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About a week ago on my way to North Carolina, I stopped in at Rita's place in Crossville, TN. Yes - this is the same Rita that hosted our get-together 6-7 years ago. She looked good in her office perched on a hillside. She and I have been friends for a long time and live an hour plus away. And as I was leaving a pretty young lady came in to have her taxes done. Not a lot else to say, but for some of you that came to her place that year - I thought you like to know that she's still doing well, even though she doesn't post much. Just one of the great people who are on this board.

Loved and Miss Rita and her posts.

Love Rita! I was also fortunate to attend that amazing gathering and visit her again a couple of years later. Good times! Reminiscent of the camaraderie of the ATX group of users and providers in Maine. I'm guessing that not many mega software users do not have such fond memories.

If your client is the custodial parent, per IRS rules, then she gives Form 8332 and does NOT receive it.

I stay out too, but sometimes you just have to say something. I was called in by one of our CPAs whose clients were setting up a trust to explain to them the tax effects. Talking with them, it was obvious they had no idea why they were doing this. They had limited assets, not much to protect, and had gone to one of those free dinners. I ended up telling them to write down a list of questions and go back to the advisor, warning them not to sign anything until they got answers. Another time a client came in with a dozen 1099Rs. His advisors were buying him annuities and cashing them out for new annuities every single month, costing him enormous fees. That one we just had to call the state insurance commissioner on.

I had to have "the talk" with two elderly couples this year. (Well, one couple and the adult son POA for the other couple.) Huge capital losses in "investments" that are utterly inappropriate for people in their late 80s and early 90s - and no, they did not have those investments the prior year. General warning to ask LOTS of questions before buying anything, and not to accept gobbledygook as answers.

Rita is one of the best. Hope she comes back to post more often. That summer get-together is one of my very fond memories.

In case anyone was wondering about the outcome of this. I dredged up old documents (that had not yet been shredded somehow) and discovered they got the one that did not need repayment. Plus after some more research in other old files, I recalled the IRS was rejecting e-files for anyone who did not include the annual $500 repayment amount on their 1040. Since that did not affect these folks, that is confirmation of the non-repayable version of the credit.

I assumed OP already made that determination; and return was filed, or to be filed without 8332 (So we don't have an 8332 and we go ahead and file electronically without one.) His question was: "Will the IRS hold up processing the return? Researching to see whether "Jack" has claimed Toddler?" Answer is, IRS does not track who custodial parent is from year to year. They are not going to hold up the return while they research "to see whether "Jack" has claimed Toddler". So even if the return is filed by non-custodial parent without 8332, the dependent will go to noncustodial parent if custodial parent has not claimed. I know many of us have had to file an appeal for custodial parent when ex beat them to the punch and claimed dependents without permission.

You are filing an incomplete and inaccurate tax return. Filing form 8332 (or similar statement) for noncustodial parent is a requirement, not an option.

Most of the time my clients will tell me that they have joint custody. And they usually do, in which case I know that it comes down to where the child spent the most nights for the dependency exemption. But with no clearly defined "custodial" parent, deciding who should give whom an 8332 is not always clear.

Yes, my point exactly. The OP has a client where NO Forms 8332 are used. This leaves his client at the mercy of her ex and open to a position that will take a lot of time working with the IRS to clear up/validate her return/receive her potential refund or confirm her balance due payment. OP seems to want a 8332 each year, alternating which person signs/provides. This is not the way either. Identify the custodial parent first. Your 2nd paragraph is a great solution. However, your 3rd paragraph shows why it's not a one & done. Maybe that's why OP wants to see an 8332 every year; however, it's even years only if his client is the noncustodial parent. No matter what, he needs to identify the custodial parent first. [me] "Did Jack give you an 8332?" might not be the next question to ask...

Not in the world I live in. Original cost certainly does not reflect DOD fmv of farm equipment.

So aren't you taking the same position as Fleischer v. Commissioner? Assignment of income to the Corp. Why doesn't the firm become RIA and follow the code?

I stay out of my client's investments, until last year, I broke my rule. Client is in a PTP for 30 days, loses $100 and the K-1 drops a few dollars of interest expense and depreciation on her. Add in my charge for Sch E page 2 and the 1256 straddle form and she lost a couple hundred bucks for a 30 day investment. I asked if she knew what the partnership did, she had no clue. So I gave her some questions to ask the advisor. She called me back and said he promised not to put her into those investments again. I never know where the line is to talk to my clients about their investments when I think they are being taken advantage of. I try to tell myself it is none of my business, but I care about my clients and it pi$$3s me off when I see these "professional advisors" putting their profits before my clients best interests. Tom Longview, TX

Trusts have to report on a calendar year. Are you talking about the Section 645 election to be treated as part of an estate?

I renewed on 2/17/2025 and received my new card last week. Today, I received a letter telling me my status is inactive because I failed to renew As I type, I've been on hold waiting to speak to someone for just over an hour. Anyone else had a problem? Part of me wants to hang up and ignore the letter but I don't want to lose my license.