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I am returning to the group. I've missed many of you. If I have any problems with monitors I will deal with them on a private one-on-one basis. On my way to Pittsburgh for a tax seminar, I had an attack of gallstones and resulting pancreatitis. I have been in the hospital ever since. Currently at a rehab facility outside Nashville and hoping for a successful procedure on the 21st of February. No tax appointments before March 1st and I am sure I will lose some clients. I have great friends helping me out. In spite of everything, I did learn a great deal of section 199A. I hope many of you will help with this. Don't underestimate the goodness of your friends. Best regards Edsel (Ron Jordan)

Hey! I resemble that remark! But seriously, I did not know there was a "proper" way to do it. I got new computers this year and installed the software for 3 years as clean installs, exported my returns from the old computer, imported to the new. Everything is rolling forward properly from 17 to 18 so far. Tom Modesto, CA

These forms. Aaugh. When I'm going over the returns with the client, I'm starting to say, "Just trust me, ok?"

I've said the same, but also that I will not lose my profession for them - unless they're willing to support me for the rest of my life? Gee, they back down fast!

Well I hate to see him go as we have been friends since he was a kid. What he wanted me to do is a felony since basically he and his lady friend will steal in excess of six thousand dollars from the federal government. I am certainly going to be no party to that.

Don't know what happened in the past nor do I care to know. Simply put, welcome back! There is more than enough information here regarding section 199A. Best of luck with the upcoming procedure and I pray it is a complete success.

I couldn't find it in ATX, so I guess you would have to add it as a blank statement. The statement is simply that the requirements in Section 3.03 of Notice 2019-07 have been satisfied. The statement must be signed by the taxpayer, or an authorized representative of an eligible taxpayer or Relevant Passthrough Entity, which states: Under penalties of perjury, I (we) declare that I (we) have examined the statement, and, to the best of my (our) knowledge and belief, the statement contains all relevant facts relating to the revenue procedure, and such facts are true, correct, and complete. The individual or individuals who sign must have personal knowledge of the facts and circumstances related to the statement.

Treasury released corrected Section 199A regulations today. In my view, the edits are very minor with no substantial changes to what we have been working with. If you have excess section 743(b) basis adjustments, you may want to review the changes to make sure you are applying the latest calculation method. https://www.irs.gov/pub/irs-drop/td-reg-107892-18-corrected.pdf

I'm guessing it wasn't a slam dunk trying to align the 'traditional' figures with the new 1040 arrangement in a way that makes sense. It will be interesting to see!

I've told clients that I love them but will not go to jail for them. If in person, a hug or arm around their shoulders as you walk them to the door helps, too.

And so it starts...

I got this first thing this morning. "I've been using your payroll program for about 5 years now and I am getting complaints from my clients about the taxes taken out for their employees checks. The employees are saying that the taxes are too low. I do all the updates when needed and I am not sure why it's not taking out the correct taxes. Please help. My clients are angry." This person is doing payroll for others and not aware of withholding being "Trumped". I know many do not keep current, so I have sent several messages during the year linking to the IRS calculators, and just a few days ago, to the new publication employers can hand out!. Then, when I proved our calculations are perfect, they got miffed that I called them on their statement, and claimed they said no such thing (see bold italic item in the above quote), and were actually complimenting me! The net result is they are now an ex customer, and are likely scrambling to locate and setup something before their next client payroll. (Life is too short...)

Instructions to 8606, page 4 have details of how to report, depending on how and when the transactions took place. See under the heading "Return of IRA Contributions" https://www.irs.gov/pub/irs-pdf/i8606.pdf

With code 1 it seems your client may have simply asked for a distribution. He should have asked for a return of excess contribution and any earnings, and that transaction should be reported with code 8 if handled properly. Distributions coded "8" will not flow to the Form 5329, but may still be taxable if the withdrawal wasn't taken before 4/15. If the IRA was not deducted AND it and the earnings were withdrawn before 4/15, then the distribution isn't taxable in the year withdrawn. I'd get all the documentation from the client that you can NOW because I'd expect a notice from AUR to be generated.

the $6,500 is a return of excess contribution. It is not taxed because it was not deducted from income. the earnings should have also been returned. the earnings would be taxable and subject to the 10% penalty

And, we ARE obligated to ask more questions if we feel anything we receive from a client (paper or verbal) is not complete, correct, or otherwise leaves us needing more information/leaves us with more questions. The "known or should have known" proviso. I, too, do NOT take on new clients if my gut tells me they are not telling me the whole story. And, I work to rid myself of such current clients when my gut acts up. Women might be better at trusting our instincts. But, we all see clients bare their financial souls to us, so we also get a feel for when clients are holding back.

