Pacun

I prepared returns with pen in the late 80s while volunteering on the VITA program.  Those days people were claiming dependents that didn't exist or that were in other countries because the rules didn't require SS numbers. 

I remember that I prepared taxes when full credit card interest was deductible if you itemized deductions. The next year only  2/3 were allowed and the last year only 1/3 of interest was allowed before it was eliminated as itemizable. A couple of years later, SS number were required but you could right something like 205(c) in the social security. The following year, you could write "applied for" and the next year you were required SS number without any excuses. Those were years when Papa Bush was president. 

I remember one time that I pen prepared a return and when ready to sign, the tax payer pulled out credit card statements and qualified to itemize. You guessed it, I had to start from scratch.

I stopped preparing taxes for some years because I knew too many people were lying on their returns. I only did my own return and about 5 returns from my friends who wanted to report correctly and I know their situation. 

When I came back everything was computer prepared. When the IRS open the gates to efiling, I was the first one to embrace it and I efiled all returns except the ones that cannot be efiled. 

Even though, everything was printed from a computer program, the IRS was giving paper EA exams. You had to pass 4 exams which were administered once a year. On day one you took two exams, and the next day you took the other two. If you missed any of the them, you had to wait a whole year to retake.  Luckily for me, I passed them, but I didn't pay the "$35" for the form and I didn't become enrolled agent.  two years later, I took the exams on computers which is much easy because you can take one at a time and your convenience. 

I was about to retire when the current standard deduction was going to revert back and personals exemptions were going to kick in but luckily for me, the current tax credits and standard deduction will stay.

A lot of things have changed and I don't miss most of the things that are gone. The only one I don't like coming down the pipe is "deductibility of interest paid on American cars". I also don't like "no tax on overtime" because people will not understand that the only portion not taxable the .5 of the 1.5 received on overtime hours worked. 

I wonder if the fact that tips will not be taxable will make the server position more attractive... that will be perfect since ICE will hit that position the most. 

About 18 years ago, I was suggesting my clients to open IRAs when they came to do their taxes and in instances when lowering their taxable income would make other credits bigger... in addition to the lower tax liability as a result of contributing to an IRA. 

I also suggested when Obama care required a penalty or to return premium credit but I have stopped suggesting IRAs because they earned pennies in interest. 

I have been following and watching Lark's videos and for a couple of years I have seen he promotes Crypto IRAs. https://itrust.capital/LarkDavis and those look promising to me. 

I have two questions:

1.- Have you used crypto IRAs? if not, what do you think about them? 

2.- If I suggest my clients to contribute to an IRA, am I giving financial advice?

Thank you in advance for you comments.
 

Do you know if a MD resident has to pay WV taxes when selling a WV investment house?  I am going to file a non-resident return and I wonder if client will get full refund. 

Also, I believe I will have to paper file since the document I have for the withholding looks like a sheet vs a form. 

https://www.irs.gov/payments/direct-pay-with-bank-account

I agree with Sara but there is more data than the address that can be used to locate.

You can use your relatives' address but the IRS has your work address and that one you cannot modify. They also get your kids name and ss# that they can search where that child is going to school to pin point where you most likely live. I wonder if ICE can request information from banks and also they have your un-real ID. A tax payer will not be able use someone else's address in all circumstances and that's why ICE is salivating to put its hands on IRS data. 

You only need to make taxable $4000, so it will be impossible that out of $16,000 the 1098-T is so wrong and nothing was paid for last year. 

I believe you have to check if the scholarships can become taxable. 

I also believe you can file student return with $4000 taxable and on the parents return select "taxable scholarship reported somewhere" or something like that. 

MD resident sold an investment house in WV in 2023. Tax money was withheld and sent to WV.  I wonder if MD and WV have any reciprocal agreement or if this person has to pay MD and WV capital gains taxes.

I have not researched this issue yet because if it is one year late, a couple of more weeks won't be devastating. 

Since this form has to be mailed, I wonder why the IRS is asking for donee's name and address if only the name fits in the space allocated. 

