ETax847

I would like to discuss a client's CP notice in hopes of getting it resolved timely.

Which form do you generally file with the IRS to be able to speak on behalf of a client? Does either form serve this purpose?

Client contacted the payroll dept and they responded they didn't report IL tax because the client lived and worked in another state. However, the W2 clearly shows IL income tax withheld with no IL income. Gotta love tax season

Client moved out of Illinois in 2020. One of her W2's shows Illinois income tax withheld but no illinois income. Income was fully allocated to another state with tax withhheld in this other state. I get an E-filing error for IL return saying "state tax must be less than or equal to state wages per IDOR" Does anyone know how I can have the state tax withheld included without showing any income from that state?

Is there anyway in ATX to see who received a 1099G for unemployment without having to open every single return and check?

Per this article: https://www.cnbc.com/2021/03/05/unemployment-benefits-deal-to-waive-taxes-on-first-10200-dollars-of-ui.html As part of that compromise, Democrats added language to the bill that would provide a tax waiver on up to $10,200 of unemployment insurance benefits for 2020, staff for Sen. Ron Wyden, D-Ore., confirmed Friday to CNBC Make It.

Per the deal reached yesterday in the Senate, "the deal will extend a jobless benefit supplement at the current $300 per week through Sept. 6, according to NBC News. It will make the first $10,200 in unemployment aid non-taxable to prevent surprise bills. The provision will apply to households with incomes under $150,00" This is not official yet, but its something to keep in mind, as there will be the need to amend many tax returns. As if tax season was not full of enough headaches.

Funny how that worked out. Did they actually pay the bill?

Let's say you prepare a client's tax return, the client is not happy with how much he owes and he asks to have it prepared elsewhere. Would you still charge him the full prep fee given all the time spent in preparing the return, or would you just say good riddance and not worry about the fee?

This is a tough one. Some folks need their refund so are torn if they should wait for something that may or not happen. Very interesting predicament to say the least.

Client turned his previous residence into a rental for the past 2 years. He sold it so is still eligible for the homeowner's exclusion. On what schedule does the depreciation recapture come into play?

This article appeared in Account Today this past week: https://www.accountingtoday.com/news/lawmakers-ask-irs-to-extend-tax-season-until-july-15-due-to-covid

ATX is requiring the 8915-E be signed and attached as a PDF. However, the form itself, says sign here only if you are filing this form by itself and not with your return. Any idea why the discrepancy?

This article is from today's USA Today: https://www.usatoday.com/story/money/taxes/2021/02/15/irs-says-it-wont-extend-this-years-tax-filing-deadline/43387603/ Bummer!

ATX is giving me an error message saying the character limit has been exceeded in the client's last name and the return needs to be paper filed. Does anyone know a work around for this error?

Ah I see! Thanks for your help!

Thanks for sharing, while a similar issue, its a different question. I was not sure the best way to proceed.

What about when there are multiple 1099R's, how do you handle that?

Why are they now asking for the EIN for taxes withheld on this worksheet. Its aggregating the tax withheld (ie for 1099R) and now asking for an EIN? What does one put on this line? If there are multiple TIN's there would be multiple numbers but its only allowing for one entry. Any thoughts?

Agree with those above. 5 minutes of your time in reporting it can save many headaches of having to deal with the IRS down the road.

Max, where did you read to treat it as such? I'd love to be able to share with my client some reference material so he knows why I handled it the way I did.

Margaret, I see what you are referring to, but it was a regular RMD not a CARES Act distribution. Handling it like this would trigger a notice for the IRS, which is what I am trying to avoid.

Given all we are dealing with this tax season, I think you have to raise fees to justify all the extra time spent on each return. This tax season will be unlike any other.

One thought I had was to adjust the taxable amount on the 1099R input to reflect the amount returned. Would that still trigger a CP2000?

I see the amount that was returned on Form 5498, but I am curious of how to report the returned amount in the tax software.