Margaret CPA in OH

Marilyn, it really is behind me. And I don't stress over things like this very much at all. My blood pressure is very low because of that mindset, too. It's just a bit disappointing. I don't recall the actual Bible passage but there's something about payments agreed to when workers put in a whole day and others who work just a short time get the same pay. I agreed to what I paid and thought it fair enough for me. But (whimper a little), I am just a bit disappointed that the price was much lower now. Same 10%, okay, but not lower. Thanks for words of advice, though. Not really stressing, honest!

I'm a bit bummed. I renewed early for the 10% discount as I understood that was the best offer that would be available. Well, 10% of the MAX price is $132.90, less than the $200 discount. Moral for me is to wait longer to renew, I guess. I did get that great deal the one year, however, through the other TRX then ATX honored it again the next year for total savings of more than $1000. But still, I suppose I should have waited for the additional $67.10 and less tax, too!

My head hurts already.

Christian, don't be hard on yourself. Ask me how I thought that just might be the problem... Sometimes there are just too many things to check but that is also a reason why I still like this program. It does a lot of things automatically but you still have to think on occasion.

On the Expense Allocation Input sheet, did you select the correct home office from the 'list' at the top in the blue area? When you go to Schedule C, have you clicked on Line 30 and followed the paths to the entry screens to be sure of the source data?

I efiled one yesterday and it was transmitted and accepted within 2 hours.

Just don't dawdle when inputting some information. I had to double check my credit card number and the system decided those extra 5 or so seconds constituted too much idle time, kicked me out and I had to do it again. Done now, though, and ready to go. Like Gail, I like not using my SSN although I also have an EIN now, too.

I have a German professor who received a 1042-S with a code 18, compensation for teaching. See what the code says in Box 1 and look online to check it. There are many types of income reported on 1042-S including some interest and certain pensions, annuities, etc. In my client's situation, this amount was not subject to income taxation due to treaty as it was received from Germany. Another amount was received from the university and was taxable and reported on W-2. I think the code determines where you report it. In this case, I included it as fellowship grant not reported on W-2 then back it out on Line 21 explaining Treaty Exempt Reported on Form 1042-S. I would think that the tax withheld would then be overpaid and refunded.

PatHack, this is so timely. I am trying to complete a return for a couple from Germany and just received a copy of their German return. It shows a small amount of SE income in Germany for each of them. I will look up this Totalization agreement that you mention to be sure of proper treatment and be sure of the tax items on the return in case there is a comparable SE tax assessed in Germany. Oh, the things we learn here from each other!

So I called Practitioner hotline, had a good conversation (after a 52 minute hold) with agent, was transferred to Underreporting and that agent saw that the case was already being worked and should be resolved soon. Someone finally noticed that that name and address on the 1099 didn't match that of my client although the EIN did. I think this morning's call where we got a letter from IRS faxed to client with the correct number, name and address set those wheels in motion. Max, this last agent did say that we still had lots of time, that the Dec. 8 date was only to file an appeal to tax court but we didn't need to do that as there really is no issue now. The client should also get a letter within 30 days. Whew! I will be happy when this is over. I may even ask her why she didn't come back to me for 2013 and whether she will for 2014. At least I have pie and wine now!

We already know the payer information and amount as it was listed on the IRS notice. We have even found the payer online and spoken with her. She was checking to see if the error occurred on her end. The transcript would show, perhaps, the EIN which I put on the return as the client provided. But the client provided the wrong number. We now know the correct number; the payer was correct but my client was the wrong person as IRS just matched up numbers not payee details; we are trying to forestall having to pay tax not owed or petition tax court. Just not sure of the next step whether an amended return showing correct EIN; call to Tax Practitioner Hotline or Taxpayer Advocate Service or what. The number on the form is another blasted phone tree leading nowhere. Thanks for the suggestion, though. And I will definitely enjoy both pie and wine!

Client and I spoke with IRS this morning and she received by fax a copy of her EIN letter. Client had provided me with an incorrect number. In looking at her IRS notice, CP3219A and almost certainly not her first notice, her options are to pay or petition tax court. There is also an option to consider additional information by mail but that does not extend the Dec. 8 deadline to file a petition. Tax Practitioner Hotline? Taxpayer Advocate Service? What is the best option? Do I prepare an amended return showing only the correct EIN on her Sch. C? She is contacting the filer of the 1099 that she did report to file a corrected 1099 but that likely will not be in the record by the deadline. She is also contacting the filer of the 1099 that had the correct EIN which was not hers to let her know the issue is on the client's end. What a mess! But she brought fresh pumpkin sweet potato pie made from fresh pumpkin.

