J R Sandoval EA

Does anyone have the federal id number and address of the retirement plan for Nestle employees; I have an old client who received a lump sum but has not been able to get the 1099R. We have called the plan but they do not give us any info because my client forgot his password and security questions answer. I have a copy of the check stub with the amount and the deductions. Thanks in advance

Single client filed tax return using ITIN; software did not give her the credit but IRS changed her return and included the $400.00 in her refund. Has anything changed? Should she send it back?

401k early distributions used to purchase taxpayers first home is still subject to early distributions penalty, right?

This usually happens in the first day or two after you efile then the status appears.

Thanks all for your replies; I did report it in 2009 and am keeping copies of the check stub as well as the letter the employee received in 2009.

That's exactly the issue; the wages were earned in 2007 and 2008 but were paid in 2009, and the employer did not include these back wages in the 2009 W2; instead he amended the 2007 and 2008 w2's. Withholdings were changed to soc sec and medicare only; no extra money was withheld for federal or state taxes. We are talking about $1145.00 total; $445.00 for 2008 and the rest is 2007. Since most individual taxpayers use the cash method of accounting I do not see why would they be required to report the income in previous years as you suggest. I may be wrong. Any other suggestions? Thanks

I just spoke to the employer and was told that indeed they did not include that back pay in the 2009 W2, that they did amend the 2007 and 2008 W2's and sent them to the IRS. Since the taxpayer did not receive the income until 2009, I guess I will just add the income in line 21(Other income) with an explanation. Any thoughts on this? Thanks

There's a 2009 W2 for wages earned in 2009; however employee also received w2c's for 2007 and 2008 which include the back pay for those years. Since W2c's for 2007 and 2008 were issued, I am assuming that those back wages were not included in his 2009 W2; otherwise why issue w2c's for 2007 and 2008.

Basically it is a W2c for each of those years showing "amounts previously" reported and "correct information". No changes to withholdings for federal or state taxes but soc sec and medicare were changed to reflect the "correct amounts'.

Client received last year back pay from 2007 and 2008; however, the employer corrected the W2s for 2007 and 2008 instead of just adding it to the 2009 W2. Since the taxpayer received this income in 2009, I believe that he should report it in 2009. I am thinking of just adding it to his 2009 tax return with a note explaining the situation. Any thoughts on this? Thanks in advance for your comments. The amount is about $1500.00 and employer withheld Soc security and medicare taxes.

Client has a valid social security number but spouse has ITIN. Do they qualify for "making work pay credit"? Pub 17 does not describe this situation. Thanks in advance for your help.

Married client sold house in 2008; house belonged to him and his daughter from a previous marriage. His current wife was not in the title. Based on the Q & A scenarios from the IRS web site, they do not qualify for the first time home buyer credit if they purchase a house this year. However, his realtor keeps telling him that his current wife qualifes for the credit because she has not owned a house in the last three years. Am I missing something in my interpretation of this scenario? Thanks for your help.

The difference should have an impact on social security tax if income is subject to SS tax.

Just for the benefit of the group, I spoke to the Franchise Tax Board in California and the IRS and both agencies were very helpful; both said they had received the funds back from the bank. FTB said they were sending a paper check this week; IRS said they would send a paper check on May 1st. It is not bad after all as the returns were efiled on 3/31/09. Thanks J R Sandoval, EA

Those of you who have the experience with a direct deposit going into the wrong bank account what is the easiest way to solve the problem. Just wait until the bank returns the money and IRS sends a paper check or file a claim with the IRS; Thanks