jasdlm

SCL - that's what the whole issue is about . . . the distribution was not made pursuant to a QDRO because it was pre-divorce. Marilyn mistyped in her original post . . . she means the 2008 tax return.

This happened to me in February. I paid a good computer guy $85/hour to move all tax files/programs from old computer to new computer. It took him 3 hours, but it was worth it. I used the time to do some basis adjustments, etc., that I would calculate by hand anyway. I'm not very computer savvy. In hindsight, I could have saved some $$ if I had installed all the old ATX versions on the new computer myself (from old atx discs), run 'update program' for each one, and just had the computer guy move the files. Probably would have saved at least 1 hour of time.

lbb - great to see you! I was wondering where you were this year! I just saw you on here the last day or two. Now if Jainen would just 'reappear' we'd have the whole crew! Hope your season is going well.

Booger - I just did one of these earlier this week. I efiled the return (without the 8453). I then mailed in the 8453 with the 1098-C attached. This is the way I interpreted the instructions for the 8453. When and Where To File If you are an ERO, you must mail Form 8453 to the IRS within 3 business days after receiving acknowledgement that the IRS has accepted the electronically filed tax return. Use Form 8453 to send any required paper forms or supporting documentation listed next to the checkboxes on Form 8453 (do not send Forms W-2, W-2G, or 1099-R). If you are filing your tax return using an online provider, mail Form 8453 to the IRS within 3 business days after you have received acknowledgement from your intermediate service provider and/or transmitter that the IRS has accepted your electronically filed tax return. If you do not receive an acknowledgement, you must contact your intermediate service provider and/or transmitter. Mail Form 8453 to: Internal Revenue Service Attn: Shipping and Receiving, 0254 Receipt and Control Branch Austin, TX 73344-0254 Hope I didn't screw up.

Agree with mgmea. Distributions received by an alternate payee under a QDRO coming from a qualified plan (NOT an IRA) that are 'distributions pursuant to divorce' are exempt from the penalty. However, unfortunately, in this case it is pretty clear that the distributions are not pursuant to the QDRO and not paid to the alternate payee. Sorry, Marilyn. This one's ugly, but it looks like the penalty is not going to be avoidable. Did the attorney specifically tell your client that the withdrawal would not be subject to the penalty?

Might seem like a silly question, but did Son #1 pay the partnership for the house?

Thanks, Dan. I really appreciate the information.

I assume you mean a joint return for 2008, not 2009? In whose name/SSN was the 1099 issued? I can't figure out how a distribution was made pursuant to a QDRO in 2008 when the divorce was not final until 2009. If the distribution were made to the alternate payee pursuant to a properly executed QDRO, it should be excluded. Again, however, I can't figure out how they could process a QDRO (a post-divorce proceeding) prior to the actual divorce. What am I missing? Did the attorney possibly advise an early withdrawal (non-QDRO) during the proceedings to free up cash? (Yes, this would be really poor planning, but I'm trying to figure out what might be going on.) If the 1099 is in husband's name and SSN, it is probably not pursuant to QDRO. If not pursuant to QDRO, no exception as far as I am aware.

My 3 year old asked last night 'Is tomorrow a Mommy day?' No, it's a Taylor day (his Nanny). Glad your 20 year old was thoughtful! It's a real pick-me-up!

Thanks, Bart! When did they start issuing refunds again? I can't believe I've been so out of it that I missed it!

Thanks, Julie. Yes, mine haven't changed yet, which is why I am wondering if I need to resubmit. It hasn't been a week yet, which is the timeframe you suggest. Kansas isn't issuing refunds, anyway, so I'll wait a few more days. Thanks for your help!

Okay . . . this is the first year I've efiled in any meaningful way. What does 'IRS Cleared' mean in the 'Status' section? This is on State returns. It doesn't happen on all State returns; some come back 'accepted'. Do I need to somehow resubmit the ones that say 'IRS Cleared'? Thanks so much!

At the bottom of the 1040 ES tab, click options. You will see many choices. Number 5, choice d = print only voucher # __. You can also select d on number 3 for only 1 payment.

Thanks so much, Marilyn and Bob. I got it done. This is different than last year! Thanks again. You're advice was right on.

Husband died in 2008 leaving assets in Trust. I did a 1041 for the trust, distributing all income to wife. (AB trust) I now cannot figure out how to add the k1 to the 1040 for input purposes. I realize that I can simply override the appropriate lines on the 1040, but I'd like to add the k1. I have always done this with no problem in the past. However, when I try this time, I'm getting a k1 form to distribute income (as if it was coming from the 1040) rather than record income. I can't find any other choices in the Forms list (last year you could choose not only the k1 for data entry but the type of entity the income was coming from). I have updated forms and still no luck. What am I missing? Thanks in advance!

Since you say there was a quit claim deed, I assume the house is now in father's name. Looks like a sale to me for the total amount due on the mortgage. Did the father assume the mortage or refinance?

It's property settlement, not 'house sale'. No reporting required.

You probably already checked, but did he work for the same company in two different states?

Thanks so much to both of you!

I 'held' a few efiles (prompted by ATX during the creating process). These were situations where I was filing more than one state return. How do I 'unhold' them? The only method I can figure out is to actually recreate them. If this is the case, what's the point of choosing 'hold'. Any thoughts? Thanks.

Cathy - I have that same Snoopy cartoon taped to the front door of my office.

Okay . . . just sent you a fax, and tried to send you an email.

Also depends on what type of business he is going to run. You might want to advise him on problems with owning real estate inside LLC if he elects S-Corp, etc. Also, S-Corp loses office in home deduction, etc. I'm not making any recommendation . . . just suggesting that there are many things to review with the client. Do you have the Kleinrock Business Quick Answers? Do you have a fax #?

Thanks, David, for both answers!

Have no idea how I made that winking smiley face. I certainly wasn't trying to add a smiley.