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About Christian

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    ATXaholics Anonymous

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  1. Was unaware we had a Supreme Guru. I feel more secure. A post of mine a few years back returned almost thirty responses and hardly anyone agreed with anyone else as to the correct answer.
  2. Nope it was the Cadillac tax they are discussing.
  3. I briefly saw a news blurb yesterday about Congressional changes to the tax code which become effective for 2019. I am wondering if the Net Investment Tax is one eliminated but can now not locate the source. I suppose there is always hope.
  4. Ah, just in the nick of time ! A new SIMPLIFIED tax form for older folks !
  5. Kudos to our forum moderator who always comes through with such superb answers. His problem is he claimed credits to which he was not entitled. They have disallowed all of them and sent him a bill for additional tax with penalties and interest. The way I read this he is in a few words " up the creek with no paddle".
  6. I have got to write a letter for a friend requesting waiver of penalties and interest for an error he made on his 2018 tax return. His tax record is clear for the proceeding three years and beyond. I've not found it necessary to write one of these in ages. Do I merely state he is requesting a one time waiver of interest and penalties or do I need to provide some code section or other? Any help is appreciated. I have told him it very well may not succeed so he is not expecting a miracle. Also, if he sends his check paying the additional tax and penalties will they refund them ?
  7. Also thanks. I'll remember to watch for the individual one.
  8. The cousin's wife had a regular IRA and neither she nor the attorney she used evidently had an understanding of the beneficiary designation. She went to an attorney and did not advise her husband who after her death was presented with this surprise. The fiduciary as stated simply placed the assets into his account. They lived in Florida. These IRA assets were a settlement from her first husband. She had signed a divorce settlement stipulating that if he outlived her the remaining IRA assets in her account would revert to him. It was quite an interesting mess to say the least. As far as my client is now concerned he is going to sit down with the respective fiduciaries and do what's best and I'll get on the phone and get my own in order as well. Thanks again.
  9. That was my understanding of how things went Sara but after reading Judy's post and referencing the provided website I changed my understanding of the issue. In point of fact my financial guy was of the same opinion that the entire balance was cashed out and fell into the estate as a taxable distribution. In my client's case the fiduciary will simply have to divide the account balance into three accounts with the heirs having to take distributions as indicated by the fiduciary. This looks to me to be a much simpler process than going the extra cumbersome step of moving the assets through his estate. In my cousin's case referred to above the fiduciary simply ignored his wife's expressed wishes as stated in her will and placed the entire account balance into his account. He had provided no waiver and the attorney she used evidently was not up on the law.
  10. Many thanks. This clears this up. It's clear an individual is better served by indicating a beneficiary with the fiduciary organization which is a much simpler process. A cousin's wife died some time back and unknown to him had gone to an attorney and directed by her will that her IRA be placed in a trust for one of her grand children. The fiduciary had no beneficiary so listed and simply transferred the account into the cousin's existing account since he was of course her husband which made quite a mess of her wishes. My client is recovering and hopefully will have adequate time to addrss this himself. Making his estate the beneficiary is an extra step he can avoid as well as yours truly.
  11. The client I spoke with who has this arrangement has now gone to a local hospital in not good condition. I decided to ask this question to the PPS as I may now have to confront this problem. The individual with whom I spoke said she did not know in fact stating " I don't know what you are talking about" and further advised she would transfer me to another area. Shortly thereafter the phone connection ended. So much for IRS assistance.
  12. A client came by yesterday and in our discussion mentioned his 401K plan and IRA proceeds after his passing will be paid into his estate. I have never seen this as most have a named beneficiary who gets the account. I suspect it is not a great idea as it would seem to expose the full account proceeds to tax on a Form 1041 unlesss there are special provisions for these accounts. I myself have a similiar provision and plan to address it shortly myself. Information on this is appreciated.
  13. He can in fact provide school resident records for two of the children. I am going to make a last ditch effort by calling the examiner myself as his number is listed. I have all clients check the third partry check box on their returns. Oddly I have found IRS folks reluctant to discuss much of anything in regard to this even though the Form 1040 instructions provide clear indications they would be expected to. He has now lost his job and their chance of recovery is at best not great. What are they going to do sell the guy's double wide or pickup and make him destitute? I think not.
  14. I think the certificate would indicate who the parents are and would tie him in that way. I may call the division of vital records but am just about shot on this one. I really love my little tax business but I simply now lack the ooomph to deal with these compllicated situations as I once did when I was spry and willing.
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