JJStephens

Somewhere in the deep dark past I vaguely recall seeing something that the ERO cannot sign/date Form 8879 until the client signs (i.e., the ERO date has to be on or after the client date). Twice I've tried to find something to confirm that requirement--can't find anything. Pub 1345 says the 8879 has to been signed by the client and ERO prior to e-filing and kept for three years but I couldn't find anything about the timing of the ERO signature. Was I mistaken in my earlier thinking? I'd really prefer to sign them immediately, if I'm not endangering the space-time continuum in some way. That way, my client does not mistakenly sign the wrong place and I don't have the hassle of after-the-fact signing for 8879s that come back via mail or portal.

I prepped a return a week or so ago. After it was done I ran the MFS comparison routine. It came back saying MFS was better by about $600 so I split the return. I wasn't paying close enough attention. The spouse's return came out exactly as expected. The taxpayer's did not. When I prepared the original return Drake defaulted to taking bonus depreciation on some new farm equipment. TP did not want the bonus depreciation so we overrode it with SL depreciation. When I ran Drake the MFS comparison, the software again used the bonus depreciation to determine MFS was the better option. However, when it printed the returns, it reverted to taking the SL depreciation I had entered. That changed everything. It made MFS significantly worse. Neither I nor the client noticed it until moments after the return was e-filed. Now I have to go back and amend the return to restore MFJ. Just a quick heads up that when Drake does the MFS comparison, it does not take into account any overrides you make on the original return.

Loved it! But it also brought a momentary horrific flashback to freshman English when I had recite the original soliloquy in front of the class. Even all these years later... I shuddered!

I used Drake's e-signature option the last couple years--wasn't real thrilled with it. Lots of incomplete signatures that I still got charged for. This year I started using Tax Dome to manage my entire practice. TD is a tax on the expensive side but it also replaces several other softwares I previously had to pay for so the cost became affordable. The learning curve is a bit steep but I love its automations, built in organizer and e-signatures. E-signatures that don't require KBA are free. E-signatures that required KBA (e.g., 8879) are $1/person/return. So far, it has worked as advertised.

OP here. I had one last month. IRS rep called me on Mar 2 and said I had been selected at random for a compliance audit. Said she'd be here on Mar 16. Great timing--right in the thick of tax season. She spent about half the time she was here checking 8879 signature dates vs e-filing dates. We passed with flying colors, but that's why I'm now a bit paranoid!

In my book, that still counts as super smart!

Having been raised in the hills of southwest Indiana and now living in rural Ohio, I had to look up pied-a-terre. I've always been impressed with Catherine's smarts...now even more so!

ERO is supposed to e-file within three days of the 8879 being signed. I just had a situation where the wife e-signed on 3/26 and the husband on 4/4. Am I still good to file or do I need to have the wife re-sign?

I expect to retire in the next 3 or 4 years. Hopefully, it will take them that long to make it happen.

Wowzers! I do a Cali return once in a blue moon and occasionally do a brief biz consult. Should I say, I used to do them. Not no mo!

Thanks for the reminder. I've been AWOL the last couple years due to some health stuff. Now that I'm back in the game, I need to help pay the freight.

Holy canoli...I'm apparently waaaay undercharging! I've actually had several clients tell me that. You'd think I'd get a clue! I think because I deal mostly with clergy and/or elderly folk, my fee structure is partly based on altruistic impulses. In fact, I generally do about 20% for free. It's too late to change this year but next year I think I'm gonna raise my fees more than the $2 or $3 dollars I 'jacked' 'em up this year

I spent considerable time on the phone with Drake support. Turns out the credit does carry forward, regardless of the adoptee's dependent status. However, if the adoptee was born prior to 2005, the return must be paper filed. That little tidbit was not in the IRS instructions or in anything published by Drake for public consumption. She found it in some internal Drake documentation. I doubt I'll ever need to know that again...but if it do, now I know!

Yup. That part I was aware of--though I do appreciate the reminder! The credit was initially taken in 2017 so 2022 is the fifth (and final) year for the carry forward. The credit exceeded TP's tax liability each of the previous four years, hence the carry forward to 2022. There will be about $12k of unused credit that will be lost due to the five year limit on the carry forward. I just spoke with support. After 40 minutes of mumbo jumbo the guy tells me I should check the disabled child box (he said that cleared the error for him!). I told him the children are not disabled and checking it would be inconsistent with prior filings and would also constitute fraud. He replied, "Oh yeah. I see your point." Then he suggested I call the IRS to see if they have a suggestion what I should try next. I told him it's a software issue, not a tax law issue. Again, "I see your point. But it's worth a try." Side note--tech support just aint what it used to be. Finding the right combination of entries on the adoption credit has always been a riddle wrapped in a mystery inside an enigma for me. The carry forward just complicates it a bit more. My original question was whether the child(ren) on whom the credit was originally taken must still be a dependent for the carry forward to be valid. That still seems to be at the heart of the problem.

It took many years but a client was finally able to adopt two kids from Haiti several years ago. By then, the girls were 15 and 16 years old. Each year we've carried forward the unused portion of the allowable credit on Form 8839. The girls have completed their schooling so no longer qualify as dependents. Can the credit carry forward even though they're no longer dependents? I can't find anything in the 8839 instructions. Any guidance will be deeply appreciated!

