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Is this another one of your hypothetical questions that are only meant to test us here to see if someone would arrive at the correct answer, or something you really didn't need help with? It seems like you already had the answer, and your statement really comes off as rather smug and insulting to say that you are surprised at the correct answers given here.

I found the answer in Reg Sec 1.72(p)-1 in the Q & A section. Below are some excerpts that should help. The deemed distribution of $40K occurred on 2/14/14 and will be taxable in the 2014 year, not when the loan was made. Note that the references to the loan satisfying the requirements detailed in Q&A A-3 relate to the loan's terms meeting the IRS requirements, and this section does not apply to the OP's hypothetical scenario. (Note for anyone else reading this: there ARE times when the distribution would be taxable at the time the loan is made if it DOES violate the tax law as described in A-3, but this is NOT the case with OP's fact pattern). OP's answer and an example is found in A-10. PART 1—INCOME TAXES (CONTINUED) §1.72(p)-1 Loans treated as distributions.The questions and answers in this section provide guidance under section 72(p) pertaining to loans from qualified employer plans (including government plans and tax-sheltered annuities and employer plans that were formerly qualified). The examples included in the questions and answers in this section are based on the assumption that a bona fide loan is made to a participant from a qualified defined contribution plan pursuant to an enforceable agreement (in accordance with paragraph (b )of Q&A-3 of this section), with adequate security and with an interest rate and repayment terms that are commercially reasonable. (The particular interest rate used, which is solely for illustration, is 8.75 percent compounded annually.) In addition, unless the contrary is specified, it is assumed in the examples that the amount of the loan does not exceed 50 percent of the participant's nonforfeitable account balance, the participant has no other outstanding loan (and had no prior loan) from the plan or any other plan maintained by the participant's employer or any other person required to be aggregated with the employer under section 414(b ), (c ) or (m), and the loan is not excluded from section 72(p) as a loan made in the ordinary course of an investment program as described in Q&A-18 of this section. The regulations and examples in this section do not provide guidance on whether a loan from a plan would result in a prohibited transaction under section 4975 of the Internal Revenue Code or on whether a loan from a plan covered by title I of the Employee Retirement Income Security Act of 1974 (88 Stat. 829) (ERISA) would be consistent with the fiduciary standards of ERISA or would result in a prohibited transaction under section 406 of ERISA. Q-10: If a participant fails to make the installment payments required under the terms of a loan that satisfied the requirements of Q&A-3 of this section when made, when does a deemed distribution occur and what is the amount of the deemed distribution? A-10: (a) Timing of deemed distribution. Failure to make any installment payment when due in accordance with the terms of the loan violates section 72(p)(2)(C ) and, accordingly, results in a deemed distribution at the time of such failure. However, the plan administrator may allow a cure period and section 72(p)(2)(C ) will not be considered to have been violated if the installment payment is made not later than the end of the cure period, which period cannot continue beyond the last day of the calendar quarter following the calendar quarter in which the required installment payment was due. ( b ) Amount of deemed distribution. If a loan satisfies Q&A-3 of this section when made, but there is a failure to pay the installment payments required under the terms of the loan (taking into account any cure period allowed under paragraph (a) of this Q&A-10), then the amount of the deemed distribution equals the entire outstanding balance of the loan (including accrued interest) at the time of such failure. © Example. The following example illustrates the rules in paragraphs (a) and ( b ) of this Q&A-10 and is based upon the assumptions described in the introductory text of this section: Example. (i) On August 1, 2002, a participant has a nonforfeitable account balance of $45,000 and borrows $20,000 from a plan to be repaid over 5 years in level monthly installments due at the end of each month. After making all monthly payments due through July 31, 2003, the participant fails to make the payment due on August 31, 2003 or any other monthly payments due thereafter. The plan administrator allows a three-month cure period. (ii) As a result of the failure to satisfy the requirement that the loan be repaid in level installments pursuant to section 72(p)(2)(C ), the participant has a deemed distribution on November 30, 2003, which is the last day of the three-month cure period for the August 31, 2003 installment. The amount of the deemed distribution is $17,157, which is the outstanding balance on the loan at November 30, 2003. Alternatively, if the plan administrator had allowed a cure period through the end of the next calendar quarter, there would be a deemed distribution on December 31, 2003 equal to $17,282, which is the outstanding balance of the loan at December 31, 2003.

Someone will soon run out of "likes".

Well done, Jack. Congratulations!

TAXMAN, I started this topic for you and moved your post because it would have be a hijack in a completely unrelated thread.

I'm not overthinking this at all, but your post with five "overthinkings", multiple explanation points, and shouting in capitals is overreacting!!!!!!!!!! Neither KC or I said you were wrong. In my post I simply stated my preference, and I'm also not going to leave anything to some agent's imagination why a document is different. One simple sentence or line takes care of it.

^ that. My preferred method is to enter the name that matches the return and notice. Then I'd mention the name change early in the correspondence or in the re: section of the letter, especially if documents are attached that were issued with the new name on them.

Your ATX programs will still be fully functional for preparing original late filed returns and amended returns to be filed on paper. No e-filing through the program though. And if you are worried about why the prior year programs had to be updated recently, that was because of and IRS required change to the schema format. All vendors had that, not just ATX, but paper filing wouldn't have been affected by that; they would be processed properly. As I said before, I'd suggest you do one last update to each year's program and then go to each year's preference setting and change each of those to NOT auto update at start up. If you don't turn the auto update function off, the programs will try to connect to the ATX server and will complete the start up process and will not load.

