Gail in Virginia

What do I do if it says "HELD"? I could not create a VA e-file yesterday after an update, then another update was available and the e-file would create but now it won't go anywhere, it justs says "HELD". Will it eventually come off that status by itself or am I going to have to keep creating it until finally it says "CREATED"?

I believe the 8453 forms are all being phased out except for transmitting documents to the IRS that relate to an e-filed return. Instead, you should have clients sign the 8879 appropriate to their entity and retain that in your files. Personally, I kept waiting for the 8453 to roll over before I e-filed a partnership, and then realized the 8879 for the partnership was available.

Thanks for the suggestion, Pacun, but that did not work. I even tried deleting every VA form, and starting the state return over from scratch.

"I tried to e-file a Virginia tax return, form version 13, this AM that had low income credit. I cannot create an efile, instead I get an error message telling me I need to complete the detail on page 2. The only detail on page of VA 760CG is to X the box beside Federal EIC and put the amount in, and that is there. I went to the ADJ page and made sure the taxpayer and dependent children were all marked as being in the household, and that income figures were correct. I don't understand the problem. I talked with another local preparer who had e-filed one of these yesterday with no trouble using form version 12. Is the update the problem, or am I missing something else? This t/p really needs to get her money. Thanks." I sent the above message to email support just a few minutes ago, but I thought I would also post here in case someone on this board has a suggestion for me to try. I am going to go ahead and file her federal separately and then do the state as stand-alone when I get this problem corrected, but any help is appreciated.

What are you going to claim - you have not paid anything!

Not to mention that this does not sound like the kind of customer you want to keep anyway.

I am filing paper as it happens, and when I printed the return I noticed in tiny, dark print that ERC and the amount I added is printed on the line next to the tax. I guess that will tell the IRS what I added and why, and they will let me know if they disagree with my figures. I guess I got worried too soon - I have just never changed the tax on a return like this before and it made me nervous. :rolleyes:

I have a t/p, sending himself through college, whose 1098-T for 2007 includes an amount in box 4 - adjustments made for a prior year. According to the explanation attached to the form, box 4 shows any adjustment made for a prior year for qualified tuition and related expenses reported on a prior year Form 1098-T. This amount may reduce any allowable education credit you may claim for the prior year. See Form 8863 or Publication 970 for more information. According to publication 970, if this is received after the return is filed for that prior year, you include it in the current year by adding it to the tax. And, when I do the bunny hop on the tax line of the 1040, the worksheet has a line where I can enter the recapture tax for an education credit on this year's return. My question is, do I explain this anywhere? How will the IRS know why his tax is $48 more than the tables show it should be? I hate getting letters and having to explain things to the IRS later when I don't really remember what I did.

:bday:

Besides, Mel, if you quit posting how will we know when you have a new software program ready for us to BETA test?

Most likely, they intend to be non-profit and tax-exempt under IRS code 501©3. If so, they should file the 1023 to get that status recognized and make donations tax deductible. Also, if that is the case they would be required to file a form 990EZ if their average gross receipts from all sources is $25,000 or more. If it is more than $100,000 they would have to file a 990. If they have income unrelated to their tax exempt purpose, they might have to file a separate return for that and pay taxes on Unrelated Business Income. This is a complicated area of taxation that many preparers choose not to be involved in, and what I have said is just the bare bones of the matter. I don't know what rules CA has regarding these entities. However, if they were supposed to file exempt organization returns and did not, the penalties are substantial. Most of the time, in my experience, with all-volunteer organizations, a letter begging for forgiveness, promising to do better, pointing out that the money has to come from funds meant to be used for the children, etc. Good luck!

In the past, Virginia has only had a form 8453 for e-filing. The 8453 had to be signed by the taxpayers and the ERO and retained by the ERO for three years. Now every time I do a return for e-filing, ATX adds a Virignia 8879, in addition to the 8453. Does anyone know why? Do we have to use both? EIther? Does any one know?

Generally, we only use sch F for this if they cut their own lumber, or at least helped to cut it. If they sold standing timber, and someone else did the cutting, I would report it on Sch D.

I think you can check to see which version of the form that you have just by right clicking on the page. I have not tried that this year, but that is what I did last year.

That is what they do in the back of the restaurant to make your food hot.

I don't think we want that description on a public bulletin board. Save it for a fruity chat room.

It is my understanding that donations to the local units of BSA are actually treated as donations to the chartering organization for tax deductibility purposes. Boy Scout troops are generally chartered by churches, which don't have to file a 990, so the contributions don't get reported on a 990. However, if a unit is sponsored by some other 501c3 organization, your contributions would be reportable on that organizations 990. This is how the local council explained it to me.

I have a taxpayer, a dairy farmer, who sent in his tax deposits quarterly last year. He has now brought me his 943 to file. His liability each quarter was less than $2500, so sending it in quarterly would be fine if he were filing a 941. However, the instructions for 943 state that unless the tax for the year is less than $2500, they have to make the deposits according to either the semi-weekly or the monthly schedule. Is this really an example of a farmer being worse off than a regular taxpayer? I thought they usually got tax breaks.

I think that it prints two engagement letters that are identical so that the client can sign them both, and you keep one and the client keeps one.

Sell it on E-bay! Just kidding!

As far as I know. One of the EA's in the local society uses 12345 for all taxpayers and 54321 for all spouses. Never has trouble remembering someone's pin.

I am interested in this venture, but don't want to commit until some kind of plan is made. I do not have any connection to ATX or CCH except as a customer.

I have gotten very leery of using any part of anyone's social security number for any reason, and the IRS does not seem to care about duplication, so I use my client's zip code for the pin; if married, I reverse the zip code for the spouse. I have used phone numbers occasionally, but zip codes seem simpler.

Not just Florida - When I was treasurer of the local PTO, the previous treasurer had not followed up on some bad checks. After trying unsuccessfully to get responses form people directly, I filed warrants for bad check charges. When it got to court, I got a lecture from the judge about what a serious thing it was to charge these people with writing bad checks when I did not personally see them write the check, nor did I personally receive the check from them (the checks were from a fundraiser, and probably were accepted by a grade school child.) I might have felt really badly about it, but I collected on every one of those checks once the people knew they were going to have to go to court and face a judge. However, I have learned that once in court, they do have the protection of the court on their side.

I have a partnership return I am working on - real estate partnership where the real estate was sold in 2007, and the partners want to wind up the partnership. I had told the managing partner to bring me everything when they sold the land so we could prepare for a final return in 2007, but of course he did not come in until 2008 even though they closed on the land in July. My question relates to the timing of the final return. They are cash basis; the only income/expenses they will have for 2008 are my fee and $25 to the state of VA to dissolve the LLC. Can I accrue those two fees onto the 2007 return so that I can mark it final and they can be done with it, or do they have to file another return for 2008 showing payment of the fees? Any comments welcome.