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For Dan and other readers, here is the NAICS lookup site: https://www.naics.com/search/ Dan, type in "golfer" in the search box on that site and the code "711219" comes up with the following description:

Now that the sun is up and thinking more clearly, that is what I was to suggest: to file all of the amendments correcting the loss carryforwards. I would also make sure to show the losses on an AMT basis even in those are all the same numbers. You don't want the IRS bouncing it because those calculations weren't included with the amendments. I'm going with the idea that this is similar to someone that has a cap loss c/o that is below filing threshold in the immediate following year and then a subsequent year does need to file again. That non-filed year doesn't mean that the loss c/o no longer exists, it only means that the calculation of carryover in the nonfiled year wasn't made. The loss still exists, and when filing again, is shown at the proper amount. In the case of Ringer's client, a figure was entered incorrectly that should be fixed, and the additional loss does exist which should be plainly evident when comparing the 2015 and 2016 returns as originally filed. I also see that the main error of carryforward occurred in the 2016 year and not in the 2015 year as I'd written above, so that buys about a year to hold TT responsible with its 7-year guarantee. With TT reps saying they can't find the return in the system, is there any chance that this same thing happened when the client tried to access the file and complete his return? I can foresee TT trying to wangle out of this by saying the the client had typed that loss carryforward number of $10K into its system and creating the error himself.

The waiver to repay the excess was for only the 2020 tax year.

No, use the new code cbslee gave you, and all you do is type the new code into the software

I'll post more thought on this after some more sleep and after the sun comes up.

This may not be a good idea considering the dollars involved. Unless the taxpayer requested an extension for the 2019 year, at a minimum the 2019 return needs to be analyzed to determine the effect of correcting the carryforward. Note - the 2019 original filing date was extended from 4/15 to 7/15/20 because of COVID, so there is a little extra time before the 2019 tax year is "closed" for any claim of refund. Anyway, the point is that there is not much time to amend and correct 2019. Ringers, also to consider: if your client wants to hold TT to their 7-year guarantee, that runs from 7 years starting with the date the return was actually filed, so if the 2015 return was filed prior to March 1 or today, depending on how you want to look at your client's notification to TT of the error, your client's guarantee period for the 2015 return may have already lapsed. Client may have to get an attorney involved in this. Sounds messy.

It is possible that the tax withheld will be for the exact amount of tax liability if the taxpayer works in the same jurisdiction that he/she works in or works outside of the resident jurisdiction and the employment jurisdiction has the same tax rate as where he resides, but that isn't always the case. It is also possible that the resident works in a jurisdiction that has a higher rate than where he resides, but he will not be able to claim the full credit but only up to the rate where he lives. All PA residents with earned income must file a local earned income tax return if their local resident jurisdiction imposes such a tax. Documentation must be attached (W-2s, Sch C, 1099, PA-40 and out of state returns for credits claimed, etc). Since I am right on the DE/PA border, many of my PA residents work in DE and have to rely on the out-of-state credit to cover the PA state and local liabilities or pay quarterly estimates. Either way, they are filing local returns.

By "net" , do you mean that is after subtracting the amount of reimbursement from the LTC contract, or do you mean something else? Which box is checked in box 3 of the 1099? Was it a per diem allowance or truly a reimbursement? Do you know if the contract is a tax-qualified contract or a non-tax qualified one?

Aww, thank you! ::blushes::

