Margaret CPA in OH

I manage my own by folders: CPA/Individual Clients (or Business Clients or Former Clients or Everything Else)/Client Name/Tax Year and within the tax years Client NameTYXXDocs or Return or whatever else for that year. In the main Client Name folder is Drivers License, POA, whatever else would cover multiple years. ATX also has a folder within the program I think called Permanent File. My system didn't cost anything and has worked for me for about 20 years. I have a paper folder only to use during the season to hold any documents provided and to be returned and maybe the original signed 2848 or 8332. Maybe ask the new person for suggestions as to a good structure to make both your lives easier.

I have Aon Insurance through AICPA. It has an option which I chose called Netprotect which covers network damage and extortion as well as privacy breaches. Hoping I never have to file a claim but the peace of mind was/is worth the $190 it cost.

Pacun, the amount previously received is on the 1040X, Line 18, as required. So the amount shown on 8879 is for the previous overpayment as well as the additional amount. schirallicpa, your question is exactly mine. One would think that to be the case whether or not the original was e-filed from ATX as the one I have was not. I suppose I could override the amount on the 8879 just to show the client and reflect the figure on 1040X, but I am afraid to try to select 1040 to e-file as the software may choose that. Wish this was really ready!

Thanks, Randall, that is sort of what I was expecting to see. Once the 1040X was present, an option to e-file it would appear. It's possible, though, that it won't as I did not do the original e-file. Sigh....

I have mostly completed a 2019 1040 amended return to e-file but don't seem to be able to do so. The 8879 has combined the original refund amount with the additional refund from the amended return (client has already received the original refund) and I cannot create a 1040X in Create e-file. Only the 1040 appears. If I choose 1040, does the entire form (as corrected) get sent with the 1040X? How does one get a client authorization to e-file on an incorrect 8879? Just refer them to the copy of the 1040X? But there is no reference on 8879 to 1040X. I did not prepare or e-file the original return.

I am finishing an amended return to e-file and notice that Form 8879 is not indicating the refund amount is the difference between the originally filed return and the amended amount. In fact, it has added together the original refund PLUS the additional refund. Ideas? I cannot find anything online. Guess I thought, foolishly, that when ATX and IRS gave this the go ahead, there would be an additional or updated form authorizing ERO's to e-file the 1040X. Or am I completely missing something (entirely possible!)?

It turns out that the second voucher was missed. It was uploaded with everything else into the portal but just missed. I believe they will go electronic from now on and are going to pay online this balance due. I always discourage mailing payments (though I DO support the postal service) and encourage direct deposit.

Thanks for letting us know the outcome. Yes, it could have been so much worse. And your client is to be treasured for being so understanding. For sure their emotions were on a roller coaster, too, thinking first of how to use that big refund in this challenging time to having to pay a bit, even if not a lot. I understand about that ratio and have implemented a second review before return completion. And I'm so glad to have said bye to my small businesses and the last remaining partnership. My remaining individual clients are friends, too, even if we communicate just annually. So two more years on my license. It will be really hard to tell my clients but the tax laws are not getting easier or more stable. This forum is so very important to many of us for technical and emotional support. We love you, too, Possi!

Welp, I just got an email from clients very likely affected by this very situation. They are not happy campers. Thanks, Judy, for the link to the article which I promptly shared with them. There is, however, the chance that one of the spouses (filing MFS) didn't mail in the voucher as directed. They are both 80+ but pretty sharp but one never knows.

It seems you have at least most of the information you need to file an amended return. Maybe double check what the daughter did, file herself? Is she a minor? Dependent? If tax is owed, well, it's owed but my engagement letters stipulate that if I make an error, I will cover any penalty or interest but not tax owed. Perhaps a discount on return prep? Do you have a questionnaire that must be completed to include dependents? It's not great that you completely missed a document but, well, it happens so don't beat yourself up. I would get the missing info, do some research (although I think you know the answer here), prepare the corrected return and consult with the client with many apologies. We are human, you know.

I think IRS supports only 2019 amended individual returns beginning Aug. 17 but not business returns. https://www.irs.gov/e-file-providers/modernized-e-file-mef-status

grandmabee, can you tell whether a different 8879 is needed? Are the returns being held until Aug. 17 (per IRS opening day)?

Perhaps he signed and mailed his client copies instead of the original red forms. One can hope. It has happened. Let us know the outcome of the employee's check. One would think that there would be something from IRS if there was reported wages and nothing to match with since they match pretty much everything.

