Jack from Ohio

How many workstations? What O/S on the workstations?

Not in the last 3-4 years. They are very stingy about abating penalties. He cannot get out of late payment, or underpayment penalty and interest. He should file by Oct. 15, 2014 to prevent late filing penalties.

We have a client that is a contracted teacher for a school system. Paid in 1099-Misc. When we prepare her return, SE tax is calculated on the profit, which is 95% since she has little in the way of expenses to offset. The School is withholding STRS from the amount they are paying her. The School claims that she MUST participate in STRS. Here are my questions: 1. How can a contracted worker (non-employee) participate in the STRS? 2. If it is true that she must participate, (playing what-if here) can she participate in both STRS and SS? 3. If she cannot participate in both, but must participate in STRS, is there an exception for SE on her tax return? 4. If she cannot participate in STRS, is there a process to get those monies withheld refunded? Additional information: The School is getting a Title 1 grant to pay her. The School claims that they cannot hire her or the grant funds will dry up. (I have no idea how Title 1 grants work, so I am unsure about this) Any ideas, or experience with this?

From the IRS at the Nationwide Forum in Chicago - Other than those that receive Form 1095-A, there is no process in place to match or verify the information provided by others. In other words, the IRS will not match, check or hold preparers accountable for that question in 2014. I asked Karen Hawkins this question directly, and that is the answer she gave. In addition... "If the IRS does not have a method to check the answers, we cannot hold the preparer responsible for incorrect answers given by taxpayers. Therefore, since there is no documentation available for this question (other than those that receive insurance through a Marketplace) there is nothing for you to document for tax year 2014. My process for tax year 2014 is to simply ask the question, and enter the answer given.

She called the wrong phone number and/or does not understand and/or did not give them accurate information. Get her in your office, call the number on the website. Here is the correct number: Identity Protection Specialized Unit, toll-free at 1-800-908-4490 so we can take steps to further secure your account. They will want Form 14039 filled out and appropriate documentation attached. Forget the website.

I agree with your position on this!!!

I do not use bank statements to create and file W-2s. Not sure why I would need that information?

No. You must fill out the form almost exactly like the MA form. Receiving the subsidy is not part of the requirement to receive the 1099-A and report the information accordingly. It was supposed to be ALL insurance companies, but the POTUS delayed non-marketplace acquired insurance requirement till after the mid-term election. You must also calculate if the taxpayer is eligible for, received too much or too little subsidy and adjust the additional tax or additional refund accordingly.

The only people this affects are those that purchased insurance through one of the marketplaces. Those are the only ones that will be receiving Form 1099-A. All others simply have to answer the question: "Did you have appropriate coverage for 9 of the 12 months in 2014." It is a yes or no question. The IRS will not be checking the accuracy of the answers to that question, unless you purchased insurance from the Marketplace. So, those that purchased from the Marketplace will be at the mercy of the Government for issuing the 1099-A forms.

I charge a Base Price (minimum) for every return. List what forms are included. Any other form is charged based on the complexity and extensiveness of the form. I too, put full freight price on the sheet and discount for the simple ones. This keeps in the client's mind, the amount I could charge them (establishing value) then I show a discount. This is the place I go to when I hear the ubiquitous complaint: "Why is it costing me more than last year?" I point out that the fees are the same, but because of ________ the discount is less. "Would you prefer that I charge you the same every year with no discounts?" "The price would be consistent that way."

Unless they stop trying to issue refunds at light speed, none of those changes will deter the fraudulent returns at all. It takes time to verify. Americans have become spoiled with high speed refunds which has thrown open the door for the fraudulent returns. Make the standard refund time 6 weeks.

At my personal practice for tax year 2013, I raised my base rate 25% and several of the add-ons by the same percentage. 225 clients. 1 protested loudly, 4 asked about the reason for the increase, 220 never said a word or even a funny look. I am instituting an increase for the clients that must file the ACA form this year but probably no other.

I am completely up to speed already on what they want. Using a new form is elementary to the process. Too many people procrastinated and now the rush is on!! I worry more about why things go on the form and the proper way to report. Where on the form is simply a matter of reading the new form. Since I have already learned what they want, it is a simple matter to comply.

I learned about the ACA at IRS Nationwide forums in 2013 & 2014 as well as several seminars from Oct-Dec 2013. The information has been out there for over 2 years. I do not understand preparers that have not sought out this information by now.

For IRS. California has their own rules.

It is easily used by the computer challenged masses. That was its original intent. To make computers usable by people who could not understand command prompts and commands. Point and click. I would love to have drivers that would allow me to run DOS 6.22 on a modern machine. There would be no sense of waiting for anything.

2012 Returns?? I think not!!!

Agree

1. How many users know what dual-boot is, much less how to do it? Less than 10%.2. No mention of available software, how many companies do not write software for Apple, and Apple's refusal to use Flash. These are the real world problems that users who get conned into buying a MAC, soon realize. Rant over...

IRS uses Flash to produce their webinars. Go to www.adobe.com and download the latest version of Flash. It is a free download. It will NOT HARM your computer. Once the latest version of Flash is installed, you will be able to view the webinar with Internet Explorer. I have used Internet Explorer since its inceptions and have not experienced any of the major "flaws and issues" that have been purported to be inherent with it. Make sure that you have upgraded to IE11 and have installed all Microsoft updates.

That is also currently being challenged in the courts.

I get CPE credits as a bonus to my studying and taking seminars to keep up to date and learn things I don't know. If a person is preparing taxes, (has a PTIN) they should always be working to keep up to date and learn new things. I grow weary of hearing... "I have to get XXX number of CPE credits." I guess I consider my professional ability and status more important than others. I get knowledge and training, AND earn CPE. Others find a way to get CPEs as cheaply and easily as they can. For the record, I only hold the RTRP designation, and earned 40 CPE credits last year.

If you want to use ATX, DO NOT buy a MAC. PERIOD. If MACs are the "best," why is less than 20% of the software that is available compatible with MAC? Corporate America, other than the media creation people, are 90% PC. Apple has a small niche of usability and have painted themselves into a corner.

Ask if she has received any letters from the IRS. This is the only reason you would get that reject code. Save your time calling. Just paper file. If she is getting a refund, it may take 3 months or so. She could be a victim of someone filing a fraudulent return using her SS#, and she would never know till now. I have had 3 of these at the firm this year. There is a difference in a fraudulent return and identity theft. BIG differences.

Ask the client for the information he received from the IRS about an identity theft situation. He/she has been contacted and given an identity theft ID. People don't think it is important to give it to their tax preparer. Filing this late, he/she was probably victim of a fraudulent return being filed with their SS#. The IRS sends a letter requesting copies of their ID and Form 14039. If he cannot find it or says he didn't get it, paper file. The IRS will contact him for certain. You did not do anything wrong.