Crank

I have a 1099R with an incorrect distribution code. A code "T - Roth IRA distribution, exception applies" was used. The client claims that it wasn't a Roth IRA but that is was a traditional IRA. Documentation supports this also. Client is 62 years old. Does the bank need to issue a corrected 1099R?

There are some good open source and freeware PDF programs such as PDFCreator and PrimoPDF. Check Filehippo.com Office and News section for downloads here. http://www.filehippo.com/software/office/

Many local taxing authorities allow you to take a credit against local taxes for taxes paid to philadelphia. Check with your local taxing authority.

For Pennsylvania local Earned Income Tax (EIT) returns many accept the generic form included in ATX "PA-FREIT Final Return For Earned Income Tax". Just make sure to input the local tax rate, many are 1% and get the mailing address from the local taxing authority

Thank you. Hmmm, You are jarring my memory. Sounds familiar. Operating vs. capital. Is it safe to assume that most consumer leased vehicles fall under "operating" lease treatment. Im trying to determine if a client was insolvent as of a particular date and struggling with a leased vehicle.

How is a leased vehicle valued on a financial statement? Both the asset and the liability? Any help is appreciated. Thanks

I've never used a formula, that I can remember. I'm not clear what your point is in doing that. But what I'd suggest as a fix is that you can do your calculation, input the amount, and then add a 'note' to that field. In the note you can put your formula or whatever info you want to save for that field. Notes do roll over.

Thanks for the reply.

Yep, thats what I have been doing since. But formulas just seemed easier to me. For example if I wanted to input property taxes on Sch A, I would just input them as I went along. (i.e. =1650.26+529.88+326.56) Seemed much easier than adding them up and then inputing the total plus if I returned to the field I could see what I had input to get that amount.

Wow, no comments. That surprises me. Can I be in the minority by using formulas to input some items? :dunno:

I've noticed on the "Asset Entry Form" that when I enter a formula for "Line 17 prior accum depr, etc." the value saves to the field while the return is open but if I close the return the fields are zeroed out upon reopening the return. This has been confirmed by tech support. This is unacceptable that the field acccepts formulas for these fields but doesnt retain them. Tech supports solution is not to use a formula, which is fine if I had known this prior. Im sure I have used formulas in other returns which I have now lost that information. Makes me wonder what other fields in the 1040 program also do this. Check your returns if you use a formula entry method.

Point well taken. Yes he has documentation. Thank you Lion.

Thanks to all for the help. I will use 5329 as its the easiest route. But in my opinion its a workaround and not the prefered method.

Jainen,

I see your point, however under your reasoning code "3" would almost never be utilized by a payer. It's there for a reason. I'm sure the IRS intended for it to be used in the appropriate circumstances. The client is still employed by the same employer who is fully aware of his medical situation and his disabled status. Both the client and I believe I have the "basis and the reason to question" the code the payer used since as Jake pointed out this method will almost certainly result in additional correspondence and documention with the IRS.

36 y.o. client received a $45,000 total distribution from a 401K in 2009. Box 7 of the 1099R has a "distribution code" of 1 (early distribution. no known exception) and ATX is correctly calculating a 10% penalty.

However, client is a paraplegic who is classified as "totally and permanently disabled", receiving Social Security benefits and enrolled in Medicare. Under a Social Security Program he works on a part-time basis with limited earnings (less than $1,000 per month) but is still considered disabled. I believe that the 1099R should have had a code 3 (disability) in Box 7 and he should not be subject to the 10% penalty. Client contacted the payer and requested a corrected 1099R to reflect the disability code but the payer refused stating that the code 1 is correct.

If we file the return with the current 1099R but omit the 10% penalty I'm sure,upon review, the IRS will add it back in. So I believe the only option is to file a paper 1040 explaining the situation as to why the 10% penalty was omitted from the return.

I just wanted to post this here and hopefully get some responses on handling this situation.

Thanks!

Can anyone comment on this?

A client has requested Form 8621 to treat a canadian stock he currently holds as a Qualified Electing Fund. (He got the information on this form from his sister).

This is a new one for me. To be honest I'm a little baffled and I am a series 7 licenses NASD Stock Broker. I have read some of the instructions and it seems a bit complicated.

What can anyone tell me about this form and the election.

Thanks.

Can any of the 1041 experts here confirm that I am correct in not having to file it in this case? Comment on the open TIN also please. TY

Ah, I see. Well to be honest I avoid duplex printing because it just drives me crazy if they dont come out just right and I wind up with one page containing two different forms. I like the pdf for the same reason you do, as it stops the copy requests. As for the watermark, if you are referring to the "client copy" that prints accross the page, I havent noticed it moving but it is kind of toner heavy.

I noticed the comparisons coming out very small when converted to pdf but they print fine when sent directly to a printer without converting to a .pdf first.

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Are you converting the file to a .pdf and then printing from the created .pdf document? If so, why not just print directly from the program? I only convert to .pdf for storage purposes. But I guess if a client is printing from the .pdf furnished to them then I can see this being an issue.

Thank you Kea! My condolences on your fathers passing.

This is my first encounter with an estate and I think I am on the right track but would like some input please. I have a client who's mother passed away very early in 2009. Client is the executor and when he closed out her bank accounts and got the "date of death" statement the bank automatically provided him with a TIN and a checking account for the estate. The mother had very little in assets and the bank closed the checking account for inactivity (without notifying the client) in September of 2009.

The was nothing earned by the estate and the checking account had a $0 balance the entire time it was open.

I don't believe a 1041 needs to be filed. If I am reading the instructions correctly it only needs to be filed if the estate had over $600 of income. But what about the open TIN? Is the IRS expecting something since the TIN was established? Does the client need to file something to "close out" the TIN?

Also, on filing the client's mother's 1040 for 2009 the tax documents have the address she resided at, can I put the client's address on his mothers 1040? Will this cause a problem since the addresses will be different?

Thanks in advance for your help on this matter.

I was referring to the $250 received by SS recipients. I thought there was a website to check it. Just because of the people that claim they never received it.

Great! Thank you very much.

TYVM, Wow how inthe world did I miss that.

Anyone have any thoughts on this?

TY for the response

I thought I read somewhere that there was a website to check if the TP got the $250. Anyone know of it?