She's already back - I've got the papers and will prepare as usual. Visiting relative from large metro area was "advising" her, but has departed and all is well.

It isn't our job to verify the income. It's completely reasonable for tip income to not show up on W2s as not all tip income is required to show up there. You aren't liable if the client lied to you. It's not wrong to refuse to do their return. As Catherine said, if it feels bad in your gut, don't do it. You aren't under an obligation to work for them. When I hear someone wants to file MFS so that they can avoid making payments on a loan does the same thing for me.

I like the new "form release" button on return manager ! 1 point for ATX

See my detailed instructions in the pinned discussion QBI INFORMATION - Law Analysis and possible ATX entry tips

Yes the process is the same regardless of the type of setup. If you don't have ATX installed on the new computer, then you can skip the step about stopping the server service on the new computer. People may advise you to just export/import or backup/restore, but those are poor choices when compared to doing it properly.

I think his odds are about 50-50 of getting away with it since the baby daddies may not claim the children. But I also agree with Abby - good riddance.

Good riddance!

Yesterday I contacted my long established client to advise he could not claim his girlfriend's children as stepchildren since they are not married but said he may review the matter next year if they have lived with him for twelve months or if he marries her ( I did not advise on this). He seemed satisfied with this and hung up. About ten minutes later he called back and said to hold up on everything he would be coming by to collect his information. He offered payment for what I had done but wanted a second opinion (likely from his young girlfriend) who among her talents has birthed three children with three different fathers. It will be interesting to hear how this one plays out as I can well imagine one of those daddies claiming his kid on his return. If the Service takes a close look it could really be fun. What do y'all think?

I just spoke with someone from ATX and they said they expect it to be released on February 4th.

It used to be much easier if you merely wanted it to look like a signature. You could choose a font in the master form and it would show up. I really liked that option. It was prettier than my actual signature! I just use the printed one now as it is permitted by IRS and agencies. And I think the process by Hahn104 is above my pay grade

Ridiculous! I have 90+ returns sitting on my table waiting to be completed...but NO IL forms yet!!

He did this himself. Opened the IRA just before we did his taxes. Took it out right away, long before the 4/15 deadline. It was a "stand alone" account, so I wouldn't think he needed that verbiage. Opened, closed, never on the tax return. I will gather all the documentation NOW! Thanks!

There was nothing earned. It was only there for a minute. And yes, it was never deducted. Was it "coded" incorrectly? Or is there an exception code I'm missing for the 5329? Or, maybe I should be using the 8606 to take it out of being taxed all together? Thinking out loud. Of course I use the 8606. None of it is taxable. Geez Thanks so much for the light switch flip. I advised him to withdraw it because there is a penalty for funding a traditional IRA if you don't have earned income. He was getting hit for it. Am I wrong?

Lol, Catherine! I'll try that! One more day of sub zero temps!

I know this was a topic in the past, but i cannot find it to refer to: FIRST you have to have your picture saved on your computer. Mine is a scanned pdf go to customize master forms select 1040 (and then other forms you want to place your signature) select: edit then insert picture click in the signature box where you want the signature find your signature where you have saved it in your files it will now be on your page you will want to resize it so that it fits in the box. If you don't like the way it looks, you can go back and resize it later save master then close master not all forms will allow you to insert the picture so you will want to keep the box checked as described above. Your pic will be over the printed signature placed in the program.

If your gut says "no" then the answer is NO and that's it. Second-guessing yourself if you did the right thing will only distress you. Let me simply say that I have never, EVER, regretted turning down a client whose situation did not "feel right" (for whatever reason). But I surely have regretted ignoring that feeling, more than once! Some of those losers took a couple of years to really get rid of. Generally, my big question to myself with this type of client is why I agonized over firing them for as long as I did. Usually with a stern self-admonition to listen to my gut the next time!

They’ll come back knocking at the door for help when they start receiving notices, I was once told by a former client that I charged too much and he was going to prepare them himself, I said fine, no problem. He did call me, however I was under extreme pressure during that time I was not able to assist him with the notice he received.

We're not responsible to verify it, are we? If the client freely provides the information, great. If the client does not provide the information and we inquire..."did you make any tips?" and they say no, that's the extent of our "verifying?" No? I understand this situation is a bit different in that the client provided the information after the fact. I'm just looking to ensure we have no obligation to verify anything beyond making general inquiries to satisfy us?

I am in the opposite boat as you. My practice has not been big enough to support my family so I work full time and have the practice on the side. Now that my kids are graduated from college and off on their own and working their careers, I am hoping I can build it big enough, soon enough, so that I can "retire" to just doing tax work. That is what I love doing. Tom Modesto, CA