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So, once again, assuming ATX jumps on board and we have the option to ignore line 61, we spend an inordinate amount of time explaining and hand holding, and you know they will ask us what they should do. And we will go through every scenario and say, "It's up to you," and they will say, "Blah, blah, blah," and we will go thru every scenario again, and no, we in the poor South cannot charge for all this time talking, or we will lose these clients. And, yes, I need them. I have done 70 returns and nine had the penalty. Those nine had small penalties, and frankly, they don't care because they have refundable credits, and the tax return is a big lottery to them. I do have two here that are waiting. They are actual tax "payers" and owe big penalties, and care a lot. My clients get more sophisticated and willing to pay me from here on out, but they have insurance. We don't have to talk.

This is an interesting development. I assume ATX and other software vendors won't be too far behind the curve on this change (or maybe they've already done it) In any event, it causes me to ask some interesting questions. Does The tax preparer have an obligation to tell the client about this change? Or are some tax preparers going to relish their role as unofficial collection agents for ACA and just withhold the information from the client? My take on it is that this is the first shot across the bow on an ACA version of "Don't ask, Don't tell". Any anyone who fails to advise their client of this option may be costing the client money - in some cases a lot of money. Then if the client later finds out about it but can't get the penalty back, they might have a valid issue with the preparer who didn't fully inform them of their options at the outset.

I have said from the beginning - the tax return and the health care insurance should have nothing to do with each other. Now - I have (accidentally) filed a return with out the box checked for my own minor daughter who is my dependent. I see you get a message back with your acceptance. This to me is very sticky icky stuff and I am worried about possible ramifications. Make sure that liability insurance is paid up!

Aren't you devious. Me too, but I one-upped you by adding a dollar sign to mine and it flew on through. They'll never break our James Bond style secret codes now with all this disguising stuff.

I went through the process when I originally got the letter. Couldn't get through on line, so I called the number and was verified there. Now I'm evidently suspended. The IRS representative assured me that all was OK at the time. Why can't they even deal with their own procedures?

An unfiled year remains open forever... is my understanding.

1040 Program UpdatesRelease Date: 02-09-2017 15:28:03 1040 Program Updates- On February 3, IRS disabled business rules IND 069 and IND 070 and will now accept an e-filed return that does not indicate either full-year coverage or an individual shared responsibility payment or does not include an exemption on Form 8965, as required by IRS instructions, Form 1040, line 61. In accordance with these changes, this update allows taxpayers to elect to file a return with no response to line 61 of Form 1040.- The Principal Business Activity codes were updated on screen 5471.

Well, My take is that we do not have any official memo from IRS that we should stop ACA related calculation. I am worried about circular 230 problem. I will continue to follow the current rule at the time of filing. My ATX MAX does scream if box is not checked or 8965 or 8962 calculation.

I know what to do, I was just asking if anyone else had seen any of these. And I'm not willing to guarantee that there will be 'no issue' even when paper filing.

Drake is still requiring that a box be checked to efile. We now have a box that says Taxpayer does not want to compute SRP.

Just wondering - who does CE DURING tax season?

I originally posted this in the Drake section but it will affect everyone, sooner or later. Drake update; 1040 Program UpdatesRelease Date: 02-09-2017 15:28:03 1040 Program Updates- On February 3, IRS disabled business rules IND 069 and IND 070 and will now accept an e-filed return that does not indicate either full-year coverage or an individual shared responsibility payment or does not include an exemption on Form 8965, as required by IRS instructions, Form 1040, line 61. In accordance with these changes, this update allows taxpayers to elect to file a return with no response to line 61 of Form 1040.

My program is up to date and I can not create an e-file without line 61 checked or the Form 8965.

I have Version 16.5.6229.31762 You find that under the "Support Tab" and click "About".

And the squeaky Guinea Pig gets the parsley...

I figure it's the middle of February already and his SSN & info has been out there since it was mailed open in January. So, my question re an extension being rejected or not was so the preparer/client can tell if ID theft has already taken place. (I know well that an extension does not stop it. Two years ago my own joint extension was filed, but someone used my SSN before October when we filed.) I too would file a return with what's available sooner rather than later with the intention of amending if I thought it would stop fraud and the client chose that method. But, if a return was filed in January, you can't stop that fraudulent return now. If you do file before the thief, still take all the other measures in addition.

