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Showing content with the highest reputation since 03/17/2019 in all areas

  1. 8 points
    But I already paid tax (10%) on my IRA, so I didn't have to give you the form.
  2. 7 points
    Hell froze over today. Not one but TWO of my clients came up with their original purchase docs for stocks bought in the 1980s and '90s! One even had the annual statements of reinvested dividends (which I had to add up, but I was so overcome with joy that I didn't mind).
  3. 6 points
    I believe it is important to verify the balance sheet numbers you will be going forward with when taking on a corp or partnership. Just recently I took on S-corp in which balance sheet was a mess. Had a note receivable that shareholder was unaware of and prior CPA had no documentation of. Also some prior AAA had been co-mingled with capital stock, and there was additional paid in capital that nobody could explain. Accrued payroll liabilities seemed high and it turned out they had made incorrect journal entries so the liability kept growing as they added another layer to it every year. This came from a firm that has a poor history of quality control. Preparer basically said that was the way she found it when turned over by retired partner. Client got over $5,000 of bogus deductions over the years. Back to your post, you raise some good questions but as others have mentioned do not cross the line of handing out legal advice. Also I would not recommend legal zoom over reference to a reputable attorney.
  4. 6 points
    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?
  5. 6 points
    Darn, I was hoping they could file as a threesome.
  6. 6 points
    I'm the same way - didn't mean it like it sounded. Some days I'm shell-shocked by five (closing time) after dealing with clients all day, but am a night person and can recoup after supper and two hours rest. I don't take any clients after five but can get a lot of work done between seven and midnight (or later) with nobody to interrupt. By late clients I meant I'm still getting some heavy-duty cases to work. The quick-refund-big-box franchise down the street now has an empty parking lot and is looking out the door hungrily 'cause their clientele has already come and gone.
  7. 6 points
    I start early, so by 5pm, there is nothing much nice about me. If I took clients in the evenings, I'd be arrested by my own son, for murder. I think we should all get Medals of Honor when we get through a season without killin' somethin'!
  8. 5 points
    Grandsons trump everything else!! My grandson turns 5, on April 25.
  9. 5 points
    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!
  10. 5 points
    But I didn't take any money out of the brokerage account so it's not income, right?
  11. 5 points
    I'm sure the only reason this exists is so they can add some AI buzzword bullet points to the marketing materials.
  12. 5 points
    Just discovered ATX has a summary of the unadjusted basis of depreciable property. It's under 4562 statements. I was working on an 1120S and calculated the amount manually, then saw this statement. Same amount as I calculated so I must be doing it right.
  13. 4 points
    I was at a CPE Class about 10 years ago talking to another EA. He had a Murphy bed and a shower in his office, worked 14 hour days all through tax season said that he did 800 tax returns by himself. The only help he had was his wife who did copying and assembly stuff 3 days a week. He worked a few less hours on Saturday and Sunday, which were the only nights he went home and slept in his own bed. He said he made enough money to take most of the remaining months of the year off. Thirty years ago I could have worked that many hours, those days are now far in the distant past.
  14. 4 points
    I wait eagerly every weekday for the door to close after my last employee leaves. I have an amazing team, but I need quiet and no interruptions to just slog through returns. I, like Lion, take very few appointments. I don't have the patience anymore for individuals to hand me one document at a time after staring at it for several minutes trying to tell me what it is. The appointments I do take have to be before 15 March. I make a few exceptions, but a very few. With the late 1099-div forms this year, I'm only half-way through the returns I need to complete, and I'm starting to panic a bit. On March 23rd, I always take an official 'count' of what's waiting in the queue and how many returns I have to do per day to meet deadline. Aaargh! Why do we do this to ourselves. This is a crazy profession!
  15. 4 points
    I can get a lot of work done after dinner when the phone's not ringing and clients aren't expecting an immediate reply to their email and when hubby stops walking in my office, sitting down, and trying to show me some video or something that could wait until dinner! So, I end up working very, very late. I take few face-to-face appointments, but make them in the afternoon.
  16. 4 points
    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.
  17. 4 points
    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.
  18. 4 points
    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.
  19. 4 points
    Just because the Employer screwed up doesn't magically create a QBI deduction.
  20. 4 points
    How was your predecessor coming up with the figures for the 4562? There are no fixed asset schedules for any of the clients in prior year files or workpapers? If this former preparer was using another software program to generate the figures for the 4562, it might be easier to purchase that program too rather than starting to input all from scratch into ATX in the middle of this season, then deal with moving all of it to ATX when you aren't so busy.
  21. 4 points
    Frankly, my dear, I'd rather have the wine!
  22. 3 points
    You need the FEC WKST to input wage (or pension) from a foreign company with no U.S.-style EIN. On W-2 there's a dropdown up top to channel wages to Form 2555 when it's a U.S.-based employer. There can be "transit days" encompassing a few hours that don't ruin PPT.
  23. 3 points
    Yes, Judy and Catherine, I was less than explicit. I meant the earnings was subject to the penalty unless an exception applied. I just did one of these last month. I did say to use 5329 for clarity even when I am not.
  24. 3 points
    Any minute I expect the Twilight Zone theme song to start blaring from my radio that's not turned on!! Just found another new present we were left with this year. Form 8990...instructions are only 11 pages long. This form is used in order to find out how much of the business interest expense that can be used as a deduction on Schedule E. 800 returns? Nah, no way!
