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Yeah those things can explode in your face. I had one high roller with a bunch she finally sold. She had large cap loss carryovers and sold most of these at a loss, BUT the ordinary income portion that goes on 4797 was about 40k, so she had to pay tax on that. It was partly offset by deducting the suspended PTP losses on E2, but she still paid tax on the sales. I had one of these once and it seemed like they were sending me my principal back since the K1's kept showing losses. Never again. I tell my clients that the reason they're being invited into the partnership is because the business is so risky the banks won't lend them the money.

I never check before 3 weeks and that is today for my last fax. It was not processed yet, so I'll check again in a week. We used to be able to do these online, instantaneously, and that was so nice, but not enough tax pros used it so the IRS shut it down. Too many tax pros are Luddites and they ruin it for the rest of us.

All my disallowed amounts this year have been less than five or six bucks. I assume the gain or loss is off by that amount in IRS favor. Shoot me, I don't care, and I don't have time to input and upload stuff for amounts that are negligible. Not even for $600. In the poor south we lose clients over stuff like that. My $475 client who pays his broker $18,000 a year would fire me over that.

Well, Abby might have a better outlook than me, but I'd rather chew off my right arm than have a client get a letter. It's so much more trouble to me than doing a return. First the panic call. Calm down, and bring me the letter. Then the drop off and the 15 minutes to explain how I got this. Then 20 minutes catching up and telling them how Uncle Fred is doing, and hearing about their dog that has an infection. Then, oh yeah, 35 minute conversation for their quick question because they talked taxes with their hairdresser. I fix the problem. Eight months later IRS sends a letter saying, "We got your response, but we lost it..."

Exactly why I'm selling. But, I'll still be working and pestering all y'all.

Good Question. I think it still needs to be reconciled .... but what do I know? This year I have had curveball after curveball thrown at me. I am not guessing anymore. Tom Modesto, CA

I'll tell you what I find amusing over at reddit.com/r/tax/. All the Robinhood folks who bought investments that give them K1's. They had no idea what they were getting themselves into! And many of them have not had the pleasure of selling these investments yet.

Yes. Tom Modesto, CA

USUALLY, revocable living trusts are just ignored until someone dies and the trust is actually funded. YMMV.

You are so right.... and none of us needs that. I'll just wait. Trying like everyone else to push these out of here. My Birthday is at the end of April and I'm celebrating big this year, as you know. I'm not sticking around for the May 17 deadline. Heck, I won't be sober till June....

Ha. Those PTPs. One client a few years ago had to report $29k in cancellation of debt income. He was in a high tax bracket too. A few days after I saw the K1, the company was in the WSJ.

This is a good assumption. And, ultimately, it's the broker's job to provide the correct basis and the client's job to tell us if they think it's incorrect. It's our job to input the 1099B as it was given to us. Even if basis is missing, it falls to others to provide the basis to us.

Add back on Form IT-558 using code A-011. NY has been too busy legalizing marijuana to vote on any tax de-decoupling.

Generally, I either see the error immediately after posting, or not at all until someone comments on it. So changing from 5 to 15 minutes would not really help me. I am just really grateful to have this board, and that it is so easy to use, and the Judy does such a great job moderating. Yay Team!

The 5 minute limitation helps to alleviate certain situations that can be difficult to navigate as a moderator. We only have one rockstar moderator on the forum (thank you so much, Judy), so if it's not too much of a hardship to deal with I would prefer to keep the 5 minute limit in place. I think in situations where 5 minutes isn't long enough, 15 usually isn't either.

I've resigned myself to paper filing decedent returns with refunds, and advise my clients to make sure they die owing taxes. I tell the family/executor to not make estimated payments after death or near death. So much easier to file a balance due.

Just a Heads up if you are using ATX and open a early return already filed without the Unemployment Exclusion to see if corrected. The Federal is fine, but the NYS is not. When you include the IT-558 for the code A-011, the IT-201 is doubling adding back the excluded UCE. The only way to correct is to delete all the NYS forms but not the e-file form for NYS, (IT-201, IT-196, and the IT-558) and add the forms back in. This is just for the early ones that will have already filed before the American Rescue Plan became law. This is not an issue if you have not filed yet, but double check Lines 18 and 19. Also, NYS really has not made a definative decision yet. What a fun tax season!

I use IE by default for eservices, but when I'm having issues I fire up Chrome or Firefox. Firefox is my main browser as well. I just had to switch to Chrome for my online banking because it's not working with Firefox on my work computer, even though it still works fine with Firefox on my home computer. Go figure. As long as one of my browsers works, I'm good.

Yes, the browser issue is getting annoying. For ages we've been told to use only IE then IE 11+. I otherwise use Firefox. During my trials getting back to e-services, the help desk had me use Chrome because it seems IE sometimes causes problems. She said they weren't supposed to deviate from IE but have found that sometimes only Chrome will work. So for IRS e-services, I now use Chrome. Clearly Lion's mileage has varied from mine!

