jasdlm

I think this is a wonderful thread, but I have no idea who Jack Bauer is or what his retiring has to do with anything. I don't get out much.

Is Prosys fx forms based or worksheet based?

You 2 are making me envious on the Prosys fx!!! Lion . . . I love your 4 computer story!!

Thanks so much. Your reply was really helpful. What a pain that Form is. I agree that it would be great if all those numbers could link! Espcially today. I'm working remotely and don't have a printer, so I keep having to flip back and forth between returns. Aaargh!

I totally don't get this (yes, I read the instructions). When I put in the parents taxable income, a number is calculated by ATX and put into line 9. I put the parents' tax in line 10, and the Schedule then shows the child owing $5000 in tax on $3000 of income! When I read the instructions, it says to calculate the tax on line 8 according to the parents' tax rate, including appropriate cap gain/dividend treatment. So, assuming only 1 child, how is that different from the line 44 number that number 10 asks for? If I put the Parents info on both lines (9 and 10), the tax owed by the child is 0. Sheesh . . . what am I not understanding?

Thanks so much. I really appreciate you taking the time to reply. I will proceed with the basis step-up.

96 . . . haven't made much progress. That audit stole this week from me!

Jainen - do I simply delete the Schedule C loss from the earned income calculation? Will that prevent the IRS automatic system from recalculating the credit and sending my client one of those 'we've found an error in your return and you are due a refund' letters? (He is entitled to a small earned income credit without the Schedule C loss.)

Just had one from 2002 a few weeks ago. Sad thing is, it was my sister .

I've seen many title insurance officers point out problems with clear title. I've never seen them jump through the hoops to fix a lien that's in error. Maybe that differs by state. Denne, did you sign any of his returns/941s/940s for him as anything other than the paid preparer?

Yes, they have one child. Thanks for the replies. It just seems so strange to me.

Client is a W2 employee. Spouse is homemaker. Client started a side business in 2009 - a single member LLC, so filing on Schedule C as a disregarded entity. Client has a large loss (legitimate for first year of business) that is creating several thousand in EIC. I don't know why, but this doesn't seem right. Has anyone else had a situation like this?

Go down to the Court House and pull a copy of the lien that was filed. Are you sure that the lien has actually been filed? What did you receive that notified you of the lien filing?

Thanks for your response, baystorm. The rental properties were held in Decedent's trust only. They are still there, but the trust is now irrevocable and spouse is an income beneficiary. Thanks.

I am completely brain-dead and can hardly function. (I have a State-Registered RIA, and the auditors walked in Tuesday morning for my 'routine audit' because my 'CRD number came up'. I did absolutely no tax returns for 2 days, and my stress level is through the roof.) Go ahead and chew me out for the following, but please answer. Decedent and Wife (30 year marriage) both executed Revocable Living Trusts in the mid-90s. Both Trusts had QTIP provisions as they each had children from a previous marriage. Both Trusts owned residential and commercial rental property. Deeds were properly executed. Grantor died the end of December 2008, so 2009 is the first year for the 1041. Questions: 1) Do I step-up the basis effective with the trust tax return? (This is better for my client, of course, who is the income beneficiary of the trust, but not as good for Grantor's children as a step-up at Spouse's death would be. I think the step-up is now, but I'm not confident. 2) The commercial renters issued 1099s in deceased grantor's social security number (payee on 1099 correctly identifies the trust, but they did not get the tax id number correct). Do I need to get the 1099s reissued? Is there any other way I can show the flowthrough without reissued 1099s? It's quite a bit of money, so I doubt it will go unnoticed. Thanks in advance.

111 to go . . . 22 days . . . 5.04 per day I shouldn't be whiny. I'm probably in really good shape compared to some of you who have huge practices . . . or . . . you're much more efficient than I am and are down to your last 25!

Birthday wishes to a great guy! Hope you enjoy the day.

Wow! Maybe I did actually post a link!

I don't know how to post a link, but hopefully this will help. I know that it is specific to the AIM Fair Funds, but it does reference other, similar settlements. I have been adjusting basis on after-tax money and putting checks issued for IRAs/qualified plans on line 21. Hopefully this is accurate. http://www.aimfairfund.com/files/AIM%20SEI.doc

I think it's too late to efile for 2008.

I know I risk sounding like an idiot when asking, but isn't the employee cost listed in box 5 on the 1099R and subtracted from Box 1 (Gross Distribution) to get to Box 2 (Taxable Amount). I only have 1 retired postal worker (my father), and luckily he is retired recently, and I can still amend if I've done this incorrectly. In other words, what I'm asking, is can you trust the 'taxable amount' on the 1099R? Thanks.

All the best! Have a great evening.

Have a fantastic day! I hope you can take a long enough break to enjoy a nice dinner.

Wow! I live a sheltered life. I have never seen a client with more than 3 W-2Gs (and that was a married couple). Wow!

It's not a consent for disclosure, in my opinion, because the taxpayer is not consenting. I have a comprehensive financial management practice (law, tax, financial advising), and I use this agreement, or a version of it, when I have a situation where someone might have access to confidential information (like my IT guy . . . he has the ability to remote on to my server at any time, which is invaluable to me because he can fix most things within 10 minutes of me sending him an email, but that obviously means he has access to all my files). I am not intentionally disseminating the information, but I recognize that sometimes in the course of business, other people potentially have access. I also have a similar agreement that I make employees sign (anyone who does any work for me at all, from photocopying to my main assistant and office manager, etc.). It could probably be written better, and it wouldn't necessarily be absolutely failproof, but I feel better having it, and I think that when I force others to read/sign it, they know that I take confidentiality very seriously. This is especially important to me with employees. I don't think any of the arrangements I'm talking about would be regarded as 'knowingly or recklessly disclosing or using the tax-related information provided other than in connection with the preparation of such return', nor do I think it would protect me if I did 'knowingly or recklessly' disclose.