Within Drake, go to the state tab and open the PA area. From there, you'll be able to generate the W2WK schedule to explain any differences from the W-2 wages to the PA return. That schedule reconciles the Fed and Medicare wages to the PA wages. For a PY or NR, you may need to make a manual entry for wages earned (calc'd on the basis of what PA taxes) during the period of nonresidence. PA does not allow a deduction for retirement plan deferrals such as 401K contributions so those are an add-back on the worksheet, but it does not tax GTLI reported on W-2 box 12 as code C so that would be a subtraction. You'll notice on the W2WK worksheet that those 2 items already have predefined boxes in the appropriate columns for proper reconciliation. With some PY PA returns, I found that having the paystubs for year-end and the one immediately prior to moving in or out of the state to be extremely helpful. There have been times where I attached my own reconciling schedule as a pdf. If client has Sch D that is a net loss, that amount will show up on Sch D and will carry to the PA-40, pg 1, but it will not be included in the math total to arrive at taxable income because PA taxes income and doesn't allow losses. Cap gain dividends do NOT flow to PA Sch D but are included in the dividend line on the PA return. PA doesn't have itemized deductions, but some employment-related deductions are still allowed for employees that receive a W-2 and have unreimbursed job-related expenses. If your client is in a profession that may have those, such as salesperson, you may want to check out Sch UE, and those flow to PA-40 pg 1 and are shown as a reduction of the PA wages. PA allows a deduction for 529 plan contributions made by the taxpayer. Schedule O. Off the top of my head, I'm not sure exactly how this is handled for PY returns though, so if you have this, you'll have to check the instructions on that one. PA return, you'll need to enter the school district that the client lives in and the dates of residence. That's on the PA tab. For the local return, Drake has a separate tab for that. You'll have to look up the municipality and its rate. PA does allow a credit for income taxed in two states, if you have that situation, and the local return will allow that also, and that is calculated similar to the state credit but is further reduced by the amount that was already used on the PA state return. Also for the local, you'll need to get the instructions from the locality or collection bureau that they live in. Each municipality has their own rate, and you'll have to read the instructions to find out how it allows for withholding if the taxpayer works in a different municipality than where they live. I'll wish you good luck with the input. I find the PY returns particularly fiddly and feel like I always waste some time getting it to present properly even when I'm certain of what the outcome should be.

There are differences between superseded and amended returns for statute of limitations pertaining to assessments and also for refund claims. The following article has a good summary of the issue, and also the difference between IRS view and the Supreme Court view on this. https://www.thetaxadviser.com/issues/2021/jul/superseding-returns-statutes-limitation.html

I would also suggest filing, especially if including only the gross proceeds in income will put this client over the threshold. To do otherwise, the client may receive a CP2000 notice because IRS doesn't account for basis.

If you were on the same IRS page that TexTaxToo linked to above, those are .xlsx files that should open with MS Excel. I'm surprised that your computer doesn't have a new enough version of Excel to open it. All I had to do was click on the download and it launched Excel automatically and the file opened.

Two posts were moved to a new subject entitled COMPUTER BLOATWARE so this one isn't derailed.

Above 2 posts were moved from the topic about ATX crashing so not to derail that one and be able to continue this one on its own.

It's not pinned, but you can find the related posts by searching for "large address aware". Use the quotation marks in the search box to search for that exact phrase, otherwise the search will bring up every post with any of the three words. Look for the posts specifically by Abby Normal, but some are a few years old now and I'm not sure if those are still all valid or if the linked site to obtain the LAA is the correct one any more.

Talked to Drake: clueless, and suggested trying to resubmit but of course the software won't let me. Brief call to GA DOR tax pro hotline: "we are aware of the problem and are behind in processing. Please have patience with us as we try to catch up." At least now I know that the problem isn't on my end, with the software, or with IRS transmitting to the state.

Haha, so simple. I checked the sections for tax pros and e-filing. Thanks again.

Thank you! I checked the GA DOR site and couldn't find anything. Curious where you got that info?

Has anyone else filed a GA return and had very slow return of the ack? I filed a nonresident GA individual return over 3 1/2 days ago and nothing back yet and have never had any so slow. The Fed and other 2 states for this client's return came back almost immediately, same as they all did last year.

3115 charges as a separate line item too with the explanation that that is the cost of his choosing to not hire a professional in the first place and/or using TurboTax incorrectly. That's assuming you think you can train him to be a worthwhile client, otherwise dump him now without wasting any more time.

It's still early in the season and perhaps Drake isn't calculating this correctly and needs to make a program update. Have you checked the Drake forum to see if anyone else is reporting the same or similar problem? For populating the 2210 and/or the state equivalent, Drake picks up the prior year federal and state tax amounts from screen 1 that should have been created during the rolling forward of data from '21 to '22. If you are sure that the return filed did show that amount on line 30 and you would like the program to use the lesser amount of $14,506 on the 2210, you can change it to that amount at the bottom of screen 1 within the program. That is the screen that has the TP's name and address on it.

Might this partnership consider electing out, and therefore would not need to designate a representative? This blog has a brief explanation of why a partnership may want to consider this, especially this one with A & B having divorced last year. https://www.yeoandyeo.com/resource/why-an-eligible-partnership-should-elect-out-of-the-centralized-partnership-audit-regime

Start with my post from this topic back in 2019. It has a link to a JoA article that also may help.

Were any loan repayments made before basis was restored?