JJStephens

Last year I switched to TRX after about 12 years with ATX. I went okay. I'm still not sold on the software they offered last year but I'm also not convinced their new proprietary package is ready for prime time. I haven't tried it in a while but last time I ran a dummy return (about six weeks ago) it was very slow and didn't handle several things. So my question is this: have any of you made a call on which you're going to go with this year? Why?

Hi All. Merry Christmas! Does anyone have any idea if a Section 125 Flexible Spending Arrangement can be established with a start date retroactive to the first of the year?

I have previously filed several 990s without any difficulty. However, two that I filed yesterday and today were rejected with this error notice: If Form 990-EZ Part V Line 43 checkbox is not checked then neither SSN nor PTIN of the Preparer nor EIN of the Preparer Firm can be provided. Part V Line 43 was not checked so that means I should not include my SSN, PTIN or EIN. I did not enter any of those items (they are automatically supplied by the software). When I look at the paper copy (via the peek function) none of those numbers appear in the signature block. I have spent an hour trying without success to figure out how to suppress those numbers from the e-file. I tried deleting them from my preparer data but the software will not let me exit that screen if those numbers are not entered. Does anyone have any idea what to do in this situation?

Thanks all for your input. I had already recommended estimated payments. "I don't want to have to bother with it--you handle it" (I'm also their payroll provider). Now that client knows it can't be done she thinks estimated payments are a pretty easy solution. Deep, deep sigh. TGI4/18!

I ended up talking with an IRS W2 'expert'. After about 20 minutes on hold she told me that box 2 cannot exceed box 1. I asked for a cite and she told me that she couldn't find one but that she and everyone she talked to said that you cannot have withholding if you don't have income. I reminded her the client has income, it's just not taxable/reportable. She said this was a unique situation but continued saying their computer is set up to reject any W2 that has withholding in excess of taxable comp. I guess you can't withhold something from nothing, even when nothing is really something ;)

I have a client who is employed part-time as a clergy person. 100% of her relatively small salary is designated as housing allowance; therefore, the amount in box 1 of her W2 will be zero. She still wants to have federal & state income tax withheld (she also has rental income and wants to avoid having to make estimated payments). My question is: can box 2 (fed tax withheld) exceed box 1 (wages)? I deal primarily in clergy taxes and ran into a similar situation a couple years ago. I think I remember finding a cite that withholding cannot exceed taxable wages but I can't put my hands on it now.

Is there a way to add a note to an e-filed return?

I just tried (twice) to split a return . . . but I cannot see that anything happened. On the MFJ vs MFS worksheet (following a review) I clicked on the 'Split Returns' button (bottom left). I got a message box that says the MFS returns will be posted in the same folder as the parent return. However, nothing new shows up. When I reopen the parent return everything is still the same except that in the PO Options screen the box for 'this return is part of a split return' is checked. I wonder if the split capability is even part of the TRX version of this software. Does anyone out there have any experience with splitting a return?

Client (a widow) wants to start divesting some funds. She wants to give as much as possible to her kids/grandkids without triggering a 709 filing requirement. Can she give $13k to her son and another $13k to his wife (i.e., her daughter-in-law)? I thought I read somewhere several years ago that married couples are considered a single recipient for gift tax purposes but I cannot find anything to that effect in my current research. Anyone out there have any insight on this? I know that married taxpayers can split a gift of up to $26k to a single recipient but that is a different situation (again, she is widowed). Thanks for any help you can offer.

This started as a question but I tried one last thing before I posted it. It worked so I thought I'd pass it along. Kind of an FYI thing. Taxpayer died in 2010; surviving spouse signed an 8879 and I sent the e-file. It was rejected with this rather cryptic rejection message: Forms 1040/1040A/1040EZ - When Signed by POA is present, then neither the Surviving Spouse nor Personal Representative can be significant. Note: An e-filed return can not have two different signature authorities. I wasn't sure what the 'Signed by POA' was referring to, but I think I figured it out. As a precaution for possible future use I routinely prep Form 2848 for all my clients. It has never been a problem; all my other e-files have gone through. Anyway, on this particular return I deleted the 2848 and it went through. I suppose the EFC system assumes that the presence of a 2848 automatically means someone else signed the return. Maybe someone out there has a better understanding of the issues involved here and has a better solution but for the time being whenever I have a surviving spouse return I will prepare the 2848 for the client's signature but then delete it before transmitting the e-file.

I don't do many corporations (two, to be precise). Both are very small and simple. I hope someone can give me some guidance with doing a final for one of them. Client has operated a very small corporation (annual revenues have averaged less than $10,000) for many years. He decided to shut it down as of 12/31/10. The only asset as of 12/31 was $261 in the checking account. What is the best way to distribute that and report it on the 1120? Client was the sole owner and never issued any stock.

Even with charging this way my overall fees are still (by far) the lowest in town. I pare down my base rate to offset it--that makes it a bit cheaper for the majority of my clients who don't have the 6-12 W2s that a handful have. I guess we all get to a bottom line by different routes. I feel pretty comfortable with my overall structure, especially given that my fees tend to run about 75-80% of the local going rates.

