cientax

I have United States clients who's parents and family live in China. The clients got married in China recently and were given cash gifts in excess of $100,000. Are there any reporting requirements?

If it's cash they are carrying in then they would declare it with customs when they arrive, otherwise if it's transfered through a financial instituition, it is the responsibility of the financial institution to report the transaction. If the financial institution fails to report the transaction there could be penalties imposed on the financial institution. And as far as I am aware of, gifts are not taxable to the recipient unless it's illegal drug related or otherwise illegally acquired.

Looks like they fell for a scam. However, with the CP200 being that old, its likely an NOD was issued and the 90 days passed and the tax assessed at this point, which leaves them SOL.

My concern was not the amended return but the timely filing of the form 982. We do amended returns very often after the 90 days has passed on a NOD issued, closed and tax assessed and the amended returns are always accepted if filed timely and correctly with sufficient documentation.

But after reading the instructions for form 982 more in depth, I found my answer, it sounds like they are SOL even if the Notice Of Deficiency was issued and tax assessed.

Have a new client that sold their home in 2005 for $10,000 to someone that was going to help them with their debt problems and supposedly assume the loan on the mortgage but in looking at the HUD 1 form, the $10,000 went to the mortgage company and no assumption of the loan. However, the amount of the discharged debt is still the same as the balance when the home was sold. They now have received a CP2000 showing cancellation of debt. They did not know that the debt was cancelled since they moved and never received the 1099C. The CP2000 is dated Feb 02, 2007.

Q: Can the form 982 still be filed with an amended return or is it too late?

I've seen a lot of posts and questions being asked and thought I would also inquire. Does the software come with state tax forms such as Franchise, sales tax, mixed beverage reports other than the state income tax forms? I'm also thinking about switching from ATX to save $$$. I've been using ATX for the last six years and theyr have just about priced me out. I had to pay $230 up front to efile unlimited returns this time around instead of getting free with the package as in prior years.

Does TRX also come with 941' 940's W-2, 1099?

Does the program come with state Sales tax, Franchise tax. etc?

Catherine,

If the statements are signed by a "Trust Officer", does this mean that he could be a trustee?

Also, this income/expenses are her share of a former trust for the year. There is no 1041 being filed that I know of.

Would you suggest that I get more information from the client???

I have several returns efiled yesterday and nothing back on ack. I have one with bank product that we usually hear from pretty fast. Is anyone else having this problem? Maybe it is because I chewed ATX support out last night about having to change my blooming password and getting locked out of their home page.

I called tech support today because I havent received acks for 1099;s filed last month and they told me that they were working on the server but that it would be back in service soon. They also said that the efiles could still be sent and there would be no problem in them receiving the efiles only that we would not get any acks yet. They even called me HONEY!

I have a client that now has a grantor trust and has been issued a statement showing she has taxable income. They indicate on the statement that they are issuing this statement rather than a 1041 Sch-K1. The statement shows interest, royalties, lease bonus, and delay rental. also has the fees listed for expenses.

Am I correct to say that all income goes to the respeded lines on the return and not to flow through the Sch-E.? or does the lease bonus and delay rental go to the Sch-E?

And the fees for management are subject to 2% of AGI?

Can someone direct me to a site for mortgage interest on TIME SHARES please.

I efiled 1099's for two clients about two weeks ago and still in validated status. Does anyone know why it would take so long to accept?

A new client came in yesterday for the stimulus payment return to be prepared. She told me that H&R down the road was charging $75 for these returns.

Nice conclusion but I still didn't understand.

Cientax... It is my understanding that as long as both TPs have valid social security, file 1040, etc., they will get the stimulus refund and they also will get $300 per head on the dependents that qualify. In this case, it is my understanding that TPs will get $600-$1200 for themselves and they will get $900 for the 3 children if they were under 17 on DECEMBER 31, 2007. Am I correct?

Pacun, you are correct on the amounts and ages. The way I was reading the information at the IRS web site, I was understanding that if there were any ITINs on the return, that there would be no stimulus payment at all. I guess I just misunderstood.

I'm not very clear on this about ITINs on the return. I have a married couple and three qualifying children all have valid SSNs. But they also claim a parent that has an ITIN on the return. I know that the parent isn't a qualifying child. My question is, will having a DEPENDENT on the return with an ITIN have an effect the payment to the couple filing the return?

Hope I'm asking this where you can understand what I'm talking about!

cientax,

Don't know if this could be the answer or not - check the Preferences in Rollover Manager. Make sure you check everything that you want rolled over.

I would then deleted the return that you rolled over and roll it over again and see if you get the missing forms.

You should update your program on a regular basis, I update every morning.

Hope this helped.

Jerry

I deleted return then updated and rolled over again and still not rolling over all forms and dependents. I'm on the line (on hold of course) with tech (not) support.

Is anyone having this problem? I rolled over 2006 return into 2007 which has 1040, Sch-C, 4562, Asset entry, and other forms. After it rolls over, all disappear except 1040, W-2 and Efile info sheet. Even dependents are missing and they have four dependents all under 17. They never had W-2 only Sch-C with related forms. Is this an update issue? Does anyone know?

Is anyone having this problem? I rolled over 2006 return into 2007 which has 1040, Sch-C, 4562, Asset entry, and other forms. After it rolls over, all disappear except 1040, W-2 and Efile info sheet. The dependents are also missing. They have four dependent children under 17, all are gone. They never had W-2 only Sch-C with related forms. Is this an update issue? Does anyone know?

