Margaret CPA in OH

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.

Not as slow as I thought it might be given the last minute rush. I can't believe how many of my clients, given 3 extra months, still have had trouble getting their act together. It's truly annoying, I have to say.

My newsfeed is just a copy from IRS about the deadline and extension info. Nothing as detailed as the above and not personalized from CCH or WK. At least Lion graciously shared.

Thanks and wondering why I didn't get this message. It may be addressed to CCH clients but it is from WK Tax software of which ATX is one. I do still have 3 really last minute folks so maybe can 'encourage' them to get with the program NOW!

Darlene, I echo everything Donna/Possi has said. If there is the smallest chance that she is still there when you arrive, go. Don't be circling the airport as I was. Work? Family is always, always first. You have just one mother. She needs you - you need her. Grace and peace, Margaret

I've always liked the tax summary as it simplifies and condenses the return for folks. Honestly I've never carefully reviewed or confirmed the calculations, just skimmed over AGI and a couple of other numbers. But today a client called freaking out on looking at her return because the right side column had Total Income equaling the Deductions. She actually had negative AGI and standard deduction of $12,200 but the summary shows total income of $12,200. I looked at the master form to check the calculation but there is no access. Guess I have to let ATX super programmers know that there might be an error. I'm embarrassed it took this for me to find it. On the other hand, virtually none of my clients have negative income and with any positive income, it does work. It's always something.... and I am really tired of this season with still 9 footdraggers.

From Church & Clergy Tax Guide 2020: General rule-housing allowance precludes a home office deduction. But check the audit guidelines for ministers. Confirm the four requirements for a deduction - exclusive use, regular use, convenience of the employer and principal place of business. The first and second may be fine but check on the employer convenience issue especially if the church has an office available and the last item may be an issue. From the guidelines: In order for a home to qualify as a principal place of business...the functions performed and the time spent at each location where the trade or business is conducted are the primary considerations and must be compared to determine the relative importance of each. and The church often provides an office on the premises for the minister, so the necessity of an office in the home should be questioned closely. Furthermore, since the total cost to provide the home is used in computing the exempt housing allowance, home office deductions for taxes, insurance, mortgage interest, etc. would be duplications. While this doesn't specifically address an offset against SE tax and at least one exception was listed, I would be very hesitant to do that. The exception listed showed that the minister used the home office to meet with members and it was the focal point of the ministry. However, the housing allowance did not cover all housing expenses. By the way, if the entire housing allowance is more than used up for housing and Sch. C is nearly a loss, how does this person live? Asking for a friend.

So welcome, Glynn Willett! So happy you found this diaspora of ATX users, many of us for decades. Like Abby, I also am a big fan of ATX since 1998. And will use it until retirement hoping it lasts that long. Many of us have very fond memories of the great group in Maine years ago and several of us contributed to a picnic for them in appreciation. We were loyal because they deserved it! Keep in touch!