What do you do? do you attached name and address on an additional page?

The reason, I am asking is because someone said that both conditions must be meet. AND the way he was explaining it sounded that more that $250 in receipts AND more than $250 in assets for the condition to be meat. 

The way I understood (before his explanation) was that if the sum of both above $250K would require Sch L.

Please fill free to answer examples A, B and C above.

Are these companies required to fill out Schedule L in form 1120:

Company A:
Gross receipts: $350K
Assets $100K.

Company B:
Gross receipts: $200K
Assets: $100K

Company C.
Gross receipts 100K
Assets: $500K.

I had a client who had not filed for 2022, 2023 and 2024, I filed 2022 electronically. It was rejected because it was missing IRS TIN. I asked the client to look for the TIN received in Jan 2023, and at the same time I requested the other TIN received in Jan 2024 and Jan 2025.  The client only provided the latest one. i asked them to check the old mail (I was wrong). 

Another client also missed her TIN and she went on line and sent me a picture. In the picture I saw her number and below I could read something like "this pin can be used for current tax year and the two previous ones".

I went back to my previous client and ask him to stop the search and i tried the latest PIN and it worked. I know all of you guys know this but, I want to share anyways.

Remove 2210 and if needed it will be added back with a fresh start. 

8 hours ago, mcb39 said:

Perhaps they are watching children closer than adults because of the credits.  Any time we have had a rejection because of a DOB, it has been a child.

Not only that, they only check the date when meaningful... for example, when the child becomes 14 and no longer qualifies for daycare expenses, or when they turn 17 and they no longer qualify for $2,000 child tax credit.  

It only matches when needed or maybe it doesn't match it at all against your efile.  I believe the IRS has the birthdate from SS administration and the software has a flag when client turns 13, 17, 50, 55, 55.5, 62... and 70 or 72. 

The reason I say that it is because a client had a 12 years old son and for some reason believe the child was born a year later. So when I entered his date of birth was one year off. When the client turn 16, I requested full child tax credit (I forget what was at that time), the IRS say... no credit because child was 17 years during tax year. All years prior the IRS had not mention that the date was wrong. 

I have never had an efile rejected because someone's date has been entered wrong, have you?

Interesting, I usually amend with the same results.

In some DC cases, I have entered the ID or license information and yet my clients receive a letter asking them to go on line and submit scanned copies of their IDs or licenses.... especially for people with ITINs. 

Every year I request about 20-30 ITINs, this year I have prepared only 2, but the night still young. 

1040 amendment?

... donate to this forum. 

7 hours ago, kathyc2 said:

Looking into it a bit more, it does appear that both need to file 8962 if MFS even though only one had coverage.  Both would be subject to repayment on their returns.  

I can't see how it could be allocated as only one had insurance.

If you have a situation with ACA where it's better to file MFS, I'd be interested in seeing numbers.

 

 

In the year you get married, let's say the ACA spouse earns income at 800% and the other spouse at 110%. They can split it at 50% each or whatever percentage they want.

I have seen the answer but when I search it, I don't find the topic.

I have created an efile and filled out the FATCA form and I want to make sure it is included when I efile.  How do I see the list of forms that the IRS receives?

When 8962 is involved, there are instances when MFS is more advantageous vs MFJ.

In this case I send husband MFS and still was rejected asking for form 8962. I don't have the time to see how allocation works (which I believe it is only in the year you get married) and lucky me, the wife called and said that they wanted to file jointly.

Good think I didn't send her return because her return would have been accepted since form 8962 would have been included.

This is me: My clients hire me to correctly prepare their 2024 return. So, if I were you, I would do what Bart said. 

I wouldn't even bother to send people back to the other preparer since 2023 received the correct refund and so will 2024. Or you think the IRS will say "hey you have some left over credit from 2023, here your check"?

IRS is negotiating with ICE the release of tax payer info.

It is my understanding that the IRS will not unilaterally provide the info but it will wait for ICE to say "this is un hombre malo" give me the info you have on him. Is that what you have heard too?

Form 1310 is added to the return.