Terry D EA

I disagree. If the daughter is a dependent and is included in the parents insurance in the market place, the allocation is to determine who gets the premium tax credit and who pays back the excess. I had this same scenario last year. I allocated everything to the parents and zero to the dependent child. So, on the parents 8962 allocate 0 and the dependent child allocate all to the parents and yo should be fine.

We went to PA to do some things for our daughter on New Years weekend. At that time, PA wanted you to have a 72 hour negative test report with you when you entered the state. Wondering how they would ever enforce this, we traveled anyway. No one stopped us at the border, (WV and PA rt 79). Naturally, Lowes Hardware was open but no restaurants; etc. Hotel never questioned anything. That is all I know.

I pay $396.00 for 1M coverage thru Hiscox as well. Never had a claim in 24 years either but as others have said, can't be without it.

The worksheet you speak of is used to determine if the taxpayer is due any additional impact payments based on what he/she has already received. I do have a few clients that never received their stimulus payments. This worksheet is used to obtain the payment they should have received but didn't

Those of us who have been in this business for a while should very well know the IRS will never call you to check on anything or verify anything. As soon as I would get this call, all the red flags would immediately soar.

For those Drake users, the organizers are a breeze. There is also an option to create fillable pdf's. This is the first year using the Drake portals to send and retrieve the organizers. I feel confident that as long as the client's understand how to use the portal, which most do, getting them back will hopefully be trouble free.

Thanks for the heads-up. I will get it installed later this afternoon.

Update: I have been using zoom as a teacher since last spring. I did speak with a zoom rep today and asked about the security or encryption for both video and audio. They stated they are very secure with both items and each it encrypted. My concern was using the screen share and who could hack into it. I have also used Webex. Webex, does have some glitches. When I use Webex on one of my machines which is a Win10 Pro with all of the latest updates, Webex knocks out the audio and all of the audio settings get changed and I have to reset them. So, I'm now thinking that zoom maybe the better way to go. Zoom has a free platform that still has the same encryptions as the paid version. The only difference is number of hosts allowed and meeting length. The free version is 40 minutes and the paid subscription is 24 hours. Hopefully, this will be a good way to meet with clients during this pandemic and very well may entice new business.

Okay, I love the discussion on this. To address what Catherine has said, yes I reviewed the conversions from the IRS with the client via telephone. I offered a brief written summary as JohnH suggested. The client said there was no need. After an hour or so had gone by, the client then asked for not only the summary but wanted me to add to the summary that I ask their tax preparer advised them to ignore communications from the IRS regarding this case. That I never did and only repeated what the IRS agent stated. That is what has raised the suspicion on my part. Also, that gave me the rear tire feeling from the bus. Now, after all of this, I am considering again what JohnH suggested to give the summary without anything that indicates any input from me. Maybe that will satisfy the client.

No not at all. That is what I am trying to avoid. The only thing I plan on giving is the opportunity to seek help from someone else. I know I've done nothing wrong at all but I don't need them making something out of nothing. Never put anything in writing that could even remotely put a rope around your neck.

I agree with both Catherine and cdslee. Those were my exact feelings, that either they don't trust me or they want to toss me under the bus when things go south.

Because of the tone of the text message and what they may be implying, I considered contacting my E & O insurance as to how they would suggest I handle it. I did the 1040X pro-bono cause I took the blame for leaving the dependent off of the original return due to lack of information. I have not charged anything to handle this at all. Firing them is something that is already in the forefront of my mind.

I am looking at using either zoom or webex to meet with clients this upcoming tax season. I'm not sure which software provides the best level of security. Any suggestions? I know Zoom was full of holes at the onset but has now tightened things up quite a bit. Still would like to know what others say.

I filed (by snail mail) an amended 2019 1040X for a client in April. An error with the 500.00 other deduction was found. Amending the return changed from a balance due to a refund. No much money but that's not the point. My client received a bill from the IRS for the tax due from the original filing. Once the amendment is processed, the tax due plus penalties will disappear. Normally, I would have told any client to pay the tax due to avoid penalties and interest and wait for the amendment to process for the return. This client did not want to pay so here we are. I contacted the IRS in August to see if the amendment had been received and if they had any record of it. The agent responded yes it was in processing and assigned to a human on Aug 28th. Told to allow 15 weeks. This client received a bill showing additional interest. Once again, I called the IRS PPL and the agent told me the same thing the amendment is still processing and for the client to disregard the bill because it will wash out and the refund will be issued. So far no problem. But... here is my concern. I have my notes that I maintain in the doc cab of Drake. This client wants copies of my notes to prove I have contacted the IRS and wants me to put in writing that I and the IRS agent advised them to ignore the bills. The client sent me a text message with this request and I told them because of what it appears their intentions are, I have no legal obligations to provide my work or notes. This sounds like the client will say that when and if trouble arises, that I as their preparer and the IRS instructed them to ignore the bills. Would any of you give the client a copy of your notes?

