Christian

Well I am going to call Richmond and hope for the best and while I have them on the phone to ask for the explanation for why they did not pay me my $61 tax refund from last year which explanation was promised but never received !!

I finally located this in my tax info. "Tax withheld at any point in the year is treated as if evenly paid throughout the year". This is for federal income tax withheld. Does this apply to Virginia income tax as well. I am unable to locate wording to this effect in the regulations so far.

You have answered my question completely. This is the first time I have needed to address this matter as most folks cover their tax due through W-2 or 1099-R withholding monthly. Thanks for all the input too all.

I myself was hit with a penalty for underpayment of estimated tax one year. If you consider a withheld payment in December as having been paid throughout the year would not a three month amount of the December withholding be credited along with your quarterly estimate to compute an underpayment or overpayment for that quarter ? That is what I am getting at.

This pretty much confirms the point. I note he has been paying quarterly installments for some time but will be drawing a MRD this year so in estimating his tax for next year I will be mindful that should he incur a penalty in future related to underpayment of quarterly estimated I can add his annual year end payment to his other quarterly payments. Good to know.

A client I have takes his annual MRD from his IRA in December each year. He has federal and state income tax taken out when he does. In reading my Kiplinger tax letter awhile back I was surprised to note that it stated that federal taxes withheld on a once a year distribution are treated as if paid throughout the year which means he can add a monthly addition to his quarterly federal withholding. I assume you would divide the amount withheld by twelve producing a monthly figure which can then be included in computing his quarterly payments. I have not encountered this before and would appreciate any info from the forum.

I was under the impression that in order to receive a call through Skype you needed to be a member in the group or have a Skype account. I feel sure the IRS doesn't have one and yet he is able to get them ?

Like many of you I have received Microsoft's offer to upgrade to Windows 11. Awhile back I think Walters Kluwer advised that the ATX program for 2021 would not be able to use Windows 11 for next year. Is that correct ?

Of cuss. I am one of them four million just sending my return in.

Well if my client gets into all this razzle dazzle he can find a new taxman.

I have a client who has sunk a large sum into buying A (one) bitcoin. He advises it has appreciated handsomely and is going to buy more. Should he sell his coin at a large profit how is it to be reported on Schedule D or what. I have avoided buying any bitcoin since frankly I have no idea what exactly it is although it seems I will need to do research fairly quickly. Just the other day I read an article in which the head of JP Morgan Chase stated that it was worthless and here a client has dumped close to $50,000 into it.

Has Rita retired. Not having seen any posts from her I thought she may have joined the retired list.

I thought they updated the browser regularly. I just updated mine thanks. I had not seen any news about security issues with it but I am no techie.

I had experienced no problems for some six years apparently using an incorrect PTIN. Having been conditioned to believe that an incorrect filing would produce an error message advising me of any mistakes in entry and having received none I thought everything was just fine. My offhand guess is the error occurred when improvements were made in the PTIN system. I ask the agent for an ID which he provided and pointed out the Service did not call people further asking why I had not received a written notice. They apparently had just discovered the error and as we were in the midst of the filing season wanted the number changed as quickly as possible. He provided a number to call him at and after checking what he had said I changed the number and called him back to advise him the number was corrected. He assigned no blame to me and sometime afterwards I received a letter from them. I chalked it up to the wonderful working of our government and soldiered on.

Have no fear Bart. The inscrutables at the Service will eventually right the ship. In 2020 in the middle of the pandemic my phone rings and an IRS agent informs me that my PTIN is incorrect and has been so since 2014 !! He was unable to provide any reason for this being so but said I needed to change it post haste which I did immediately.

Oooooooooooooh ! Gee Max Sie hast meinen Tag gemacht.

I want to extend my thanks to you Tex and Sarah. I thought my figures were correct and you have answered the question I posed. Although I have been helping folks prepare their taxes for almost 40 years now I always come here to help me resolve any matters which I have little or no familiarity with. As the code is some several thousand pages I feel sure I will be back. Like Sarah I doubt I will get much relief but I guess I can always request the one time waiver.