And, I often have to use IE (instead of my usual Chrome) for IRS-type sites.

A lot of browsers these days automatically block pop-up windows or other types of fill-in forms. She may have to lower her security settings (or you may have to, if you help her) for that one site. The settings are usually per-site so for the most part you don't have to reinstate them afterwards. I have a couple of sites with pop-up login pages where I had to specifically allow the pop-ups to pop-up.

Good way to describe it! I'm going to borrow that, Abby.

Two bills in committee: https://www.nysenate.gov/legislation/bills/2021/a6584 https://www.nysenate.gov/legislation/bills/2021/s4819 Explain the options to your clients, and let them decide.

I haven't heard of NY approving any software yet for this issue. (Too busy sampling re their new law?!)

Donna uses TaxWise. I was unable to override one the other day using ATX. When I say "other day," that mean three to seventeen days ago.

One phone call to ask if the disallowed loss was added to the basis of the stock purchased? Minutes. Yes, you go with the 1099-B for the stocks SOLD if the math works on the 1099-B. I just make a call (only once, unless I see evidence of a brokerage changing its methods) to make sure they are tracking the basis of the PURCHASED stock that I won't see on a 1099-B until it's sold. I do NOT take the time to track it back to the year purchased when its sold. Except for those super-organized, keep-every-slip-of-paper clients who bring me their matched-up purchase and sale confirmations because they're just that detailed oriented or because they're identifying each stock sold (instead of FIFO). Then I randomly compare ONE purchase confirmation to the 1099-B basis for a stock where they've had lots of disallowed wash sales in prior years (you remember those when it's pages of the same stock listed on prior 1099-Bs) to make sure the brokerage adjusted the basis. Seconds to compare one piece of paper to one trade. Less time than the phone call, so this is what I do when the client brings his purchase confirmation that corresponds to a sale. Seconds to satisfy myself that my client is getting the benefit of his prior-year disallowed loss due to timing or due to disposing of his entire holding in that stock. And, not paying tax on more profit than he made. Seconds.

Wouldn't that be a reason NOT to report forgiveness before it actually happens, leave the PPP loans on the books for 2020 when they were NOT forgiven yet? Wait for the actual forgiveness amount in 20201 or beyond?

We know if will work if you discard 8962. Sure, you'll get an IRS notice eventually, but that's easily handled.

Thank goodness the amount didn't change for any reason. I understand him, though. A Seal, he was home briefly and wanted to tie up all his business before leaving again. But, hey, sign your tax return. In the big scheme of life, HIS life, this is not so big a deal. We all, in this world, could use some prospective from time to time. I got a dose of mine.

I have had prior year e-filing rejection until I got the Submission ID current on the relevant EF Info form. It has to contain the current years date (just after the PIN). Doing this is kind of wierd, something about eliminating the practioner and re-chosing one. It used to be you would discard the EF Info form and re-load it. I don't think that works any more.

I've called each brokerage's tax department or asked brokers I know, if I know that they understand wash sales. I also have clients that include every piece of paper when they give me their tax information, so I have their purchase confirmations and can see their purchase cost and compare to the adjusted cost basis on their 1099-B. I once had a broker client who did not get the comprehensive reporting package that his clients got and did a LOT of trading with a LOT of wash sales. I told him what I needed from him. He chose to pay me thousands for a few years to take his spreadsheets and adjust the disallowed wash sale losses into the adjusted basis of each respective purchase. It was a great income stream for me for about three years until he was fired and no longer trading.

I don't know how I'm suppose to audit the broker. I have a client with about $10k in his account with proceeds of $35 million. I have to rely on the 1099B. If the client has a problem, he can take it up with the broker.

That’s pretty creative. There’s no limit to the ability of some clients to gum up the works, is there?

The disallowed wash sale is added to the basis of the purchased stock that created the wash sale event, the timing. He might still own that stock. When he sells it with its higher basis (from the previously disallowed wash sale amount from the stock that sold that was paired with the stock purchased to create the wash sale) he will have a larger loss/smaller gain and essentially be able to use that disallowed loss finally. It's disallowed until the last stock in the chain is sold, which might be in a future year. So, what you have to watch for is -- Is the disallowed loss from this stock added to the basis of the stock purchased, so that you have an accurate basis when that stock is sold?

Have her on the phone while you do it.

RRC1 and RRC2 are 2020 credits on the 2020 income tax return.

The preliminary payment of EIP2 and EIP2 were based on the filing circumstances of 2018 or 2019, depending on what was on file at the time they sent out the payment. They are reconciled on the 2020 tax return, so that is the only return that really matters for EIP1 and EIP2. The preliminary payment of EIP3 will be based on the 2019 or 2020 return, depending on what has been filed when they send that payment. That will be reconciled on the 2021 return. This may result in duplicate payments for someone, but that is perfectly acceptable. There is plenty of money to go around, apparently.