I need bigger smileys! I've been cranky too and I bought good chocolate today to take care of that.

Max W, that's interesting because it conflicts with these sources I've posted below. Was your post taken from research materials, forms, some other official source? This kind of conflicting information will make for an even more difficult season. The instructions to 8965, the IRS site on the exemption due to unaffordability, and the Marketplace all say that this exemption (code A) is to be claimed on the tax return, not granted by the Marketplace. Actually, the Marketplace says there are 2 options: that it can be claimed directly on the 2014 tax return, or the person can fill out an application for 2015 with links provided to the forms to be submitted.

I hope you aren't implying that anyone on this forum is "being creative" or outright lying for their clients. I certainly hope that isn't what you meant, and I hope you aren't saying that's what you have been doing either! As for your other statement, I don't think taxpayer care one bit about fines and penalties that are imposed on us.

Lion, did you notice that I was quoting Jack whose post included only the briefest of one-liners, and that I'd included a smiley too? The quote function on this board apparently doesn't include quotes of quotes, so I modified my post above to include everything in Jack's post that I was responding to, and you should note that it iwas not directed at you in any way, not you. *That* is what I was referring to. Your much more detailed post did a good job at answering, and maybe you didn't notice that I'd already "liked" your post previously. Sorry if you took it the wrong way. I don't think anyone on here expects another member to do research for them, at least I hope not! It's going to be a long season!

Ha, if I put that sign up I'd spend more time answering clients' questions about all of these things that don't apply to them, or debating about the ACA law in general. No thanks, I don't have time for that!

Hardly, unless you thought all 6 of the questions in the original post were rhetorical.

Staples stores usually have the Lasser books for about that same price. If you have a savings coupon, that could be a very inexpensive reference for you. I might look for that when I go by my local Staples later today because I have a $10 off coupon on a min purchase of $10 or more. ETA - Sorry, folks. I checked today and these books are not available in the Staples stores yet.

The instructions for the 8965 have the worksheets. Use the Affordability Worksheet and possibly the Marketplace Coverage Affordability Worksheet. Doesn't your tax software include some sort of worksheet that you would fill in?

The Tax Book publishes hard copy in spiral bound desk reference books. Their 1040 Edition" or "1040 Edition Plus" might work for you. If you also need something for business answers, consider their "Deluxe Edition" or "Deluxe Edition Plus" have covers 1040 and more.

That's assuming the person or couple have filed an SS-4. They'll need the EIN to open a bank account in the LLCs name, but we've probably all seen creative owners in that regard too. I've even seen where attorneys have prepared articles of incorporation, by laws, corp minutes, issued shares, filed with the Sec of State, and might even be acting as the corp's agent for an additional fee, BUT they fail to file the SS-4.

http://www.atxinc.com/products/w2_1099.aspx Am I interpreting this wrong? I don't see anything about PRS or limited to a certain number of returns. ATX website shows the price of $219 and this below it (unlimited use and e-file): Benefits: Unlimited use of all federal payroll forms Unlimited e-filing saves you time, money and hassles Data entry is a breeze with an easy-to-use tax software interface Information rolls over from year-to-year so you only have to enter data once Easily import data from Client Accounting Suite, QuickBooks®, and Peachtree® Integrates with PaperlessPLUS Features: Prepare and electronically file quarterly Form 941 and annual Forms 940 and 944 Convenient and reliable U.S.-based support Prepare W-2 and W-3 forms for distribution to recipients and paper filing or electronic filing with the Social Security Administration (SSA) Prepare and electronically file 1099s, 1098s and 5498s with the Internal Revenue Service (IRS) Prepare required forms for distribution to recipients on paper or as digital PDF files Import employee wage data from Client Accounting Suite, QuickBooks® or Peachtree® E-file an unlimited number of payroll returns at no additional cost Similar statements on ATX with the Payroll and Compliance program for $375 that says unlimited there as well: http://www.atxinc.com/products/payroll_compliance.aspx Are these not available for purchase as separate modules for unlimited use as it is stated on the website with a "buy now" button?

The ATX website lists the price of the 1099/W-2 module at $219 and the full Payroll Compliance module at $375. It really depends on how many returns of this type one prepares.

This question is brought up each year, usually more than once, so I've moved this topic from the Other Vendor section and to General Chat because the question really didn't relate to the other software at all. It appears that those that purchase ATX's "1040" or "1040 Office" packages aren't getting the W-2/1099 or Payroll Compliance in with their purchase. It's only included for those purchasing the more expensive products like "MAX" or "Total Tax Office". Some here using software other than ATX may benefit from this discussion, not just those with Pro Series or some other non-ATX program.

The first place that the wife signed was to act as the agent, just as I said. In what capacity the final 2 signatures were made is not clear. It says that form may be signed by a member, manager, or other representative. The only stipulation is that they have the authority to act on behalf of the LLC. I think you need to ask your client what their titles are and their intent. I'm leaning toward a 2-person LLC, but it really is not clear. I think you should delete that document from your post because, unless that information is all a matter of public record, you shouldn't be disclosing that on a public forum.