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No, the IRS won't see any difference in the POA. At this point and without a valid perfected POA that IRS will accept, the only return the wife could file is her own as MFS. If the wife wants to file either return (MFJ or MFS for husband, she MUST "perfect" that general POA because the general POA isn't specific enough with its wording of only "tax return". To summarize...again: Spouse can only sign joint return on behalf of if - INJURY OR DISEASE PREVENTS SIGNING If one cannot sign because of disease or injury and tells his or her spouse to sign, then spouse can sign on behalf of the other followed by the words, “By (your name), Husband (or Wife)”. Attached a dated statement signed by you which includes the form number of the return you are filing, the tax year, the reason your spouse cannot sign, and that spouse has agreed to your signing for him or her. (Don’t forget to also sign in the space provided for your signature.) SPOUSE DIED BEFORE SIGNING If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. If neither you nor anyone else has yet been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. SPOUSE IN COMBAT ZONE – NO POWER OF ATTORNEY You are permitted to sign for your spouse serving in a combat zone, or performing qualifying service outside of a combat zone, or in missing status in a combat zone. Attach a signed statement to your return that explains the situation qualifying you to sign. SIGNING AS GUARDIAN OF YOUR SPOUSE If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. Sign your spouse’s name, followed by the words, “By (your signature), guardian.” SPOUSE AWAY FROM HOME If your spouse is continuously absent from the United States for at least 60 days prior to the due date for filing the return, you may be able to sign the tax return with a properly executed power of attorney. Otherwise, you should sign the return and send it to your spouse to sign so that it can be filed on time. DIVORCED TAXPAYER If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year, and cannot choose married filing jointly as your filing status. If the divorce became final after the end of the tax year, you may file a joint return. However, you generally can sign on behalf of your ex-spouse only if you are given a “valid power of attorney” that is enforceable after the divorce. (See “SIGNING WITH A POWER OF ATTORNEY” below.) OTHER REASONS SPOUSE CANNOT SIGN If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a “valid power of attorney”. (See “SIGNING WITH A POWER OF ATTORNEY” below.) Again, because Taxman's client doesn't fit into any of the above reasons except the last one of "other", if she wants to file a joint return or file a MFS on behalf of the missing husband, she needs a valid POA. Right now, that general POA doesn't contain all of the language to meet the IRS requirement but may be perfected as described below. SIGNING WITH A POWER OF ATTORNEY (POA) Regulations §1.6012-1(a)(5) permits you to rely on a POA as authorization to sign a return for another person only if that person is unable to sign due to disease or injury, continuous absence from the United States for at least 60 days prior to the due date for filing, or if specific permission has been granted by the IRS. The POA must specifically state that you are given the authority to sign, and give the specific reason why as listed above. You may be authorized to sign either as the taxpayer’s representative or agent. Generally, a representative must be an individual eligible to practice before the IRS, such as an enrolled agent, attorney, or CPA; a family member (limited to spouse, parent, child, brother, or sister) may also act as your representative. There are no restrictions on who can be appointed as an agent for the specific purpose of signing a specific tax return. The tax return (or electronic filing authorization) should be signed in the following manner: “(Taxpayer name), by (attorney-in-fact name) under authority of the attached power of attorney.” The POA must be attached to the return. If the return is filed electronically, the power of attorney must be attached to Form 8453 and mailed to the appropriate service center once the electronic return is accepted for processing. A non-IRS POA may be used, but it MUST contain: the taxpayer’s name and mailing address, social security number, the name and address of the agent or representative, the type of tax involved (“income tax”), the federal tax form number (1040, 1040A, etc.), the specific year(s) involved, a clear expression of the authority granted, and the taxpayer’s dated signature. To be authorized as the taxpayer’s representative (as opposed to agent), the non-IRS POA must also contain or have attached to it a signed and dated statement made by the representative referred to as the Declaration of Representative (which can be found in Part II of Form 2848). If the non-IRS power of attorney does not contain all the information listed, the IRS will not accept it. Non-IRS POAs typically do NOT contain all the information required, simply because they often don’t specify tax form numbers and years, and don’t specifically authorize the signing of the tax return. A non-IRS POA may be “perfected” as follows: by signing a Form 2848 on behalf of the taxpayer, as long as the original non-IRS POA grants authority to handle federal tax matters (for example, general authority to perform any acts), and a statement signed under penalty of perjury is attached to the Form 2848 stating that the original non-IRS POA is valid under the laws of the governing jurisdiction. Sign Form 2848 in the following manner: “(Taxpayer name), by (attorney-in-fact name) under authority of the attached power of attorney.” The individual named as representative on Form 2848, often the attorney-in-fact, must also sign and date Part II of the form. The specific authority listed must include the authority to sign the tax return

Does the Canadian University participate in our student aid program?

Anyone seen the Bitcoin investment that people can make through Paypal? I have one client that told me he just bought some in 2021 but hasn't done anything with it. It seems more like a mutual fund to me because it can't be used to pay for things, and Paypal says it will provide the details for reporting the transactions.

If this is helpful, here are the rules that govern non-IRS POAs and what IRS requires in order for them to be acceptable, and how to perfect a non-IRS POA. It comes from Pub 947 but has the code sec cite of when the person with authority may sign a return and those requirements: 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).

Max W makes a good point. Taxman, whatever filing is done, I hope you will give us a followup post of how this plays out with the returns and if the husband is ever found.

