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If the basis was NOT reported to IRS, then you would enter the basis at DOD from your worksheet. No code or adjustment is needed in this case. If the basis WAS reported to IRS, then enter the basis shown on the 1099B and enter code "B" in col (f) and enter the adjustment to basis in col (g). Code "B" is for incorrect basis reported to IRS. For either case, use "inherited" for date acquired and all of those sales will all be considered long-term.

I've also scaled back and had pretty much a stress free season. Each year I go to Costco and get a bag of Lindt truffles and a big bottle of Bailey's. Still quite a bit left in each, so I know it's been stress free. I don't like extending, but this year I have four clients that haven't received K'1's yet, so I had no choice. On the final day I was actually out mowing the lawn!

I don't think you can supersede an extension, but the taxpayer can make a direct payment through the IRS website for last year so that the funds will count as paid for the extension.

Last year, as I am approaching complete retirement, I "retired" my extension clients. Same story, they waited until October to get their papers to me despite me contacting them and advising them that I needed to be finished by Sept 20 as my daughter was visiting for the first time since Covid changed everybody's lives. My daughter arrived and I was still processing returns on the last filing date. This year I noticed some of my "timely" filers were much later than usual. There was illness to blame for some of that, but I do believe that the community is still suffering effects from the last three years of living with covid. They just seem to be functioning differently. That said, reducing my work load so that I am finished by April 18th is great. I have a couple of returns that need a K1, but no voluntary procrastinators.

Have the client breakdown all expenses by vehicle.

I'm with Robbie about trying to finish by the April filing deadline. My workload has diminished with clients' business retirements and a few moving away, and because I'd hardly been able to take on new work with the increasing demands of mom's care over the last 5 years. I worked long and odd hours to complete all but one client. That one person is always late and involves a personal, 2 partnerships, and a fiscal year C corp that is now late beyond its expired extension. *sigh* some are never able to be trained or changed.

right - no foundation. Probably a slab with tin on stringers. - I will take 15 years on these. It's certainly not a commercial building.

$12K is not much for 4 commercial vehicles. That's an average of $3K each. I would just allocate 25% of the actual expense to each vehicle. Only the total shows up on the return. If it were $12K for each vehicle i would want a breakdown. Tell your client to keep all his maintenance records and work orders for 3 years.

I've had German scholars who received these in the past but didn't recall immediately how I entered the data. So I went now to the handy dandy KB and found: Resolution Form 1042-S reports a foreign person's U.S. income subject to withholding. The income can be entered on the Ln 21 - Other Inc tab. The federal tax withheld, if applicable, can be entered on the Ln 64 - Tax WH tab. If income is entered on a Schedule C, it is not considered other income, therefore, the return must be paper filed. I did look at a copy of one of those in a client file and recalled that there is a code in the upper left corner describing the income attributes. My clients were all paid salaries. I am puzzled about why this retirement money was on a 1042-s but maybe look up the codes. My clients all had ssn's, too. Is the employer foreign? Is Empower Trust Company foreign?

In ATX, it would actually be "Transaction Type" of "Inherited" that you select to get you the "Long Term" tax treatment. The date acquired and the date sold will be the actual date you inherited and the date sold. Transaction type overrides date input in ATX. It may be different in Drake or other software. Tom Longview, TX

ProSeries doesn't handle Rita 37 very well either. Rita 37 one of the most asinine forms I have ever seen. CCA is so much better. Unfortunately most towns, and cities in our area use Rita.

In ATX in the input sheet under (a) Transaction type you can choose 13, Inherited Property.

Terry, Drake has NEVER handled it well. There is a guy on the Drake forums that has been b*tchin' about it, with good suggestions, for years. For a couple of years, I had to "dummy up" the w-2 input screen to get the local to populate properly. Then correct it, to prepare the federal and state.

https://www.usps.com/manage/informed-delivery.htm

I'm usually done with taxes except 2-3 pickups on the final day. I've got 18 people who are coming in tomorrow. I've had 5-6 in the past week who've had rejected efiles because of their exchange healthcare when they've never had it before (adds a twist). I'm also at significantly higher extensions. People just can't get their act together to get me basic information.

