elfling

Our file cabinets once overflowed with paper documents, too. We have not kept a paper version of returns in many years. Usually the only things in our folders/cabinets are signed 8879s/8453s, copies of some stock purchase docs from years past, the occassional tidbit that did not scan well, etc. We write many notes on the inside cover of the file folders. It had crossed our minds to go totally paperless, but I'm not fully comfortable with that just yet. (My younger partner says it's an age-thing. ) Having a folder for each client helps keep me organized day-to-day. We scan all pieces that would be needed to rebuild a return should it be lost, scanning with a Canon MF Toolbox application that is extremely quick, seconds for most returns. We back up all scanned documents and returns to multiple media, usually flash drive and zip drive during peak, eventually burning a CD late in the year. Elfling

Thanks, KC. I've been looking at reviews. I, too, am concerned about the less than great comments about scanning. We've been really happy with Canon over the years and we'd prefer to stick with them. Many times the drivers already installed can be accessed by newer models. I am not sure I am understanding the wireless system Canon has on the ImageClass laser units so calling them may be my next step. Tech support there was helpful in the past. Elfling

Currently printing and scanning with a Canon MF3240 laser all-in-one. But we are considering moving to wireless. Anyone successfully using a wireless laser printer/scanner with ATX software? We are looking at possibly purchasing the Brother MFC-7840W.

Randall, Before 'tax season began' may not be nearly enough. Our local computer specialist recommends that we use the defrag analysis every week and run the defrag program whenever the analysis deems it necessary, or sooner if it seems warranted. He also advised that we run disk clean up at least twice a week during peak operating times. For us, peak runs from mid-January to early May. We also installed additional memory sticks/chips this year. Each of our computers are running on 2GB of memory (still considered low by some) which has improved printer speed and reaction time of the ATX programs. Elfling

Much more often than we used to, we notice clients asking ~ Do "they" (meaning our office, in effect) have the "A" or whatever middle initial on the return? The issue is that the tp believes if the middle initial, or full name, or in some cases name on the SS card is present, then that is exactly how forms must be signed. (The SS card may contain a long, formal name that is not used on a regular basis.) My standard response is telling the tp to sign how they always do. That signature being his/her unique identifier. This was something learned way back when (over 30 years ago) in one school or another. I have internt searched the topic more recently and also asked the opinion of an attorney friend of mine. Both come up with that same idea. So next I went on to try to find a definition of a legal signature in the realm of the IRS and tax forms in general with little success. IRS.gov was no help. It took me topics of facsimilie signatures, signing for a minor child or others incapable of doing so, using and X or other mark, POAs, spouse in a combat zone, PINs, electronic signatures, etc. All good topics but not the satisfaction to our clients' questions addressing what constitutes one's signature or if it need match the name in print on the tax forms. What say any of you?

Hi Doug, The Merluzzi's found a townhouse in Lincoln and had their daughter check it out for them. They plan to fly out this weekend to see it in person and most likely close the deal. The hope is to be moved by the end of March. He will start having NE tax withheld at that point. These two are definitely planners. Wish more people were. I don't like being the bearer of bad news when someone owes because they failed to look at tax issues in advance. Elfling

Thank you, DougO!

We have a couple in our PA clientele who are choosing to move to NE to be closer to family. She works retail, part time. He is age 61, retired collecting military pension. She asked me to find out if the pension will be taxed in NE. It is exempt in PA. Although I have pulled up the NE Dept of Rev info on the web and the instructions for a NE 1040N I am not finding anywhere that states solidy yes or no. A trial run of a NE return using this year's figures looks as though the pension is fully taxed. If that is the case, this couple is thinking ahead and will opt for state tax to be withheld from the pension when they relocate. So I'm asking for NE preparer input, please. Thanks!!

We have a client who is a full-time RN for 10 years working in local hospital. Never collected SS, RRB, vet comp or pension EVER! But for some reason IRS thinks she has. Efile rejected for SchM not matching IRS files. Thought perhaps SSN was typed wrong; it was right. Efiled second time, rejected again for same reason. She is a single mother, 2 sons, neither of whom receives govt payments either. (Not that that should matter, but I checked anyway.) At this point I cannot figure a direct fix. I'm thinking 2 options: 1) Send a paper return and probably wait an extended time for processing. 2) Decrease SchM by the $250 IRS seems to think she rec'd and follow up with 1040X in the future. (???) {Debating whether or not that would fly.} Looking for input. Anyone?

That would be my question also. SP should have no problem claiming the other $4K. Whether or not she shares with TP is their business. One wonders why MFS and there could be many reasons. If it happens to be because of a debt and they find it easier than wrangling with allocation (F8379), then the refund may go toward quelling some of that debt. Possibly something to consider.

We had a dozen last year (2008) that tech support never, ever was able to fix. They remain today as Transmitted. For awhile we found it downright annoying to not be able to mark them complete. But in the end we let it go. Better to just be satisfied with the quirkiness and move on. Anyway, the few we already have this year is not at all surprising given the snags we encountered last year. Rather than fret about it we just go out to ATX Support and check them out. Sitting on the phone or emailing back and forth with ATX is too time consuming.