It is most likely in response to the Presidential order to (paraphrased) "...remove the burden on taxpayers." ATX has already jumped on board with this. By allowing returns to be filed with the box not checked and no 8965 attached, the IRS is complying with the mandate.

Thanks for the comments, I believe I am going to file 14039, give them a shout and at least make them aware of the situation. I will keep you posted if anything else develops.

More info in the Drake KB entry 14579: IMPORTANT: Make sure the taxpayer understands that by selecting either of these check boxes, he or she could receive communication from the IRS, experience delayed refunds, and face subsequent collection activity to recoup the individual shared responsibility payment, if the payment applies to the taxpayer's filing scenario. The box referred to gives the taxpayer the option to file without computing the SRP.

Yep, I couldn't do it the regular way, because the IRS said that AT&T said my cell is not in my name. AT&T said it is; the bill is in my name; my name displays when I call someone. I had to wait for something in the mail. That only let me do that Get My Transcript thing. I couldn't identify myself via telephone, because i get no 1099s/W-2s in my name/SSN (name/EIN plus one that always has a typo, different typo every year, but always a typo). Was on the wait list for an appointment at an IRS center in a distant town. e-Services still rejects me. It's on my to-do list, but who has time now?! Just hope I can get through without needing e-Services.

She may be able to check the court records if she knows the location to see if final documents were filed and release was provided. Does she know of any relatives of the deceased? I wouldn't think this client would have any personal obligations to the other estate but, well, I'm not a lawyer (love saying that!).

Thanks! That killed if off and is one of the better tips I ever got. That dadgum thing was like the horror movie - "IT FOLLOWS".

So is anyone besides me who uses ATX unable to create an e-file for a taxpayer without line 61 checked and without Form 8965? (Not talking about dependents filing a return, they do not check the Box at line 61.)

Thanks for all the replies. I have located 2005 from a local preparer. I have my old XP laptop that I will install it on. So thanks for all the help. NY wants it. The client hasn't filed in 10 years. So they have figured his taxes for him and he owes quite a bit. First he has to get his paperwork in order and I'm not doing that for him, not my problem. I've done 2006 - 2016 for him but he has to find his 2005 W-2 or get it from somewhere. I'm not doing it for him.

We had a squeaky refrigerator door and a smart Guinea Pig who made the connection. He'd go nuts whenever we opened the fridge.

The Taxpayer Protection Program is used only after the client receives a notice from IRS. I wouldn't automatically assume fraud. After all, whoever opened the mail did put it back into the postal system. I'd think a fraudster would not have done that. I would urge the client to get the return finished sooner than later, and if the efile is rejected then I'd re-file with 14039. I wouldn't go through the hassle of filing an incomplete return with the intention of later filing an amended return.

MD entities were listed to be ready on 2/17 but became ready earlier this week. I complained on the forums about one MD personal property form that was not ready yet and ATX responded and got it done that day for me. Squeaky wheel!

I understand your point - but filing an extension will NOT prevent a false return being filed by someone else. I have some clients for whom we filed extensions last year (because we did not yet have full docs) and when we went to file - could NOT - because someone else already HAD. That was VERY disturbing to me -- but in a case like this, I would have no trouble with my ethics filing that "place-holder" and nearly-blank return to prevent fraud.

What about that pesky part on the bottom of page 2 about declaring the return being true, correct, etc. ? I think I would file an extension but wouldn't file a false return with the knowledge that it wasn't true, etc. and knowing it would be amended when all the actual information is finally available. Just me, maybe, but I would not fill in numbers, even those already known, with the full knowledge that it wasn't complete.

I wouldn't file a blank return. Put some numbers on it--bank interest, mortgage interest, whatever, just enough so there is no tax liability. I don't know if a blank return will be accepted. Then amend. We have had two or three taxpayers on extension whose actual returns later rejected. Apparently not all fake returns are filed in the first couple of weeks. One of these clients got a letter from IRS saying his refund would be increased by over $120k because he neglected to include his estimated payments--and this was after he filed the 14039. Let's hope the thief didn't get that windfall. I was annoyed that there was no filter alerting the computer system that while some people might forget they paid an estimate or two, who would forget $120k?

