Max W

Interesting!. They call it a fee and SCOTUS ruled it a tax to legitimize ACA..

Thanks, Joan. That was very thoughtful of you. It will certainly help.

Anyone in CA familiar with this company? http://lowpriceinsurance.com/bondapp.html

The $11K and $42 K are not taxable only IF they were not taken as a deduction. I would guess that the $42 K was taken as part of the CG calculation for the sale of the house. That return could be amended to make the 2/3 part not taxable. The 1/3 of the $11K can go on 3903 for the year of the move , or the following year. The $23K could get messy. Ideally the company should send a corrected W-2,. Otherwise the repayment would have to go on Schedule A Miscellaneous. BTW - 22 +23 + 42 = $74K. Was something left out?

The PMI is included in the House version of the extenders bill. Now, it is up to the Senate. See 5th bullet point https://www.congress.gov/bill/113th-congress/senate-bill/1859

Once an S-corp converts to a C-corp, it can not convert back, for at least 5 years. After rereading your question, I would be almost certain that the original S-corp was not properly terminated using form 966 and that the same EIN was used for the C-corp.

Maybe the outside firms will do a better job than the IRS.

When a state return is filed in the state of residence and the address is in another state, that state will pick it up from the IRS exchange of information. The address state has no knowledge of the residence state filing and will make inquiry as to why the address state has not received a filed form. I have had to deal with this several times and a copy of the residence state return with a short explanation suffices. However, when the residence state is a non-tax state, the problem becomes more difficult and all sorts of documentation showing residence are needed. No overthinking here, Jack.

There should not be any problem with the feds, but unless the son lives in one of the non-tax states, the state could come looking for their share of the tax pie. The son might then have to get involved with proving the actual residency of the parents.

Was the S-corp election - form 2553 - timely made?

Thanks again.

Thanks, Catherine. Am prepping both a 1065 and personal returns for 2012 & 2013. So, are you saying no MA efiling at all? -and to check the box on the MA1. Is there anything similar on the MA 3?

Does MA still accept efiling for 2012 returns? TIA

A separate form has to be filed and franchise fee paid by Apr 15. http://www.tax.ny.gov/pdf/current_forms/ct/ct5_4i.pdf

Thanks Jack. it will come in handy.

Under certain circumstances - MFS - the wife can be claimed as a dependent, but not for 1/2 a year , of course.. If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. http://taxmap.ntis.gov/taxmap/pub17/p17-013.htm

As I recall, it usually shuts down the day before Thanksgiving and resumes the 4th week of January.

It would be foolish not to take the NOL. As Jack says, keep shopping around until the right bank is found.

Thanks, that's the way I interpreted 3 years ago, but wanted a 2nd opinion because the client has been coming up with dozens of questions and hypothetical scenarios of living part year here and part year there, giving up her US citizenship, and on and on.

Disagree. Because the income and additional fica/med is a W-2 issue, the employer is responsible because he hasn't complied with the regs.

Even last year, it was taking 4 to 6 months. For older years, it can take much longer. We had a 1040X filed for 2003 filed in Aug 2011, IRS indicated it was in process dec 2011. Processing was finalized and a $40K reduction of balance due was issued in Aug of this year, 33 months later. We had to get the TAO involved and it still took over a year from that point.

Maybe. If he is an attorney, then he is a legal professional and referral fees are subject to SE. If he is an employee in another capacity, office manger, administrator, etc. then the argument for Line 21 might carry some weight.

Ahah! That's the rub. Article 11 that deals with interest is on page 15-16 or the following- http://www.irs.gov/pub/irs-trty/aus.pdf How would you interpret this? Maybe someone that has dealt with AUS issues can answer.

I am aware of the WW Income and the tax credit. That is not what I was asking. I am asking if interest from AUS source is exempted by the US-AUS tax treaty, specifically paragraph 6.

Client is naturalized citizen and resident of US and has bank accounts in Australia that generate about $10,000/yr in interest. By treaty, Australia is allowed tax up to 10% of the interest. It is not clear in reading the tax treaty (paragraph 6) if the taxed interest income is exempt in the USA. Any ideas?