Follow up to my earlier post. When I spoke with a Drake tech support old-timer she recommended that if I call in to press 2 on the phone tree. It says it's for business support but it's really just a more experienced support person. If you press 1, you're more likely to get a newbie. I've done that a couple times and had much better success getting the help I needed.

I used ATX for 15 years or so and then bounced to Drake after the 2012 ATX debacle. I reluctantly made the decision a couple weeks ago to leave Drake. Since the buy out, the software has been buggy and they implemented numerous changes without telling anyone (you have to pay to get attend a new features webinar). I've had numerous instances of check boxes being mysteriously checked, often on forms that I never even opened--and those cause issues that make the return un-e-filable. Perhaps worst of all, their formerly world class tech support has been horrible. I had to call in more this year than the previous 7 combined. At least half the time the tech person didn't have a clue and had to go find and answer and call me back. I even had one, after admitting she couldn't figure out a solution, suggest I file the incorrect return and then call the IRS to ask them to fix it on their end! I could not believe it! I mentioned that to another support person who has been there for a long time. I could hear the eye roll in her voice. She said she wasn't surprised, that nothing is the same as before and lots of long timers were gone or leaving. She said the commitment to support isn't the same as before. When I told her I was in process of transitioning to another platform she said she's hearing that from dozens of preparers. Sad. I really REALLY liked Drake...right up until I didn't/couldn't anymore.

TP started a single member LLC in 2007. In 2017 he allowed a friend to acquire a 25% interest. In 2020 the bigger outfit bought out the LLC for $10k The only fixed assets (a few desktop computers) the LLC had were fully depreciated long ago. Basically, the new outfit acquired a client list, a business concept and some goodwill. I've twisted my brain into a pretzel shape trying to determine how to report this sale. Anyone have any suggestions?

Through the years I've dabbled with several practice management/project management software packages but typically find that they create more work than they save. Within days/weeks I find myself backsliding to using my Outlook calendar and sticky notes. I'm a small shop--just me and a couple part-timers who work remotely. We do basic books/payroll, tax prep and startup consulting, mostly for non-profits. I don't need a super high-end package (with a high end price)--just something to help me monitor workflows and deadlines. I'm back checking out options again and wonder if any of you have found something you couldn't live without...or perhaps have a suggestion of something to not waste time looking at.

Thanks to both for your very helpful feedback. Now I have an idea what to do this time ... and next time!

For the past ten years client filed joint returns with her husband. They had a lucrative joint biz that required estimated tax payments. Unbeknownst to me, they split up in January 2018 and she got the biz. She used the 1040-ES coupons I prepared last year to make a couple estimated tax payments (for amounts different than I originally prepared). After we filed her MFS 2018 return the IRS sent her a notice stating they did not have any record of the estimated payments she made. Because her ex's SSN was listed first on those coupons, the IRS credited the payments to his account (that completely slipped by me when I was prepping her return). Two questions: Is there a way to petition the IRS to credit those payments to her instead of to him or are we stuck with going to the ex to ask for a refund of the amount erroneously credited to him? What should I have done differently on the original return?

Good golly. Has it been 11 years?!?!? I joined 4/14/07. Haven't been around much the last couple years due to health issues (me and my wife) and the press of also pastoring a small church. But I've benefited tremendously through the years. I've donated before...will immediately do so again. Gracias, amigo!

Well garsh. Upon re-reading my OP I realize that my threshold comment sounded like I was referring to the previous client passing away. What I meant was I was close to the firing threshold. But a few of have given me an alternative to maybe think about.

Just got an email from a long-time client. It begins: "Well it only took me 6 hours to check the returns this year." Her hubby is now retired (gets only SS) and she now has only one W2 and a very small Sch C. Six hours is a record for her. She usually double that poring over every detail. I have no clue why she doesn't just do them herself. She generally finds an obscure issue that is nothing more than a $1 rounding error (e.g., I entered each W2 individually, she added them all together). She wants it changed. We argue about it and finally she understands that it is inconsequential and makes no difference to her bottom line. This time she says that her Ohio medical worksheet expenses are off by $79. I went back through every document she provided to me. My number is exactly right based on what she provided. And then, after all that, she says, "Never mind. Even if I'm right it won't change my refund." Arrrghhh! I've only fired one client (a nurse who insisted I deduct $882 worth of underwear because she said she had to wear a brand new pair for every shift). Actually, come to think of it, I didn't fire her. I was going to but she passed away before I had the chance to. This one is getting pretty close to that threshold for me. Sorry 'bout all this. Just needed to vent.

First time this has ever happened to me (this is my 31st year doing taxes--I wrote 29th at first but then did the math and realized its actually 31! How time flies when you're having fun!). Client received two SSA-1099s. One shows the usual net benefits in Box 5 and Part B premiums (and more) in the Box 3 Description. The other shows an additional amount paid including additional Part B prems. I presume I just enter both forms (i.e., report the combined amounts). Anyone have other advice/guidance?