jklcpa

I'm in the cautious camp here and agree with JohnH. I would enter known withholding and estimates. If I'd done tax planning during the year that would be incorporated in the process. In Catherine's case, I would have opened that client's envelope on hand and made some attempt at a tax projection and looked for the payments to enter. I would never just file an extension for someone that failed to contact me, and it wouldn't be all zeros unless I knew that it was someone who I believed would have no tax liability and had no w/h or ests.

Geez, we're lucky he didn't bite anyone. That might result in unfavorable OSL, Occupational Specific Legislation, against all tax preparers. (Similar to BSL, Breed Specific Legislation, banning certain breeds of dogs)

I do not file extensions for MIAs. I only had 4 that didn't come back this year. Two moved out of my area, one is a coworker of my husband's that is very responsible, and one procrastinator. I called the one, and he used his wife's preparer. For those of you that do file extensions for MIAs, what method do you use to arrive at the numbers if you haven't contacted them?

I wasn't getting the fatal error message earlier, but now I am. Right now we can't even log on to the ATX support page. I'm waiting for a couple of acks for state returns that aren't due until the 30th, so I'm not worried, but this situation with ATX really sucks big time. I feel for all of you that are trying to process anything today.

Acks are flowing again. Status of e-filed returns within the program now matches the ATX web based status.

I wa worried about SE too. Also, if the affected partners have investment interest expense on 4952, the investment interest income needs to flow there from the K-1.

Thanks. That was a nice little diversion.

It is still trading and not totally worthless. I told my client to sell the shares and get the small amount of proceeds. The loss still ended up on sch D, net of the of proceeds.

I'm trying to decide how long to wait before amending. Return showed a refund of $2,750. Without the credit, this couple would owe $3,750. At least they met an exception to the 2210 penalty. Is IRS sending the refunds on returns claiming this credit and later checking the credit documentation, or are they verifying that the TPs actually qualify for this credit before issuing the refunds?

Don, thanks for the reply. The sale of old and purchase of new were both in Dec 2009. The reason I'm saying they don't qualify is that husband = long term resident, wife = first time owner. Jainen posted a link earlier this season to the IRS Q & A on another scenario. I was rereading some of the older posts last night on the subject. Here is a portion from that Q & A :

Clients picked up return about a week ago. They most likely have mailed it already. I claimed the long time resident home buyer credit of $6,500. Husband purchased former home with first wife in the mid 80s, then divorced her mid 90s and married current wife. Current wife has lived in this home since their marriage, but she was never put on the deed. UGH! They purchased the new home together. They don't qualify for either credit, right? And MFS won't help either, right? If they haven't filed, I'll correct the return. If they have filed, how long to wait before sending the amended? Taking the credit off, they will owe about $3,750. This has been the worst year ever. I hate this kind of cr@p! TIA for any advice.

What else does the K-1 report? Any 179? Is the SE income shown in box 14? You can't assume that the partnership's ordinary income or loss is for SE taxable. As an example, a partnership's ordinary income can include gains on 4797 that are not SE income.

Golden Retriever + Old English Sheepdog = a Golden Oldie!

Dear Client, Thank you for showing up at my house last Sunday morning unannounced. That was a very special moment for me. Also, thank you for twice rescheduling (at the last moment) your appointment to pick up your completed returns. That simple act helped me run my office in the most efficient manner possible. I also appreciate the consideration you showed me when you called my house at 8:30 pm a few nights ago to discuss a prior year IRS notice. What a wise person you are to have come up with the idea of "calling the IRS and playing dumb" to see if you can find out what the notice means. That makes much more sense than listening to your brother's advice, or mine. PS - it wouldn't be pretending when you call the IRS. You ARE dumb. PPS - YOU'RE FIRED!

BS, I am sorry to hear of your diagnosis. I will be praying for you and hope you have a full recovery. MargaretMort, I'm sorry to read your news as well. I'm sorry for the loss of your husband, your cancer and treatment. Thank you for sharing that you are cancer free. I will pray that you continue in good health with no reoccurrence.

Wasn't there some sort of issue with the ATX servers for a day or two in mid-March? I remember this because I had one 7004 that I filed around the 10th, and then saw an issue with the servers around the 13th-15th that made me glad I'd filed that 7004 when I did. The ATX support site only says that on 3/18, one batch of efiles was resent to the Kansas City processing center. What's odd is how all 4 of your efiles have the same DCN on them. Unless you reset the counter before each one, it sounds like a problem with ATX. I'd still check with e-services. Perhaps as michaelmars suggests, that the first ones were accepted.

Were these a batch process? I think I'd try calling the e-services help line @ 1-866-255-0654. Maybe somehow a person there can get the extensions processed for you so they aren't considered late.

I have a couple that wants to file a MFJ return for 2003. The IRS created a substitute return for the husband, but not one for the wife. As I understand it, this is not an amendment to his return, because he never filed. Do I simply file the 2003 on a 1040 with a letter explaining that? TIA

When this season is over, I'm having one bad@ss FRIKKIN' BANANA SPLIT. Later on, I may do some frikkin' drinkin'. Anyone's welcome to join my party.

Not entirely true. The education credits, if any, go to the taxpayer claiming the dependent, regardless who foots the bill for the tuition.

Had one exactly like this last week. Whatever percentage of the soc sec was taxable (mine was the full 85%), that is the percentage of the attorney fees that are deductible. My deduction was $4,505 (5,300 * 85%). Yes, report as misc deduction on line 23 of Sch A, subject to the 2% limitation.

Code sec 453(i) is the section for disposal of recapture property in an instal sale having recapture income from either sec 1245 or 1250 property. Recapture income is the ord income under sec 1245 or 1250 that must be recognized in the year of sale, and any excess of the recapture is reported on the installment method. The return will contain both Forms 6252 and 4797. Form 6252, line 12 is where the ord inc recapture is reported in the year of sale. It subtracts from the overall profit on the sale, and the gross profit and GP% are reduced accordingly.

I wish I was that luck to be able to lump. I am working on a partnership with a theft loss of several pages of depreciable items, most having taken sec 179 on. Each item reported separately. Once I get the partnership done, then I get to do it over again on the each of the 2 partner's returns.

LOL

The original posting was confusing to me, so I chose not to answer. Now, I *think* was OP is saying is that husband's 50% ownership when into the trust where the wife had the right to income from his share during her lifetime, and she (wife) retained her own 50% ownership outside the trust. In that scenario, wouldn't the husband's 50% get the stepped up basis at the time contributed to the trust in 1982. Then the 50% ownership of wife outside the trust gets stepped up at her death. If that is the case, shouldn't the children's basis in 100% of the property be this: 50% coming from the trust at the 1982 value and the 50% coming from mom at the 2000 value?