If you purchase at one of them, you get a NICE discount!! If I recall it was about 400.00 off +/-. Also if you renew early you get that same discount each year.

The no good low life designers made their update override my choices in preferences. That makes them the lowest of the low.

There is a way to stop it by going to your preferences, open return, and take the check off the box that says display IntelliConect Tool Tips. They actually posted this fix on their Blog earlier.

For my "daily" passwords I have taken to using 1Password (password manager) on the computer. However, for the long lists of "never use this again" especially where there are rules that have to be obeyed but are NOT presented until you try something (sorry, must be 9-23 characters; sorry, MUST include special character *^%# or @; sorry must NOT include special characters *^%# or @; etc) I have a password-protected Word document that lives on an encrypted drive. Last time I checked it was TWENTY-EIGHT PAGES long. And yeah, if someone manages to hack into that, I might as well convert everything I own to cash, store the cash in a safe, and never attempt to go online again.

From an IRS info email: Web Conferences for Tax Professionals Mark your Calendars! Earn CE Credits Understanding the Sharing Economy Thursday, February 16, 2017 This web conference will provide an overview of the following: What is the Sharing Economy? Tax Implications for Individuals Performing Services Determining Employee/Independent Contractor Rules for Home Rentals Business Expenses Employer/Payer Employment Tax Obligations Resources Plus a live Q & A Register and Attend: Session 1 (60 minutes) 11:00 a.m. Eastern; 10:00 a.m. Central; 9:00 a.m. Mountain; 8:00 a.m. Pacific https://www.webcaster4.com/Webcast/Page/1148/18972 Session 2 (60 minutes)* 2:00 p.m. Eastern; 1:00 p.m. Central; 12:00 p.m. Mountain; 11:00 a.m. Pacific https://www.webcaster4.com/Webcast/Page/1148/18986 *Closed captioning offered. Continuing Education: All participants who qualify will receive a Certificate of Completion Tax Professionals – Earn 1 CE Credit – Category: Federal Tax Questions? Email us at: [email protected] Understanding Payment Options Thursday, March 16, 2017 This web conference will provide an overview of the following: Direct Pay Online Payment Agreements Cash Payments/IRS-Pay Near Me Offer In Compromise Other Payment Options Plus a live Q & A Register and Attend: Session 1 (60 minutes) 11:00 a.m. Eastern; 10:00 a.m. Central; 9:00 a.m. Mountain; 8:00 a.m. Pacific https://www.webcaster4.com/Webcast/Page/1148/18987 Session 2 (60 minutes)* 2:00 p.m. Eastern; 1:00 p.m. Central; 12:00 p.m. Mountain; 11:00 a.m. Pacific https://www.webcaster4.com/Webcast/Page/1148/18988 *Closed captioning offered. Continuing Education: All participants who qualify will receive a Certificate of Completion Tax Professionals – Earn 1 CE Credit – Category: Federal Tax Questions? Email us at: [email protected]

This is a repeat webinar - it was first aired in either December 2016 or January 2017.

That's generally my method but with the complex style and my software requiring at least 2 changes (so 12 becomes 23?), I have a print out taped to my laptop with my 2 tax software passwords. When they have to be so freakin complex PLUS they change so often, I'll never remember it and I take my laptop with me. Plus my software has a 15 minute kick out so that means I'm entering it 10x per day. Horrific system. The computer is encrypted so nobody is hacking into it. Literally to get into my tax software from boot up in the morning I have to enter 3 different passwords.

I checked with Drake and they started transmitting Oregon business efiles in late January. They usually have several seminars in Oregon in early to mid May. I will definitely be attending one of them.

Marco, If no children to be claimed, SINGLE is her filing status

Surviving spouse. If you are the surviving spouse, the year your spouse died is the last year for which you can file a joint return with that spouse. After that, if you don't remarry, you must file as a qualifying widow(er) with dependent child, head of household, or single. For more information about each of these filing statuses, see Pub. 501. https://www.irs.gov/publications/p554/ch01.html https://www.irs.gov/pub/irs-pdf/p501.pdf