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IRS Pub. 4012 https://apps.irs.gov/app/vita/content/globalmedia/1099r_exclusion_worksheet_4012.pdf A taxpayer should not receive a Form 1099-R for a trustee-to-trustee transfer from one IRA to another, but should receive a Form 1099-R for a trustee-to-trustee direct rollover from an employer qualified plan to an IRA with code G.

IRS and logical in the same sentence... Not good to see/read while eating! Feb 14, and I am still dealing with folks who do not understand that 0 withholding can be proper, than there was a HUGE adjustment to the withholding brackets for 2023, and the prior W4 "change" is still biting many employees.

The statement is very careful to say that they have NOT determined whether the payments are taxable under the law. They don't want to set a precedent. They are just saying they won't challenge the taxability. Seems similar to "prosecutorial discretion".

8949 Input sheet, box f. Rec'd 1099-B or 1099-S as nominee. Adjusts the gain and puts the transaction on Schedule D. Pretty slick. Tom Longview, TX

Enter the 1099B as usual. For the sales that occurred after death, start another line and put "IRD reported by {estate EIN}." Then enter the after-death amounts as a negative number. Do the same for any interest or divs paid after death. Be sure to include those amounts on the 1041 with the line reading "IRD reported to {decedent SS#}." In essence, you're reporting the 1099B amounts to match the IRS records, then backing out the amounts that belong to trust. You will have to comb those 68 pages for before and after transactions, so charge accordingly!

Hello all! I retired in 2019 and moved to Florida. Hurricane Ian hit my house but I’m blessed and grateful that it’s still standing. I’m not as sharp as I used to be and even after reading all instructions still not sure that I can file 4684 in TY 2023 to report the Ian loss. I think so since there a reasonable certainty of reimbursement that will occur in 2023. Am I understanding this correctly? My father passed in his sleep 1/15/2018. I inherited everything. My husband and I decided to sell our Phoenix house and be semiretired snowbirds between FL and PA. Everything was all set. My beloved husband was diagnosed with terminal cancer in July, 2019. I retired immediately to take care of him. He passed in April, 2020. Ever since, I haven’t been able to remember or think very well. I lurk often to see your names and your news. Thanks for any advice.

It doesn't take long BEFORE retirement to get rusty! Thanx for lurking around, and much love to you.

Widow in my extended family, received IRS matching notice on a 1040 for a K1 supposedly showing 9,020 of dividends. The original 1065 (family LLC) was paper prepared and filed, with cents (?! ) on the amounts. The K1 showed 90.20 of dividends, but was apparently keypunched as 9,020 to the member's 1040 account. No other members have received matching notices. CPA advised widow to file an amended 1065, even though the original 1065 was correct. And the bill to date is about $500 for just talking about this. Who knows how much the unnecessary 1065 would cost. And at this point, it's getting close to being more expensive to pay this CPA, than to pay the IRS. I advised to send a copy of the K1 showing the 90.20 in response to the IRS notice, explaining that it was entered wrong by the IRS. All of this could have been avoided by efiling that 1065.

Years ago I had a client who was an appliance repairman. He received a 1099 Misc from Whirlpool for warranty work in the amount of $5,000. He received a computerized matching notice from the IRS saying the amount should be $50,000. To my surprise,I just sent in a simple letter explaining the correct amount was $5,000 which the IRS accepted.

Meh. No 1099R, no IRS matching notices. I would never have called.

Thanks so much for all the helpful hints. I've printed your reply and stuck it the folder for future reference! Thanks again.

Yes, DC gets the income amount when you input box 1 of the W2. I have my program to calculate automatically, so I enter box 1, box 2, box 15, and box 17, besides entering the name of the company and FEI number. When you efile, you don't have to do anything special for DC and the 1040 is automatically attached when the efile file is created. If you are filing married, DC has special category "married filing separate on the same return" and it is helpful when both spouses work. Let's say that each earn 100K, you split the income and taxes is higher when paying on $200K and cheaper when paying taxes on $100K and 100K. Another helpful refundable credit is rental paid for apt or house on Sch H. Income limit is about 60K I think but you have to have lived in DC the whole tax year. Regular years, DC give you 40% of Federal EIC, but this year was increased to 70% but the extra 30% is sent evenly every month for 11 months. If you are filing 1099-NEC with Schedule C, you might need to eliminate form D-30 because ATX automatically adds it and send 1099-NEC income to that form but most of the time is not needed.

@BHoffman So sorry to hear about your struggles and heartaches over the last couple years. Please accept my heartfelt sympathy. As to the disaster loss...the year of reporting is generally the year in which the amount of the loss can be ascertained. So, if you have insurance and you don't know how much the insurance reimbursement is, you don't claim the loss until you know what the insurance will reimburse. In your case, if you timely filed your insurance claim, and you have been paid out by the insurance company, or they have told you an amount that you are reasonably certain will be paid, then you can take the loss on your 2022 return. If you don't know how much your loss is and you cannot reasonably estimate the amount of the insurance reimbursement (because you don't know how much you will get from insurance) then you should wait until you file your 2023 return to claim the loss (after the insurance reimbursement is finalized). Hope this helps. Tom Longview, TX

it opened this morning! I don't know what little gnomes were causing me grief yesterday, but it opened today!! Is there a Saint for that - I feel like I need to say thanks..

