Gail in Virginia

Kea, I never assume they can actually count pages, or identify form numbers. I make a separate e-file for documents to be signed that just contains the 8879 and VA 8879., Then I create a file with the rest of the tax return in it. This does not eliminate the ones that print both files and get confused, but it helps.

Return must be paper filed. In addition to the HUD statement, I recommend sending paperwork showing a utility bill sent to the new residence and a copy of the driver's license with the new address; this helps demonstrate that the taxpayer lives there and this is his principal residence. Taxpayer should also be prepared to wait.

That was great! Sounds like some conversations that I have had where I finally tell them I will write a letter that says nothing, and they think that is wonderful.

You can also just type over the name on the return manager to change it.

SaraEA, I think you may have misunderstood. The sales tax on a new car is no longer deductible by itself - you cannot add it to your standard deduction or add it to the state income tax deduction on schedule A. However, you can still add the sales tax paid on the purchase of a vehicle, boat, etc to the amount of sales tax deductible according to the general sales tax tables in determining the amount of sales tax deductible instead of state income tax. And unlike the stand-alone sales tax deduction that was only available Feb. 15, 2009 through Dec. 31, 2009, this does not have to be a new vehicle, it can be a used vehicle.

But apparently it is happening. I just checked on the one that I have already e-filed - accepted 2/17, and refund can be expected 3/15 according to website. Ridiculous!

If they withdraw it by the due date of the return for the year for which it was contributed, I don't think there is a penalty. But they must withdraw both the contribution and any earnings on the contribution. Then when they get the 1099R for this withdrawal during 2011, the code will indicate that the earnings were for the previous year.

And yet, the American Opportunity Credit has a box to check making the credit non-refundable if the parents provided the student's support but the student claimed him or her self. Why is that even an option?

You still use 8879; the 8453 is now only for transmitting documents to the IRS.

If you have self-employment income, isn't the filing requirement $400? After that point, you might be liable for some self-employment taxes.

I use ArkWorks because it lets me create passwords on any documents that I email clients. When we first started it, It copied all the client names from ATX and created the subfolders for years and then under that for Return, Correspondence, Supporting Documents, SIgned Documents (whatever you tell it you want.) I don' t know if they can copy over your manual system, but they respond well when I have a question by email. On the other hand, if you system is working for you and you are used to it, why spend the money for a document manager?

:D

My concern would be that even if there is no taxable amount, there is a gross amount and most filing requirements are based on gross amount. However, I am not sure what would be filed either. If the annuity went into the grantor trust upon the death of granny, then the trust might have a filing on a 1041 for the surrender of the annuity. To whom is the 1099R addressed and does it have granny's SSN or the trust's EIN? If it is granny's SSN, and the taxable amount is zero, then including it on her final return won't hurt her and might make the IRS happy because everything matches. I hope someone with more experience answers as well. I don't do a lot of trust work.

Your reasoning is fine. ON the Global Info tab for the Sch K-1, there is a heading for Weighted Average Percentages. If you check the box under this heading and put the date in, then I think you put the individual percentages for each partner between those dates on their input or detail form. I have not personally done any this way, but it looks like it would work. Good luck!

From way back when I took the test with pencil and paper, i remember the basis questions as being among the trickiest. Most of the questions did not seem to have any relationship to the world I actually work in, but I did learn a lot studying that section before I took the test. In the pencil and paper days, the test was two days and four parts. And you could not do any of the parts at your own pace - you started when they said start and could leave if you finished early but you could not move on to the second part. Nor could we use even a simple calculator - pencil and paper was what they said, and that was what they meant! Then you waited from the time you took the test in October until sometime in February to find out if you passed. Usually by January, NATP and NAEA had the questions and answers available so if you had a record of your answers or could remember (ha!) how you answered all of those questions you could make a guess as to whether or not you passed. This is not a fun test and you are to be commended for being so proactive in taking it before actually being required. I have no doubt that you will pass the one part remaining with a little study time - not easy to come by this time of year, but soon! Congratulations on passing the two parts already! And on trying all three parts in one day - that makes my head hurt to think about!

Are you sure the VAGI is such that they have a filing requirement or tax amount due? My link This link gives the filing requirements for the year, and points out that the Virginia Adjusted Gross Income is after the subtraction for income earned in another state.

If they both collect SS, why didn't they find out when they signed up for benefits that her name was wrong? I thought that the name on the benefit statement was the same as the name on the social security card. Isn't it?

That surprises me - I thought for sure you were going to say he lost his job!

Generally it means that the DCN is the same as another return, I think.

Love the pun!

I assume that this is not the first year for this corporation? I had a start-up for this year and had to input the date they formed for the beginning and 12/31/2010 for the end of the year. Of course, that was a partnership and may not be the problem you are having. Just a possibility.

Many years ago, Virginia announced their CU-7 form for filing these out of state sales taxes and made a lot of noise like they were really going to crack down on this uncollected source of revenue. As far as I have seen, however, it never was more than just a threat. When people make really large out-of-state purchases such as the materials to build a home, I have heard of the sales tax being levied. For small, everyday purchases such as all the books I have bought on Amazon, I have not heard of anything being done. Does this help?

Margaret is correct. Ordinarily, you would have amounts in box 3 and 5 for social security and medicare wages when the entire salary is deferred. However, since this was a minor child of a self-employed individual, there is nothing in those boxes either. Your client got it right, IMO.

I have been having to re-enter the county/city field for Virginia returns in some instances even though it appears correct when rolled over. I have not had to delete the state return, just re-enter that information. I don't know if the problems are related.

I am wondering if these were considered short sales because even though the offer was for as much or more than the principal due on the mortgage, it did not cover the past due interest payments. Otherwise, I tend to agree with Joan, it wasn't really a short sale.