I have used Reimage for the last two years. Some will say that reimage is a virus. It is a legitimate program and I have had good success with it.

I got to go with Danrvan on this. If the deposit was made to the decedent's account then reversed, how does the estate get to make a claim for the refund and I also agree with the scenario he gives. So, if the withholding is returned in 2019 it would be income and federal w/h of the same amount. That gives you the right to file a 2019 tax return for the decedent which the decedent's representative could claim the refund.

Wouldn't this trigger a dispute on the client's part? If so, I think the bank would investigate the charges to see if they are indeed legitimate. I would recommend the client go to the top in the bank and then maybe contact an attorney to possibly pursue this further. The statement it is too late from the bank is disturbing. I agree with Gail, I would want to know what the definition of too late is exactly. Did they see the statement on line and immediately call or did they receive it in the mail and then immediately call. Either way, too late doesn't cut it.

Gail, Thanks for the reply. It makes perfect sense to allocate as you stated. Finally after three days of trying and being placed on hold, I got in touch with an IRS agent on the PPL who was very helpful. He was on the verge of explaining the percentage calculations when the line went dead again. I assume it was the IRS hanging up when 7:00 PM hit. The guy was trying hard to hear me but then that was it. So, I have filled out the requested 8962's and faxed everything just like they said. Now the waiting game again. Hopefully it won't take too long to get this young man's money.

Client and son came to me this year for 2019 taxes. Client listed his son with the health care market place. His son began working sometime in 2019 and his income was too high to be claimed as a dependent on his tax return. I did include form 1095-A on the client's return. No dependents were claimed on the return. The premium tax credit was calculated correctly with the amount of the over payment listed on Sch 2 of form 1040 and line 12b form 1040. Now the plot thickens. I prepared the son's return. Son claimed himself and his employer provides the health care. So far no problem. I filed these returns in July both accepted. Son's refund still has not been received and his return status is still being processed. Son now gets a letter from the IRS asking for his form 1095-A. He never purchased insurance through the market place but as I mentioned above, he was covered on his dad's market place insurance for a part of the year and the remaining time by his employer. I will see the letter from the IRS tomorrow, but I am totally confused with what to do with this.

I can tell this much. My personal return was extended and had to be mailed in. I mailed the check for the balance due with the return. In less than 10 days, the check was deposited and cashed by the IRS. Still no confirmation on the processing of the return. I sent it certified mail, got the greed card, they got my money. I guess it is they'll take the money and run and wait forever and a day to process the return. I thought for sure that mailing would have floated around somewhere in Charlotte for at least three or four months. However, it is proven this was not the case.

I too am using Drake Accounting for payroll processing. Agree it a bit quirky at first but now that I have learned it, no problems.

Client apparently overlooked (their statement not mine) some depreciable items they had purchased beginning 2016. Form 3115 with a section 481 adjustment will be completed. I don't do too many of these so I was wondering what the average invoice is for preparing these forms. Thanks!

You know sometimes these colleges get on my last nerve. The 1098-T is an important form. While I always recommend seeing receipts and statements from the bursar's office the 1098-T is important. If the son has not claimed himself and has no education credits on his return, mom should be able to claim the AOC because the son has not completed the first four years of school according to your post. If the son is over 24 and mom and he still qualifies as a dependent on mom's return then you should be able to claim the LLC. I am saying this without knowing all of the detail so I could be incorrect based on the circumstances.

Max, as Judy said Box 16D is the amount of distribution to the shareholder that affects their basis. So the answer to number 2 in your OP is no. However, without further detail the amount in 16D could contain a portion of the gain of the sale that was distributed to the shareholder. Can't determine that unless you see all the transactions and basis history detail. I don't thi9nk you would make any adjustments just enter the items in the appropriate boxes as indicated on the K-1.

Thankyou!!! This is exactly what I needed.