  25. 3 points
    add FECWKST form to ATX If you use f2555, you have to allocate any days TP was in the US working (meeting clients, adding training, conferences, etc..) on F2555, tab Earned Inc Allocation If you use F2555ez, you have to calc your own alloc and insert the # on page 2 of F2555 line 17
  26. 3 points
    I'm sincere when I say this, there isn't any way possible 800 returns can be prepared by one person (even with a little bit of help from his wife).....no way in hell. cbslee, if you ever see him again, tell him you barely broke 1,000 this season...1,002 as a matter of fact! What's another couple of hundred returns...child's play. If I could do 800 returns in one season, I would hope I could make it not working the rest of the year....$200,000 should get me through with $$$$ to spare, pay taxes, and buy a really cool pair of to have on when I go visit the other work horse that prepared 800 returns. 800 returns with the new forms, idiotic scheme for the forms, a 300 page rules and regulations issued 1-30-19 or thereabouts....you really can't blame IRS as they only had a year to get that accomplished! 800 returns....no chance in......fill in the blank. Take care all, Cathy
  27. 3 points
    Absolutely. And thank your clients for their service and heroism. The argument is substance over form. The law clearly states that the money is tax free, regardless of what the paper from the payer says. It is no different than getting a 1099 for Misc Income that should have been coded to rents. Just because the amount is in the wrong box does not change the substance of the transaction. Just make sure you have your documentation solid and be ready to appeal if the IRS denies the claim. Tom Modesto, CA
  28. 3 points
    Gah, what next! There's always burn or mulch too. One more great reason to go totally paperless. Maybe I'll offer my chips to my neighbor with the dirt farm that could churn it in with his used mushroom soil compost, and no one would touch it then.
  29. 3 points
    Me too. I came in most days but only got 1 or 2 returns done each day. You can't make that time up!
  30. 3 points
    As a broker, we have cost basis info on all trades going back to 1932. We used to get tons of calls asking for really old cost basis information and with mergers and stock splits it would become a nightmare. For ATT I came up with a spreadsheet to plug in the original cost and it spit it out. Around 2000 a bunch of firms got together and proclaimed everything has a cost basis of $2 per share because it was essentially impossible to figure it out and the major firms were purging their systems of the data so that they didn't have to look it up.
  31. 3 points
    I stopped taking night clients last year and it is soooonice... I have a prior 911 dispatcher answering phones for the season - no one gets by her - drop box baby! or 9-5 M-F
  32. 3 points
    Came from this pdf from the IRS site: 4491_filing_status (1).pdf
  33. 3 points
    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.
  34. 3 points
    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.
  35. 3 points
    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.
  36. 3 points
    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.
  37. 3 points
    I think the ones you gotta watch are the 1099R with a code 3.
  38. 3 points
    Thank you for the validation. That's one I got right. One.
  39. 3 points
    Yes, the payer of the third party sick pay is acting as agent for the employer and the payment is considered wages to the extent it is subject to withholding and includable in income, so it does qualify as earned income for EIC.
  40. 2 points
    keep in mind that it is not reported on the 2018 return If you had included the non-deductible contribution on the 8606 for 2017, you want to remove it Guess you should amend the 2017 8606 to correct it and include the statement that the 2017 contribution was recharacterized . There is a page for the explanation. see tab at the bottom of the 8606. AND in response to the people who are complaining that the 8606 is not working... you just have to make sure you have the correct boxes checked on the 1099R and the top part of the 8606. IF it dosn't look correct, look for another box to check. My stumbling block was always when they have a traditional IRA with a basis and an inherited one- to keep the inherited one out of the calculation. Finally figured it out: for the inherited one: check inherited and do not check IRA.
  41. 2 points
    I'm with Lion, I see very few people. So far this year so far, all of 2 clients, both new, local ones. Appointment time, 4pm, which is when I'm pretty much guaranteed to be awake. I've talked to a few on the phone, but everything is mostly email.
  42. 2 points
    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.
  43. 2 points
    Only titled assets go can go into a trust. It is called funding the trust. For instance, if a home is not titled in the name of the trust, it is not part of the trust, . However, It is still part of the estate and a trust can make election to be treated as an estate. All trusts will say that all non-trust assets are to be distributed by a will. These are called pour-over wills and are included in the trust papers.
  44. 2 points
    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.
  45. 2 points
    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.
  46. 2 points
    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?
  47. 2 points
    I did exactly as GingerM says. The client opted to report on Sch C with no S199A. Thanks everyone!
  48. 2 points
    Equitable ownership. Don't know if that works for your situation, but search on that.
  49. 2 points
    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!
  50. 2 points
    My client married a woman who is permanently disabled from a tumor on her spine. She received Social Security (22,800) and she receives a W2 from an insurance company with ONLY box 1 filled in, $12,922, and "third party sick pay" marked. She hasn't filed a tax return since her disability initiated in 2005, when she was 41 years old. Wife is telling husband that she isn't required to file and she knows it all. I told the husband, congratulations on your wedding. She is required to file. If she had filed in the past, I believe she would have received a little EIC because what I have read tells me that her disability insurance W2 would count as "earned income." Do you agree?
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