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I agree with Judy--the filing requirement is not met, but weighing the benefits of filing versus having to respond to an IRS letter...better to file.

There is a very well-known phenomenon where an obvious solution hides - very cleverly and thoroughly - until one gives up an asks here on the forum. At which point it jumps out just as a colleague reports that hiding place/location. I think we have all been bitten over the years! Heck, I've used this to my own advantage by posting a query in the hopes of flushing out my prey.

I just got a K1 in with a whopping $39 in income. Wasn't planning on amending.

When there is a 1095A with at least one person covered that isn't, or is no longer, a member of the taxpayer's household group, you have a shared allocation situation, and the parties involved are allowed to split the amounts on the 1095A at any percentage they wish as long as the same percentage is applied to all amounts for that month (premium, SLCSP, APTC), but I believe different percentages can be used for different months. They can choose 0% and 100% or any percentage in between that gives the best outcome. Each return will need to include its share of the allocated amounts. The 8962 instructions has at least one example of this. If you bring up the instructions as a pdf, just search for "shared allocation" using Ctrl-F and should find it easily. I think it is "Situation 4" as presented in the instructions. Can't help with the actual input on ProSeries though.

It's up to the bank at this point. If the bank accepts it, it'll be in brother's account. If the bank rejects it, it'll go back to the IRS who will issue a check. Hopefully the brothers get along!

taxnotes© has posted a couple of articles on a recently released IRS memo (ILM 202511015). From the NAEA bulletin "The January 17 memo...determined that taxpayers who were cheated in their attempts to invest could take advantage of the theft loss provision for 'transactions entered into for profit'; and wouldn't be limited by the TCJA's restriction on personal casualty losses."

You can't elect other income. However, it may be an advantage to not elect the full amount of 2024 farm income. What it does it take the elected amount, divide by 3 and then recalculate what the 2021, 22, and 23 tax would have been with that extra 1/3 added on to taxable income for those years. For example, say the prior 3 years taxable income was in 12% marginal rate. 2024 alone has 60K in 22% rate. That would likely be the optimal to elect. If wouldn't do you any good to shift more to prior years as that may put some or more in 22% rate in the recalculation while not taking full advantage of 2024 12% marginal rate. The calculation would then be 2024 at 12% marginal and as long as there is 20K per year in prior years room before 22% is hit, essentially all the 2024 income is taxed at 12%

Here a link to the actual article BrewOne refers to: https://www.taxnotes.com/featured-news/tax-pros-welcome-clarity-scam-theft-loss/2025/03/14/7rnbr

And one point in time, many years ago, I believe that an IRS agent told us that the amount of income was $100 and tax was $10, but my memory isn't what it used to be so I might have those amounts slightly wrong. But I am reasonably sure that there is an amount that makes it not worth their trouble. However, this assumes that everything else on the return is going to match their records and therefore this amount won't be added to some other change to cause them to send the CP notice. As my mama used to say, you pay your money and you take your chance.

Just thought I would post this for anyone that uses Proseries or other Intuit products. Scam alert for a 'security update'. They want you to 'install a plug-in'. Heads up!

It is not really income averaging, it is actually tax bracket averaging. You have to play around with the elected amount to determine the optimal amount. Also input any LTCG over STCL and unrecap 1250 gains on lines 2b and 2c that were included in the elected amount so they will not be included.

The gift is a reduction of the fmv sale price. Show it as an adjustment on column f of 8949 and use code O.

You log in to your preparer account at the IRS and there is an opt-out checkbox somewhere. I forget the details, though.

Do you really want to face trying to respond to a letter in the summer of 2026? When all you need do now is file? And who knows how many computers will need to be pacified before you can talk to a person? Do it the hard way, and make it easy on yourself and your client.

HRS, how do you take your name and details off the directories?

DANRVAN, I do have a copy of the transfer of deed from mother to daughter (client) for 0 amount. And I have a copy of a decision Estate of Linderme v. Commissioner, 52 T.C. 305 (1969) which includes the statement, " It has been successfully argued in the past that a right can be retained without being reserved, and that the continued occupancy of the home after the transfer of title, without paying fair market rent, is evidence f an implicit agreement, understanding or assumption of the parties of the transaction." I think this describes exactly this situation So I'm going with that. I appreciate the reminder of the step up in basis and possibility of loss. It looks like the selling expenses would constitute a small loss. Thanks again, friends!

In determining gross income for the filing requirement, gains but not losses are used in that determination. It is not the proceeds, but the gain that is taken into consideration. That being said, even when the basis is reported to IRS and no gain exists, the AUR will be using only the proceeds side of the equation and this client will receive a CP2000 later on. These used to be 18 months, but who knows how long that will be now. Yes, I would file a return. Also, consider the state requirements that may have a different method of determining income for the filing requirement, and many times is lower too.

Unless the change in taxable amount is more than $50, or the change in tax is more than $14, a CP2000 will not be issued.

A few years ago I took my name etc off both IRS and state directories and the stupid questions and help (consultation) stopped. My business was strictly referrals.

