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From the IRS site, that error message says 'SpouseSSN' and the 'SpouseNameControlTxt' in the Return Header (or Line 6b 'ExemptSpouseNameControl' in the return - For 1040/1040A returns) must match the e-File database. From Thomson Reuters, here's some more: Error Reject Code R0000-503-01: Valid for 1040/A/EZ/SS(PR) - Spouse SSN and the Spouse Name Control in the Return Header must match the e-File database. Resolution This is a master file rejection, which means the SSN and name control does not match what the IRS has on their master file. Verify the spouse's SSN and name. If these are correct, then you will have to contact the IRS or file the return on paper. Note: This normally happens when the spouse just married and has not yet changed her last name with the Social Security Administration (SSA). If the spouse has multiple last names, see Publication 1346, Electronic Return File Specifications and Record Layouts for Individual Tax Returns (Tax Year 2008). Section 7, Formats for Name Controls, Name Lines and Addresses, contains examples and general rules for determining name controls for Hispanic, Asian Pacific, Native American, estates, and hyphenated names. If you are the tax professional, contact the IRS e-help Desk at 866.255.0654 for assistance. If you are the taxpayer, contact the IRS Accounts Management at 800.829.0922. If the secondary taxpayer has changed their name but has not notified the SSA, have the taxpayer contact the SSA at 800.772.1213. It may take the SSA up to 10 days to notify the IRS after they have updated their files. Afterward, an electronic return can be resubmitted. If the SSN and name control continue to reject, a paper return must be filed.

...and some of them do understand but pretend that they don't so that they can yell at someone for their stupidity besides themselves.

The difference might be if Jack's firm has all of the entity types or many more (or all of the) states installed vs. those that might have only the 1040 installed or have one (or only a few) states loaded.

My clients would have to bring PJs if they wanted to be here while I worked on their returns. That's a visual I don't need.

KC is correct. Add the PA return to the client's return and then you will have to exclude the items that aren't taxable in PA. Assbackwards PA is! I'm thankful that DE is one of the states that piggybacks the federal laws for depreciation.

Do you mean that the taxpayer's IRA invested in a partnership, and the K-1 was issued to the IRA as the owner? If that is the case, then you don't report that anywhere. It is no different than any other investment that the IRA makes.

At beginning of year, taxpayer lived and worked in the same taxing jurisdiction. Beginning of April she moved to another jurisdiction and continued working for same employer. Wages are only $1200. On the back of the local EIT return is schedule ITR-1. I know she must report 9/12ths of the wages in the new jurisdiction with -0- withholding and pay the $9.00 (a 1% tax in this area). My questions - I think she has to file a return for the 3 months in the former area, is that correct? Does she report only 3/12ths for the time she lived there even though she continued to work there and had the taxes withheld, or is she liable for the full year's tax for that local because the employer is located there? TIA

