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Letters may be wrong especially if taxpayer has moved or changed bank accounts. The suggestion is to check the amounts in the letters with amounts on the new IRS revamped site. https://www.accountingtoday.com/news/irs-child-tax-credit-letters-may-have-wrong-information?position=editorial_1&campaignname=V2_ACT_Daily_20210503-01262022&utm_source=newsletter&utm_medium=email&utm_campaign=V2_ACT_Daily_20210503%2B'-'%2B01262022&bt_ee=nOEDxhLpYf76%2BKr3%2B8RyP1pGdsv5fhS3Ipv9puUHWgt5zRDyEiZmOVMTXBQTTQhk&bt_ts=1643194964099

Unfortunately, it sounds like he did not seek tax advice until after the fact; and the incentive money he received has all been spent?

I don't see an argument for basis reduction. He did not incur a forfeiture or reduction in capital as in the case of an easement or involuntary conversion. Therefore it looks like taxable income. The amount he will spend on making the conversion will add to his basis; in a separate transaction.

Sleeping under same roof every night is not a requirement. What counts is where the child or parent resided, or would have resided during a temporary absence. See section 152(c)(4)(B) and reg 1.152-4(d)(3) for clarification.

The client has the supporting documentation. 2016 losses. I think I can do this if I can figure out how to get the software to do what my brain wants the outcome to look like. Thanks to all of you. This board is invaluable. Tom Longview, TX

Be sure to close the return after deleting the 8879 and EF Info page, then reopen the return add them back and recreate the efile.

Maybe buy a condo?

The phone number for EIP trace is different. Fax numbers can be found here: https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-payment-issued-but-lost-stolen-destroyed-or-not-received#howdoitrack

In looking over the various increases in what will be our workload this season I am going down to the store and buy several additional bottles of ibuprofen or acetaminophen. I wish you all good luck as I feel sure we will need as much of it as we can get.

Today I uploaded 18 files in TXT format and it went pretty smooth, I give it a thumbs up.

An ATX support rep helped me about a year ago in this matter. She said that changing preparers will produce a new 8879. She had me add a phantom preparer in the Manager, change the preparer in the return, then change back in the Prep Manager. Hope this helps

Thanks for the post, Judy. Good information.

Ok, will do.

Divorced couples, for instance, who alternate years will each claim a child, the same child -- and therefore one got the ACTC and the other the CTC. Same child. Repayment Protection is for low income taxpayers who received the ACTC but have fewer or no children on their 2021 return and meet the income thresholds.

Hey Y'all! I'm still here, but I sold my business last September. I'll be working for the new owners for a few more years. The sale was a sale of stock, and they will pay me installments with interest, in case anyone was wondering how that goes. He could have purchased my client list and depreciated it himself, but instead chose to make it a stock purchase so I'd get the better tax advantage. I think I can simply report the stock sale on the Sch D and interest on the Sch B each year without having to do the "installment sale" form 6252. Correct me if I'm wrong. Not owning the business was an immediate weight off my shoulders. I'm glad I trusted God on this one. Donna

Dark chocolate and a good chunk of my caffeine fix (Coca Cola) are required office supplies for me during the season. Good luck to us all.

I also think you need to dig for more info. I think - unless it's a preparer that is part of this group - most people don't understand passive losses and have no clue how to handle carryforwards and application on the taxreturn.

"If you are participating in the Fed/State Combined Filing Program then there is no need to file the 1099-NEC with the FTB, the IRS will forward it on to the FTB. If you are not participating in the Combined Filing Program then you must file the 1099-NEC with the FTB." From Spidell

One set of clients, TP and SP, both in their late 80's. TP has alzheimers and is now showing signs of paranoia, enhanced by his extreme hearing loss. He has hearing aids but often removes them, so I communicate with him via notes. While I offered to go to their house to collect their tax info I am now hesitant to do so due to his paranoia and the fact that he has guns in the home. SP daughter has POA but I am unaware if it has been invoked.

That's a touchy situation. Do you have a good relationship with any of the children? I have several still active business clients who are now in their seventies. They seem to be getting a bit more forgetful. What I do is make an effort to present things as clearly as possible. Then I follow up with a detailed step by step email. However these are all Write Up/Payroll clients that I deal with on a monthly basis.

I also use IDrive to back up the cloud daily. I'm not super savvy and found it was very easy to set up. It has saved my butt several times when I accidentally deleted a file. They also allow you to set it up on up to 5 computers, so I also use it to move whole folders and files back and forth between my laptop and desktop computers.

I use two external hard drives. Rotate them. Keep one at home and one in the office. I also buy two new drives every couple of years. I don't trust the longevity of these things. I've had them go out. Plug it in and nothing. Pretty scary.

Looked it up. There are now some instructions for the use of Form 3911. Who knows how long before someone at the IRS would actually look at it???

I do not think 3911 even works. Have tried for 5 years to get a refund traced to no avail.

I don't know of any way trace a payment made by the IRS.

If the IRS records say my client received their stimulus rebate and my client says they didn't receive the rebate, how do you prove a negative?

I have already heard from clients who have received two letters; one for the husband and one for the wife. Can things get any more messed up than they already are? Two is almost worse than none. They just aren't going to "get it"

RE: the letters regarding EIP and Child tax credit. The IRS did send them to both parties. I have them in hand from one of my clients now. They have 10 children so you can figure they say on top of this stuff.

I agree, but it would be nice if all credentialed preparers, EA, CPA & Attorney's could fall under some type of exception. Granted, just because you have the letters behind your name doesn't mean you are 100% honest. Just with a license on the line, I would one would give deep consideration to doing anything that would end their career. Just sayin.

Unfortunately, given the number of dishonest preparers, scammers and identity thieves out there, this will never happen.

That is the six million dollar question. Most probably won't even know what we're talking about. It will take extra time, but each person should create an account with the IRS to access their information. It would be nice if the IRS would provide us with a tool to check and verify what the client received. That is, if the information the IRS has is correct. Hence all of the issues with the stimulus payments.

Just as an opener. How many of your clients are going to locate must less remember those Child Credit letters and EIP letters from the Service. I am reading a married couple will receive a Child Credit letter to the wife and one to the husband. Am I reading this correctly ? It appears so illogical to me. I don't know about youall but my fees so stable for years are going to take a considerable jump.

Not only our workload, but the increase in cost of supplies. Paper has doubled and tripled in price. I use a lot of paper as noted in another thread. I shopped online for a couple of hours and ended up finding the best deal by far at Sam's Club. An employee delivered it after dark, but I have 2 cases sitting in my office now. I was sure I had more in the storage room. The only thing that is going to keep me sane is my assistant, Lisa.

Red wine, maybe an extra glass for soothing purposes.

After using BSO for many many years, the new system doesn't recognize me anymore. Even after entering my Name, SSN and DOB, BSO won't even send me a temporary password. I even got through on 1 800 after waiting about 20 minutes which was of no help. I was told to paper file my client's W 2s. I hope I never have another month like this again!