Early on I was having some problems creating e-files. A TRX tech suggested I disable MeF; that resolved the problem. I've had it disabled ever since. All my e-files are going through very quickly (seems like the process is much quicker than previous years with ATX).

My bad. I meant Tax Works (it was late!) I now see the 'per item' column. Are you sure it was there before and they didn't just sneak it in now to mess with my head ;)

Interesting idea. I switched to TRX this year. Will have to figure out if it has that capability. Do I understand though, that itemization is required?

I don't run into this very often but wonder if I'm making more work for myself than necessary. I have a small handful of clients who fancy themselves day-traders. In the past I have always entered every transaction on Sch D. Is that necessary? For example, can I lump together all the LT transactions for a given security in a single entry or do they have to be itemized? Thanks for whatever help/guidance you can offer.

Maybe I'm missing something but . . . For many years I did manual invoices. I included two W2s in my standard base rate and then charged a nominal fee for each additional W2; same with 1099s. A couple years ago I started using the billing feature in ATX. I just dropped my base rate a couple bucks and began charging for each W2/1099. I have not been able to figure out a way to do that in TaxWise. Anyone have any idea how to do that?

I'm tempted to just say ditto. I've been doing taxes since '87 and started with Saber/ATX back in what I think was their second year. I do about 130-140 returns. I had a few minor (but frustrating) conversion issues. Now that I know about them I just include them in my QA process. My biggest conversion gripes are that all taxpayers cam over as claimed on someone else's return and I could not get the 2 year comparison to work (if I want those I have to manually input the '09 data). Like a few of you, I discovered a few ATX depreciation errors following the conversion. I guess at this point I'd have to say I'm reasonably happy. I did experience the old dog/new tricks syndrome but I'm at a point now where I'm able to do a return in about the same time. My only ongoing gripes are that it would be nice to have yes/no check boxes (instead of having to use the slower drop downs) and the audit/review process is a bit slow/clunky. Oh, one more. I don't get why they moved the federal filing option selection routine to after the review. It would also be nice to select the print order for non-return forms & docs. Anyway, for the major savings and the better support I'm content with my decision and will be renewing for next year.

After downloading the 2/24 update the problem went away. Go figure.

I do a lot of work with non-profits. Form 1023 would be a VERY welcome addition. Payroll tax forms (941, 944, W2, 1099, state forms, etc) I know they're in the form filler but it would be nice to have them available within the program itself (ala ATX). The rest of this isn't a new forms request but it sure would be nice if . . . there were yes/no check boxes instead of drop downs (e.g., for the EIC due diligence questions) in the Preparer Options there was a default e-file and/or 3rd party PIN option Ohio state & school district pages 2 would display in the review and would actually show live data The user manual reflected current nomenclature (e.g., on pg 30 the Forms Pane lists Form, Common, Type, Used but in the program they are listed as XPert, XPress, Type, Used).

I'm a TRX newbie, still trying to navigate a new (to me) program. I'm beginning to get the knack of it . . . but it's still taking me 25-50% longer than ATX did (I used ATX for 15 years). Sure would be nice if they had yes/no check boxes instead of drop downs--that would make data entry a lot faster. I had three returns to transmit to the EFC this evening. I completed all three of these returns yesterday but did not receive the signed 8879s until today. The first one went through just fine but the next two displayed an audit error that says I indicated a bank product was to be used but no bank product was selected. I have NEVER used bank products and definitely did not set them up for these (or any other) clients. When I click on the 'go to the problem' link it takes me to a screen that asks me if the client has signed a bank products authorization. Checking no does not clear the error (nor does checking yes). I did not get the audit error upon completion of the returns yesterday. I did download a program update today--I suppose that could be the culprit. Is anyone else having this problem? Any idea how to clear it?

After about 15 years with ATX I switched to TRX this year. I'm still not sure how I like it. Some aspects seem pretty intuitive but others . . . I guess I'm the proverbial old dog that isn't so great at learning new tricks (deep sigh). Back in my ATX days I could modify the master forms to add my typed preparer's 'signature' to various forms. How do I do that in TRX-Pro 1040? Also, in the preparer setup, I was not able to get the program to take my CAF number. Anyone else having that problem? Any idea how to solve it?

As a general rule Form 1023 must be filed by the last day of the 27th month after the organization's original charter date in order to have exempt status recognized as of the charter date. If they file after the deadline they will probably be recognized as exempt only as of the filing date of Form 1023 (see Form 1023 Schedule E). Prior activities would not be exempt (i.e., donations would not be deductible--which makes for great donor relations!-- and (unless the org qualifies to file Form 1024 for the prior period) net income could be subject to tax). When the organization broke ties with the 'central' or 'parent' organization under whose group letter they were operating as a 'subordinate' they had 27 months to submit their own Form 1023 requesting a individual letter. Since they did not do that my guess is that when they file they will be eligible for recognition retro-active only to the date of filing. However, if there were extenuating circumstances they can appeal for a special dispensation of grace. I work almost exclusively with religious non-profits and have taken that track on three occasions--it worked on two of them.

For calendar year fiscal period the deadline for 1120s (and variants) was 3/15.

Unless a late extension comes in, I'm done. This is the earliest I can remember wrapping things up in 24 years of tax prep. See ya-- my pillow beckons for a quick power nap!