Margaret CPA in OH

I think you will feel better if you reread the instructions for 5227. It's been a couple of years already since this sensible change. Between us and the two or three folks here that will read this, I am not entirely convinced that the folks that process these things are completely solid on the requirements themselves. It seems to me the important things are to characterize the bene distributions as to type and that the benes include in their income. That and that the calculations match the original forms sent stating percentage and that any charitable distributions go where and when they are intended. One of mine had 50% distributed 2 years ago when one of the benes passed away. The terms of that one were 50% distributed at each death. The second one was distributions to be made at the second death which happened in late December. When the survivor of the first one passes (she will be 100 this year), I likely will never do another one. It's been a great learning experience though!

When you figure out what that software requires to file, let us know. Does it expect a 1041-A just to provide the K-1? I don't understand why the 5227 doesn't just have it but I use what works and follows the instructions. It could be crazy if efiling was allowed or required. Programmers would have even more problems.

Yes, I filed 2 CRUTS already this year. Yes, 5227 now incorporates info that was on 1041-A but ATX still requires it to be present to prepare the 5227 and K-1. You just don't file it. The letter also doesn't work as it doesn't have the Ogden address. 1041 isn't needed at all. Maybe someday it will all be worked out but that day isn't yet here. Oh, the 5227 cannot be efiled, either.

Thanks again, friend. Take care -

Kind of creepy. I have a 2 for 1 deal from TaxSlayer Pro today.

Thanks, Catherine. Yes, he and his late wife were just wonderful people. This was quite unexpected despite his age. Undiagnosed cancer gone too far. I didn't even have time to make it there for good bye. It is the final personal return and an attorney is handling the estate return. I found the check box and will just mail to his daughter to sign and file. Any ideas on how to complete 8948 or is it self explanatory with a deceased taxpayer? It would be easier with a refund as the 1310 has to be signed but this has balances due both federal and MA. Thanks for condolences and guidance. I may yet get back there for my friend in Quincy this summer. Will let you know.

Resident died Dec. 17 with balance due. Executrix will pay but is this return required to be efiled? For that matter, is the federal required as well (I have to efile all others due to numbers)? Catherine, it's my friend there, so sad, so sudden. Thanks,

KC, she has no withholding as she is a sole proprietor. She just didn't pay enough inestimated payments in 2012. Had she done what the previous accountant projected, $2000 per quarter, her balance would have been about $800. She used the funds elsewhere. I think she expanded too quickly and that her rent is really high but she is in a great location so not looking elsewhere. It's mostly about prioritizing where to put one's available cash. She rents an apartment so does not even have the option to have a home equity loan and her business assets are fully depreciated now. Not a lot of options until her parents pass away. She has told me that she is due to inherit over a million from the family owned bank but for now she really wants to make it on her own for which I give her credit. She just needs to plan better, I think. Thanks again, all.

Thanks for the quick, confirming replies. I just have to be prepared to support that, although business income, it is personal for income tax. We were getting along well until the final total then I was warned that she would NOT cash in her 401(k) to pay. I sent links to IRS payment options without extensive comments. Sigh....

As noted a sole prop owes about $4000 plus Q1 est of $2000+ so needs a loan to pay. Her bank rep and financial advisor were consulted and she will either take a line of credit or loan. She said both suggested she ask my opinion as to whether it should be personal or business. Sch C income $42,000, divs $2000, HSA and sole prop insurance deduction $4500, 1/2 SE deduction $3000. I can be persuaded that the tax is due to business income however I also can be persuaded that she is paying income tax on her earnings, not terribly unlike an employee. (I'm sometimes easily persuaded) Which persuasion does this board feel? My stronger inclination is personal. Thanks!

In an earlier post from me - I really hate these things. Too many clients have no idea what I am even asking when forms or information is missing. Grrr....

Pretty much the same as you. It is indeed a struggle getting education info and HSA increasingly. "Basis? What's that? Oh, you mean I have to get the name of the organization that I gave all that furniture and clothes to last year? Of course it was worth $800 but I don't know the value. Can't you put it down? Estimated payments - oh, whatever you told me to pay, I paid it." Grrr...

Now that is funny! Sort of like the day care provide on Car Talk - Urasus Dragon.

If using ATX, when you enter an amount in box 10 and an amount in box 11, an additional entry portion appears at the bottom "Excludable from Federal and/or State Return. If you have the resources such as reference volumes from Mutual Fund Publishing Co or the information from the investment company, you can determine the amount of US Obligations and/or non home state income. There are many choices to make and the date flows to the state usually as taxable income for the percentage of investment out of state or deduction if USO's are not taxable in the state. In box 11 you can indicate where the private activity bond in box 11 is located. If more than one state, create multiple entries such that the total adds up.

Look at the top of the input form, left column, 4th box down, Complete dispostion of a passive activity. Right column for ptp.

The contractor audit (became a client after that) ended with refusal of about $20,000 in sub payments because the contractor not only did not have the tin of the subs so couldn't write refused but also did not have addresses. I do think most of us know about the 28% withholding but, in my experience, those checks have been long gone without it or the W-9. The person often writing the checks may not know to withhold. An ongoing problem many times solved only with an audit and denial of the otherwise proper deduction. It can really hurt a business bottom line.

I found it finally by doing what I should have done - look under Options/Preferences and the last tab is Backup. That shows the path. When I went merrily down it, I found lots of things. Company folder has lots of client names at 2kb, a couple of 3kb. Formset folder must be the 5 previous backups and most of those are big numbers like 1500 to 3000kb. So I'm thinking to backup the Backup folder (which I do on my external hard drive nightly). I'm not sure about the others SFA mentioned earlier - Efiles adn EFIN Enrollment. Have to go down more paths, I guess.

Also, was the client diagnosed at a level 1,2 or 3? Unable to perform at least 2 activities of daily living for 90 days? Cognitively impaired? Was assistance prescribed?

Thanks SFA but I just want to check to see if my files are 1kb or whatever that means. I don't know where to look. Knock wood, I have had virtually no problems and surely don't want any but do want to take precautions as are others. Just don't know for sure where to look for these little rascals!

Sooooo, where do I look? What is it called? My computer builder guy unhid all folders recently I think.

I hear you....or read you as the case may be. That is about the extent of my answering capability today anyway.

Okay, now I am nervous. Please remind how to check for backups. I went to my ATX folder but can't seem to find anything logically named as such.

I have prepared them anyway and alerted the client that late filing notices would likely be forthcoming. When I still paper filed, I would put Refused in the tin box. Now I tell the client that it is no longer a business deduction and remind them - again - not to pay the first dollar until W-9 is in hand.

Line 28 link.

Thanks, Judy. Yes we were typing at the same time. I had another response when the phone rang and I accidentally deleted it. So now I must ask about a separate Health Insurance premium deduction separate from the $3334 she pays, in her words, for HSA premium? In looking at last year's return, it shows SE HI deduction of $3280 and HSA deduction of $1350. I'm wondering now if what she is calling HSA premium is actually her HI premium. Methinks the HI insurance is what she is calling HSA premiums and the $900 drug premiums are HSA contributions. Another conversation... This is about the flakiest new client I have ever had. She is a personal trainer and her records (if you could call them that) are a train wreck. She wants to be in good order and is letting me redo her QB files. Rather, I am starting over with 2013 and letting the past die. She recorded all receipts as Received Payments without Invoices so has no QB income but $115,000 in receivables. She listed each subcontractor for her studio as a separate account. Aaarggghhh! This is the first self employed HSA for me. I have had several clients with them so know the 8889, etc. but from employer contributions and distributions. Thanks again folks!