The Internal Revenue Service recently suspended a half dozen of its modernization programs, including two deemed essential to its plans for replacing its aging systems, according to a new report. The report, released Tuesday by the Government Accountability Office, urged the IRS to complete its long-delayed modernization plans and fully address its cloud computing requirements. The GAO report said two of the suspended initiatives are essential to replacing the IRS's 60-year old Individual Master File system. The IMF is the authoritative data source for individual tax account data, and the IRS has been working on replacing the IMF for more than a decade. "According to officials, the suspensions were due to IRS's determination to shift resources to higher priorities; staff members working on these suspended initiatives were reassigned to other projects," said the report." It sounds like the IRS is sacrificing long term goals in order to deal with the short term problems of answering the phone and tax return processing. Gosh it would be nice if the IRS could walk and chew gum at the same time?

This a huge, extremely serious situation. I don't say this lightly, because the whole system could collapse at any time. "The IRS does not have adequate information technology (IT) systems to do its job effectively and efficiently. The IRS’s core IT systems are among the oldest in the Federal government, limiting the agency’s capabilities in significant ways. Partly due to historic poor planning and execution and partly due to lack of funding, the IRS has been unable to replace its antiquated systems. Every year, instead, it layers more and more smaller systems and applications onto its core systems. By analogy, the IRS has erected a 50-story office building on top of a creaky, 60-year-old foundation, and it is adding a few more floors every year. There are inherent limitations on the functionality of a 60-year-old infrastructure, and at some point, the entire edifice is likely to collapse." From - https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2020/07/ARC18_Volume1_LR_01_IT.pdf

Wow.

As I understand OP, grant was made to a charitable org which then divided it up among the volunteers. While grant was not taxable to the org, I can’t see where the distribution of the grant to volunteers would be non-taxable if it was above and beyond a reimbursement. The IRS rules are strict in such matters. I would be curious in how the org. classified the distribution to the volunteers on form 990.

It actually makes me less mad, because I'm still filing 2021 returns! My clients are dropping off 2022 tax information earlier than usual (usually a lot of investors waiting on brokerage statements), but I haven't gotten to any of the 2022 returns yet. A surprising statement by the IRS.

So we need to amend the returns we already filed? I cannot believe the IRS just threw tax law out the window "in the interest of sound tax administration". I want to rant so badly right now, but @jklcpaJudy will kick me off the platform if I do. Tom Longview, TX

Issue Number: IR-2023-23 IRS issues guidance on state tax payments to help taxpayers WASHINGTON – The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022. The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns. During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Alaska is in this group as well, but please see below for more nuanced information. In addition, many people in Georgia, Massachusetts, South Carolina and Virginia also will not include state payments in income for federal tax purposes if they meet certain requirements. For these individuals, state payments will not be included for federal tax purposes if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit. The IRS appreciates the patience of taxpayers, tax professionals, software companies and state tax administrators as the IRS and Treasury worked to resolve this unique and complex situation. The IRS is aware of questions involving special tax refunds or payments made by certain states related to the pandemic and its associated consequences in 2022. A variety of state programs distributed these payments in 2022 and the rules surrounding their treatment for federal income tax purposes are complex. While in general payments made by states are includable in income for federal tax purposes, there are exceptions that would apply to many of the payments made by states in 2022. To assist taxpayers who have received these payments file their returns in a timely fashion, the IRS is providing the additional information below. Refund of state taxes paid If the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) the payment is not included in income for federal tax purposes. Payments from the following states in 2022 fall in this category and will be excluded from income for federal tax purposes unless the recipient received a tax benefit in the year the taxes were deducted. · Georgia · Massachusetts · South Carolina · Virginia General welfare and disaster relief payments If a payment is made for the promotion of the general welfare or as a disaster relief payment, for example related to the outgoing pandemic, it may be excludable from income for federal tax purposes under the General Welfare Doctrine or as a Qualified Disaster Relief Payment. Determining whether payments qualify for these exceptions is a complex fact intensive inquiry that depends on a number of considerations. The IRS has reviewed the types of payments made by various states in 2022 that may fall in these categories and given the complicated fact-specific nature of determining the treatment of these payments for federal tax purposes balanced against the need to provide certainty and clarity for individuals who are now attempting to file their federal income tax returns, the IRS has determined that in the best interest of sound tax administration and given the fact that the pandemic emergency declaration is ending in May, 2023 making this an issue only for the 2022 tax year, if a taxpayer does not include the amount of one of these payments in its 2022 income for federal income tax purposes, the IRS will not challenge the treatment of the 2022 payment as excludable for income on an original or amended return. Payments from the following states fall in this category and the IRS will not challenge the treatment of these payments as excludable for federal income tax purposes in 2022. · Alaska[1] · California · Colorado · Connecticut · Delaware · Florida · Hawaii · Idaho · Illinois[2] · Indiana · Maine · New Jersey · New Mexico · New York2 · Oregon · Pennsylvania · Rhode Island For a list of the specific payments to which this applies, please see this chart. Other payments Other payments that may have been made by states are generally includable in income for federal income tax purposes. This includes the annual payment of Alaska’s Permanent Fund Dividend and any payments from states provided as compensation to workers. [1] Only for the supplemental Energy Relief Payment received in addition to the annual Permanent Fund Dividend. [2] Illinois and New York issued multiple payments and in each case one of the payments was a refund of taxes, which should be treated as noted above, and one of the payments is in the category of disaster relief payment.

Many Government and Public Assistance grants are not taxable. See Quickfinders; Page 4-5. Also included are some Volunteer grants. If there was no 1099; I would certainly try to find out if it is indeed taxable.

Most likely, although it could go several different directions depending on facts and circumstance as well as dollar amount. I would be curious as to how the org. reported the distribution to the volunteers; sounds like more than a matter of reimbursement of expenses. I think that would only apply if put on schedule C. Without any further information I would go with other income on 1040X.