Pacun

I know students don't accumulate physical presence in the US for the first 5 years, so they have to file form 1040NR even when they are here all year and have a social security card good for work. So, let's say that a student comes with a Visa to the US. A year later the student requests a work authorization from DHS, then gets a SS card and starts working. That person has to file form 1040NR for 4 years even if he never leaves the U.S. Now, my question is about an A1 Diplomat Visa holder, can he file 1040 when he has been in the U.S. for 200 days in the tax year?

right click (I was going to say on a blank spot on your desktop but it is all blank) on the desktop and view and show your icons. Another one to try is to start explorer from task manager.

Thank you. That means that in the case of this couple, they don't need to worry about their U.S. Children having insurance as long as the parents are Exempted. I wonder how in the same 1040, you can have a credit and a penalty entries.

Correct, I did that but my question is about the U.S. Citizen child who had insurance all year and is required to do so. How can I let the IRS that this child is not exempted and that it complied while the parent use Exemption C?

I am a member of natp (National Association of Tax Professionals) but I don't let my clients know.

There is no penalty but there is no way to correctly let the IRS know.

MFJ couple both with ITINs made $100,000 and didn't have insurance. They have a U.S. Citizen daughter that they claim on their return and this person had Golden coverage all year. You cannot check line 61 on form 1040. How can you let the government know that the child had insurance if the parents will use option C on the exemptions?

I think Eric knows a lot about taxes based on his last post. So he doesn't need help but he is very diplomat by saying that it is due to his "disorganization". But hey, he has 100% access to this forum so he should know a lot about taxes, right?

I agree with ILLMAS but what if the bank corrects the "mistake" and charges your client in 2015? I think I would send them a 1099-misc even though the instructions read "if you paid someone more than $600...". The client will be very unhappy to get a 1099-misc for 2015 because they didn't provide any services.

Office 2003 will do it. Math never gets updated... so calculations will be done correctly. To make letters, I could use WordPerfect 5.1 or MS Word 5 and still be OK.

I would send the 1099-misc to the vendor and not take the deduction this year. Sooner or later the bank will trace those checks and the client will be charged. Can you make sure that your client doesn't have two or more checking accounts? Maybe he used his personal checks to make the payments.

Thank you for sharing.

I opened 2012 yesterday and it was updated. I don't know what was updated but I was surprised because I have opened it at least 10 times in 2014 and not updates were pushed.

I don't agree with your logic, but that's the reason we have this forum. Imaging for a second that IRS enforces this rule. ONLY Attorneys, CPAs and EAs can prepare taxes. So, we will have to pay extra for education credits but we will not need to be passing that cost to the clients because we will have extra clients. Prices will stay the same. If you don't agree with me, check how much HRB charges. 90% of the returns filed by HRB are not prepared by EA, Attorneys or CPAs and yet they charge more than why I charge as an EA and my office is only 2 blocks from theirs. With a rule like above, the public will be educated enough to ask for certifications. Currently the public knows that not such regulation exist so they go to the preparer that is suggested by the hair stylist. Let me talk about your comment about "the market should be selecting these people out anyway". That will be true if every single return is checked by the IRS. Let's say that I prepare 100 returns and 80% have big and little mistakes. I am lucky and only 2 returns are audited. I will loose two clients but I will stay in business because I keep 98 clients and more with my marketing strategy. Imaging that instead of preparing 100 returns, I sell 100 tomatoes. 80% of my tomatoes have big and little deficiencies. I will be out of business in no time. So the market will drive me out if I sell tomatoes but it will not drive me out if I prepare returns. To add to the IRS pain, tax payers are always looking for the guys that will get them a big refund. I have a lot of problem with that because in my area, I have about 5 preparers that prepare rotten returns and guess what, they don't need marketing and their business is always full of clients. When do you think the market will drive them out?

For your information the fraudulent tax preparer doesn't sign the return and doesn't need to register with anyone. So, that will not be stopped. What will be stop is the fact that there are many un-prepared preparers showing their clients that they know because the IRS issued them a PTIN. They frame that letter and clients think they know a lot when in reality they don't know anything. Your ideas are coming down the pipe, but the IRS has to start somewhere. So the starting point will be to force tax preparers to take exams and then other actions will come. I learn something from the classes and if I were not an EA, I wouldn't take them because I don't want to fork out 200 bucks or because I don't have time.

"The bill seems sluggish so I have my doubts about it passing. But bad ideas have a way of persisting and then making their way into legislation, so be prepared for the IRS taking control of our profession. Then it'll be more and more requirements each couple of years, and higher and higher fees to comply with those requirements." I like the idea of regulation so I hope it passes.

Yes, that will be the one for a lot of immigrants. The first elimination that I will be using will be income level. The next one will be another one depending on personal situation. As the last result, I will use "C". Of course if the return only includes ITINs, "C" will be my first option.

If you are here legally, why will you have an ITIN?

I have noticed that you can efile even if you ignore ACA completely. The error message is yellow so efile will be possible. I wonder why they didn't make it red and force you to check or open form 8965.

Terry D is right. You have to select option C and select full year (or months). I noticed that no matter what YES box you click on the top of 8965 (income or hardship exemption), you get a message that the worksheet cannot displayed because you have selected income hardship. It is just the message that is poorly written but the end result is correct (worksheet should not apply). Go figure. I have an itin filer with 9K income getting a refund. I entered the W-2 as presented to me (with a different ss#) and I efiled. I have another person with ITIN who made 12K and it paying about $200. When I entered the W-2 info, I get a red error stating that the social security has to be the same. BE CAREFUL, you will be able to efile EVEN if you completely ignore ACA. For sure the IRS will reject it or send a letter to the tax payer. So, make sure you go to 1040 line 61 and check mark it or open form 8965.

Is the IRS ready for efile today? Has any one transmitted a return yet?

I prepared a return and efile file (which I have to review before efiling) and I was not asked anything about health insurance. So I believe that the fact the you enter an ITIN, the program is smart enough to know that it is exempt. This person made only about 15K, which would also have another exemption under ACA. I wonder what will happen when the mother has an ITIN and inside there a dependent with SS number and she make 60K. I wonder if ATX will assumed it is exempt based on the filers ITIN, which would be incorrect.

JohnH has put it correctly. It is a hard and painful decision but someone has to honor that request. I hope you get the strength that you need at this moment and may God bless you and your family.

You have to split it based on the regulations after 2006????. So, you have to split them. ILLMAS, wow, you went out of your way to create those forms with entries. Thank you, thank you.

Issue a 1099 so you have accurate records. No need to research.... just issue the 1099s-misc.