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The e-file shutdown will begin on 11/17 to allow for annual maintenance and reprogramming for the upcoming 2019 season.

We use Paychex's SurePayroll for Accountants. We keep the clients, the clients do 95% of the work, we get paid. Plus we can run interference if needed (add new employee, take one out, adjust state UI rate annually, etc) and pull reports quarterly.

It would be nice if you could get transcripts going back to 1980, but the 5498's are in the Wage and Income transcripts and they only go back ten years. You would have to make a 4506-T request and there is no guarantee you will get all of them.

Access has been restored. In the list of failed logins, there were 3 attempts within 12 minutes. They do now have another requirement which I had forgotten. One is texted a 6 digit code that must be entered. And, of course, I had to agree to the new terms of service. But I got back in. Scary!

Capital gain income is not automatically distributed so the estate pays the tax on that. Main exception is final return, when everything passes out.

The deadline to petition Tax Court is FIRM - there are no extensions. If the deadline is missed, then it is not possible to petition Tax Court (and if the client does, the petition will be rejected as not being timely filed).

It may be difficult to get the 5498´s, but you can get IRS transcripts going back 10 years. If you use e'services and TDS, it can be done on line. It is not necessary to get the entire Income transcript as different forms can be specified. The forms will indicate whether the contributions were IRA or Roth. Any ROTH earnings prior to 59.5 yrs would incur a penalty. The good part of a ROTH is that the basis is withdrawn first, so if you know what it is, the client can withdraw just that amount and avoid penalty.

Congratulations on building a successful practice and entering into a positive exit strategy that will take care of your clients and employees. Best wishes as you enter the next chapter!

I'm trying to understand this, so correct me if I'm wrong. The estate had $88k income and paid $36k tax. It did not distribute any income but paid the tax itself. The 1041 should show the $88k as taxable income and 0 income distribution deduction, which then leads to the tax bill of $36k. The following fiscal year the estate has no income and just distributes principal, no income distribution deduction (because there was no income) and nothing to report on the 1041 or K1s. Are you confusing income with distributions? The 1041 is an INCOME tax form. Try using a closing date for the estate on the date the income tax was paid. After that date there should be no income and thus no 1041 requirement. Why on earth did the executor choose for the estate to pay that obscene tax rate instead of distributing the income to the beneficiaries? Unless they were all in the 39.6 bracket?

"MSHA covers two-person sand and gravel pits ", so it looks like a single person S-corp is free of the mining regs. https://arlweb.msha.gov/MSHAINFO/FactSheets/MSHAFCT1.HTM

ELI financial

I just found the topic from September and it was super helpful. I should have added recommendations after CPE, since that was too short. Thanks for all of the ideas. Bonnie

Thanks for replies., I did push the heck out of the broker. He was able to come up with a statement that shows the figures I need to address the letter. While they are for TY 2013, the adjustments mean a very small tax due using those figures. So, I am including a breakdown of the statement and how the taxable portion was obtained. Now, it will be the waiting game to see if the IRS accepts the response. Doing it this way still keeps the tax court petition option open.

I have already added the questions regarding cryptocurrency to the tax organizer. I generally try to send them out after Christmas. Due to the postal rate increase scheduled for 1/27/19 I plan to mail them prior to that date.

Don't know your definition of early nineties but Roth type IRAs started with the Tax Relief Act of 1997. Is it possible he originally had a traditional IRA later converted it to a Roth IRA? If so, it could be the reason the basis is difficult to establish by the broker.

i had two similar situations this year where the client could not come up with the basis and the transcripts of forms 5498 did not show sufficient basis.