TaxmannEA

I just attempted to get account records on E-Services for a client who is having trouble with a previous year. When I try to get the report, I get a letter telling me that they can't process the request and to have the taxpayer contact the Identity Protection Unit. What is the procedure here? I've not run into this before. TP had a check stolen from his mailbox a couple of years ago.

Reminds me of taking my oldest son to an all-you-can-eat buffet.

10 YEARS?   Your original post said he skipped 3 years?  

I apologize. The IRS is focused on the 3 years mentioned when he was self-employed. This person has not filed in quite a while. It could be that he was employed and would have received a refund in the intervening years, but I don't have that information.  As he has no assets other than the clothes on his back and an old pickup truck I would think that bankruptcy would be an option. That would also save me the aggravation as I am not a lawyer.  

It's like watching a train wreck. Horrible situation, but fascinating to watch.

I'm sure that there are SFR's since he has not filed since 2003. I don't feel sorry for him. I am just wondering if filing 10 years of taxes and trying an OIC is the only way to go in this situation, or if there might be some administrative remedy that he could seek. I'm just weighing the options, and I don't work for free!

The family member is a parent who happens to have the same first name. When he opened the letter, he realized that the SS# was not his. He sent the letter back.

I have just been approached by a person who did not file for the years 2004-2006. He was working as an independent contractor those years. A member of the family received a letter from the IRS which stated that they believe that he owes about $170,000 for that period. I know that he would have had business expenses, but he has no records from that time.(What a surprise!) He has no assets and his current income is around 11 to 12 thousand per year His current job has received an inquiry about him.. How do I proceed with this guy? I know that he needs to get straight with the IRS,  but I'm a little unsure of his real options. I'm thinking a possible OIC, but is there anything else to consider with a debt that old? I'm just needing feedback to determine my advise and also whether or not to send him down the road.

When a taxpayer uses the education expense exception for the early distribution penalty for an IRA, do the expenses have to be for a dependent, or can expenses used for a non-dependent child count also? I have a client who paid tuition and expenses for her son who was claimed that year by his father. I read the regs as saying expenses paid for a child are allowable. I don't see a requirement that the child be a dependent. Just wanting to double check.

I teach Income Tax and Payroll Accounting at our local junior college. I do not allow the use of software for either course as I believe that the students must be able to understand the flow of data in the systems to properly do the work after they graduate. I'm still getting static from some faculty members about being "old fashioned" in my approach. I reply simply that I'll be d**ned before I let a machine do my thinking for me. I use the software as a tool, not as a final authority.

I was scratching my head (was it yesterday? days are all running together) when someone here posted that ATX CCHSFS was blaming some glitch at the IRS when e-file rejects were being kicked out due to state EIN number missing from the W-2 entry. There was not one posting about this on the official Drake forum that has 10 times the registered users that this forum has. It's hard for me to believe this is an IRS problem and there was not one peep from anyone using Drake about a reject because of this.

Anyway, it seems like most everyone is having a good season with the software this year. I just don't trust CCHSFS after last year's debacle.

Peep! We've had several IRS rejects because of the missing EIN in the state information. We've been having to add this on the W-2 input to avoid the problem. The office here uses Drake.

We have had the problem that you describe only once or twice. That's out of about 2000 return filed annually. Never did figure out what exactly happened, but Drake was quick to provide assistance.

Thanks for the confirmation. I just wanted to make sure that there wasn't some new rule that I was unaware of.

The truck is company owned. The driver hauls one load per day to a destination about 3 hours away. Driver does not pay for fuel, repairs, or any other expenses. She gets her hourly pay plus the 15 cent per mile payment. Only the hourly pay is shown on her W-2. DOT rules of service don't apply as there is no rest period required. I look at the payment as part of her taxable compensation, but evidently the employer doesn't. We just want to make sure that she doesn't get CP'ed later on.

We have a truck driver who drives a local route and is home every night. Her employer has started paying a "per diem" which is figured as $0.15 per mile in addition to her regular hourly wages. There is no FICA or income tax withholding taken on this, but it is included in her regular paycheck. The per diem is not shown on the W-2 as wages. I feel that this should be reported as income subject to SE tax since there is no deductable expense that is being reimbursed.( Probably this is another attempt by a trucking company to reduce payroll taxes.) I need feedback in case there is anything that I have missed.

I had the same issue with that model printer earlier this year. I went to the HP site and downloaded the updated drivers for it and installed it as a different printer. Works fine now.

Thanks. I felt that there should be a way, but could not find the cite in my reference books.

I have a client who purchased a non-qualified annuity several years ago with the proceeds of an inheritance. He would like to transfer the money in this account to another carrier. Is there a way that this can be done without making the earnings to date taxable when the money is withdrawn? I only find rollover treatment for qualified annuities.

Has anyone had any experience with Sigma software? Our owner received an e-mail about this and was interested due to the price. I get the impression that it only handles 1040s and that they may be a re-seller as they offer several different platforms. He's referred this to me so I am needing any information that I can get.Thanks.

I'm glad to see that I'm not the only one to open ATX and freak out when I couldn't find the payroll clients. Don't you just love change?

One thing has me confused. How is it more cost effective (budget concerns) to have all of the 2848's processed manually as opposed to an electronic system? I guess I need to take a course in gov't economics.

These were all payments that were scheduled to be taken before the 15th. I've had no complaints from the ATX returns that I did. These are all clients that were done on Drake. Probably an IRS problem, but they're hard to reach by phone.

We have had 3 clients contact us in the last week that had requested direct debit to pay their balances due. As of now the IRS has not collected the money. We advised them to call IRS and the bank to check. I just wondered if this is a wide spread problem or if it is just us.

I just had a client call that had not had a debit taken for 4/13 yet. Must be a Treasury problem.

Did you double-check to make sure that the overpayment is not being applied to the 2013 estimate? I've had that happen before. Clicked the wrong box when working tired.

For us, it is the school bus drivers.....

OUCH!!! I AM a school bus driver.( Also an EA for over 20 yr. )

They are referring to the capital gains worskheets from the preceeding years, if there was one. These would be found in the records of the previous years' returns.