I'm waiting until after August 17 to even try. Lynn Jacobs kindly pointed out the date: https://www.irs.gov/e-file-providers/modernized-e-file-mef-status What is not clear is whether ATX can manage this and whether a different Form 8879 is required or if there are other issues to be addressed.

It will be interesting to see the results of the employee's check. Is it possible that the client printed out all copies to provide needed copies to employees and maybe state and local agencies but actually filed through BSA or other online service to SSA? Was this client yours for 2015? If so, did you assist with 941's and year end reconciliations?

I'm not sure of the timing here the way it is stated. But you might want to look at IRC Sec. 121. Short summary per QF "The individual must have owned and used the home as a principal residence for at least two out of the five years prior to the sale (the two years do not have to be consecutive)." Your phrase 'three years and two years ago and converted it..' are a bit confusing to me for the timing. And there would be recapture of depreciation taken.

Well, I question odd amounts or expenses 'for clarification.' I do very few businesses now, just a handful of Sch. C's but when I did others, if the client survived my first tax prep year, I felt reasonably confident in subsequent years. I lost a few clients along the way and did not regret it. After all, I had to sign the return, too. When folks tried to claim deductions for 'bags' of used clothing, I refused to provide the value. I also would point out that the work valuing the donation could be a further contribution and ask about the true reason for the donation - charity or tax deduction? Typically the deduction would end up not being worth their valuable time to value it.

Thanks for quick replies! I will stick with 1040X and ask the clients if they want to wait to e-file. It may take about the same amount of time waiting for ATX or for the mail to be processed. The refund is in excess of $6000. TT, for some reason, did not apply the Alt Min c/o but did let the client know this week that it wasn't applied and recommended amending the return. Good call! And I may have a new client now. Or not. She is a now retired doctor and had done a great job on her own for many years with a pretty complicated return.

A client self-filed a 1040-SR with a few errors. I am preparing the amended return. I don't see that e-filing amended returns are ready for prime time as yet. The notice I read says this summer but no date. So is it live? If so, does ATX do it? Also, they filed a 1040-SR. For an amended return is it better/wiser to file amended SR or does a regular amended 1040 work fine? I've never used an SR and don't really see the difference. Thanks!

Look at the Schedule EIC Questions, Step 5 #1. That should be Yes. You may have to jump to the last worksheet on the schedule or just scroll over to it past worksheet A, worksheet B, Investment inc. then Earned Income. #1 should be $30, 424 and #4 should be $30,424. When I tested this (my clergy client does not qualify so I input your numbers with 2 children), on the 1040, page 2, line 18a had a credit and 'Clergy' in small type next to it. No finagling required. Hope this helps!

I charge by the hour as some forms take a very long time, some, not so much. Over 20+ years I have explained to clients that the better organized their data and documents, the less time it takes. I provide organizers to those who request them and to returning folks with rentals or Schedule C, the organizer pages showing the prior year figures. This helps prompt them to find that insurance figure or remember to list the new equipment that wasn't there last year. And if I have to email more than 2-3 times with questions or clarifications, I add on some time for that. Because every time I have to stop to get some reply and go back to the return often a day or more later, it takes a tad bit at least to reorient and is unproductive. Over the years returning clients either get better organized to reduce the bill, acknowledge and understand that 'I'm billing time,' or move along which is just fine with me. I want clients to be satisfied with my work and understand that I really care to do the best work I can taking the time necessary. I'm at about 50-60 long time clients, maybe one or two new ones annually, and we understand each other. I harbor no hard feelings for those who leave and have even pointed out to some that they have reached a point that going to the free help for elderly would be in their best interest. Others have told me that I am not allowed to retire. Well, I'll be 75 next year. My license is good for 2 more years. We shall see....

I'm glad you shared this and more glad that you are safe. I suppose it is illegal and/or dangerous to ride in a towed vehicle but this could have been so much worse! Yes, I think this is unconscionable and giving me pause, too, as a 36 year member. There must be an alternative to leaving a person stranded on a road. I think a sternly worded communication is called for and putting on social media to warn others.

Thanks! I guess it pays to really search through the software. I recall seeing the word Versicom and service and sales some time ago and immediately thought $$$. I end up sending the Form 9325 and other acknowledgements anyway and now it's easy through Verifyle. I guess there is always a way to get something done, just depends on how much one wants to pay.

Wouldn't that be lovely?

Your family here is so sorry for your loss. We hold you in our hearts and are here for you.