KINGCHUCK1971, why would a transcript for her 2013 have her EIN on it? It has, as does her 2012 return, AN EIN but we are not certain whether it is the correct one. I have called the Specialty and Business line but now she must call. Although I have POA for her SSN, they cannot talk with me about her EIN even though it is a SMLLC, not recognized by IRS. They will, however, send out reconfirming letters to both EINs to the addresses of record. I had to convince the agent that the client would receive hers because she still lives at that same address. The client also can have it faxed to her. Of course, client has no fax so will have to come here to call and have the fax sent here. I believe she is off tomorrow so can do this. I truly understand the privacy issue about SSN's but not so much for an EIN. Hopefully it will all be resolved soon. Her letter will arrive within 10-14 business days or by fax the day she calls. Thanks for all the suggestions. Now I wonder about billing her... do I take into account the wine?

Thanks so much. I should have thought of the bank angle at least as I always advise any business client to be sure to open a separate checking account for business with the EIN. Hopefully the letter would be taken in to do that. Then again, she may not have followed advice. But I will check! Thanks again...

Former client formed LLC a couple of years ago and I did her 2012 return. She went elsewhere for 2013 but received IRS letter with underreporting of rental income. Seems the 1099 had a very similar number to what former client provided to me as EIN. A local payer also used the same number she gave to me. Issuer of 1099 for money former client did not receive (different state, different business) is trying to help out and acknowledges that an error may well have been made. Former client can't seem to put her hands on copy of IRS letter with EIN (of course she had to do it online herself as she didn't want to pay me to help her). She did not provide the letter to me, just wrote down the number. Issuer of 1099 is trying to get a copy from her accountant of the 1099 (she's apparently a major real estate something or other) to see the name and address shown on it. It isn't my former client's. Is there a way for her to get this number from IRS again? I don't want to spend time on it and she's a bit lost but facing a substantial tax bill if this isn't resolved soon. I did get a 2848 but that proved almost no help. IRS agent suggested that I file 4606 to get a copy of her tax return. Is there a way to get a copy of the 1099? Thanks - and I really don't want to be dealing with this even though former client is friendly and brought a nice bottle of red wine.

I'm about done, too. Now you can return to Cabo. Who knows? Perhaps we'll meet up as I still want to dive there...maybe after the coming season. Congrats on a big decision.

Although I am in Ohio and actually did work as a sub teacher briefly, I have never heard of this situation. I was paid as an employee. You've probably already checked this but, if not: https://www.strsoh.org/ Surely someone there will be able to help you.

Thanks for the explanation. I just may try this out on these extensions I have. I might also look at a few samples from this year and see how it might be different. With (intentional) lack of business growth as I edge into retirement, I will feel the income decline but want to know that I am still providing the value to my remaining clients while charging fairly.

I am intrigued with charging by the form except that many forms can be easy with few entries or quite complicated with many entries. How do you manage to be fair with, for example, a Schedule B with one interest and maybe one dividend, total exceeding $1500, and one with 8 interest accounts and a dozen or so div entries some with foreign tax credit and maybe municipal allocations? And then Schedule A has its own issues from top to bottom!

Well, I don't access gmail or Livemail from the internet. All my email, including from my own websites and personal domain, is downloaded into my email client on my desktop and onto my smartphone. Maybe I misunderstand the term, 'must access them from the internet.' Just in case, I changed my gmail password, too. It was about time anyway.

Thanks, Pacun, for even much more to consider. This person is actually the daughter of a client and they are currently out of state at relative's funeral. What I did was copy information from IRS.gov about Nonresident Spouse Treated as a Resident and stated that 'I very strongly suggest that you not try all this through Turbo Tax. Engage an Enrolled Agent or CPA with some experience and/or who can help you get through this first filing. It will be worth the cost.' Because I am not engaged to prepare this return, I haven't all the information and little opportunity to ask multiple questions. I was just trying to steer her in the right general direction. She/they still have some weeks to get it together by October 15th. Thanks again!

Thanks, I will do that. I do know that 'a lot' of forms were filled out but not specifics so this is good information Thanks again!

Thanks so much for all this information. I will be following other sources to confirm so that I might provide specific references but this seems the right track. Thanks again to all!

I don't understand the purpose of applying for an ITIN when the green card application is already in process and will produce a ssn. I don't have any foreign clients that have had to go through this process. All is in order by the time I get them. I welcome the education and thanks for the quick reply so far!

Client's daughter married Frenchman but lives here. His application for a green card is very slowly making its way through the bureaucracy. They thought he would receive his ssn by filing date in October but now doesn't seem likely. Do they paper file MFJ with 'applied for' in his ssn field? If so, do they attach application documentation or other? I have just begun research on this but am hoping one of you has been there, done that and are willing to chime in. Of course I feel terribly guilty now following the thread of asking for help before doing all my own homework but promise to do it, too. Thanks for any clues!