DougO

Had a very good client who gave me a large replica of those 4 pages from 1913 several years ago. Keep it hanging right behind me in my office - a reminder of simpler times.

Well to add to the list, I am having no luck with my daily "update" process. Normally this was done twice a day and not very time consuming. Starting yesterday now it takes hours rather than minutes. Not sure if it is my hardware or something in the software. Anyone having similar issues recently.

Thanks to all - and good luck for these next few weeks as you deal with those Ohio returns. Appreciate your directions and guidance as I know you all are busy.

KC - all of us are praying for you and Don. Trust in the Lord and let Him and Him alone be your guide. May his mercy and grace surround you and comfort you at this time. And may His guidance be felt by the Doctors and those that administer to him now. The power of prayer cannot be always felt but it will carry you and Don through this time. God bless.

Terry - thanks for responding. I understand about the residency city for paying the tax, and from your comment if seems we need to not worry about allocating income around the state. But my main question where I am unclear is whether I can use the Form IR 22 versus using the Form 37. The IR22 seems to be focused on Columbus area city taxes while the 37 appears to be more statewide for RITA tax reporting and payments. If I am going to get the proper taxes and credit would it be better to use the Form 37 and will that still allow for all appropriate tax and credits to be recorded to the right city. It was much easier when they had W-2 income for Columbus and it was all reported and had been paid through payroll withholding there. Hope that is clear - I don't want to build a mountain here where we can live on a hill. But boy do you guys have a bunch of local taxes to deal with. I guess I will live with our sales tax here in Nebraska.

Have a client who lives in Gahanna (outside Columbus) whose spouse works for W-2 wage in Columbus. Taxpayer is now self employed and works based out of Gahanna but does work in other communities also. In past, with just W-2 income used Form IR-22 for local taxes. Now am working to figure is we can still use that or do we need Form 37. Appreciate any guidance on how to handle what appears to be separate tax rates and credits available. Also will have difficulty identifying all income locations for S/E profits - can this be all taxed out of home base community?

What state is the trust established in - that is the determining factor. It makes no difference where the beneficiary resides the trust is responsible to the location where it resides legally.

Even if you want to consider the CP2000 an "audit" you still are within the 3 year statute so what prevents you from filing an amended return. I think the letter explaining the situation along with 1040X is your best route. If you are dealing with substantial dollars to the taxpayer you should do your best to represent their interests. Make sure your amended amounts can be well documented should Uncle want more information.

Most likely what happened is way back in January 2011 the employer had not adjusted their payroll system for the reduction in SS taxes from the 6.2% to 4.2% for first payrolls of the year and they (employer) ignored this problem and failed to refund the extra amount deducted to their employees as they were instructed by the IRS notices and such. If they have the records then they should take them to the employer and request the refund of the excess SS tax deduction.

KC - we will all miss your input to this forum. I can appreciate what you can be dealing with as my wife had open heart surgery last summer for installation of a heart pump (LVAD). She is doing well but it has changed our daily routine a lot and I have made some reductions in my workload to compensate. Your priorities can get altered very quickly and you realize where your focus belongs. We offer our prayers for your husband and you and hope that you can "peek in" on all us old workhorses once in a while. God bless.

I am not sure how you could claim 2 per diems within one 24 hour period. Is not 24 hours one "diem" in terms of the allowable rates. I also work with some truck drivers and they would claim they are working several shifts every day but those per diems are based on a single 24 hour period the way it appears to me. The DOT rules only apply to the allowable percentage, not giving you access to a completely different set of regulations. So even if she has multiple shifts it still falls within the single "per diem" it would appear.

Hey I am like JB - what is up with KC, I don't recall seeing any posts for quite some time ?

My experience has been 6-8 weeks for Federal amended returns and normally only 4-6 weeks for the state of Nebraska. Had one filed in November that the Federal refund was received in less than a month. So if you have that long of a time frame (over 3 months) I would be calling the IRS to see what action is being taken.

Perhaps they have expanded the math field to go past 2 decimals. I get the 270.914 on my desk calculator also.

That is correct. The health insurance deduction allowed for SE tax purposes in 2010 is not available in 2011 - at least until they change the rules again.

Disk arrived in the mail today. DougO

Went online and got mine renewal done in about 15 minutes - no problems but I did it late in the evening so there was little traffic to hold up the line.

Not sure that this will apply completely to your situation but I have a client with an interest in a partnership in an Eastern European country and we fill out Form 8865 and include with the 1040 return each year - his portion of gain or loss is carried over and reported on page 2 of Sch E as you would a K-1. You will have to convert the amounts to US dollars on the form. In his case we also are able to claim a foreign tax credit for any taxes paid on the income reported to the foreign country. Let me know if that will assist in your situation. Doug O

Where does he do most of his flying out of - does he use the Millard airport at all? Just curious as we are in that area and see all those planes coming and going every day. DougO

Great news for you and your family Bonnie. I did see Andrew on the news the other night but never dreamed his story was related to one of my fellow tax preparers. Congratulations to him and to you and your hubby. May he continue his effort to reach his future goals and make himself as well as the Omaha area proud !! DougO

For what it is worth, today I managed to gain acceptance for the 2 efiles that had been rejected with this error. Whether I got lucky or the error has been fixed I do not know. I still see when building efiles that some show in the error checking that the IRS is still rejecting returns with S corp wages, SE form and line 29 Health insurance deduction. I don't have anymore ready yet to file but will soon - so we will see.

I had not had any trouble prior to March 26th with several returns with the S Corp wages and SE Health insurance. IRS had no explanation why it is now a problem. Maybe will try and resubmit again and see what happens - another rejection will just confirm they still have a problem I guess.

Spoke with the IRS E file center in Austin on Monday and again late Wednesday and they stated the problem was still under review. I am getting this reject code with S corporation wages and SE Health insurance. Not with 2 Sch C's. Was told I may have to paper file those returns. The gentlemen I spoke with did not sound optimistic. Has anyone gotten an acceptance with this situation in the last few days?

Nothing has crossed my desk as far as I can tell with all these piles of paper. I believe it was April last year before I saw the first offer to renew early. DougO

Actually to clarify this - I only had to restart ATX not reboot the computer. DougO