Margaret CPA in OH

I've decided to amend 2011 considering the assets from 2009 as expenses under Section 179 even though they were put under office expense. Bottom line is the same and 2009 is out of sol. Some assets like the computer and graphic software are over $1000 each but would have been Sec. 179 anyway. I will review in detail the 2012 and 2013 for any other fixed assets. It may be there is only the cell phone which I saw listed although TT carried over $534 from ex's 2007 or earlier return depreciating unknown assets. If no assets and supplies are under the limit, file the safe harbor election and skip 3115. This summer prepare amended 2012 and 2013 to see what the real returns should be. Discuss OIC. She cannot possible pay all this. IRS has been applying payments to 2010 not 2009. Neither of us know why but doubt it can be changed. Thanks again to all considering this with me. I may come back about the OIC. The whole thing looks hairy especially with the high application fee and possibility of denial. I just wonder if they have ever gone after the ex. Grrrr....

Condolences on this painful loss. His family will surely appreciate your presence. Have a safe journey and hold him ever dear in your heart.

Thanks for great feedback, cbslee and Lion. The client is a woman but no matter. Now ex-spouse was not living with her in year she filed MFS so I don't think the rare exception could apply as she was not supporting him. She has no firm idea of whether he was working or whether he filed a return. There are other issues to warrant amending the intervening years' returns, primarily home office deduction errors. HRB used approximate value much higher than original value at date in service and didn't exlude land. And there is more. "I just answered the questions on Turbo Tax, I didn't know." I will look again for other significant issues and reevaluate, though. If I do the 3115 for 2014, do I still amend for the other errors? If so, how to handle the corrections in the 3115? I believe she was an injured spouse but maybe not innocent. She did sign the returns but the only open year is the 2011 with the MFS issue so that wouldn't apply. She divorced in 2012 but continued making errors on TT. And she has been paying on these returns since 2011 for 2009 and 2010. Apparently the ex is not contributing anything and IRS has her on the hook. She cries every time we meet or talk as she has paid over $17,000 and feels as if she is getting nowhere. IRS applied most payments to 2010 so 2009 kept accruing higher interest and penalties. She thought that wasn't right but did nothing. I don't think I can have that changed either, can I? It's sometimes hard not to feel for clients who get into these morasses. She knows it's her fault but out of ignorance and it hurts to hear that ignorance is no excuse. Plugging away... Thanks again for input.

Awww, if I hadn't deleted mine already I would happily have forwarded it to you so you could immediately contact the sender and get another great client. Next time, for sure!

New client has huge mess. Married 2008, set up home office 2009, had preparer do taxes. All 'office expense' lumped together, $6000+. This included $2200 computer, $1700 design software, office furniture, etc. about $4600 total. Marriage soured, self-prepared returns in 2010 and 2011 and more. Client filed 2011 as MFS, taking spouse as dependent, and itemized deductions. Spouse was drug addict then and likely didn't even file so no itemized deductions but house was all hers. So I am amending 2011 by deadline and will also amend messed up 2012 and 2013. How best to input the undepreciated or Sec. 179 assets for 2011 and forward? 2009 is out of statute so just add assets in 2011 as Sec. 179 expensed? I think they need to be listed but not sure how. Is it reasonable to file amended 2011 with itemized deductions having no proof whether spouse did or not? It will make a significant difference especially after removing spouse as dependent. Or just leave everything alone? Bigger issue is that she is stuck with tax, penalty and interest bills adding up to about $30,000 which include 2009-2013. Ex hid income, declared bankruptcy and 'left the building' so she is stuck with mfj balances due and now her own which she couldn't pay due to joint liability. She wants everything cleaned up as much as possible before remarrying. My thinking is to at least address those still within statute. Thoughts?

In ATX, complete disposition of passive activity or ptp is just above the final K-1 box on the K-1 (1065) input sheet.

Rita, it's also called professional development and we all need it, you know?

Gail, that is EXACTLY what I emailed to the client. My guess is that whoever prepared the check just saw the AU address and 'assumed' a foreigner. And I have asked for them to do it properly but doubt that will happen timely. Meanwhile I also encouraged the client to get an EIN (provided links, etc.) and have W-9's at the ready as he plans on doing more teaching/research this year. I hope he follows through. I did click on Line 64, Federal income tax withheld from Forms W-2 and 1099, just in case...Sure enough there are those lovely blue fill in lines so that's what I did. I input From Form 1042-S, XXXX payor, EIN xxxxxxxxx. It flowed through to line 64 but I do get an error that withholdings must be reported on Form W-2, W-2G, K-1, 1099 or Form 8959 to efile as those lovely blue lines don't efile. They won't want to paper file from AU. I will ask how important that $38 is. I'm well over that time to charge by now.