Thanks very much Margaret. I have prepared a spreadsheet of my own and fully understand adding income upward from time period to time period. To illustrate what I have been saying I will use a simple example. Let's say the the total income in column (a) is $20,000 and total deductions for the entire year are $10,000. In order to arrive at the adjusted gross income to report in box (a) I would deduct three months of deductions which would be 3 months divided by 12 which is 25%. I would then deduct $2,500 of the deductions for the initial time period of 1/1/20 - 3/31/20 to arrive at $7,500 as the adjusted gross income for that period. In box (b) we will say the total income for that period is $15,000 arrived at by adding another two months of income to the $10,000 from box (a). The deductions for that period would be 5 months divided by 12 which would be 41.6%. I would then deduct $4,160 from the $15,000 to get $10,840 as the adjusted gross income for the period 1/1/20 - 5/31/20. You do not substract all the deductions of $10,000 in each time period is what I am getting at. You prorate the deductions for each period to deduct from the prorated gross income being reported for the period to arrive at the correct adjusted gross income for each time period. The instructions do not quite make this entirely clear the authors of the instructions I suppose assuming a reader would understand that this was to be done.

So much for doing tax work late at night. I see these are not quarters but incremental increases throughout the year. I have all my statements needed to compile this info so no problem there. My problem is that I cannot just divide my total agi by the time periods in a,b,c. My income fluctuates so that would not be correct. In 2020 I had some$16,494 worth of adjustments deductible from my total income and therein lies my problem. Do I apportion this amount to conform with the income reported in those lines ? If I deduct the full amount of the deductions in each time period a,b,c I don't see how that could be correct. I just reread TexTAXToo response and it seems to support a division of the deductions as I stated above. Like so much of tax work hashing this stuff over helps. This form is if anything a little confusing (at least for yours truly) so I appreciate any comments.

With the extension deadline approaching I decided to prepare Form 2210 which I have never tackled before. Using schedule A1 I don't fully understand if you use the full amount of deductions on line 1 and in columns a, b, c, and d or more likely divide the deductions by four which is to say one quarter of the deductions assigned to each column. Likewise I would expect the self employment and Net Income Investment Tax to be divided by four also. Or do you divide these items by four and since the income is increasing each quarter increase the deductions by the same amount. The instructions seem opaque on this point. Normally I have no need to deal with this form but 2020 proved to be anything but a normal year for me. Any help is much appreciated.

Having passed the original test in 2012 I can attest to the fact it dealt with huge chunks of tax information to which my 40 year practice had no exposure. How I passed I will never fully understand. If it had dealt with more common everyday tax matters which folks like myself see every year it would to my thinking be pretty fair. The fall back position was "You have three or more shots at passing the test." I had to drive in excess of 150 miles to find a cramped testing facility in a non-descript hard to find tiny mall over in Richmond Virginia. I support their ability to remove PTINs from poor practitioners but not this scheme as originally created.

He has been a dependent since well before I took her on four years back. If not received I assume from what you said it can be added to her 2021 refund a point I overlooked. Another client who is single with income in excess of twice the income threshold got $1,400 deposited to his account. When asked if he planned on returning it a got only I hearty laugh. Two others claimed they did not receive one or other of the earlier rebates got a surprise when the IRS advised them they had in fact received them.

A client called to advise she did not receive the final rebate credit ($1,400) for her dependent grandson who becomes 18 on December 20th of this year 2021. Since he is under 19 years of age should she not have gotten it ? She received hers.

Yes there it is "does anyone know a stamp collector?" I'll save and print it. I am throwing out. Low and behold up pop four or five Christmas cards from 1913. They are really quite beautiful and besides the stamps on them the cards are early Americana. This will help ascertain a value. Many thanks. I see I posted in that one and ,of course, I still have those 400 post cards. You all will likely face this down the road and I do not envy you. Disposing of generational accumulations is not easy to say the least.

Sometime back a forum member posted an entry in which a question was raised concerning the appraisal value of items a client wished to sell. One or more members posted the names of appraisers or auction houses that they were familiar with (one in Washington D C if my memory serves) and I failed to print the replies out. Now I find I need this type of info and would appreciate any input from anyone. Alternatively if I can be furnished the original post and comments from here that to would be appreciated. I'll be sure and print it this time for sure if received.