Gail in Virginia

I have a client who filed jointly with his spouse last year (2019 return).  He was the only one that had income and withholding.  The check for the refund was finally issued in both of their names.  She is out of the country and they do not have a joint bank account.  (i think they filed jointly in part because he is trying to get her a visa to come here and also trying to get her a social security number and/or ITIN.)  The return was of course paper filed.

He can't cash the refund check because her name is on the check and she can't endorse it because she isn't here.  Is there any way to get the check reissued in just his name?  Would writing to TAS accomplish anything?  Having filed jointly, I don't think he can change to filing MFS.  Any suggestions?

I did look on eBay and they seem to be available there.  Like I said, some people seem to get away with printing them but I have not personally ever tried it. 

Can you order them from the IRS?  I know prior year forms are available on the website, and some people actually use those to file even though the instructions say to NOT use the red copy A that you can print from the website.  So I am wondering if you can call the IRS and order the 2018 form 1099-MISC from them for free.  Of course, it would probably take 10 days or more to get it that way.

The federal notice is a bit different than the Virginia notice.  The federal notice does give a time limit of 30 days to respond, although I don't know what happens after the thirty days.  I have an older client who hasn't filed for a few years who got this notice.  To do the online verification requires an email address, which he did not have.  I set one up for him for this purpose.  But then you have to have a credit card or mortgage as part of the verification, and he does not have that either.  WIthoug that, you have to call the number given in the notice to verify your identity.  We have tried three times when he was here, and could not get through to anyone any of those times.  Nor could we remain on hold - we were told they were too busy and to call back another time.  I don't know if or when he will get his refund so if anyone else has suggestions, please post them. 

I have had several that have not received their refunds after 6 - 8 weeks.  I wish IRS would do something to update their website information and actually provide some real information that would be helpful to the taxpayer who has been patiently waiting. 

I am trying to understand the question.  It sounds like a parent who had a sole proprietorship passed away, and the business passed into a trust.  But the children are closing the trust and putting the business in their own name.    Now, did the trust set up an S-Corp, or did it set up an LLC and elect to be taxed as an S-Corp?  Which structure are the children setting up?  Members sound like an LLC, S-corps usually have shareholders.

14 hours ago, Lynn EA USTCP in Louisiana said:

After conversion from your previous software check all the carry forwards - NOL, capital losses, 8582 limitations, depreciation . 

I would add installment sales to that list. 

I think individual chapters must have different partners, then because the NC site specifically mentions Gleim.

Terry, I don't know if you checked out the North Carolina Society of Enrolled Agents website, but hey have a SEE prep class coming up in July using the Gleim materials.  I don't know how the price compares for the class and materials, and just the materials, and I don't have any idea how it is taught or how you learn best.  I am sure you will do well either way!

16 hours ago, Christian said:

 I'll see if she will provide a photocopy of her marriage license on the chance it was performed by some shade tree preacher who is not licensed in Virginia. Every once in awhile one of these will pop up and if unlicensed the State will not recognize the marriage at least this was the practice formerly unless changed.

I am just curious about how you can tell whether or not the marriage is legal.  Virginia recognizes all ceremonies performed by a licensed minister, I believe, and any one can become licensed to perform weddings as long as they can get any clerk of court to recognize them for the purpose.  Is there a central listing?

I did not think that investment income, such as appreciation on stocks, was subject to UBTI unless it was debt financed.  Most of the organizations that i deal with sell stocks as soon as they get their hands on them, however, so I could not say for sure without research.

If he has income under the table and is not willing to report that income, then wife may prefer to file MFS rather than sign a return that deliberately under-reports income.

If they sell it as soon as they receive it, then it was a contribution of property and not investment income or UBTI.  If they hold it until it has appreciated in value considerably, then the gain would be investment income.  

Possi is smarter than she gives herself credit for, but this really is not as complicated as it looks at first glance.  Like most IRS forms, take it one step at a time and read the directions (slowly, in my case, and sometimes two or three times!)

