Christian

The clients have no income but a loss from a stock sale to report on this form. Which line is used to pass it on. Line 11 or line 14 or 9 ?

I thought you women married hubbies so they could wonder in and talk.

Always a new wrinkle. After a conversation with the local court I find he did have the will recorded although not probated and he is recognized as administrator. You learn something new every year in this line of work.

I am preparing the final return of a longtime client whose son has held their power of attorney for a few years. He asked me who was to sign the final return and I stated he or his sister as executor or administrator of his mother's final affairs. He had formerly said he and his sister were the two named heirs so I assumed his mother had a will and he had it probated. But no he had not and further advised it was unnecessary for some obscure reason he could not provide. Soooooooooo without the court documentation I am left wondering just how his late mother's final return is to be signed.

Thanks for the info. The credit was repealed so he will not get that and if he receives reimbursement he has no deduction.

Lastly I see he gets a 10% tax credit for reforestation and the credit is reportable from Form 3468. In reviewing the form I find no reference to reforestation. Does anyone have knowledge as to exactly how this should be reported ?

As this involves only about $2,500 I read it can simply be expensed likely on the Other Income line of the Form 1040.

Is reforestation expense still subject to being amortized over 81/2 years?

I restarted the computer and now all is well. It may have been my security software causing the problem.

All of a sudden my rollover ATX function has failed indicating it is not connecting to the ATX server although all other functions of the program are just fine. Anyone else having this problem ?

I failed to state I efiled the return and it came back rejected. The wife said she had no idea who filed the earlier return using her social and, of course, we went ahead filing a paper return advising the first one was fraudulent. The couple must have delayed sending in the paper return as the Service indicated it's receipt in September of last year and have only last week sent the couple a follow on letter. We provided the info requested but likely it will be awhile before this is resolved.

I looked into this a bit further and have decided to go ahead and use the existing social security numbers. The Service will likely require verification from them and I am going to advise the couple of this. I feel certain this process is going to take time and they will need to be patient. They married last year and after reading the letter from the Service I came away with the strong impression the wife mistakenly filed a return herself and has now caused this problem. It never occurred to me to ask if she had filed a prior return. It takes all kinds.

A married couple I serve had someone file a a fraudulent single return using the wife's social security number prior to the couple filing their return last year. The Service just got out a letter to them which was received this week concerning this. They have returned it giving the information requested so the matter is in process. They have brought me their 2020 information looking to file their return. I am not certain they should file at this time as the Service may provide her with an IP PIN to use on her filing for 2020. I am wondering if we should sit back and wait to hear from the Service but I know full well in doing so it may prevent them from filing for an extended time. What do you think ?

What caught my attention was the wording of the ATX worksheet. My understanding was inline with yours.

A client I have cashed out a qualified plan to pay off credit card debt. She had operated a small business which she was unable to do because of merchandise supply issues so it looks as if she would not need to pay the 10% penalty. Of course, she being absent minded failed to have withholding set up. Oh well. Another client drawing significant unemployment insurance did the same darn thing. "They were supposed to have taken out federal tax". He never checked to insure they did. I can see not a few long faces this season.

A client couple advises they got EIP 1 for themselves and their 17 year old daughter (daughter's birthday is 8/20/2003) and EIP 2 for themselves and their daughter. The daughter was not 16 years old or less in 2020. I don't plan to do squat about it. If the Service did not check these kids dates of birth it's their problem.

Form 8879 had a release date shown as 2/12/21 and sported a large DRAFT watermark. In checking today the watermark is gone and wallah the form is approved. Go figure.

As a general rule I rarely raise my fees but this year is going to have to be different. All this folderol about the EIP, the second EIP and, of course, the clients don't have the reporting forms and have NO CLUE about the amounts received. This along with the AGAIN delayed filing deadline (like last year) and these sticky Covid restrictions. Yes the fees got to go UP.

Boy this is going to be really strange !!! Filing a return to get $600 for a deceased person.

I had a question relative to this earlier. The client died on January 20,2020 received the $1200. As she had income insufficient to file a 2020 return. The question is do I file a return anyway and request a $600 refund. I think not.

In truth I don't know of a single individual who is sending the money back ! I too am asking clients what they got. No one has even mentioned getting any reporting form and since the first one was a letter it was likely trashed.

I am not aware of any Virginia statute which requires the filing of a final Form 1040 when the individual has income well below the filing threshold. In this particular instance no income in January of last year. The income falling in 2020 accrued after January.

Herein lies my confusion. Generally, you are eligible to claim the recovery rebate credit if in 2020 you were a U.S. citizen or U.S. resident alien, weren't a dependent of another taxpayer, and have a valid social security number. This includes someone who died in 2020, if you are preparing a return for that person. Use the Recovery Rebate Credit Worksheet to figure the credit, if any, you can claim. For more information on the recovery rebate credit. Her daughter got the $1200 and my understanding was as yours. Person deceased send it back. I had a few folks who died in 2020 and whose executor got the credit AND never sent it back. Since her daughter has not got the last payment of $600 I think I'll just let a sleeping dog lie. Passing on in January she had insufficient income to require the filing of a final Form 1040. Income post death will require a Form 1041 return.

An individual called me about their deceased mother who died in January 2020. She will need to file a Form 1041 for her mother's estate. As she passed on in January there will be no need to file a final 1040 BUT a deceased person in 2020 get the rebate so do I file the final 1040? Likely so. They sent her the $1200 well after death so why not an extra $600 to tide her over ?

Have any of your clients brought you these forms and are you requiring they bring them ? Boy this season could extend into 2022 ! In looking over all this stuff relative to 2020 I get this weak feeling all over !