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Yes, this group is like family. Another good one is the Facebook ATX Tax Software Support Group. Frankly, the other groups I read have some folks who never picked their own switch off the tree, and it shows.

The EA journal this quarter actually had an article on navigating tax groups on social media--they must have seen a need. It went into how some respondents are nasty, belittle those who asked a question or disagree with an answer, try to show off their smarts, etc. It also talked about people who ask basic questions because they are too lazy to look up the answer. It made me think about why this forum is so great. Everyone truly tries to be helpful so no one is afraid to ask a question. If others disagree with a response, their remarks are always respectful. What a great group!

I don't even know what that means.

I just have to say I love the title of this thread @NECPA in NEBRASKA. This is me every day about something. Like yesterday, I actually had a Covid early distribution with Code 2. I looked around for hidden FBI cameras and thought about completing Form 8915 (which I have called 8715 for six weeks), for a very long time before I stuck it in the stack.

That reminds me of my brother and cousin. We were at my grandpa's house and the two of them got in trouble for something (boys being boys). My grandpa sent them out to get a switch off the tree in front. Being smart a$$es, they cut a 3 inch branch off the tree that took both of them to bring in the house, because they knew he couldn't swing it. Grandpa got all the switches off that branch he could and used each one on them. Lesson learned. Tom Modesto, CA

Well, I completely agree with Rita, having qualified as an expert switch-picker when I was a young lad. (Except for that time I showed up with a rose bush stem and earned myself a second whipping for being a smart-a$$).

3 or 6 or 8 was exactly my problem that made me accept cataract surgery! I spent way too much time re-reading all the numbers, using the lighted magnifier on my phone, calling hubby (he's younger) in to proofread, etc. No excuse for tax documents to be in tiny font.

I have a few clients who have tried emailing a number of pages by taking pictures with their cell phone cameras, with no straight lines, lots of wavy curves . Many times it's almost impossible to read, makes me nauseous and gives me a headache. I had to draw a line with these clients and insist they mail me the original documents or use a standard scanner! There are just some things you shouldn't have to put up with!

There's an app called CamScanner that turns a phone picture into a clear pdf. I recommend it highly, to all those clients who simply *must* use their &^%$# phone on documents. Heck, I've used it myself on occasion, and have been very pleased with the quality.

To go back to the original question. IF you have signed e-file authorizations, you can't hold them longer than three days. END of story; it's stockpiling. However, if you don't have signed auths, you cannot e-file. Problem solved; don't get the signed forms until the client wants them sent in. When I get auths by mail (or file portal) that are dated days earlier than I get them, I always write "rec'd x/x/xx" in ink across the top. I can't stop a client from signing a form and not bother to return it for a week or two, but I don't want any question of me stockpiling.

This is one more reason why working from scans is superior. I often zoom to 200% or even 400% to see these tiny numbers. Is that a 6 or an 8? Oh, it's a 9! (I feel like Jimi Hendrix, except I do care if it's a 6 or a 9. And making tiny number bold faced is just cruel and inhumane, not to mention a waste of toner.

No excuse for those small fonts. Many places issue beautiful W2s or 1099s, with nice big clear numbers. Others use the exact same 8 1/2 X 11 size paper and teeny fonts that are a strain to read. Why? As for phone photos, we actually put on our client questionnaire this year "NO PHONE PICTURES." We have all wasted too much time trying to decipher them. Yes, it makes a difference if that is a 3 or a 6 or an 8.

You don't want to waste the AOC, which is only good for four years. If your student plans to keep attending school and only went for one semester in 2020, you might want to claim the Lifetime cr and save the AOC for years when she will have double those expenses. About those book receipts, students today do everything electronically, look at you funny when you ask for records like 1098Ts or bursar account printouts, and buy books online and never think about a paper trail. I warm all parents of new students to demand that they get/keep book receipts. They do come in handy at tax time.

They need to save on the light bill to pay for the triilions of $'s in debt being racked up.

This is why I never argue with Judy. She is an encyclopedia of tax knowledge. We are very glad you are here for us Judy. Tom Modesto, CA

If the text on these 1099 forms gets any smaller I may accidentally order one as a prescription drug. And I thought last year's were bad ...

Oh I need a picture of that!

If you know what the font is, delete if from your computer and you should see a default font instead. Your computer can't display a font you don't have (as far as I know).

