a long-term play, but not unreasonable for the fixed income, no risk allocation of a retirement plan.

A client asked me questions about EE bonds purchased many years ago. She wanted to know if they could be donated to her church and how much interest had accrued. Well, EE´s can not be transferred and to get the answer to the interest question, I found it here - https://www.savingsbonds.com According to them, banks do not necessarily compute the accrued interest properly and the website provides a calculator. There is a free period and after that, $5.95/yr. Buy 2 yrs and get the 3rd free. With all the other information they provide on savings bonds, it seems like a real bargain.

SEP-IRA withdrawals and distributions follow the same rules as traditional IRAs. There are no restrictions on taking the funds. As soon as the funds are contributed into the account for the employee, the employee is immediately fully vested at 100%. There are the same limits on # of rollovers during the year.

cbslee's first post about basis issues and gain or loss calculation is correct. As far as the investment interest expense, it must still be carried forward and is subject to the usual limitation. In other words, it will be allowed when the taxpayer has sufficient investment income to allow it. A gift of property is not considered a disposition since it does not result in a taxable transaction.

No cites, but to best of my knowledge: 1. Unused Investment Interest continues to carry forward. 2. When FMV at the the time of gifting is less than donor's basis, then the FMV is the donee's basis for the purpose of calculating a loss. 3 When calculating a gain, then the the donor's basis is used. 4. If the donee sells the land for less than the donor's basis but more than the FMV, then there is no gain or loss.

We still don't know what ILLMAS' issue is. I've never had any efiling issues with ATX in 5 years.

Eric updated the TOU for us to include the statement in red that has always been our policy. Every new member sees this as part of the registration process. Thank you, Eric.