Thankfully my wife shops online almost daily. Meaning I get almost daily notices something is in our cluster box. Our old cluster box was not as secure and was pried open a couple of years ago. There were some w2 forms lost by our neighbors. So check your incoming daily as well. For outgoing important, go the post office and hand it to a clerk. Mine has a drop cart anyone can reach, but I don’t use it as anyone can reach it… We also have a P.O. Box we use for incoming items which we don’t want to lose. Home cluster is now for junk and packages.

I stopped using them a few years ago, when the one outside our post office got robbed in Dec. Now I take everything inside to mail.

I've done this many times over the years too and never had an extension deemed invalid either. Obviously anecdotal.

In Drake, you put "INHERIT" in the acquired field and it forces long term treatment.

On March 15, I sent out an email to everyone who had not been in contact, something to the effect of a two week notice unless due to circumstances beyond your control--and I wanted to hear what that was. Had a very good response actually. But like so many of us, I'm sunsetting my business. Probably the next big tax legislation convulsion will do it for me.

I am guessing, but an extension payment is made by 18 April 2023, so an installment agreement that extends beyond that date would NOT be an extension payment. Pay the most you can today. When filing the return, with final amounts, set up an installment agreement. You also can make "return payments" between now and then to keep paying down your expected balance due.

For 8949 entries, I would just plug in the DOD valuation for cost basis. You have your spreadsheet in case the IRS questions the difference between what the broker reported and what you entered. My experience is that as long as the stock sales match IRS numbers, they are not going to get involved without some other type of trigger/red flag.

See instructions for Section B Form 4684.

The one outside my office was hit this winter. I don't really use it anymore.

Mail in the 7004 with a check. There could be any one of a number of errors floating around in the computers at the IRS, some of which may go away when they finally process other information sent to them. But it won't be done today or tomorrow.

I have one like that, doesn't get me his stuff until April and it's always a Quickbooks mess that requires lots of back and forth with his bookkeepers. This year I'm trying to have all my extension done by 4/30, so when I saw the QB guy's mess, I told him that I'd put him on extension with a super rough estimate of what he should pay, but then he should find someone else to actually file for him, because I just know that would drag on into June. Too bad, he's a nice guy, but it's the same thing every damn year. Otherwise I have one person waiting on a trust K1 that will probably be in May, and that's it!! On to the 941s and 990s...

We have a similar list - we don't put them on extension until we submit all extensions the first week of April. But we know who they are and that they'll call or email in a panic late tomorrow afternoon apologizing for being late and asking us to put them on extension. Same folks every blessed year.

8878 only with payment. MA retroactively nullified extensions if no payment was made, and tax was due - until they stopped bothering with extensions unless there was a payment made. IRS could make the whole thing moot by granting automatic extensions of time to file and giving the option to pay in April - and still add in penalties and interest is payment is made after the April deadline if tax turned out to be due. 'Course, that would make sense, so they won't.

If there is a dependent child, are you talking about Qualifying Widow(er) status? That would not be for 2022, I agree w/ Margaret, MFJ filing as surviving spouse.

Per 4868 instructions, IRS considers that if at least 90% of tax is paid in by that extension date and if tax bal due is paid when return is filed, then that constitutes reasonable cause for not paying with the extension and late payment penalty won't be assessed. Sorry on my phone and having trouble going back and forth to the docs.

The problem, @BrewOne, is all the clients for whom we have absolutely nothing *except* a request for an extension. If it's someone who always owes, it's one thing, and we can recommend some type of payment. If it's clients who see-saw back and forth between owing and getting a refund, not so much. We file extensions even with no information, if we don't have anything. What I won't do is use a dartboard to decide what people should pay, just to make it "legitimate" because as far as I'm concerned, a figure pulled from a dartboard (or ceiling) is just as accurate as zero.