It's all basically the fault of the laser printer (and maybe inkjets). Those made it possible to print in 6 point or 4 point fonts without a total blur. So of course they are used for exactly that. One really excellent side-effect of being as nearsighted as I am is that, if I take my glasses *off*, it's like having built-in magnifying glasses. Hold the paper four inches from my face and I can decipher anything. Or put my nose near the monitor surface. As long as it's reasonably non-blurry, I can read it. And yes, I look like a total ninny sticking my face up to the monitor.

Agree with Catherine. I've had clients sign the form and forget to send it. If it's mailed back late or takes longer than the 3 days, I scan the envelope and any note that comes with it where the client says "oops, sorry I forgot to send this."

I have one client who emails in a funky font. I think I've trained her NOT to use that when emailing me.

Hubby told me about a great FREE scanner on his phone; I figure if it can make music notes/symbols clear, it can make numbers clear. I just installed it and took a scan of a spreadsheet. Wow. It lightens the background (no more gray paper in scans) and smooths out the lines and straightens the image. Like having the original. It's called Scannable and the logo is a butterfly on an aqua background. I have a couple clients that insist on texting the pictures they take on their phones. I'm trying to get them to upload to FileShare, but if they'll use Scannable too, I'll be so happy. Yes, FREE. Delete, Rotate, Crop, Restore. Send, Share (AirDrop, Message, Mail, Twitter, all the usuals). Save to Camera Roll or Evernote. So, I'm telling my clients to Save to Camera Roll and then upload to FileShare.

NOT stockpiling is what is required of us as EROs. You have options to provide for your client's benefit without breaking any laws. Simply have your client sign when ready to e-file, for instance. My job as an EA and ERO is NOT to blindly follow the instructions of the client solely for their benefit. It's my job to keep my client WITHIN the law and stay within the law myself. I choose to educate my clients instead of following their instructions.

I got a good laugh out of it. I keep a 4 inch, lighted magnifier on my desk for such things.

You're welcome. Good luck in life if you purposely choose to be so easily offended when someone answers your question.

One of MANY.... a stay at home mom worked for 2 weeks in a church nursery. W2 was about $250. Covid struck. She got over FIFTEEN THOUSAND DOLLARS in unemployment. She's a stay at home mom.... I'm working my butt off and got chump-change. wine... wine... wine...

I can prep it and send any payment that might be due with the extension, but I can't have them sign it. I'll have to re-create any e-file and get the signature when they actually file. But, yes, that's my plan. I do a lot of returns, and this is just a hiccup this little whiner didn't want. In other news, Bar Dog Cab is outstanding! cheers!

That's with my last eyeglass prescription, I see at 115%

So, my client is justified in holding her tax return. Great. not I'm a whiny baby, I know. I'll step away and have some wine. That always makes things better! Cheers!