Everyone I've seen this year, you enter the proceeds, basis and wash sale amounts as is and it equals the gain(loss) on the 1099B. In the past, there were a few that did not include the wash sale adjustment in the gain(loss) and that always gave me pause.

Copied from the J of A: "Under the notice, the postponement applies to any individual who files a federal individual income tax return on Form 1040, 1040-SR, 1040-NR, 1040-PR, 1040-SS, or 1040(SP) (the Form 1040 series) or has a federal tax payment reported on one of these forms that would otherwise be due April 15, 2021. The IRS says the postponement also applies to the filing of all schedules, returns, and other forms that are filed as attachments to forms in the Form 1040 series or are required to be filed by the due date of the Form 1040 series. The IRS lists as examples Schedules H and SE, as well as Forms 965-A, 3520, 5329, 5471, 8621, 8858, 8865, 8915-E, and 8938. Also, elections that are made or required to be made on a timely filed form in the Form 1040 series (or attachment to the form) will be considered timely if filed on such form or attachment, as appropriate, on or before May 17, 2021. The notice also extends the postponement to claims for credit or refund of federal income tax that absent the notice would expire on or after April 15, 2021, and before May 17, 2021 (this generally affects 2017 tax years). The notice also automatically postpones to May 17 the time for affected taxpayers to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs). The postponement also applies to the time for reporting payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. The postponement also applies to individuals who are required to file and furnish Form 5498, IRA Contribution Information; Form 5498-ESA, Coverdell ESA Contribution Information; or Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, (the Form 5498 series) that would generally be due June 1, 2021. That deadline is postponed to June 30, 2021."

If only 1040-ES were included.

Just finished watching Compass Tax Educators Webinar - American Rescue Plan Act of 2021. It was an EXCELLENT breakdown of the many complicated changes and tax strategies we can employ for 2020 & 2021 tax planning. I HIGHLY recommend it. In particular the MFJ vs MFS details in the webinar go against so many staples in tax prep thought but, it is what it is in today's wild times. I find their FB group quite valuable too. Just thought I'd review it for those looking for a good overview of many of the changes. If there are other webinars or newsletters you frequent for great info on today's tax discussions, I'd love to know.

Just did a conversion to "Intuit Online Payroll," everything is in the cloud. They have 3 levels Core, Premium and Elite which is what they use. Fee is monthly plus so much per employee per month, not charged per each payroll run and includes direct deposit. They don't use "Quickbooks" just the online payroll and with Elite, they will do the conversion for you, BUT review it carefully, our conversion could have been smoother although we converted mid year. Elite includes time tracking and reporting with Quickbooks Time (formerly TSheets.) Time can be entered from a smartphone app or tablets set up as "kiosks" and time is approved prior to running payroll. It has a lot of options and you can set schedules, shifts, breaks, locations, etc. I like that it is in the cloud, they make all Fed, State and Local deposits and all payroll tax form filings. Employees have a phone app called Workforce where they can access payroll history and receive notifications when they will have their pay deposited. Employees like it. Support is good for Intuit Online Payroll and poor for Quickbooks Time, unless you like using the Community.

Thank you for asking. Our prayers have been successful!! She has recovered quite well. Her closet friend also got sick and they have been holed up together. They both have lost their sense of taste and smell. But thank the Lord above they are both okay. It's quite frightful. She's had Type 1 since she was 7. Then Celiac. Then eating disorder. Then Graves disease. So every little thing that comes along keeps me worried. Thank you again for your prayers.

Does she want it to do everything, because she'll be able to understand how to do everything? Then she can demo almost any payroll software to see which one works the way she works. Or, does she want it to do everything, because she does NOT understand or have time to train to do everything? Then, she should talk to payroll services who will do it for her. It's like a taxpayer choosing tax software or a tax preparer.

While I use Medlin for some clients, I also use Patriot for another. Patriot has the option of full service.

Despite no income, there are expenses. Yes, a partnership return should be filed for calendar year 2020.

Bonnie, If your client wants a online payroll program that does "everything", most functions can be run from a smartphone or tablet, has employee access thru a phone app, take a good look at a program called "Gusto" It's at the top or near the top of all the ratings, reviews and cost.

Yes tend to agree. I have 3 in the hopper for not paying back. Clients say they can wait.

OK, that's cool, because I just found myself overriding the UC worksheet at the bottom of Schedule 1 to remove the UC from the MAGI calculation.

I'm going to pull the trigger on this one. I don't believe there are any ripple effects to this. Any update might have a wksht, but I can easily go back to 2 returns and adjust if I need to do that. It won't change the bottom line.