On 5/21/2021 at 10:52 AM, TAXMAN said:

Gail I was just in Rocky mount on my way to Marine Corp base at Camp Lejune. Nice town. I will be going back down Next Thurs or Friday. Whats a good place to eat? I usually travel by interstate 95.

Sara PM me as to where you are. Maybe can stop and touch base one day. 

If you were traveling on 95, I think that you were probably in Rocky Mount, NC instead of Rocky Mount, VA.  Our closest interstate is 81, unless and until they build 77, and it does not actually run through Rocky Mount. 

I used Gleim when I took the EA exam in 1999, and like Catherine, I passed all four parts in the first attempt.  I was part of a study group organized by the VASEA that was using Gleim and found it very helpful.  I like the organized study group for forcing the pace and for having others to work with.  However, some people are better at self-study than others, so the group might not matter to you. 

When I took the test, I think all of the study materials relied heavily on published copies of previous tests for the practice tests and to guide the materials used.  In fact, when I actually sat for the exam I recognized some of the questions as being identical and there may have been more that were but that did not stand out as much.

GOOD LUCK!

What beautiful pictures!  And it looks like mother and daughter are both doing well, which has to make Grandma feel well too!  Congratulations!

12 hours ago, Sara EA said:

A little south of Winchester.  I would love to connect with more tax pros here.  I cannot imagine how you solo practitioners do it.  I've always worked for a firm with other tax pros to bounce thing off of and help or get help when needed.  I belong to both NAEA and NATP, and over the years in CT I got to know lots of people from attending seminars together.  I am working remotely for the tax firm in CT where I've been for 18 years or so and interact with my colleagues there, but here in VA I don't know a single person in this crazy business.

Maybe we have not met personally, but you know me on this board.  I am in Rocky Mount, VA which is just south of Roanoke.  A bit away from you but in the same state.  The Virginia chapter of EA is fairly active, but unfortunately you are not terribly close to any of the local chapters.  I am not sure if you would be closer to the Fredericksburg or Northern Virginia chapters of VASEA.  But since most of us are meeting via ZOOM or just holding webinars right now, you can be participate with any of the chapters.  Blue Ridge (the local chapter I belong to) is having a webinar at noon on Wednesday the 26th, with a short Zoom meeting afterwards if you would like to join us. The information should be on the VASEA website. 

But do you actually refuse to take new clients whohave been through a divorce and are sharing custody of their children?  I understand not keeping both clients when they split up, and even not wanting to keep either of them for a few years.  But this is a potential problem forever after for some people now. 

I used ATX until 2012, after which I switched to ProSeries.  I like the number of forms available with ATX, especially the payroll module (which I still buy separately but without all the state functionality that I used to have.)  ProSeries does a great job on multiple states - better than I remember ATX being.  Somethings are not as intuitive as I would like.  For example, I do a couple of FBAR forms and I find it hard to remember each year how to print them and how to efile them.   On the whole, I have been satisfied but I would probably not have left ATX if I were not running in a multi-user server environment. 

I really see this being a nightmare for divorced parents who take turns claiming the dependent.  And for the tax preparers who need to know how much they got during the year. 

If you like TN, you might like the area of Virginia I live in.  This is a beautiful state to live in, and I especially like the views of the mountains that we have, plus I am close to Smith Mountain Lake.  And after this past tax season, I will make you a good deal on my tax business. 

For a plain donut, or even lemon-filled, I prefer Krispy Kreme.  But Dunkin has the best cake donuts and reading Catherine's list I am really glad that i am a 45 minute drive from either.

Good question.  If i am not mistaken, SSA will look at the amount reported on the Schedule SE for earnings from self-employment and therefore the recaptured gain/capital gain will not count against what he can earn for social security purposes.  But I am not sure.

Just one more reason to retire and look for another line of work.