https://www.journalofaccountancy.com/news/2021/feb/tax-provisions-american-rescue-plan-act.html?utm_source=mnl:cpald&utm_medium=email&utm_campaign=01Mar2021 Tax provisions in the American Rescue Plan Act By Alistair M. Nevius, J.D. February 27, 2021 The $1.9 trillion stimulus plan passed by the House of Representatives early Saturday contains many tax provisions, including a new round of economic impact payments, a tax credit for COBRA continuation coverage, and the expansion of several other tax credits. The House passed the bill, the American Rescue Plan Act of 2021, H.R. 1319, by a vote of 219–212, and it now goes to the Senate for consideration. Recovery rebates Subtitle G of the bill, titled "Promoting Economic Security," enacts a new Sec. 6428B that provides individuals with a $1,400 recovery rebate credit ($2,800 for married taxpayers filing jointly) plus $1,400 for each dependent for 2021. As with the two recovery rebates enacted in 2020, the IRS will make advance payments, which the Service has been calling economic impact payments. The recovery rebate credit phases out for taxpayers with adjusted gross income (AGI) over $75,000 ($150,000 for married filing jointly). The bill uses 2019 AGI to determine eligibility, unless the taxpayer has already filed a 2020 return. COBRA continuation coverage Subtitle F of the bill, titled "Preserving Health Benefits for Workers," provides COBRA continuation coverage premium assistance for individuals who are eligible for COBRA continuation coverage between the date of enactment and Sept. 21, 2021. The bill creates a new Sec. 6432, which allows a COBRA continuation coverage premium assistance credit to taxpayers. The credit is allowed against the Sec. 3111(b) Medicare tax. The credit is refundable, and the IRS may make advance payments to taxpayers of the credit amount. The credit applies to premiums and wages paid after April 1, 2021. Under new Sec. 6720C, a penalty is imposed for failure to notify a health plan of cessation of eligibility for the continuation coverage premium assistance. Taxpayers who receive the COBRA continuation coverage premium assistance credit are not also eligible for the Sec. 35 health coverage tax credit. Under new Sec. 139I, continuation coverage premium assistance is not includible in the recipient's gross income. Child tax credit The bill expands the Sec. 24 child tax credit in several ways. It makes the credit fully refundable for 2021 and makes 17-year-olds eligible as qualifying children. The bill increases the amount of the credit to $3,000 per child ($3,600 for children under 6). The increased credit amount phases out for taxpayers with incomes over $150,000 for married taxpayers filing jointly, $112,500 for heads of household, and $75,000 for others. The IRS is directed to estimate taxpayers' child tax credit amounts and pay monthly in advance one-twelfth of the annual estimated amount. Payments will run from July through December 2021. The IRS must set up an online portal to allow taxpayers to opt out of advance payments or provide information that would be relevant to modifying the amount. The taxpayer in general will have to reconcile the advance payment amount with the actual credit amount on next year's return and increase taxable income by the excess of the advance payment amount over the actual credit allowed. But taxpayers whose modified AGI for the tax year does not exceed 200% of the applicable income threshold ($60,000 for married taxpayers filing jointly) will have the increase for an excess advance payment reduced by a safe harbor amount of $2,000 per child. Earned income credit The bill also makes several changes to the Sec. 32 earned income credit. It introduces special rules for individuals with no children: For 2021, the applicable minimum age is decreased to 19, except for students (24) and qualified former foster youth or homeless youth (18). The maximum age is eliminated. The credit's phaseout percentage is increased to 15.3%, and the phaseout amounts are increased. The credit would be allowed for certain separated spouses. The threshold for disqualifying investment income would be raised from $2,200 to $10,000. Temporarily, taxpayers would be allowed to use their 2019 income instead of 2021 income in figuring the credit amount. Child and dependent care credit The bill makes changes to the Sec. 21 child and dependent care credit, including making it refundable for 2021. The bill also increases the exclusion for employer-provided dependent care assistance to $10,500 for 2021. Family and sick leave credits The credits for sick and family leave originally enacted by the Families First Coronavirus Response Act (FFCRA), P.L. 116-127, would be extended to Sept. 30, 2021. The bill increases the limit on the credit for paid family leave to $12,000. The number of days a self-employed individual can take into account in calculating the qualified family leave equivalent amount for self-employed individuals increases from 50 to 60. The paid leave credits will be allowed for leave that is due to a COVID-19 vaccination. The limitation on the overall number of days taken into account for paid sick leave will reset after March 31, 2021. The credits are expanded to allow 501(c)(1) governmental organizations to take them. Employee retention credit The bill extends the employee retention credit through the end of 2021. The employee retention credit was originally enacted in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, and it allows eligible employers to claim a credit for paying qualified wages to employees. Under the bill, the employee retention credit would be allowed against the Sec. 3111(b) Medicare tax. Premium tax credit The bill expands the Sec. 36B premium tax credit for 2021 and 2022 by changing the applicable percentage amounts in Sec. 36B(b)(3)(A). A special rule is added that treats a taxpayer who has received, or has been approved to receive, unemployment compensation for any week beginning during 2021 as an applicable taxpayer. Miscellaneous tax provisions The bill repeals Sec. 864(f), which allows affiliated groups to elect to allocate interest on a worldwide basis. The bill provides that targeted Economic Injury Disaster Loan (EIDL) grants received from the U.S. Small Business Administration (SBA) are not included in gross income and that this exclusion from gross income will not result in a denial of a deduction, reduction of tax attributes, or denial of basis increase. Similar treatment is afforded SBA restaurant revitalization grants. The bill temporarily delays the designation of multiemployer pension plans as in endangered, critical, or critical and declining status and makes other changes for multiemployer plans in critical or endangered status. For more on the nontax portions of the bill, see, "House Passes $1.9 Trillion Stimulus Bill with a Variety of Small Business Relief." — Alistair M. Nevius, J.D., ([email protected]) is the JofA's editor-in-chief, tax.