Margaret, while this snip is from the IRS pub 947 Practice before the IRS, it talks about POAs, perfecting non-tax POAs, and when the IRS will allow a non-tax POA representative to sign a form 2848 on behalf of a client. Maybe the part about perfecting a non-tax POA and the example at the bottom will help you figure out your situation. Here's that section: What Is a Power of Attorney? A power of attorney is your written authorization for an individual to act on your behalf. If the authorization is not limited, the individual generally can perform all acts that you can perform. The authority granted to a registered tax return preparer or an unenrolled preparer is limited. For information on the limits regarding registered tax return preparers, see Circular 230 §10.3(f). For information on the limits regarding unenrolled preparers, see Publication 470. Acts performed. Any representative, other than a registered tax return preparer or an unenrolled return preparer, can usually perform the following acts. Represent you before any office of the IRS. Sign an offer or a waiver of restriction on assessment or collection of a tax deficiency, or a waiver of notice of disallowance of claim for credit or refund. Sign a consent to extend the statutory time period for assessment or collection of a tax. Sign a closing agreement. Signing your return. The representative named under a power of attorney is not permitted to sign your income tax return unless: The signature is permitted under the Internal Revenue Code and the related regulations (see Regulations section 1.6012-1(a)(5)). You specifically authorize this in your power of attorney. For example, the regulation permits a representative to sign your return if you are unable to sign the return due to: Disease or injury. Continuous absence from the United States (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return. Other good cause if specific permission is requested of and granted by the IRS. When a return is signed by a representative, it must be accompanied by a power of attorney (or copy) authorizing the representative to sign the return. For more information, see the Form 2848 instructions. Limitation on substitution or delegation. A recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized by you on the power of attorney. After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent you. Disclosure of returns to a third party. Your representative cannot execute consents that will allow the IRS to disclose tax return or return information to a third party unless you specifically delegate this authority to your representative on line 5 of Form 2848. Incapacity or incompetency. A power of attorney is generally terminated if you become incapacitated or incompetent. The power of attorney can continue, however, in the case of your incapacity or incompetency if you authorize this on line 5 “Other” of the Form 2848 and if your non-IRS durable power of attorney meets all the requirements for acceptance by the IRS. See Non-IRS powers of attorney, later. When Is a Power of Attorney Required? Submit a power of attorney when you want to authorize an individual to represent you before the IRS, whether or not the representative performs any of the other acts cited earlier under What Is a Power of Attorney. A power of attorney is most often required when you want to authorize another individual to perform at least one of the following acts on your behalf. Represent you at a meeting with the IRS. Prepare and file a written response to the IRS. Form Required Use Form 2848 to appoint a recognized representative to act on your behalf before the IRS. Individuals recognized to practice before the IRS are listed under Part II, Declaration of Representative, of Form 2848. Your representative must complete that part of the form. Non-IRS powers of attorney. The IRS will accept a non-IRS power of attorney, but a completed Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. For more information, see Processing a non-IRS power of attorney, later. If you want to use a power of attorney document other than Form 2848, it must contain the following information. Your name and mailing address. Your social security number and/or employer identification number. Your employee plan number, if applicable. The name and mailing address of your representative(s). The types of tax involved. The federal tax form number. The specific year(s) or period(s) involved. For estate tax matters, the decedent's date of death. A clear expression of your intention concerning the scope of authority granted to your representative(s). Your signature and date. You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. The statement should read: I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority, I am aware of the regulations contained in Circular 230, I am authorized to represent the taxpayer(s) identified in the power of attorney, and I am an individual described in 26 CFR 601.502( b ) Required information missing. The IRS will not accept your non-IRS power of attorney if it does not contain all the information listed above. You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. If you cannot sign an acceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure described next. Procedure for perfecting a non-IRS power of attorney. Under the following conditions, the attorney-in-fact named in your non-IRS power of attorney can sign a Form 2848 on your behalf. The original non-IRS power of attorney grants authority to handle federal tax matters (for example, general authority to perform any acts). The attorney-in-fact attaches a statement (signed under penalty of perjury) to the Form 2848 stating that the original non-IRS power of attorney is valid under the laws of the governing jurisdiction. Example. John Elm, a taxpayer, signs a non-IRS durable power of attorney that names his neighbor and CPA, Ed Larch, as his attorney-in-fact. The power of attorney grants Ed the authority to perform any and all acts on John's behalf. However, it does not list specific tax-related information such as types of tax or tax form numbers. Shortly after John signs the power of attorney, he is declared incompetent. Later, a federal tax matter arises concerning a prior year return filed by John. Ed attempts to represent John before the IRS but is rejected because the durable power of attorney does not contain required information. If Ed attaches a statement (signed under the penalty of perjury) that the durable power of attorney is valid under the laws of the governing jurisdiction, he can sign a completed Form 2848 and submit it on John's behalf. If Ed can practice before the IRS (see Who Can Practice Before the IRS, earlier), he can name himself as representative on Form 2848. Otherwise, he must name another individual who can practice before the IRS. Processing a non-IRS power of attorney. The IRS has a centralized computer database system called the CAF system. This system contains information on the authority of taxpayer representatives. Generally, when you submit a power of attorney document to the IRS, it is processed for inclusion on the CAF system. Entry of your power of attorney on the CAF system enables IRS personnel, who do not have a copy of your power of attorney, to verify the authority of your representative by accessing the CAF. It also enables the IRS to automatically send copies of notices and other IRS communications to your representative if you specify that your representative should receive those communications. You can have your non-IRS power of attorney entered on the CAF system by attaching it to a completed Form 2848 and submitting it to the IRS. Your signature is not required; however, your attorney-in-fact must sign the Declaration of Representative (see Part II of Form 2848).

