neilbrink

Since Merrill Lynch is saying that they have not, nor are they going to, issue a 1099-R to my client, then can I assume they also will not produce one for the IRS? By the way, it was a $17,400 transfer.

My client transferred directly an IRA account from Merrill Lynch to his local bank. I have the local bank's documentation of this. Since I did not have the 1099-R with the Code G verifying this, and the client said he had never received one, I asked him to call Merrill Lynch to see if they had in fact issued the 1099R. Merril Lynch said no, that since it was a direct transfer, they were not required to issue the 1099-R. Has anyone else run into this situation before?

Her 401K plan would have withheld 20% of her distribution for federal taxes, so she would have only deposited 80% of the distribution into the new IRA account unless she added the other 20% from her own funds. The new bank should be able to produce documents confirming this. If this is correct, she would be liable for taxes and penalties on at least the 20% also.

The catch is that you should not fill out the Form 5405. If you submit the Form 5405, the IRS assumes you sold the house. There is a worksheet to complete for all those who have not sold their house.

My clients never say anything about the smell in my office. Should I be concerned?

I know it has been several years since I sent my 3 kids through college, but I believe students still must complete and submit FAFSA forms in order receive Federal Student Aid. When they submit those forms, is there not a place on the form where the student must list the educational institution that they are considering using the financial aid for? In fact, isn't each "accredited" institution given a specific code number that is required to be fill in on that form, so that that institution can receive the information on how much financial aid that student is eligible for? Does the Dept of Education assign numbers to all educational institutions, even though they are not accredited by the Dept of Education? Why are there many educational institutions that choose not to be accredited with the Dept of Education not still sending out Form 1098T's to their students, similar to what this particular institution is?

The owner states that they are not accredited with the US Dept of Education, they do not receive tuition payments through government loans or awards, and send out 1098Ts because they "have done it before and have never been told by the IRS that they should not be doing it".

Bummer. Now what is going on?

Updated this morning, and the first thing I noticed was that the "complete" check marks remained checked. A plus for me. Otherwise, everything else about the same. I do get a few crashes now and then, but not too problematic. Program boots right up again fairly quickly.

I just talked to the owner of this Academy. She tells me the Academy is not part of the Federal Education Assistance Program and not accredited with the Department of Education, but is accredited with the Dept of Professional Regulations. She says that this accreditation allows the student to take the Education credit. My gut feeling tells me this is not a situation where my client qualifies because of this accredition issue, but yet a Form 1098T was issued. If I choose to include the education expense with the education credit on the client's return, knowing that I suspect it may not be eligible, am I leaving myself in jeopardy?

Is there a master list somewhere that lists all of the institutions that are accredited for the purpose of a student qualifying for the Education Credit(s)? I have a 1098T for a student who attended a vocational school (International Skin Beauty Academy) at a cost of $9700. The 1098T form was hand-written, had no address given on the form, and the only box filled in was Box 1, for payments received. There was no check mark for half-time student. I asked client to call the Academy and question whether it was "accredited" and why no address. Client did that and was told that the forms are legitimate, a copy is sent in to the IRS, the address was not needed because the academy's federal ID number matches up the address at the IRS, and her students have never had a problem with taking the credit on their tax returns. At best, I am thinking the student could claim the Lifetime Credit. What due diligence do I have here? Thoughts?

Thanks.

I have a retiree considering a move to Colorado. She is 63. I see that up to $20,000 of pension income can be excluded from Colorado income. Does this exclusion include pension payments that are coming from another state?

Somebody thought long and hard to get that one put together. Great story!!

Does anyone know if the IRS is holding up refunds because of the Education Credits? I had a client that called me about her delayed refund from her return which included the American Opportunities Credit. I know we had to input a lot more information this year, and I was wondering if the IRS was doing some additional checking and verifying.

Never mind, I read the release. "The Form 2210-F is to be attached to the return."

Does the 2210-F need to be filed now separately from the return or just included when the return is completed and filed?

I also am having the problem of my completed returns being unchecked. I also have the problem with some of my billing numbers showing $1.00 for both the amount billed and the amount paid. Some of my other billing problems include the numbers I had posted for amount billed changed when I updated.

Click on "print" , click on the printing options and one of those options is "pdf".

Never mind, I found it. Under preferences, select forms, I need to check "comprehensive organizer".

The 2012 organizer that I downloaded and printed out does not include Schedule C Self-employed Business information like it did for 2011. Am I not looking in the right place for this? The only place I could find the 2012 Organizer was under the "Forms" tab in the individual return, and at the bottom the "Organizer" was the only option. I could not find anything else under the regular "forms" list. Can anyone give me direction on this?

Illinois, gailtaxed, and I will certainly check that out!

You need earned income to contribute to a Roth IRA. The RMD is a distribution and not a rollover. Someone at the bank offered incorrect information. Your analysis is correct.

I like you, Jainen! Thanks.