Whoever put that in the bulletin may have helped con artists to steal elderly member's identities. It would be interesting to see if the phone number actually rings at a real Liberty Tax office -- if it does, then they just exercised poor judgement rather than extremely poor judgement.

Google the phone number on internet and see if it comes up as Liberty Tax Service. Bet my two cents it don't.

I just filed five and received several acks....

I called tech support and they said that there must have been an overload when I tried to efile, but I efiled while on the line with them and they went and cam through fine.

I cannot get into MyAtx Support but I am trying to efile 1099's and also receive acks but nothing happens other than error messages. I was just wondering if the ATX server was down if anyone out there might know?

Client received a settlement in '07 from Exxon class action lawsuit. Settlement received is part compensatory damages & part interest income. Client received only a 1099-INT for the interest portion.

A letter shows detailed breakdown of gross settlement & related expenses. The 1099-INT reports the interest income NET of its share of prorated legal fees.

During some of the years covered by the lawsuit, this gas station was a Schedule C activity. The compensatory damage award is basically because Exxon overcharged dealers for their gasoline purchased. (Dealers were supposed to get a price break in their gas purchase costs if they agreed to charge customers different rates depending on cash or credit card payment. Exxon did not honor their end of the agreement & continued to charge Exxon dealers the higher price for the gas.)

Many years ago, my client incorporated the business (got a similar settlement this year in his corp) so he no longer has the Sch C operation. My question: should he report the gross damages as other income & the legal fees on Sch A, or can he net the legal against the damage award?

If he still operated as a Sch C today, how would he report this?

I would use the TIN on the 1099INT and report it on the 1040 if SSN is used, otherwise I would use the EIN of the corp if the corp EIN is on the 1099 and report on the corp return. If it is netted already, then I would use the net, otherwise I would use the gross then deduct the legal fees elswhere on the corp return.

The legal fees would be subject to 2% of AGI if SSN is used on 1099INT. If the SSN is used on the 1099INT then IRS will be looking for it on the 1040 and not on the corp return. If the 1099 is already NET of legal expenses then I would only report the net amount and not have any deductions against the gross. If you use the gross income then try to net it of the legal expense on Sch-A, then he/she would lose some of the deduction because of the Sch-A 2% limitation, unless they can otherwise itemize misc expenses.

I would also look at whether it would benefit his tax situation because if you report it as Other Income on the Sch-C, it will probably be subject to SE tax. I the 1099INT has his personal name and SSN instead of his company name (Sch-C name) and EIN, then it would benefit to report it on line 8 of the 1040, depending on how much interest income there is.

I was getting the same error message with a balance due and DD information entered. I unchecked the "use last year info" on the 1040EF Info sheet and the error message went away and it let me create the efile.

However, the bank info is not printing on the Form 1040. In this case, I have a State refund so I'm wondering if the DD info will transmit to the IRS.

This is what I'm worried about. I don't think it will transmit the bank information to the IRS if it's not entered on the tax return We don't have a state tax return to file, only a federal return to file. But it won't let me creat the efile with the bank information. They are my in-laws and we can still mail the return in instead of efiling. But I read somewhere, that the return had to be efiled i only SS benefits were the only qualifying income to be reported if they were filing only to receive the stimulus payment. (Sure hope she brings my stimulus drugs next month)!!!!!!!!!!

You are allowed to use $1 of other income so that you can efile. I do not think there is anyway for you to send the bank information for the rebate to come to the bank instead of the mailbox. I am amazed at the number of elderly that are not aware of filing a tax return to get the rebate. Do they not have a TV or read the newspaper. Isn't ss going to send a notice to all by Mar. 15 to make them aware of this?

I added the $1 on line 21 as other income, but ATX program still won't let me create the efile. And yes you can have the stimulus payment direct deposit only if you have the bank account and routing number on the return even if there is no refund due.

Trying to efile tax return for mother in law but cannot create because there is no refund on the return. There is only SS benefits on the return. They are wanting direct deposit of stimulus payment and bank account information must be on the tax return for this purpose. ATX will not create efile if there is no refund on the return. (Mother in law brings me stimulus drugs each month). What to do?

I was locked out two months ago and never tried going back in. I got locked out then changed my password the same day and was able to get back in that same same using my new password, but when I went to ATX the next day I was locked out and have not been able to get back in even when I change my pisssword)(*&^%!@#$%^&*)

I am not that paranoid. I would not renew my driver's license because I didn't lose my driver's license. Without the password for the ATM, you cannot take money out even if you have the account number. So, I wouldn't close the account because he didn't lose his password or checks. I would eventually do it but not right away.

I wonder if you can file a police report because you lost your copies of your taxes, you haven't lost anything in its original form. I know you can do it when you lose your drivers license. You cannot also assume that someone took the information because the losser doesn't know for sure. Maybe someone will just return the whole package that he left on the bench where he was sitting after doing his taxes and was planning what he was going to do with the refund he was getting.

I didn't say to close out the account, I said he can have the bank put a security lock on the account so that ACH transactions cannot be done to take money from the account by third parties without his releasing it. He can still use his ATM card. I have a client who had his identity stolen and he went to DMV and they told him that one way to catch the thief was to renew the license, so that when the thief goes in to have his license renewed then he gets caught. This client went to DMV before he was a client of mine. He filed a police report with the police dept where the thief lives but the police didn't arrest the guy even though they know where he lives and where he works. They just gave my client a police report and good luck.

What if someone out there is needing a fresh social security number so that they can find work and get a drivers license or fresh credit. Losing a tax return with name, ssn, and possibly date of birth can do a lot of damage to your client and a lot of good to a good thief.