Wow! Fortunately that has never happened - so far! - with any of my clients. I would appreciate your sharing of your instruction sheet for the future. Many of my folks are just so grateful to not have any more interaction with the internet than absolutely necessary. And for estimated payments to not have to remember to pay on time. For those few who still insist on sending paper checks, they are now getting concerned about the rash of check washing rascals.

Yes, with the proviso that the return is accepted. Better in my opinion to file now and date the direct debit 4/18 to give a cushion. Or use Direct Pay at irs.gov

What, they found mistakes in QB? I'm shocked, shocked!

Great for you, Tom! Either you have a new extension and way more billable hours, or you are about to get rid of royal PITA clients whose work you need the way you need in infestation of boils. One way or 'tother, you win.

They stayed up until 3:00am doing that??? May be time to move on from them. :-)

I feel your pain. I just enter it on the appropriate line on the Schedule F or 4835, but why they don't have an entry screen for it is beyond me. I guess maybe it's because for many of the boxes on the 1099-PATR, there is analysis necessary to determine what's taxable (outside of box 1) and what might already be counted in grain sales, etc? I got nuttin', really.

I sign, because my clients ask if they think my wet signature is missing! But I have my software set to print my signature, so it's always there and legal, if I forget to wet sign. The last time I checked, the IRS and all the states I prepare, accept the printed-by-software signature.

I've been preparing taxes since 1987. Last month I got a call from our friends at the IRS saying I had been selected at random for a compliance audit. She spent an hour asking questions and then another hour reviewing all my YTD 8879s. Lucky me. I passed the audit just fine, but now I'm slightly paranoid. I switched from ATX to Drake back in '14. I haven't found a way to have the software supply the signature. I need to check into that.

I'm just as leery of the known companies.

Before I put my foot down about "no jpegs allowed" I had one client fuss at me about how it was too much trouble to scan - just blow up the picture sent. So I blew up the picture, took a screenshot of the pixelated nonsense, and sent it to the client asking them to tell me what the numbers were. I got scans later that day.

I just tell them that I have to have it as an attached PDF file. They will usually comply. I refuse to accept screen shots. It is on them to furnish me with the correct paperwork.

Personally, I'd be leery of scanning software that's from an unknown company. Who's to say they aren't capturing the info on the forms they are scanning?

I just downloaded ScanStaight. Will give it a try. Thanks, Lion. It might save me more time and frustration than nagging clients to do it right the first time. Not that I would nag clients...

I just received one and all it had was the bank name. Nothing else. No document the client was trying to send.

I also have refused jpegs, impossible to read. In my cover letter and as reminders, I recommend Adobe Scan, free app for iPhone and Android. I tried it out last fall before recommending. It works really well. On the occasion of an illegible jpeg appearing, I remind folks I cannot read it, get an app to scan or send me a copy. The worst was a couple of years of items with heic extension from iPhones. I was able to find some software to 'translate' it, sometimes, but decided to stop doing their work. I do bill time but it was such a pita. Good other suggestions here, I will make a list for next year to offer options.

We recommend Genius Scan (free) app. Only because that is the only app I know that is free that I have actually used. It is OK. Did I mention it is free? I still get jpeg files and it sucks. Tom Longview, TX

Tell them to get an app like CamScanner (there are several out there) that use a phone to scan into pdf. I refuse to accept jpeg except for driver's licenses. No documents. At all. Ever.

Please note that I've found they take some months to implement the IA. That first payment will (should?) go through, but then nothing on the day of the month chosen, just long enough that you (or the client!) start panicking that they have forgotten about it/not implemented it. Then it starts. I've seen 2 months, three months, and one (during the pandemic shutdown stuff) took six months. Just be warned it may well not be immediate after that first payment.