Christian

I have prepard his mother and father's taxes for about 25 years and his some likely seven or eight. Bart's reply is precisely what I had anticipated as I myself have seen this as well an ongoing small operation losing money year after year and never and I do mean never questioned. I have no intention of kicking the guy out. I've advised him of the risk he is taking and if the Service will not enforce their own rules I am not a paid federal employee. If they call him in for a little chat well he will owe some tax but I willl print out what Lynn has referred me to and give it to him and send him on his merry way. Well that is an audit guide which I doubt he would fully understand so I'll review it and perhaps can make a few points. Unlike my concern for a single mother making a poor health insurance judgement through the heathcare exchange under pressure this guy is loaded and if audited he will not miss any taxes imposed.

Some tomatoes he can raise and a goat from time to time. Seriously Lynn how long before the Service takes a close look at this farce. In truth I have known folks here who raise a few cows to go on for years losing money and never hear a peep out of the IRS. He has just inherited a considerable fortune from his mother and will be reporting significant dividend and capital gain income going forward. He hatched this idea to cut his taxes. To me it is self evident but I wonder if they will in fact ever check him. Just curious to know what other preparers have seen in this regard in their experience with this sort of thing.

A longtime client married two years ago (third wife). They both sold their respective homes and relocated to a ten acre lot outside the corporate limits of the city. When he came in last year he had hatched the idea of declaring his ten acres as a farm indicating he would raise tomatoes and goats. I was so astounded as he and wife both hold full time jobs he in HVAC work and she a registered nurse that I burst out into such laughter I had to cover my face in embarassment. He is already renting a house from a previous marriage. Despite my advice he proceeded apace buying a $50,000 tractor which was set up for depreciation and buying a few goats.This year he has come in with no income and has bought an old pickup truck for his farm plus some additional thousands of dollars of depreciable equipment. Many of you have much greater experience with this sort of thing and just out of curiosity (as I strenously tried to talk him out of this) I am just wondering where this is going.

I was mistaken. Her query was for the EIP supposedly entered on the IRS website. She used her 2018 agi and feels strongly that this is the cause of her problem. In any event I prepared her a copy to mail in as well as the Form 14039 with attachments to fax to the Service. She has worked for the government from time to time and I am certain her employee file was acquired in that hack of the OPM some years back. I advised her that her refund would be a long time coming as it will sit in a trailer in Kansas until the Service is back up to snuff.

No she files every year. She says she filed out some document concerning Covid 19 which needed her adjusted gross income. About all I have.

A client return has been fraudulently efiled and I of course have got the rejection notice. Does anyone have the IRS number for her to call to discuss this ? The WK rep of course did not provide it. I have printed a paper copy for her to mail along with the reject notice with applicable code attached. This is a first for me and unnerving to say the least.

I too usually renew in May of each year and get the 10% discount. I've never seen where anyone on the forum got a better deal by waiting and I am always concerned they will not discount the price after May although other members apparently have received them late in the year.

I reviewed the Form 1040-ES in our ATX software and found the first quater payment shown as 7/15/20 and the second quarter as 6/15/20. It looks to me to be an error of some type as both the first and second quater payments have a deadline of 7/15/20 this year right ?

Well I got teed off trying to do what I considered best for the woman and then when confronted by the facts I lost it briefly. I would never have sent anything in. It's very frustrating (as you all know) when you give sound advice which is ignored and try your best and sota get the finger from an old client. I am comforted by the thought she will likely be doing the Futterwagen with the IRS for quite a while once she submits that form with no 8962.

Advice taken Lion except I needed an excuse to go to our state liquor store and get me a bottle of Kentucky bourbon. Hey this is Virginia guys. Or gals.

Well you are probably correct. I ought to bill her a diagnostic fee or such but will likely just cool off and chalk it up to experience. I was really concerned she had made an error and was really surprised to discover she had acted purposefully. This after cautioning her repeatedly about using counseling from the exchange.

After doing a woman's and her children's returns for some five years I received her info sometime back. I asked a question on the forum about Form 8962 which info I expected to use for her benefit. On preparing her return I was astonished to discover that her income and that of her dependent daughter far exceeded 400% of the poverty level and so elimanted any premium tax credit. Feeling I might not be up on every aspect of the ACA I advised her I would return their info and to seek help from someone who might have a better grasp of the ACA. The combined tax credit exceeded $13,000 and I felt a CPA might know some way to help reduce or eliminate it that I might not. In talking to her about this I was astonished to hear that she knew very well she had made a mistake. Accordingly I then offered to go ahead and prepare the returns filing her daughter as single which would likely eliminate any premium tax credit she would owe back. She advised no that she and daughter would file their on taxes Turbotax and she would not report the Premium Tax Credit. I told her this was required if she used help from the exchange and further that they would come back on her for the overpayment. I asked what income she used to figure her premium tax credit for 2020 fearing she likely did the same for this year and was told she didn't remember. It finally dawned on me an old client had knowingly defrauded the health exchange by providing a low ball figure on her 2019 income. She also used me to confirm what she knew had occurred and proceeded to what she was going to do anyway file a false return and also avoid any fee on my part knowing I would contact her about such a glaring error. Needless to say she offered me no payment for my time spent on their info. I am sitting here mad as h--- and considering sending off a form to the IRS fraud unit.

