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Shhhhhh....that is our little secret that we don't want to get into the ears of the IRS. Tom Longview, TX

I might hold out a little longer for the paperwork. I have an elderly mother with the same situation - and guess what - it wasn't really rolled over. It was just put in a bank.

I would insist on copies of the actual monthly statement from the first fiduciary showing the the distribution and the date distributed and the actual monthly statement from the second fiduciary showing the amount received and the date it was received. While it's possible that the distribution code is wrong it's equally possible that your client is wrong.

It absolutely stinks, but not as bad as when someone takes 31 trips to Goodwill and you have to complete Form 8283 (which I hate with the power of 10,000 suns). I took some advice a few years ago from Abby, I think, (sorry if I'm remembering incorrectly) and sometimes use a 12.31.__ date and combine them all. Blech.

What expenses are you talking about? Is this a 1041 or 706? Items that are deductible on individual federal 1040s are often deductible on state returns as well (e.g., classroom expenses and student loan interest). Some aren't (e.g., bonus depreciation in nonconforming states). You're not really deducting it twice; it's just that some states allow certain deductions and not others, just like the federal allows some and not others. Two separate taxing authorities.

We come into the mix at about 45 seconds, but watch the whole two minutes.

Actuaries are the math people without the personality to be economists. Or even undertakers!

Read the Ringers "Splitting Nails" thread stared March 1st. You will see differing opinions of whether to amend or not. Personally I lean toward just adjusting the carryforward numbers. However if it was much bigger adjustment I would lean toward amending.

Piggyback / federal / state: The state tax return is attached and transmitted with the federal return, and the federal return must be accepted before the state return can be processed. If the federal return is rejected, the state return will also be rejected. State-only return: The state return can be processed independently of the federal return. It's a common misconception that these returns aren't sent to the IRS—they are. However, the IRS sets aside these returns for processing by the states, in most cases, prior to acceptance of the federal return or the federal return being e-filed. Direct or standalone: The state return is entirely separate from the federal return, and acknowledgements are processed separately. The exception for a direct return state is Illinois, which utilizes IRS common processing through the KC service center. Piggyback only Piggyback/State only Standalone/Direct Arkansas Colorado California Alabama Connecticut Illinois Arizona Delaware Maine Kansas District of Columbia Minnesota Oklahoma Georgia Massachusetts Hawaii Texas Franchise Idaho Tennessee Iowa Indiana Kentucky Louisiana Massachusetts Maryland Maine Michigan Minnesota Missouri Montana North Carolina North Dakota Nebraska New Hampshire New Jersey New Mexico New York Ohio Oregon Pennsylvania Rhode Island South Carolina Tennessee Texas Utah Virginia Vermont Wisconsin West Virginia

So you can do two thing, you can go to the state efile info and mark the Unlinked box(like you mentioned), or e-file the federal return first and then e-file the state once you received the federal accepted ack.