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I sure hope they give us a new file-by deadline as well. This year, I will be notifying all my out of town clients that they need to find a local preparer. I'll also tell my larger (Sch C) businesses to look for someone else. I am walking toward the sign that says "reTIRED." It will be a slow walk, and I'll keep my small, easy local clients. But I'm so tired. This business isn't fun anymore. They can blame the pandemic all day long, but it ain't the pandemic. The IRS has been beating us up for a long time. Congress doesn't move in time for anything. Nobody does their job anymore, they just blame the other guy... or "the pandemic." So tired of it all. Donna Downer

https://www.irs.gov/newsroom/2021-tax-filing-season-begins-feb-12-irs-outlines-steps-to-speed-refunds-during-pandemic

NECPA you have a lot on your plate, and family definitely must come first. For them and for your own mental health. Your clients will understand, the ones worthy of being your clients. Tell them to expect extensions this year to accommodate your family needs. If the deadline's extended again and more returns are done "on time," they can be pleasantly surprised. And, don't stress over a trust return, yet. There are preparers here that can help you with that, or you can refer it to a preparer you know there. I had a couple clients die this month, so I'll be researching later this year, but you can bundle the estate & trust under certain circumstances. Does that mean you can chose a fiscal year for the bundle? That gives you more control over the timing. But preparers will help you when that time comes. For now, be with your mother. Be with your son, virtually. We got through 2020 together; we'll get through 2021 together. Prayers.

Took a NYSSEA updates webinar for three hours last night. That speaker (Frank Degen, former NAEA President and former NYSSEA President) also said you can choose to use 2019 earned income for the purpose of calculating both the EITC and the CTC/ACTC -- all or none -- only if the 2019 earned income is higher than 2020. So, I haven't read it myself but have heard it in no less than four webinars from four different speakers I admire.

If the IRS isn't going to automatically send a new one, that's nuts. When you're already a victim of ID theft, they mail you a new PIN every year, automatically.

Not sure if this topic has already been discussed in this forum or not, but here is some information on the expanded program. I think it's a terrific idea but I can see issues if clients lose their assigned PIN. https://www.accountingtoday.com/news/irs-expanding-ip-pin-opt-in-program-to-all-taxpayers IRS expanding IP PIN opt-in program to all taxpayers By Michael Cohn December 03, 2020, 11:45 a.m. EST 3 Min Read Close extra sharing options The IP PIN is a six-digit number that is assigned by the IRS to eligible taxpayers to help safeguard their Social Security number from being used on fraudulent federal income tax returns. An IP PIN also helps the IRS verify a taxpayer’s identity and accept their electronic or paper tax return. The IRS made the announcement Wednesday as part of its National Tax Security Awareness Week initiative with its partners in the Security Summit, which includes major tax prep chains and software vendors, as well as state tax authorities. The online Get an IP PIN tool at IRS.gov/IPPIN displays the taxpayer’s IP PIN. It employs Secure Access authentication, which uses several different ways to verify a person’s identity. “When you have this special code, it prevents someone else from filing a tax return with your Social Security number,” said IRS Commissioner Chuck Rettig in a statement. “The fastest way to get an Identity Protection PIN is to use our online tool but remember you must pass a rigorous authentication process. We must know that the person asking for the IP PIN is the legitimate taxpayer.” For taxpayers who can’t pass Secure Access authentication, there are some alternatives. Taxpayers with incomes of $72,000 or less and with access to a phone can fill out a Form 15227 and mail or fax it to the IRS. An IRS employee will call the taxpayer to verify their identity by asking a series of questions. Taxpayers who pass the authentication will receive an IP PIN the following tax year. Taxpayers who can’t verify their identities remotely or who are ineligible to file a Form 15227 can make an appointment with an IRS Taxpayer Assistance Center and bring two forms of picture identification. Because this is an in-person identity verification, an IP PIN will be mailed to the taxpayer within three weeks. Taxpayers who get an IP PIN should never share their code with anyone but their trusted tax provider. The IRS will never call to request the taxpayer’s IP PIN, and taxpayers should beware of potential IP PIN scams. The Get an IP PIN tool will be available starting in mid-January. This is the preferred way to get an IP PIN, and it’s the only one that immediately reveals the PIN to the taxpayer. Taxpayers who want to voluntarily opt into the IP PIN program don’t need to file a Form 14039, "Identity Theft Affidavit." The IP PIN will be valid for only one year. Each January, the taxpayer needs to get a new IP PIN. The IP PIN has to be entered properly on any electronic or paper tax return to avoid being rejected or delayed. Taxpayers with either a Social Security number or Individual Tax Identification Number who can verify their identities are eligible for the opt-in program. Any primary taxpayer (who is listed first on the tax return), or a secondary taxpayer (who is listed second on the return) or dependent can get an IP PIN if they can pass the identity-proofing requirements. The IRS intends to offer an opt-out feature in the IP PIN program in 2022 if taxpayers decide it’s not right for them. The IRS noted that there’s no change in the longstanding IP PIN program for confirmed victims of tax-related identity theft. Those taxpayers should still file a Form 14039 if their e-filed tax return is rejected because of a duplicate Social Security number filing. The IRS will look into their case and once the fraudulent tax return is removed from their account, confirmed victims automatically will get an IP PIN through the mail at the beginning of the following calendar year. IP PINs will be mailed every year to confirmed identity theft victims only and participants enrolled prior to 2019. Because of security risks, confirmed ID theft victims can’t opt out of the IP PIN program. Confirmed ID theft victims can use the Get an IP PIN tool to retrieve any lost IP PINs that have been assigned to them.

