Margaret CPA in OH

Good question. One client's spouse died in early April and she sent half of it back as it was posted in FAQ's at the time. I will have to ask her if that check was cashed. If so, I will input that she received just $1200 for first.

My AU clients sent me their info. Both children are now out of school (college and high school) and working, not dependents in 2020. It occurred to me that they might be eligible for EIP payments and it seems they are as they were dependents for 2019 but not 2020. Parents received both payments, $2400 and $1200. So I checked IRS FAQ https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility and it surely seems they qualify. Am I correct? Seems odd for these folks in AU but friends in Ireland (dual citizens) got theirs, also.

Yippee! Mine are piling up and clients are getting rambunctious...

Per my reply above, I had one for 2019 accepted January 31, 2021, the same day created, transmitted to EFC and accepted by Agency. Do you think the tech was saying no acceptance for 2020 amended returns?

Okay, the password reminder came back and it goes to e-services which wasn't clear to me. I had an issue with e-services in January with the wrong image, right phrase. I thought it was cleared up (you know, hours on the phone) and actually updated my password. Now, however, I cannot get in and the image is still wrong and, "Sorry, due to high call volume..." I think I will just print out the forms and mail although this weather is not conducive to mail pick up or delivery. Single digits, snow and ice and more on the way. Hope you all are warm and safe!

Thanks, Lion, but I don't quite get the next step. I have (in 2003) 'have already registered and applied as an e-file Provider,' but have no idea what my login and password is/was as I have always used it only through ATX. I am trying the Forgot Username but am a bit concerned that, if I have to reregister, it will take an inordinate amount of time. Thanks for the link. It was one I had not found.

I cannot find how or if it is possible to electronically file Form 7004 without using paid software. I declined to continue with an S-Corp business for a variety of reasons but offered to prepare 7004 to allow more time to file while the business finds another professional. However, I now have only 1040 prep and do not want to pay the $30 or so for each of the companies involved just for an extension. All I can find on IRS.gov is using the MeF system through an authorized e-filer. So must I, as in the olden days, print out and mail paper forms? I can certainly do that but it seems a bit silly in this electronic era when individuals can do this for free.

Umm, I wonder how I was able to e-file two 2019 1040X returns, both accepted, in August (refund received) and one in January if IRS is not open yet or has the form. Guess my mileage varied a lot! But then, I did use the Amend return feature and retitled the amended return AMD. My opinion is that it is better to have as originally prepared and then the amended one. If labeled, it is clear the next year which to rollover and it can again be retitled. Anyway, this works for me.

I agree with the above. Select Amend return and enter the correct figures. I've done several over the years and have e-filed and had accepted 2 2019 returns.

I haven't seen this before but it appears as though it should be reported on line 8 as you noted. Was this from a trust or a regular individual tax reporting statement? It seems possible that, for some reason, it should not be treated the same as we treat US entity generated income or maybe it isn't interest at all (even though "cpn, issue and percentages strongly suggest to me some kind of bonds).

With the percentages, it appears to me as bond interest. Have you checked the ML support material for further description or looked at ML online?

I e-filed and had accepted a 2019 1040X on Feb. 12. I don't understand how a 2019 Schedule E would not be available now. I had at least 2 clients with 2019 Sch. E forms e-filed with no problems. Replace the forms and try again, maybe?

"Facts and circuses, IMO" Love this phrase! And I agree about any upgrade expenses needed and not reimbursed by the school. I actually discuss this with some clients that always want to charge the entirety of their cell phones and internet. Would or did they have this same access/coverage before work? Would they downsize to less bandwidth or cheaper service (2gig vs unlimited) on the phone if the business disappeared?

I'm not clear on the source of the 1099NEC. If she sells only to family and friends, who would issue it? Who is paying her besides them? Guess my brain is fried, too!

Sorry, I thought part of the CARES Act was a provision that distributions to some date could be redeposited. I have not read the whole thing, however, but seem to recall that situation arising early after the act passed. A client asked about doing it but decided to just keep the funds instead. I might try doing some more research in case another client did just that.

