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Per 4868 instructions, IRS considers that if at least 90% of tax is paid in by that extension date and if tax bal due is paid when return is filed, then that constitutes reasonable cause for not paying with the extension and late payment penalty won't be assessed. Sorry on my phone and having trouble going back and forth to the docs.

I looked at ChatGPT's site for a few minutes and have been receiving emails from it ever since then... without giving it my addy.

I've done this many times over the years too and never had an extension deemed invalid either. Obviously anecdotal.

Would any of them know the difference?

Donated today!

Direct pay also puts the responsibility for payment back on the taxpayer instead of the preparer.

Yes, from the "Setup" drop down menu: Choose Communications Editor,then on the left side, click the + to the left of Federal Return Paragraphs that will open up all the available places you are able to modify. Double click on Federal Balance Due paragraph, and more options will appear to the right side, On the right side, click the + next to Federal Results Section if it isn't already expanded Doubleclick the selection that says "Federal Balance Due Paragraph" and the editor will open the editor where you will be able to modify any of the payment option paragraphs that Drake uses.

Done! Thanks for the reminder.

Similar topic and discussion from late last month:

Horrible year personally but the work was OK. Everything is worked on and out. I try to aim for around the 10th or 12th to get most done and give myself a cushion of time. I have one client meeting today for pickup, and then I'm waiting on signature forms for the rest. I will have only 3 extensions, all for one client for his personal and 2 little partnerships. I took yesterday off! I've been taking care of mom full-time for the last 5 years with increasing demands the last year or so. Now at 96+ yrs old, early dementia and was still living at home until a fall in late March. She was unhurt, but it landed her in rehab. Three days in she, I, and my husband all got a nasty GI virus circulating in that facility. I was completely down for a few days and feeling sick most of a week. Then a second hospital trip with her last weekend and another night with no sleep because rehab made a bad call on when in actuality she had lower rib and hip pain radiating. After all night in the ER told me to give her some extra strength Tylenol and that transport would be another 6-7 wait. No way! I drove home for her van and took her back to rehab myself at 4-something in the morning! In the next few weeks I have to find permanent placement for her somewhere and begin to clean out the family home that she has lived in for more than 70 years. Because of mom's needs, I haven't taken any new clients in these last 5 years and most of my business clients got old, retired, and/or sold their businesses. My workload is much lighter than it should be now when I should have been building my practice and couldn't. That is some of the reason I've had some extra time in the past few years to answer lots of questions here, away from the office and the internet to fill up time. Husband is doing well with fighting the bladder cancer, the prostate cancer is treated and gone, and other issues were fixed in '21 that were heart ablation and AAA repair. When a SIL passed suddenly last June, I started walking with my brother in the very early morning and have gotten more fit again. I'd walk anywhere from 3-5 miles every morning until the time changed and everything fell apart with mom. I wanted to walk last week but in the turmoil I ended up with a twisted or sprained ankle that I'm babying at the moment. I don't know how that happened but it's getting better. Also thanks to two brothers, my husband and I have taken up shooting sporting clays, or some may still call them clay pigeons. They are all excellent marksmen, so I have lots to learn and catch up on. I love the outdoors and all kinds of activities, and this is the latest and one I never dreamed of trying. I bought a shotgun of my own. We took advantage of yesterday's beautiful weather, went shooting, and got away from all the pressure for the afternoon. I'm slowly improving and was pleased with my progress on a more difficult and new-to-us course. If you made it through all of that, thanks for reading!

Click the "Setup" drop down menu on the top toolbar, then select "Preparer(s)". From there, choose the preparer that shows your PTIN, not the administrator. When the dialog box comes up, look on the righthand side under Return Signature Options: make sure you have entered your 5-digit pin and check both boxes for "8879 PIN signature" and "Alternative Electronic Signature" . That will place your typed signature on the Federal forms and 8879 and any states that allow it wtihout making a separate selection within Drake. Read on - Also, be sure to check your state options for any states that you prepare. Some within Drake will require that you make that same election for the electronic signature on a state-by-state basis. For example, PA and NJ are two that I prepare that require another checkbox be marked, and isn't an available option for my home state of DE at all, so I still sign those manually. Those state-by-state choices are found in the "Setup" drop down, then choose the first item "Options". Then from the next dialog box that appears, choose the "state" tab and then use the drop down selection for each state that you prepare. If the state requires you to check a box separate from the Federal option, you should see a checkbox that again says "Alternative Electronic Signature". Example, that is what I see for PA and NJ. MD isn't necessary as it follows the federal option. Hope that helps.

One other suggestion is to remind clients with IP PINs that if they move during the year they must file the address change form 8822 or the IP PIN the next January will be sent to the former address.

I have a client with an IP PIN also. Once someone requests a PIN, they will need it for every year going forward thereafter.There is no way to cancel it or tell IRS they no longer want or need it. My particular client lost hers this year too, and she was able to log in to her IRS account and retrieve it that same day.

Is there some other item on the return with passive income that allowed more of the rental losses? Perhaps a partnership? I, too, am curious about whether he used software or this was hand-prepared on paper.

https://www.atxcommunity.com/topic/30766-spitting-nails-any-help-appreciated-a-long-read-but-worth-it-especially-if-you-hate-diy-tax-software/

The NOL of the earliest year is used first until exhausted, and then the next most recent year, and so on. For your client, it sounds like the NOL from only the 2015 tax year will be used.

It may not be in the name of the plan on the card and don't rule out the possibility if it isn't on the card. To be sure, you must have the client check with the insurance company or look in the plan documents. I purchased through the marketplace and have a Highmark Blue Cross plan that meets all the requirements and IS HSA eligible, but that is not on my card anywhere. It WAS stated in the plan description when I purchased it though, and it IS stated in my member information when I log into the website. Also, just like Kathy said, my deductibles are less than the figures she stated above.

Moved and merged the 2 topics

I am a C corp, so no CA returns for me. I guess that doesn't apply if I prep a CA NR though since it is "delivered" elsewhere?

Thank you. I thought sure that there was something about if I prepared CA returns, that I'd be considered as doing business within the state and would have to pay that fee. Did I have a bad dream about all of that? Anything's possible at this point.

Wasn't there a discussion recently about non-CA preparers being considered as doing business in CA if preparing CA returns and needing to pay some exorbitant fee, somewhere around $600?

Reviving this as I have the same issue with a new client, so thank you for the post and answers that followed. Very helpful right now as I also have this with a new client. The former preparer missed including income for an entire brokerage account that created a false overpayment on 2021 that was applied to 2022. Those '21 earnings and tax effect will certainly not be insignificant amount if the '21 earnings are like that of the '22 TY, it should be somewhere in the $35-37,000 range.

Single, no dependents, no credits, nothing. The return was really just the W-2 wages about $40K, standard deduction, fed and state withholding. Nothing else. Very simple and straightforward. As for the age, I doubt that it was a programming error when that 2021 return was prepared on 4/14/22. The preparer either had a typo or made up a date because the taxpayer did not get the benefit of an age-related deductions. How else would you explain that?

I had a former client return to me after leaving for one year. She went to HRB with one W2 and one 1098. She could not itemize for either federal or state. HRB charged $275, and I have already amended the state because HRB preparer didn't ask her DOB and so missed the extra deductions and credits for older filers. Also, I'm not charging enough....

I don't use ATX anymore, but one thing I can think of, if this isn't a programming error, is that the K-1 should be marked "final" and that the input should as well.