Found the problem, so for some reason the 6252 in the 2019 program was marked final. I had to unmark and rollover again. I then spot checked other 6252 in other clients and they were all marked final. I know I didn't mark them final. Must be a glitch in ATX.

If you use the same software, the calculation should be automatic. If you use a different software or have a new client, you should have a place to enter 2019 earned income. By the way, if married couple were not married last year or didn't file MFJ, you enter 2019 earned income so you have their combined 2019 earned income for both of them. Yes, you would use 2019 earned income if higher for both EITC and CTC/ACTC if, and only if, it gives a lower tax liability due to the combination of EITC/CTC/ACTC resulting in higher credit(s). That's the purpose of the law, knowing 2019 may've been a more typical year and that 2020 might have very little income and correspondingly lower credits. It's to help increase refunds to low-income tax payers. Work your way through the paper forms to see how it flows. Then practice in your software to know how/where you need to enter to make the results look like you expect. You can be a hero to your clients if you increase their refunds for such a disastrous year.

@NECPA in NEBRASKA I'm so sorry for the hard road ahead that you and your family are facing. I'll keep you all in my prayers, and please know that we are here to offer support and guidance.

I sent my "new tax year" email to clients on January 2. Looks like I may need to follow-up with another email to update the efile date of February 12; but more importantly to offer additional guidance on what clients should be providing me in regard to stimulus payments. Did they receive the payment(s) and how much exactly?! It should be a "fun" season!

I'm so sorry, NECPA, I'll keep you and your family in my prayers.

Wow, that is a lot to deal with. Sending prayers your way. Tom Modesto, CA

Oh my, NECPA, this is such a load for you to carry! Just know that any time you need to vent, you will find support here. Our thoughts and prayers are with you and family.

It's only the 2019 earned income that you can use in the 2020 formula for EITC and CTC/ACTC, if 2019 was higher. I think it's in the CAA of 2021.

Bite your tongue! Lol, please don't make us go through another never-ending season. Even though Covid is worse, we've all learned ways of dealing with it, so hopefully there's no need for a longer season. I do suspect they will need to waive a lot of underpayment penalties, we'll see.

Thanks so much for these details.

Use one of the online services like eFileMyForms or Eagle or TaxAid. A couple of bucks resolves the problem; well worth your time and trouble. Add (or take out) a middle initial and send a 2nd 1099 to the person. We do that for one client; someone who sends out rent 1099s for two properties to the same woman, who wishes them to be separated for her own reasons. One goes to Mary Smith, the other goes to Mary J Smith. Boom; done.

Forms 8821 and 2848 with electronic signatures may ONLY be submitted to the IRS online at https://IRS.gov/Submit2848 The person submitting for form is attesting that they have authenticated the taxpayer's identity. No. I haven't tried this, yet.

Yeah, I saw that announcement when it came out. My main hesitation is that it only good for 12 months and you have to reapply every January, which has it's pros & cons

I just discovered we can now add our logo to the Billing Invoice. Go to Customizer Master forms to do this. Definitely makes the invoices look way more professional.

I would not mind, otherwise I will have a ton of extensions. I will have to warn my clients again up front. Last year my sister had a brain tumor and my dad broke his hip. Yesterday my mom had a surgical procedure and they found that her bladder is full of tumor. She had been cancer free since 2012. We don't know why it came back. The doctor just told us that there are no good options, so we don't know yet how long we are looking at, but we want to keep her at home, if possible. It will be a struggle for us, but Covid has already messed everything up and we don't want her in a home where we are limited in the time that we can be with her. We can get in home medical care, but I want to spend as much time as possible with her. I am going to have to read up on trusts, because I will have to file for her when it becomes irrevocable. I have not prepared a trust return before, because I always farmed them out. My 26 year old son tested positive for Covid today is very sick. They just gave him codeine cough syrup and supplements. He said that he never expected to get this sick, but he can barely stand up. I hate that he's 500 miles away and we can't even drop off my husband's famous chicken noodle soup. I really hoped that 2021 would be better than 2020, but it's not looking great for my family again.