Margaret CPA in OH

Tom, so elegantly stated....

That has happened to me only once when I had been working a lot. I shut down the program and restarted. Sometimes I think there is too many electrons around and it needs to be refreshed - or something. That also works when I try to open a second return and get a low resources message.

The title is IRS Identity Clarification March 2. I don't know how to insert the link here but should be easy to find scrolling back a couple of pages.

I have a client that received a similar letter for Form 1040. They confirmed stolen identity via phone call but said were on hold for over an hour. Apparently this is rampant this year. Like you, we had not yet filed. IRS gave an address to mail return as efile won't work. I think the client will have to go online or call and confirm identity. There was a great discussion about this just recently and some wonderful folks here provided wonderful links on irs.gov but googling first. If I can find the discussion I will try to post it. It really helped my clients....and me!

Wow! This is interesting. My guess would be 1 as I don't know (not an attorney) that 2, will trumps IRA instrument, is true. If 2 is true, I would think 3 as my inclination would be Dad's date of death and actual distribution is just timing. Let us know the outcome.

I called the care center and found out that this is not uncommon. They can provide assistance, however, to someone to obtain guardianship but said many family members don't want to deal with it. The guardian can also be a non-family member appointed by the court. So I emailed the son of client stating that I was not able to prepare the return for his mother to sign but could put together the data for an extension which would allow an additional 6+ months from now to get this arranged. I even offered to be the guardian as I am local. No reply yet and no return call from insurance yet. I'm not too worried about insurance as I haven't actually done anything to warrant a potential claim. Your blind client may still manage. I also have a blind client who signs his returns. A companion and I go over all the figures with him so he is knowledgeable about the return and I have second eyes affirming the data.

Weird - maybe delete info and reinput?

Judy, that makes so much sense. I am waiting for a return call from the insurance company but agree that, with his statement, I should just let him know that, unless he has guardianship or court appointed document, I cannot prepare a return for her to sign. He couldn't (or shouldn't) have a POA as she has not been competent to sign one for several years. I think I will call the facility and ask the generic question. I have met those folks before when assisting the client with obtaining documents for Sch A health care deductions. Oooo, I hate when things like this happen. Father was long time member of my church and the sweetest guy ever. I really don't want to alienate family but can't do the wrong thing. Thanks again, Judy, once again to the rescue!

Well, he lives in Mesa, Arizona now. He grew up here so pretty much knows what it's like this time of year. Probably why he moved :)

Thanks for the reply, Ron. I was going to reply to his email and thought I would throw this out first. He has said in the past that he thought it was too expensive ('I don't want to spend the money') and that he would have to spend too much time in this state to get it done. I was hoping after father's death, he would have made plans to do this on this trip. I will call insurance - only the second time in 20 years but a prudent choice, I think.

Catherine, I would include in that priority mail another invoice for time and postage. Maybe they won't pay but it will be hanging around to send again in a few months or add to next year's balance due.

Oh, dear, the son of a client who passed away last year has informed me that he will be sending the tax documents for his parents for 2014 this week (he lives in another state). He goes on to say he will be in town for the memorial service in 2 weeks and will pick up the return for his mother to sign. Mother has been in an Alzheimer's facility for several years and is clearly not competent. I have been telling son that he needs to get the proper court documents to be guardian of person and estate. He really doesn't want to spend the money. Is it appropriate for me to prepare the return with his statement that he will get his mother to sign? Father had POA for mother but son does not have for mother. Should I call my insurance carrier? I'm not entirely comfortable with this. Suggestions?

Judy, once again the life saver! I completely missed that line when I looked before and nearly missed it again not realizing at first that it was a jump to line. I did the input and it didn't help her, after all, on any front. But I learned something new! And yes, I understand that the money was available to pay in 2014. I cannot imagine what she was thinking when signing up then receiving a full year of SS and withdrawing $29,000 from her IRA. So at 579% of the poverty level and her selection of a plan 26% higher than the SLCSP, she needs to repay all $5225 of the advance ptc. She's not happy, an understatement, but didn't deserve so much credit.

Debi and Jack, I also have a client that received prior year SSA payments and is hit hard with ACA pay back. Where is this area on the SS tab to indicate prior year payments? I couldn't find it. I also don't see where to use a lump sum worksheet. Jack and KC, you seem to know the location. Please share and thanks!