It is highly unlikely, although not impossible, that this is not postsecondary education. Has this 11 year old graduated from high school? If not, she most likely does not qualify for any of the education credits.

Just went through one of these last month. Client received that letter in December. Called Mr. Healy, the auditor listed, who told him exactly what lines on Schedule C were to be reveiwed and what to gather for those lines. At the 'sit down' meeting on Jan 7, both the client and I were well prepared for all questions. Mr. Healy did not deviate from the lines he asked us to prepare for, although I am sure he could have had there been any oddities. We were done with everythin in just over 3 hours. Report arrived 3 days later with all clear. Mr. Healy did answer our client's question of "why" his return was chosen for review. The reply is that our region of PA has not been "looked at" in more than 10 years and IRS will begin randomly reviewing returns here, primarily those containing Sch C. He said it would not be surprising for he and I (as rep for other clients) to meet across the table a few more times within the next year or two. Joy, joy!

Deb, We have one client, for many years, with this exact same situation. Sister is head of household, 4 years younger than her permanently disabled brother who receives SS. Brother "works" minimally in a day care/shelter workshop so there is a W2 each year, usually about $600 total. The work is more along the lines of guided therapy for this individual. The EIC has flowed successfully without question. Income does not play a role in the EIC. When we first ran this, the EIC form seemed odd to us as well. Her older brother appears as a 'child' on the form.

Thanks rfassett I was looking for a ref like that but wasn't able to find it! I have already advised a couple people to go to the website to print a copy of the 1099G now posted.

We have had three clients call today saying that they received a recorded phone message from the PA Department of Labor & Industry stating that 1099-G forms are incorrect and to expect to receive a corrected copy by mail within the next few days. Having not heard anything of this sort in 20+ years of practice, I advised the first caller to be very leary especially after she said that the recorded call did not state who the message was addressing. There are 4 wage earners in that house, 3 collected uc last year. Gov't offices don't typically phone taxpayers. Hoaxes and fraud run amuck this time of year. Now that there have been 3 calls I'm wondering if anyone else has encountered this today.

You say there is no change to withholdings, but is the $1500 reflected in changes to income on the W2c? If not, one must consider that the money received was already accounted for on the original W2s and no change to any tax return would occur. However, if the income figures have changed (via W2c) I would choose to amend both the 2007 & 2008 returns on the aspect that the money was earned in those years. I believe it is important to have the years align. The tax rates/tables for those years are not the same as in 2009. It seems to me that when it was earned trumps when it was received. It has been many years (early `90s) since we encountered a similar situation. But I seem to recall working with an auditor at that time who had us amend.

Wonder if a Sch UE would fly? Haven't tried it.

In years past we've seen it take several weeks for the status to change. Eventually they get an Accepted response.

I do not specifically have an answer to your question, but can tell you we have efiled 1099s of varying types along with 1096 for the past few years without any snags, keeping good records of course. To allow release of that same information to Pennsylvania we have Form 6847 on file for each client. Those are easily faxed to 1-877-477-0572. E

Good points, Jainen. I was particulary struck by Kelly's paragraph below as that proverbial nail: "Realistically, advance credits and payments are always fraught with the potential for disaster. They're a particular thorn in the side for tax preparers who may have to explain the consequences to taxpayers after the fact. But politicians love them. As a result, this is not the first to come down the pike and it certainly won't be the last (though I imagine it would be if tax pros ran the world)." It unfortunately does fall to us, thorns and all, to try to explain the fall-out to taxpayers who haven't a clue. The extreme reverse side of that coin is that if some administration would ever succeed in creating a super-simple, super-streamlined tax return/system [totally wiping out the current code, of course] without credits, special programs, complexities of itemizing, etc, etc, we would all need to look for other avenues of work.

Came across this on the AOL homepage this morning: http://www.walletpop.com/blog/2009/11/17/surprise-theres-no-news-on-tax-credits/ I like the way Kelly Erb hits the nail on the head.

We do not find any practicality in submitting other preparer's or even self-prepared returns. Is there a way to do so as an ERO, using ATX, without having to totally load (virtually prepare) the return? If the customer's objective is to save money by preparing the return themselves, we simply cannot offer them that savings. Having to enter all the tp info into the program equals preparing the return and we will have to charge accordingly. Elfling

Yeah, they spent it . . . practically without even noticing they had it. For a lot of lower income earners it amounted to a $2, $3, maybe $8 per week. Part-time workers saw no change from zero withheld to zero withhled. But with our region's grain and vegetable fields under water from an excessively rainy spring into summer, the price of everything from bread and cereal to potatoes and carrots to milk and eggs increased. Few folks in our little pocket of PA saw relief via MWP's 9-month adjustment to fwh. The struggle just to eat ate up any increase. Elfling

I found this to be a very efficient place, in the current year's program, for the 940. The calculations are practically automatic if you include it with the preparation of W2s. Elfling