Gail in Virginia

I use an organizer for those of my clients I think will fill it out, or al least use it to help them remember what to bring. But for the vast majority of my clients, I also use a one to two page form. First page is for everyone, second page just has them list children and/or estimated tax payments. Just in case you are interested, I have attached the word file. Questionairre for Drop Offs mailed 1-9-21.docx

And I have seen 1099K generate a letter - repeatedly. Customer who has a corporation let her daughter set up the square account. Daughter set it up in her own name and social security number, even though the bank account belonged to the business. So for at least two years the corporation reported the income but the daughter got a letter because she did not report the income shown on the 1099K. First year that happened was a surprise because I did not know how it was set up. Thought the daughter changed it. But apparently once set up under a SSN you can't convert the square account to a different tax id.

ProSeries does not allow you to remover the form if they have a 1095A attached. However, the software has been updated for this issue, and if you are up to date you should still see the form but there should be no amount carried forward to Schedule 2 as a penalty.

After the tax season that wouldn't end last year, and the last minute changes this year, I have had it with this business. A little young to retire but boy does it sound appealing. In the meantime, I have a client who is a partner in a law firm. He has been working from home this year. Can he take office in home expenses? Would this be shown as UPE? Does it have to be covered int he partnership agreement? Have I lost my mind? Don't answer the last one - I don't want to know since it is probably too late to get it back. Thanks for any help.

Using the dates is somewhat helpful, although I tend to be more general - spring 2020, or this winter. Personally, my stimulus checks came in July and February because one of the main banks here was bought out and changed everyone's account last year.

Virginia also does not recognize common law marriages that occur within the Commonwealth. In the past, if couples volunteer such information and I tell them that i cannot file them as MFJ, they just go somewhere else and keep their mouth shut so the question of what to do about prior years does not arise.

Did the client not have that information on previous returns? That is not a new requirement. The new requirement is the date of the decree specifying the alimony. At least that is my understanding.

I thought it was just my clients. I have never understood how they can trust me to do their taxes but not trust me to know what a W2 is.

Is there someplace on the IRS website where instructions say to not file the 8962?

I think originally the IRS was requiring you to be alive at the time of the payment to receive the stimulus payment. That was later clarified to be if you were alive 1/1/20, you got the 2020 stimulus payments. So your method of handling this is correct.

My birthday is in June, if you want to come hang out with me and delay that getting sober nonsense!

I realize the big strike against these clients is the lies, but I am also not impressed by clients who blame me because they did not include all the information with their taxes. I am too old and too tired for this nonsense. And if my husband were that ill, I would probably have not reacted at all well. You might all be seeing this on the evening news. Hang in there Judy. We are all praying for your husband's health, and for you!

Generally, Virginia conforms to federal except where they don't. Most of the non-conformity is to increase VA taxes rather than decrease them. I think this is one of the items they conform to, and you cannot take the rest in addition.

Generally, I either see the error immediately after posting, or not at all until someone comments on it. So changing from 5 to 15 minutes would not really help me. I am just really grateful to have this board, and that it is so easy to use, and the Judy does such a great job moderating. Yay Team!

USUALLY, revocable living trusts are just ignored until someone dies and the trust is actually funded. YMMV.

The preliminary payment of EIP2 and EIP2 were based on the filing circumstances of 2018 or 2019, depending on what was on file at the time they sent out the payment. They are reconciled on the 2020 tax return, so that is the only return that really matters for EIP1 and EIP2. The preliminary payment of EIP3 will be based on the 2019 or 2020 return, depending on what has been filed when they send that payment. That will be reconciled on the 2021 return. This may result in duplicate payments for someone, but that is perfectly acceptable. There is plenty of money to go around, apparently.

I am totally unsure about this, but would the earnings on the 1099Q from the 529 plan be counted as unearned income so even if it is reported on the kiddo's return it might have to be taxed at the parent's rate?

Interesting. I have never had that either - I am more likely to have them come to do next year's return without having paid the year before. I would handle it the way you propose. Either way, it should come out the same since the year paid is the same as the year filed. I just don't see a line on the return for paid prior to filing.

From IRS website: Authorized IRS e-file Providers are prohibited from submitting electronic returns to the IRS prior to the receipt of all Forms W-2, W-2G, and 1099-R from the taxpayer. If the taxpayer is unable to secure and provide a correct Form W-2, W-2G, or 1099-R, the return may be electronically filed after Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. is completed in accordance with the use of that form. This is the only time information from Pay stubs or Leave and Earning Statements (LES) is allowed.

I have not done a substitute W2 for a while, so I am not sure, but I think if you have enough information to complete the employer EIN, etc. you can electronically file but not until later in the filing season (March 15 and after, maybe?). But like i said, it has been a while.

Does he have a copy of his last paystub or other information that you can use to prepare a substitute W2? Form 4852, I believe.

Will those penalties become less if you wait? I would file asap, and when the penalty letter comes I would write a letter asking for forgiveness and explaining why it was not done when it should have been. Were the W2s done on time? That might give you a shot at getting penalties forgiven, especially if this is their first offense.

I would probably get a signed 2848 if I didn't already have that, get all the paperwork together to be able to fax it, and call the practitioner priority line and ask for their help. I don't know if that would work, but that is what I would do. Writing letters at this point doesn't seem to be working.

It is my understanding that if a life estate was created, and the mother retained all the incidences and responsibilities of ownership until she passed away, the daughter would still get the step up in basis when the life estate ended and she received the property.

But if all the income is treated as subject to SE tax on a partnership, then treating payments of like amounts between partners as distribution is equitable. I don't see any way around treating unlike payments as guaranteed payments, particularly when they are based on work done by the partner.