Lion, you gotta know when to hold 'em and know when to tell them, sorry. I have had a few that I've declined because, over my head and could never charge enough to get up to date on some esoteric tax issue I might never see again. I think you may breathe a little easier now, too.

On top of all those unpleasantries for you, isn't there an additional KY filing requirement and fees (of course) for LLC's? I used to have a dog trainer that was an LLC and she was surprised about the additional filing. I don't know if p'ships are different. With all her activities in so many taxing jurisdictions in KY and OH, I finally 'invited' her to find another preparer more familiar with KY. She was really nice but I could never charge enough to cover all the time on her taxes. Make sure you charge enough to cover all the time you will need to address this mess. Clients need to understand the consequences of their actions. We keep trying to drill into them to ask first but it doesn't always sink in.

That's why I state to call with questions. The first and only one I did was with a German client sitting with me. I typed in the information for him but it was his account and he had all the numbers. He was about 80 and not so great on the computer at the time. All the others now are all quite computer literate and are all professors of something. They can manage. Most of my other clients, yeah, could not, but they also do not have foreign accounts so no worries.

I hear you! I held off raising fees until 3 years ago then instituted a $25 CTC/AOC/EITC fee just to answer all those cursed 8867 questions about clients that I KNOW! And, of course, it only applied to those getting those credits. Then last year added a $25 technology fee as I had to upgrade to Win 10 and then a new scanner compatible with Win 10. I recovered all those costs and omitted it this year. As I bill by time, I think any issues that arise with the EIP stuff, will sort themselves out.

Feel free and to edit, too. I probably got the gist from AICPA and instructions. Anyway, it has worked and my clients that need to do this now also even let me know that they have filed. I use the Questionnaire in ATX and one section is Foreign Reporting. I require a completed questionnaire to prepare returns so the onus is on the client. If those questions are answered in the affirmative and they don't let me know they've filed, I ask and remind them of the requirements. Somehow I've managed to gain several German clients (citizens now, green cards, other) and US expats in Australia (now dual citizens) so try to keep on top of this.

In my annual cover letter with the engagement letter, I include a full paragraph U.S. citizens and residents have an obligation to disclose a financial interest in any foreign bank accounts. Title 31, Section 103.24 of the Code of Federal Regulations (“CFR”), 31 CFT 103.24, applies to any person or entity subject to the jurisdiction of the U.S., having a financial interest in, or signature authority over, a bank, securities or other financial account having a value exceeding $10,000 (at any time) in a foreign country. The Foreign Bank Account Reporting (FBAR) is now done with FinCEN Report 114, Report of Foreign Bank and Financial Accounts and is only available online through the Bank Secrecy Act E-Filing website, (http://bsaefiling.fincen.treas.gov/main.html). Please see this website for full details. NOTE: This is now due April 15. There are substantial civil and criminal penalties prescribed for failure to file. The civil penalty can be as much as $10,000, regardless of whether the violation is willful. Criminal penalties are much more severe. Please consider the dollar value of any foreign accounts carefully. Please call with questions. I do not and will not prepare myself. All the information the client needs is, I think, shown here. It's enough for me to manage the usual things!

Guess I did the right thing. I sent this link https://www.irs.gov/individuals/how-irs-id-theft-victim-assistance-works and forwarded the IRS Tax Tip 2021-07 both of which describe how and why to get the IP PIN and the links. I will look at the pub, too, and probably forward it. I think, as a physician's practice and having an ID theft group working with them, she is in good hands already. It's always something, isn't it?

I think it's worth trying to abate. Cancer and subsequent death of a spouse could, I think, put just about everything else on the back burner. Worst case is denial and penalty maybe covered by that state deduction not previously taken.

Client just emailed that she and half the other physicians in that practice had false claims filed under their names. I am sending her info to get an ID Pin. She states that the ID theft group they work with says she should also file an affidavit with IRS. I would say of course, to follow the recommendation. Has this happened to any of your clients? How did you/they respond? I've had only one other client with ID theft which was from credit card at a store.

Did you try the solution I posted on Friday? I did on a client and it did exactly what you are asking to do. Maybe you, too, could try this. Could it trigger an audit? Who knows for sure but it seems obvious to me that this is the solution desired by IRS and implemented by the software.