Leaderboard

cbslee - get well soon! That screeching sound when I ask for a year end brokerage account 1099 "Tax form", and instead get 100 pages of various interim statements.

the distribution will be reported as code 7. This distributing company doesn't know what she did with the funds When it was deposited into the IRA at the new company, it should have been coded as a rollover and will be reported on for the form 5498 as a rollover If it is reported as a regular contribution, then that is a problem. She likely has NO earned income and even if she did, the amount is way over the annual contribution amount. The IRS will see both of the transactions on the forms 5498. IF she receives a CP2000, it is easily resolved with the documentation. Hopefully, when she receives the envelope from the IRS, she doesn't go into a panic!

We all figured that, I hope you get compensated very well.

Clients and thinking - what is this combination you speak of? I have not heard of this before! These two really were winners. Good grief!

What Jack and Hahn (and others) said. Get the documentation NOW. Sure, send it in now (likely they won't notice it). Heck, I'd even write the letter now (or at least make notes, as you presented for us here), while it's all fresh in your mind. When (not if) the cp2000 shows up, you'll have everything for rebuttal.

There is still a CP2000 in your future. No way to prevent it. IRS will be looking for the taxable amount, on the 1099-R to be shown as taxed. Client will need the following, when they receive the CP2000 1. Copy of a document, showing the exact date withdrawn, and how much. 2. Copy of a document showing the exact amount, and date, that was money redeposited. The IRS will not see the re-deposit amount, thereby initiating the CP2000. I have had to deal with this many times. Since they took a distribution, the redeposited money later, there is no way to prevent the CP2000, by entries on the 2018 return.

Do you think they did?? All my correspondence with my clients says to reach out to me during the year if you anticipate any changes or look to withdraw any funds from an IRA or Pension. Not many listen.

I started attaching the appropriate details from IRA statements showing the 60-day rollover period was met to the eFile because the IRS would always send out a CP2000 - and haven't had one since so they are definitely receiving the attachments and saves the headache from coming back later.

J.B. ~ Did you discontinue "curb-side / car-hop" service? I'm sure you offered such service years ago. (ATX was in Maine & we saved taxes in early a.m. hrs) Stay safe & good season.

This wins the prize. good grief And it's all YOUR fault. Yup

I'd change the punctuation in your title. Clients! What, are they thinking?

Client (mom and adult daughter) have appointment at 5:30pm. At 5:20, I look out window and see car parked outside. I assume it the mom or daughter waiting for the other....time goes by and I'm busy doing taxes until my 6pm appointment arrives. I let her in and she asks "do you know 2 people are just sitting in a car outside?". As I finish with 6pm client at 6:20, 5:30pm clients ANGRILY come to my door and yell at me because they's been sitting outside in their car for an hour. Why were you sitting in your car...your appointment was for 5:30pm? "Well we did not know if you were home!" "Of course I was home...that is why I scheduled you for 5:30...but if you were unsure, you could have just called me." "Yeah, well we do not have one of those fancy smart phones!" what is wrong with people?

It all balances, some of us win the genetic lottery and some of us crawl thru the ditches of life. I am feeling very philosophic this morning, while I recover from surgery.

I resurrected this four year old thread because I manually figured Section 179 recapture for a client last week, and I think (hope) ATX would have done this for me if I knew how to use it better. It's done; entered at bottom of 4797 and on Line 6 of Sch C. I'm glad I know how to do this, but I don't want to do it again. I've learned all I care to the hard way. So if you know what I should have done to get ATX to handle this, please tell me. No hurry.

Good morning...the 1099R is coded as a 7 and when I saw that I immediately thought a CP2000 may be in our future, Max. Lou...your thoughts are mine as well. I have already asked the client for paperwork showing the re-deposit and plan on attaching it to the return. Thanks to all those who chimed in. Much appreciated.

I don't think a 1099R will be issued as a rollover (Code G), because the rollover wasn't from one institution to another. Ir will have to be documented with the appropriate records. I went through this once with a client who had self prepared the return and got a CP2000, which was reversed when the documentation was presented.

It seems right and remember that your client has to take mandatory distributions due to age.

Yes, within 60 days doesn't matter if different calendar years.

You must feel sorry for them.

all side and rear windows were covered in plastic and duct tape...I could not see in and I doubt they could see out....

You'd think that, if you could look out the window and see them in the car, they could look in the window and see you moving around inside and know you were home. (You do move around a little while you're working, don't you?)

"what is wrong with people?" Apparently nothing, since it never is "their" responsibility I have neighbors who are livid the USPS is not paying for a damaged cluster box. Of those of us who are wise enough to know the facts, none of us are dumb enough to take on the responsibility of funding the replacement and install, then trying to get payment from all the neighbors. There are some misinformed folks in my neighborhood, who will be livid whomever eventually pays for the replacement will be asking them for their share of cost to get access to one of the boxes. (We had little mail to our address, long ago favoring a PO Box. Our route has no regular carrier, so it often comes after dark, with a temp or OT carrier, and the accuracy of what gets put into each slot is less than what one would reasonably expect.)

Oops, "former employer" = "bank." Yes have your client do what John says or give you permission to talk with the bank. (Charge your client)

Sounds like your client needs to have a sit-down with someone in authority at the bank (or else just forget about the presumed Texas withholding). I'm not seeing how this is your problem other than to inform the client.