Delete the pdf and close the return. Rescan the document and name it something different, and make sure to close it. Reattach the pdf with the new name, calculate the return, recreate the e-file and try again. https://support.cch.com/kb/solution.aspx/e-file-Rejection-X0000-029-A-binary-attachment-submitted-in-the-PDF-format-must-begin-with-the-file-header-PDF

My last thought, maybe-because my head isn't working well at the moment, is if an MFJ return is filed and signed by wife on behalf of husband using her authority of the POA, I wouldn't attach any further statement about the husband being missing. In other words, don't give the IRS any more of a reason or anything else to question. Give them nothing more than the required information. If IRS will accept that POA, then no further explanation should be needed. Sorry if I'm rambling.

The short answer you are looking for is this: if MFS and BOTH PARTIES AGREE, then the overpayment carryforward may be split in any manner they choose, and the IRS will accept that allocation. This is done by each filing a return claiming their agreed-upon share of the carryover. Absent both filing or If they can't agree, then the IRS will allocate based on a formula that divides based on each person's proportional share. Cite is reg sec 1.6015(b)-1(b) Also, the IRS may still question and reject that POA even though it includes "tax returns" because IRS wants its POAs to include the very specific language found in the code. Sorry if that isn't much more help on how to file. At the risk of being rejected, I think I'd try to file it as MFJ rather than as separate returns because at least the attention won't be drawn to the splitting of the carryover right from the beginning. The only other thing I can think of is on a MFS return is questioning whose funds mostly created the overpayment to begin with? If it came from a separate account in husband's name, or if it was all from withholding from husband's retirement distributions or social security, I think the wife would have a harder time claiming the overpayment if the IRS questioned the MFS return claiming the carryover if a return for the husband is rejected or never filed.

You might want to read this older article in its entirety about filing MFS: http://archives.cpajournal.com/1996/1096/features/Married.htm For those that don't like links, I'll include the entire last section here:

I don't think it's so much that he wants it transmitted with the return but that it should be generated with each shareholder's K-1. At least that's how I interpreted the issue.

I don't use ATX any more, so maybe someone else here will chime in. Sorry I can't be more help, and welcome to our forum. I googled and found this that may help you find the footnote editor. It's for Axcess, CCH's program with more features, but ATX should have a place for the preparer to enter statements and footnotes that can be applied globally: https://download.cchaxcess.com/pfxbrowserhelp/TaxHelp/Content/Tax Returns/TR_UsingFootnotes.htm

I would put it on Sch E again. Unless it is more than a nominal amount of land basis to allocate, I probably wouldn't worry about that. I knew you weren't questioning it being taxable. That part of my reply was to grandmabee's "14-day" statement. As someone pointed out last year, your client may lack adequate insurance coverage for people using the property as other than personal guests.

Either should be recorded in the corporate minutes and the stock records for any changes of ownership, shares retired, redeemed, held in treasury, etc. Lawyer will do this and will draw up papers for either one of the transactions. I'll assume that your state will require that documentation for proof of the change in ownership for any sort of licensing such as gaming or liquor licensing.

Assuming a C corporation - If the company buys back the stock, then that would be reported by the individual like any other stock sale via schedule D/8949. The corporation would have balance sheet entries for the cash outlay of the repurchase and a debit to Treasury Stock for those shares. If the individual wishes to gift the stock to the other shareholder(s), there is no entry on the corporation books other than the transfer of ownership in the questions pertaining to ownership and the area of officer comp where percentage of ownership is shown. The gift would require Form 709 reporting appropriate valuation of those shares. If you aren't familiar with the valuation methods, consider subbing this out to someone that is. If it is a closely held corp, depending on location, and if this is a minority interest, a discount for lack of marketability may be appropriate. Like any other gift, the donee's basis will be that of the donor. Assuming there is gift tax exemption available, there may be no tax consequence other than the costs of valuation, attorney fees, and preparing the appropriate returns.

Two topics on exact same question, so this one is being locked. The other topic where ongoing answers may be posted is here:

That rule is a special provision of 280A that defines rental of a residence, so with this being rental of only the yard, I'm not sure that would be applicable with the facts presented. There's definitely a profit motive, so I'd say that it is reportable. Max W, does this client advertise this in any way, and if it is the same client as last year, how aggressive is he with this? Could it be construed as a business at this point? Is there any access to the home or other facilities at all? How does one host a party of any duration without having bathroom available? Anything else available to the guests such as a pool, gazebo, or any other structures or improvements to the property?

Is it this one from last year? How did you handle it then?

Always easier when it isn't my client and being pressured to complete the return.

Well, you forced me to get up and look at my software if I had one of these. (not feeling great today) There is no special code to allow the wages to flow directly to SE. The entries from the W-2 input would carry to the appropriate wage line of 1040, AND then the preparer DOES have the ability to enter an amount directly on SE for line 2 as "other SE income". Perhaps ATX has a place like that.

If doing it by hand, the W-2 would be reported as wages and Sch SE instructions actually address this and say to report it on Sch SE line 2.

The second of those two links said to report the compensation as wages on the 1040 and complete schedule SE. It doesn't say anything about reporting it as self-employment income on Schedule C. Of course making the software do this is another matter. Are overrides even possible in ATX to complete Sch SE?

Helpful info in these links: https://www.irs.gov/individuals/international-taxpayers/employees-of-a-foreign-government-or-international-organization-fica-including-social-security-and-medicare-tax https://www.irs.gov/individuals/international-taxpayers/employees-of-a-foreign-government-or-international-organization-how-to-report-compensation

You have to look at the underlying reason why the expense was incurred. The legal fee is directly related to the financing and not for protecting, preserving, or maintaining the asset itself, and not for production or collection of related income. It was incurred to save on the outlay of interest expense, but is that enough to be considered ordinary and necessary in the operation of this rental activity? Unless it is a nominal amount such as would be charged for the attorney to write a letter to the other party, I would probably capitalize. Caveat - my opinion, not researched.

It's fixed now. Thank you @Eric

Hope it will be fixed soon. If anyone can read this you are doing better than me!