It's so comforting to know Walters Kluwer considers me a Quiet Hero. Of course, I knew it all along.

I've had the opportunity to review my earlier work on this. The amounts reported on the mother's and daughter's individual forms in column A of the 1095-A are added and reported on Form 8962 in column A for each month. The amount reported in column B of Form 1095-A is the same on both the mother's and daugter's Form 1095-A and are entered on Form 8962 in column B and are .of course, not combined. The amounts reported in column C of Form 1095-A are combined and shown monthly in column C of Form 8962. The adjusted gross income of mother and daughter are entered on line 2a and 2b. What threw me off was that last year the Health Insurance Marketplace reported the mother and daughter on a single Form 1095-A and for reasons I do not comprehend changed the reporting for 2019.

Darn thing is irritating as h---. I rarely deal with it and my pdf files are invariably too large so I just let them mail it. How is it ATX cannot get this penalty form through the efile system since it is a valid Virginia fom.

A client whose adult daughter is a college student and a dependent have each received a benefit form from the Virginia Healthcare Marketplace. The daughter is shown under her mother's policy although she has a separate policy number. The last time I encountered this problem I added the column figures together to report on a single Form 8962 and ,of course, reported the combined family income at the top of the form as well. Just checking to try and make sure this is still the correct procedure as I process very few of these.

He brought in a bag of Lottery scratch off tickets in amounts which totaled $1,000 thinking he could deduct these against his winnings. My reply "Good luck on that". His deductions fall far short of his $12,400 standard deduction.

A client won $ 1,000 in the Virginia Lottery last year. In reexamining the state lottery subtraction it occurs to me I may have been misinterpeting it. In past years my understanding was that any winnings in excess of $600 meant that the entirety (in this case $1,000) is taxed by the state. On rereading the instructions I am now wondering if $599 can be excluded with the remaining $401 being taxed by Virginia ?

In reading the material provided by WK on the stimulus rebates I am puzzled by this "The rebate amounts are advance refunds of credits against 2020 taxes" which means the rebate amounts will be shown as credits on the 2020 returns I guess ?

That looks to be what I am trying to do. The last time I had this issue I had to get info on how the scholashps were applied. The scholarships requiring the payment of tuition and related expenses must be considered tax free I am assuming. Other scholarships not so construed I assume could be shown as taxable income to the student and payments made by the parents for books and a computer would apppear to qualify for the AOC. In this instance the scholarships are far in excess of the tuition expense and would easily cover the books and computer they bought for their daughter. In point of fact the scholarship income exceeds not only the computer but not a few peripheral items as well which leads me to feel they have no AOC due.

Where exactly in ATX help can I find instructions on filling in this form. A client has some $5,000 of tuition expense and some $8,000 of scholarships and grants. If I can assign some $3,000 of the difference to the student I can get the parents some credit for the computer and books they bought their daughter out of pocket. I addressed this similiar problem earlier this season but feel I need a better grasp of how this is done. I am going to contact the parents to asertain just how the scholarships and grants had to be applied and go from there. I rarely encounter education credits as most of my folks are retired and such so feel a bit unfamiliar with this and need to up my game.

Has the Service allowed modification of the requirement that a client sign the Form 8879 in light of this pandemic or must we still require them to sign thus risking exposure ?

Before I return to my day job. The operative question here is. Why did the much ballyhhooed IRS efile computer system not immediately reject my first return filed in 2014 for God's sake for using an incorrect PTIN number? I have filed for almost six years using an incorrect number and good Lord !!! they are just now catching it ? Them budget cuts must have done them in.

I thought so as well. I not only accessed my PTIN account but called them on their toll free number. The number provided is indeed correct. So much for all that "we do not call you stuff". I suppose they felt it was urgent. Go figure. Just what an ageing tax guy needs at the end of a trying season !! I went to the medicine cabinet and took two blood pressure pills. Just kidding youall.

I just accessed my PTIN account. I printed out the official letter I got on renewal. I'll be darned if the call was not legit. I have been using an incorrect PTIN evidently since 2014. I have the original confirmation letter here in file which I will access when time is available but I swear it confirmed my old number. Of course, the SERVICE never makes an error do they ?