Yes, the wife signed the statement and I kept it in my file along with a copy of the POA, and she signed the 8879 for both of them. Maybe that wasn't entirely correct, but she had the authority to sign for herself and for her husband with the statement and the POA.

ATX has a tab on the 1040 for explanation of signature. What I would do is this: Check the box for the spouse, the wife in this case, and from the drop down box choose "injury or disease prevents signing" and fill in the date it will be signed reason is: "(name of spouse) has been diagnosed with and is living in a full-care facility due to Alzheimer's disease and other physical ailments. Her cognitive and physical limitations prevents her from signing the 2013 tax returns." Because this explanation was designated as being for the spouse, ATX will put the father's name under a signature line on that page. Son should sign with his name and indicating POA. On pg 2 of the 1040, son signs for the father as having POA, and attach the POA. and on the spouse's line, enter "see explanation for no signature" I had this explanation attached to a couple's returns for many years because the husband was in a home for Alzheimer's patients. Wife signed that statement each year and it was never questioned. I did eventually start e-filing the return, but it was paper filed with the statement for a few years too.

Yes, I agree with KC. Additionally, as far as the property taxes and interest deductions are concerned, he has no deduction because he didn't pay anything. She can't deduct them even though she paid because she has no legal title or legal obligation for them.

Thanks for the sing-along, Rita. After that video finished playing I watched the one of him putting makeup on his friend while he was blindfolded. It had me laughing so hard I had tears rolling down my cheeks.

MsTabbyKats, in one post you said she pays all the bills, and in another you said his name is on the mortgage and they spilt everything. So to add to what I posted above, your client can only take an interest deduction for the portion he is liable for (is that 50% or 100%? ) AND that he actually paid. So, did he pay all of the interest expense or only part of it?

If he no longer rents it and you are taking it out of service, and he also does not live there, then the interest expense on the mortgage becomes investment interest expense. That is reported on form 4952, and the deduction is limited to the amount of investment income. The taxpayer can elect to income cap gains in that income, but then he loses the cap gain rate. If contemplating making that election, you need to calculate it both ways to see which is better.

Say it isn't so, please. See where PA, MD, and DE all come together? I'm a few miles NE from there. Ugh!

No

Yep, my clients with managed funds are the ones with the most trades too. JB, you were right to begin with. Those trades are on the 1099B and you need to report them.

You have to look at the 1099B to see what needs to be reported.

You are correct, there are tax laws that define the tax treatment, and part of the tax law says that if both parties to the divorce agree that it isn't alimony, then it isn't taxable to the recipient and isn't deductible by the payer. Divorce lawyers aren't writing tax law, they are merely utilizing it as a tool. I don't have a problem with that.

In JB's original post he said that the home is in the husband's name, that husband pays all the bills, keeps finances a secret, and sometimes gives his wife a small allowance. She has no deduction for the interest or property taxes.

Use "Other country" and enter 12/31/13 as the date. The $33 will show on pg 2 of the 1040 without producing the 1116. If it does, just delete the form and make sure the $33 FTC remains on the 1040.

Yes, I know. That was taken directly from the instructions for the 8949 for Exception 1, and those instructions also specifically say "do not enter 'available upon request' " like some preparers used to do.

Then you can't use exception 3 by entering directly on sch D. You can use exception 1 that allows you to enter the summary totals on 8949 and attach a pdf of the broker statement or mail it in with the 8453.

Yeah, I know, I know, but with everything being a secret, how will she ever know if he stops itemizing?

Rita, I did too. Smiling back at ya.