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Showing content with the highest reputation on 03/20/2019 in all areas

  1. But I already paid tax (10%) on my IRA, so I didn't have to give you the form.
    6 points
  2. I work up a return - client failed to tell me she sold one of her rentals. grrrrr Then when it is time to pick up the return hands me a stack of MLP K-1s she had never had before. Then wonders can she sign the return while she's in the office? Will it be done today?
    4 points
  3. It's the sound of that screeching halt when the Sch C info they give you is a mess. No cost basis on brokerage statement and they have no idea. They sold their business on an installment basis and have no contract. OOOOF!
    4 points
  4. But I didn't take any money out of the brokerage account so it's not income, right?
    4 points
  5. RitaB would remind us that it is OK to kill these clients. I would recommend putting them all on extension. Training to give ALL the documents next year.... tell 'em since this is new information, the returns need to be re-done and you're going at the bottom of the queue. Extension, and next year give me everything the first time (as if they'll do that, hah). I get less forgiving as time goes on.
    3 points
  6. Yeah, just love it when they call and just found something new that you had no idea because it wasn't on previous year's return. I had one this year with a consolidated 1099 for a brokerage account that was opened 2 years ago, thought it was not taxable and not needed for return.
    3 points
  7. I had a similar situation earlier this year. I explained the differences between F8919 and Sch C. My client decided to pay both halves so Sch C was filed. This was NOT eligible for S199A.
    3 points
  8. The IRS will be looking for the income reported in the deceased's SS# on her return, so you have to include it there or expect a letter. On the next line I usually subtract out the after-death income with the description "reported by XXX trust EIN ###." Then report that amount on the trust. I have never gotten an IRS letter doing it this way.
    3 points
  9. There is a difference between what is technically correct, and what is as close as one can come given a particular set of circumstances. What is likely to happen - at most - is a tentative suggestion from employee to boss saying some version of "my accountant says next year this should go through payroll" with no request to change it for this past year.
    3 points
  10. Count my vote as skip the 1099 PDF attachment. I've been filing for at least 10 years using summary totals only, split into A-F category and by issuer. Never challenged, never questioned and save a lot of time on entries... I agree with Abby Normal: no one at IRS is pulling the returns for review.
    3 points
  11. Likely the proper end result, but offer the employer a chance to fix it first, if the employee is still working for the same employer, and wishes to remain so.
    3 points
  12. Just because the Employer screwed up doesn't magically create a QBI deduction.
    3 points
  13. Just did my 2nd deceased return. On the first one, I wondered why the Deceased date didn't show up at the top. It did on my state (Ky). I now noticed (with this 2nd one) it is at the bottom of 1040 page one. Not the bottom of the page but at the bottom of the printed portion (mid page). I think someone else wondered about the notice not being there so I wanted to post this.
    2 points
  14. In addition to my laser printer, I have a Lexmark CX410de all in one. This unit gives me the option to suppress printing and instead it sends a pdf to my email address. It's worked well for me. I am seeing less and less incoming faxes. They are few and far between these days.
    2 points
  15. I did exactly as GingerM says. The client opted to report on Sch C with no S199A. Thanks everyone!
    2 points
  16. Let 'em rip. I did and they all went through. The hung ones said they were at EFC which is ATX.
    2 points
  17. THAT'S IT!!!! damn, it was driving me up the wall, not to mention hindering research.
    2 points
  18. Equitable ownership. Don't know if that works for your situation, but search on that.
    2 points
  19. Write up all the details now, so when the letter arrives in six to eighteen months, you won't be trying to remember the details. Get statements and confirmations, too, to back up the case.
    2 points
  20. My 2 ¢. The 1st 1099R looks like the TP cashed in a non-qualified annuity. TP had made contributions of $8,900 (Box 5) and cashed it out for $10k (Box 1). Only the $1,100 should be taxable. I just did one of these recently in ATX and only the box 2a amount showed up as taxable. Check your input. The 2nd 1099R is a nontaxable exchange (Box 7, Code 6). I am confused by the fact that the company checked the box "taxable amount not determined." If it was truly a non-taxable exchange, then none of it would be taxable and that's why Box 2a was blank. Perhaps you need to get more info from the TP. It may be that the TP exchanged an annuity, life insurance or LTC policy for a new LTC policy or a hybrid life insurance/LTC contract. Maybe the $25k that went to the company was too much and they refunded the $2,589? Also had a similar one recently. It was an exchange between 2 non-qualified annuities. Box 1 $94K, Box 2a blank, Box 2b Total distribution box checked, Box 5 $61k, Box 7 Code 6. I believe that the fact that yours had the "taxable amount not determined" box checked is what's causing ATX to tax the whole $25K. If the TP did not received the $2,589 as a refund and actually received the whole $25K, the company should not have put a Code 6 in box 7. Then, I would put the $2,589 in as the taxable amount.