Anyone? With 20 views so far, I may not be the only one who is clueless :)

Thanks, Judy. The one I found went through 2013 so I think I'm covered. Just wasn't sure the year it began. "Bonus" - they agree!

In order to analyze client assets over time to determine whether proper depreciation was taken, it would be helpful to know which years had bonus depreciation and how much. I was not entirely successful in finding this. A google search brought up a nice article with a table that goes back to 2001 and ends with placed in service after 12.31.11. So I think it will be easy to confirm 2013 and 2014! Was 2001, in fact, the first year? And how far back do we need to go for 3115 assuming the asset is still being depreciated? My teeth are grinding and my eyes are flickering with this mainly because one client with several rentals is on my case to get this done. The fact that he is on a payment plan for an omitted 1099R from 2011 has everything to do with it. He's hoping the refund for 2014 will cover the balance due. I have everything finished save this and am concerned that there may be more tax due and an unhappy client (what else is new?). Thanks!

Client who now resides in Australia but still US citizen taught course in US last year. They paid $1250 and withheld $37.50. I asked about 1099 MISC as it's needed to claim the withholding. They just sent a Form 1042-S instead with $125 gross proceeds (I've asked if the balance of the check was travel reimbursement) and 30% withholding of $37.50. I can't find where to enter this data for his Schedule C. I also looked at line 21 but don't see it. I just want to be sure he gets credit for the withheld tax. Thanks!

I am still a member of AICPA but not the Tax Section which is where this letter is available. THAT irritates me no end as I had to cut costs, too, and that extra fee was too much. I'm sure many members do tax work and need that information just as much as, maybe more than, the section members. Yes, let's hope CNA comes through and soon!

Are you using ATX? If so, enter the state id KY for the state wages and withholding. Then the W-2 should show local wages and related withholdings. It's likely neither of these exist in the drop down box and you may have to add an extra line for the second locality. Ask the client if it's known whether a local return must be filed. County returns are not so common if at all. By entering at least client gets credit on Sch. A.

I saw this and printed to pdf so share with my LLC 'friends.' The current one (recall client, wife and mother-in-law)with issues has an agreement that I am certain was what they found online and is so badly lacking. I gave up C and S corps a couple of years ago. LLC's partnerships and even Sch. C's are in my sights now.

I knew that and was quite relieved and happy a few years ago when that came out. It made my move to nearly paperless a reality and so much nicer now!

In my opinion because you efiled the original, you could mail file the amended any time. All the data is computerized already because of the efile. If there is now an amount due, you could wait until April 15 but maybe not cut too close. That's what I would do, ymmv.

The Winbook sounds really great, especially for the price! I will definitely tell my husband about this one.

Thanks again, NECPA! No Iowa withholdings so all seems good now.

Thanks so much! It does show the taxable amount as $449 less than the gross and this is the same as the employee contributions in box 5. Is an Iowa return required? She's lived in Ohio for several years. It does show the State/Payer's state tax number as an Iowa number and the state distribution seems to have had an adjustment of another $450, the amount of the employee contribution. I'll check about Iowa filing. She would get credit in Ohio for Iowa tax paid. Thanks again - we're up too late...

New client has 1099-R, first year. On top it has Total federal employee contributions-$10,000 Total state employee contributions $15,000 SIMPLIFIED GENERAL RULE. In ATX is there something special about data entry? I see on the bottom space for annuity information. Do I need to ask client about start date, etc. for those fields? The only other one I've seen like this had an information sheet with all this listed. I checked Pubs. 575 and 939 and am further confused. It seemed that the client must use the 'Simplified Method' not the 'General Rule' as described but what is the 'Simplified General Rule' written in bold caps at the top of the 1099R? Always something new!

In my email with pdf (encrypted) returns for client review, I specifically state that no paper copies will be provided unless specifically requested. I always have a couple that do want that paper but the vast majority are fine with electronic versions. It is rare for a request for a printed copy after tax season. I offer first an electronic version which usually suffices.

I have SP2 so maybe the refurb at the price you mention is good. Do remember that you will likely want the detachable keyboard which will cost extra. I also got a great Bluetooth mouse that flattens to easy to put into the bag I have. I usually use that over the stylus as I'm more used to a mouse. Others like Eric will surely chime in and give you lots of suggestions. You might want to browse at someplace like Best Buy to see what screen size you like best and how the keys and functionality feel to you. I love the SP keyboard feel myself. Let us know your decision. My husband is looking around, too, for after his retirement.

I have a Surface Pro which can handle anything and I really like it. However it is over your price point. I got it to do all the things that you list and more and am very satisfied with the performance.

I got a similar email a couple of weeks ago with the requirement to reply immediately as whoever was going out of town, blah, blah, blah. I deleted it. I'm so sick of scammers!