Bob, you can do it but be sure not to hurt yourself! Our group has Tuesday evening hill or interval workouts and long runs Saturday morning at 7 so I get at least those in. In all this snow and stuff, I have been trying to get on the treadmill at least two other times during the week. This Sunday is a 15K race. Which race are you running?

Interesting - I had 2 clients in the past couple of years with Curian with the same issues. I also mentioned churning. One client vigorously defended the advisor, the other changed quickly. I truly believe in both cases it was churning with great results for the advisor, not so great for the client.

I don't have any references for you but have 2 clients with US income who live in Great Britain and Australia. Each has retained a US bank account for ease of depositing US funds. Each has a reporting requirement to US. I'm not sure of your question or concerns.

Thanks so much, Judy. I will read through all this in a bit and try to digest. I am leaning towards including the COBRA as she was paying the unsubsidized amount. As far as 'established under the business name,' I think that isn't so crucial any longer. I didn't yet go to code but my QF says HI premiums paid on behalf of the sole prop are deducted on line 29. It also qualifies subsidized plans from an employer of either the taxpayer, his (sic) spouse, his(sic) dependents or his (sic) child. My client had coverage under her partner's insurance plan. In addition, Medicare premiu,s can be used as sehi and surely that isn't established under the business name. I just think it wrong to include the income of a dependent when that dependent is covered by another person (ex-partner). Thanks again for responding. I will do some reading and pondering on these things now.

Anyone? With 31 views, I may not be the only one with this issue and it seems no one has answers. If none are forthcoming, she will owe $162 which I think unfair but I have no idea what else to do.

Okay, so the iterative fun and games wasn't as bad as I anticipated. However I may have used the wrong amounts for the nonspecific insurance. COBRA or not? With the crazy calculations with Worksheets P, W and X and iterative calculations, she no longer has additional PTC due to the deduction for SEHI and now owes. But family size? COBRA? I cannot find either of these addressed. I may just punt.

At last, a good link to share with clients who have this blank look on their faces when I try to explain, especially that I am not making this up! Thanks!

Just march in place! I really like your setup, though. Thanks for sharing.

Client has dependent student daughter, 19, who is covered by ex's health insurance. Daughter earned $6500. Client was self employed for 6 months, covered by COBRA (from ex) for 2 months, employer for 5 months and on exchange for 3 months with advance PTC. I know I have to work through the issue for self employed health insurance deduction (once I figure out whether the COBRA is specified or nonspecified premiums. At least Pub. 974 states that Marketplace coverage is a not a qualified health plan so those premiums are nonspecified. My immediate issue is Line 1 on Form 8962. The family size is, of course, 2, and the dependent has earnings as noted. However, her earnings skews the MAGI and, because she is covered by ex, skews family size for the calculation for poverty line. If I mark the return to not claim her this year, the Poverty Line percentage changes dramatically from 308% with the lowest of 229%. It does seem that the net premium tax credit remains the same, however, at $718, I'm guessing as all configurations are less than 400%. So maybe I lucked out on this or is there some way to indicate that family coverage isn't required? Now on to the iterative fun and games.... Of course there is no way I can bill for this.

Thanks again, Jack. I will alert the client that he may be receiving a 1099-C in the future. Hopefully they will not but it's Wells Fargo and I don't think they have a heart. He will be so very unhappy. Mostly he understands I am the messenger, though.

Thanks so much, Jack. I sort of thought that was the case but kept reading that some lenders may include on the C information that could/should be on the C or vice versa. And that also explains why the only other one of these I had was much easier - no A, just C. The legal document client received states "Plaintiff does not wish to seek personal judgment against (client) and as a result the Court does not grant personal judgment against (client) but rather a finding of default on the Promissory Note." So my client was really ticked about the 1099A and assumed that it meant nothing. The legal document also lists that the Court finds the total due Plaintiff is the $109,861 plus interest and other items totaling $115,146. So, if they send a 1099-C, it might be at that amount, right? I'm curious, though. As the property was sold at auction for $40,000 and the proceeds less some small expenses of sale went to the lender, wouldn't that change the total for which my client is responsible? Maybe that gets deducted from the $115,146 for the 1099-C? Thanks again for all your patient assistance. I have so few clients with issues like this so I always like to double check with this experienced group.