    1 point
  21. I've used eFax for years and love it. It has a free version, but you can't choose your number. If you want to choose your number or want to port over your existing fax number, you pay. I pay annually to get a savings. But, because it's annual, I can't remember it off the top of my head; think it's up to $169/year. I get faxes via email, but can also go to their site from anyplace with an internet connection. They usually have a two-month free trial. eFax or j2 Global Communications.
    1 point
  22. Yes, that is where it is showing up. ATX tech support said that was a new law from IRS but for some reason none of the other big tax software, Lucert, Drake, Tax pro still puts in on the top of 1040. Hmmmm wonder why only ATX must follow this new rule.
    1 point
  23. Having the correct DoD on her 2017 return is fine. Yes you need a personal return for 2018 for all income up to the DoD. Trust income before the date of death goes on that personal return unless they filed a separate trust return every year which is rare. Income after death in the trust, you need to report it on the irrevocable trust return. Income earned that isn't in the trust but is earned after death needs to go on an estate return. I've never seen it legally handled that the trust can just declare all assets go into the trust upon death. You need to title it that way BEFORE death. Things like insurance or an IRA where it is distributed via a beneficiary form can do that but generally not bank accounts and so forth. They could have used "transfer on death" but why?
    1 point
  24. No, nothing done in your program. Go to ATX site, under Efile status, search for the client, you'll see an option to 'Rehang'
    1 point
  25. I think you have to say No if not everyone on return had MEC for all 12 months. Then entering the 1095s will give them the details.
    1 point
  26. I'll let'em rip...Thanks. I did have a few that said Transmitted to Agency. Whats the worse that could happen???
    1 point
  27. Mom deserves to be happy...especially with her tax preparer. All of my affected client had their federal returns accepted. It's just the states in limbo. I did see the blog comment and duplicated all of the returns this impacted. I also recreated the state efiles...I'm just hesitant to transmit them, since they are all showing as having already been transmitted.
    1 point
  28. Add form 8962? Are you looking for a place to calculate the PTC?
    1 point
  29. RE pro does NOT trigger SE tax. it just allows you to deduct losses regardless of your income. Your guy's only hope is to have a property that provides services; for instance a vacation type place with daily maid service. That would be SE income.
    1 point
  30. Agree with Catherine. If the employee tries to make an issue of this, nothing will happen. Even if reported to the IRS, nothing will happen. People believe the IRS will act upon some party triggering a sloppy information return mess and clean it up. Instead they will view this as some problem laid on their desk, and they won't act on the extra work this causes them. The only work they do is whatever is delegated to them.
    1 point
  31. I have bitcoin trading clients. I used to use a spreadsheet for tracking, and had the client provide me a list of all his buys (very few) and sells (more, but not tons until last year). A year or three ago, he signed up for one of the basis-tracking services. Since then, he provides that spreadsheet for me. I rework a copy of the spreadsheet for a bit (getting the columns in the right order, and the date in US style rather than Euro style), then import (into Drake).
    1 point
  32. I have reported Bitcoin Sales for a client. He has been in bitcoin from the beginning. He keeps a spreadsheet of buys/sells (at my request) with dates purchased/sold in the format acceptable by the IRS. I enter summary totals, and I attach his spreadsheet as a .pdf. He has short-term and long-term gain, and he is meticulous about tracking buys/sells (which I think is important). Some of the Bitcoin companies also pay dividends, which I report on Schedule B. I have not had any problems/questions/rejects with this approach, and one year he made over $2mil, so it would have been noticeable. Eager to hear whether I've been handling it the way others would.
    1 point
  33. My preference is to hand the mess to the employer for clean up, or have the employee report it (properly) as W2 wages, pay the taxes owed, and let the government handle collecting the employer amounts. Just because the employer made a mistake, the employee and their dependents should not be penalized. IRL, the employee likely wants to keep their job, so the employee will ask to will have to be handled as some sort of earned income... in a way which does not cause the employer to get dinged. As I get closer to SS age, and more importantly, as my wages count for my daughter's disability amount, there are similar mistakes in my youth which I wish I could undo. Thus, my hard line on this of dumping it on the employer, with the understanding not all will do so to avoid "rocking the boat".
    1 point
  34. I'm sure the only reason this exists is so they can add some AI buzzword bullet points to the marketing materials.
    1 point
  35. BINGO!!!! Thanks!!!! I really appreciate you walking me thru that! I left Drake Tax Software and am so glad I am using ATX now, but it is such a different tax software. Data entry is apples and oranges!
    1 point
  36. I've never attached a 1099. Have a client with 4 trust accounts - the smallest of the tax forms is 180 pages. It was over 1,000 pages of trading activity and dividends this year.
    1 point
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