Yep, I do like Catherine and Judy. I have a few retired clients who mail back their signature pages, and lots who sign and then don't upload it/drop it off through my mail slot for days.

What do you mean by parent company is in NJ? If the person lived in Florida and NY, he doesn't have to pay taxes to NJ. The W2 is never accurate on the states and you have to either prorate the income per months they lived in a particular state or find a way to separate the income while in FL or NY.

I had cataract surgery a year ago December to solve the problem of unreadable numbers. Now I'm good down to 8 pt fonts. Although, some of the scanned stuff clients send me is pretty blurry.

Not really, Tom. I'm just like everyone else here, working and trying to do the best for the clients and our members here. Many times I look for some reference to steer the person in the right direction without doing all of the research because, after all, I'm busy too and that is the other person's job and responsibility and not mine, so many times I use pubs to give someone that start and don't feel the need to drill down to the regs or code while realizing that it isn't the most authoritative source. I'm wrong plenty of times, lots I don't know, and areas I don't ever want to deal with, but it does amaze me when people will argue without providing some sort of evidence to the contrary to back up their side.

That's the thing about opinions, everyone has one, but how we react to someone else's opinion is a choice.

That would be considered stockpiling and is against the rules of being an ERO. Transmission of the returns is supposed to occur within a reasonable time after the ERO has all the required information and signed documents in order to process the return, and any more than 3 days delay is stockpiling. The exception to this rule is for returns prepared and ready to e-file prior to the IRS' MeF opening date for the filing season. See pub. 1345.

You could send a copy to the taxpayer along with a note regarding your $X,XXX retainer requirement for being a POA and ask them to submit retainer if they want to continue the relationship.

I think the unemployed bill died. I could be wrong. Seen a lot with no wh on them.

I had a client who's been trying to get their bookkeeper to get an EIN for the estate for 5 months. I think she was planning on mailing in the form but was too intimidated by the SS4. They called me last night and I told them to call today and we'd have it in 5 minutes. At first I used Firefox and got an error, so I switched to Internet Explorer and it sailed right through. They were looking forward to telling their 'amazing accountant' got the EIN in 2 minutes. They're in a remote rural area and they're not impressed by any of the 'professionals' they have to deal with there.

The tickler in the EIP's specifically is the "no pay back if too much received" rule. If it was accounted for eventually, then when one files would not matter greatly, as it would level out eventually. With the ability to plan and maximize, in certain situations, knowing any overage is to be kept, is what has people jumping to see how they can maximize. While a PITA because it is new, and short timing, it really is no different than any other tax planning. As I see it, those who can gain (some would say game, but I call proper planning): A dependent who can self file for 2020 (covered in other threads) and deceased TP during 2020 with no filing requirement (File to get EIP 1 and 2 if not already received), 2020 income high enough to eliminate or lower credit (if not already filed for 2020). I could be missing other scenarios, like one someone touched on where EIP 1&2 might have allowed, with certain timing, for dependents to receive credit for two separate parent returns.

That is called tax planning, which we have been suggesting for a long time. I think I read that the next stimulus will be reconciled with 2021 return.

I was able to get the EIN by trying during "business hours". It is interesting that they have a schedule since it is a computer generated number without any human intervention.

If you are SURE that the credit doesn't apply AND the wage deferral into retirement entered from the W-2 isn't needed AT ALL for the state return, you could omit the entry of the retirement plan contribution on screen W-2 and delete the 8880. See if that works to generate a correct return for your client's fact pattern.

This whole thing seems crazy. I have clients coming in, made $200k, got a PPP loan for $50k, say what? Another basically retired, had a small W2 amount, got $26k in unemployment, another whose husband makes $250k, she had a pt job the past several years with a W2 of $2k, got $15k in unemployment. Whew. A painter client, just him, didn't get anything, said the trades had a banner year in 2020 and still got ppp money, it was a windfall. Sheesh. Maybe this is off topic, but whoa nelly.

I'm trying to figure out the logistics of getting the tax return into my software for it to be efiled if I haven't prepared it. You have legal obligations once you accept the authority to efile a return. You do not have the authority to waive your IRS imposed obligations.