It's the PTIN Directory you want to opt out of. Numerous sites download that data and make local lists of tax pros. I signed up to have Google search for and alert me about my personal info on the web, then give me the opportunity to have it removed. https://myactivity.google.com/results-about-you

Sometimes the insurance company will use 2024 and automatically renew 2025. Make sure to tell them to check to make sure son isn't on 2025 policy.

If son (or parents) are lower income, he might not have much/any payback and can take a higher %. Try a couple different ratios to see what is best for both branches of the family as a whole. If not 0%/100%, then 1%/99% or 50%/50% or...

I received an email today telling me to install an Adobe update by EOD!! Deleted that email.

You might want to read this topic below that covers a similar pattern. Was an appraisal done to determine the actual FMV of the house, or do you possibly have a sale to a related party for below market value? There are other threads on this topic also. Just search this site for "gift of equity" in quotes and you should easily find more that describes the reporting.

When the amounts are this small, I tell the client to run any IRS letter by me first, to make sure it's correct. Then I can confirm for them to pay the additional tax requested. Way easier than amending, and the letters only come through about half the time. According to Eric Green (TaxRepNetwork; he has lots of contacts in the agency) they are concentrating enforcement in areas where they get a bigger bang for their effort-buck. The folks who owe $600, not $6. The non-filers with W2s in the 100's of thousands, not 24k.

I agree. I would file.

Here is an updated list with closure dates with additional offices to be closed in 2026: Alabama 634 Broad St., Gadsden: Sept. 30 Arkansas 965 Holiday Drive, Forrest City: April 25 4083 Jefferson Ave., Texarkana: May 25 Colorado 825 N. Crest Drive, Grand Junction: June 21 Florida 4740 Dairy Road, Melbourne: May 16 Georgia 1338 Broadway, Columbus: Sept. 30 Kentucky 825 High St., Hazard: April 24 Louisiana 178 Civic Center Drive, Houma: April 25 Mississippi 4717 26th St., Meridian: June 1 604 Yalobusha St., Greenwood: June 1 2383 Sunset Drive, Grenada: May 1 Montana 3701 American Way, Missoula: June 21 North Carolina 730 Roanoke Ave., Roanoke Rapids: Aug. 1 2123 Lakeside Drive, Franklin: June 23 2805 Charles Blvd., Greenville: June 24 1865 W. City Drive, Elizabeth City: June 24 North Dakota 1414 20th Ave. SW, Minot: June 21 Nevada 701 Bridger Ave., Las Vegas: June 1 New York 75 S. Broadway, White Plains: May 31 332 Main St., Poughkeepsie: July 31 Ohio 30 N. Diamond St., Mansfield: May 17 Oklahoma 1610 SW Lee Blvd., Lawton: April 25 Texas 1122 N. University Drive, Nacogdoches: May 7 8208 NE Zac Lentz Parkway, May 25 West Virginia 1103 George Kostas Drive, Logan: April 30 Wyoming 79 Winston Drive, Rock Springs: June 20

Those are the amounts for when a new 8879 needs to be signed if we find a correction to the return after the original 8879 is signed. I've never heard these same amounts concerning CP2000 notices. Can someone else confirm what MaxW said?

If it were a snake I wouldn’t be posting anymore! Thank you

8879 signed with a highlighter. Is my instruction slip that confusing?

LOL! Way back in the day when I worked corporate, the owner of company said that to many a supplier. Best is when he said it to police department when company driver was ticketed!

I'm done playing those games. Client wants to do things through portal instead of driving close to hour to office. It went on for days to get info. First they only sent state signed form. Emailed them that I needed federal also, and to put CC info on invoice and return it if they want to pay that way. Couple days later, I get the federal form and CC number and code. Email asking which of their names in on CC and that I need expiration date. Couple days later responds that it's under his name, but still no expiration date. Finally get everything and they get an email from me that this is not working and they would be better served going somewhere else next year.

I didn't change anything. He passed in Jan 2024 so they filed jointly both 2023 and 2024 with DOD noted on returns. The notice was in her name only so somehow they must have removed him from account along with the payment. Never had that happen on similar situations before, but MI is not the primary state I file returns for.

In her defense, you were vague.

Usually, WV where the money was earned. When you take a credit on your resident state return for WV taxes paid, you might be close to a wash. But if in your resident state you'll be in a much higher tax bracket, you'll need to increase your withholding or make an estimate to your resident state, also. First check on what happened to close the sale, because you might've paid WV income tax already. Also, I don't deal with WV, so check if it's a reciprocal state with yours, and if the reciprocity pertains to only earned income or if it might change how a property sale is taxed between the two states. Oops! I didn't read above the line. Jim already gave you answers.

If it mom truly retained a life estate it would be included in her gross estate and receive stepped up basis.

+ Basis is stepped up basis at DOD not mom basis.

I had someone call today, looking for help in how to look up whether a particular local charity has filed a public charity report on the state Attorney General's site. As if I knew in the first place, give a bleeping hoot in the second, and third would do such work for a stranger for no fee at any time. What gives with some people?!