DANRVAN

Thanks for the info Catherine, your website looks great!

Thanks for the info Lion, I didn't see a price on their website, can you tell me about how much it runs?

Thanks for the info FDYN.

I am going to set up a website, can anyone here give me some ideas on a source? Thanks for any suggestions you might have. Dan

I got the impression that this was an advance to help cover his moving expenses and not a reimbursement, and therefore taxable as wages per Rev. Ruling 68-239.

I agree, advances for future services are wages, taxable in the year received, see Rev. Ruling 68-239, Letter Ruling 200040004, and tax court case of Beaver Anson.

Thanks to both of you.

Oregon requires a txt file for submitting W-2's while the ATX version is asc. Does anyone here know how to convert from ASC to TXT. I googled some ideas but haven't tried any yet.

Comes as a surprise Elrod. I have enjoyed your wit and humor on this board, including the hilarious pictures of your "Family Reunion" a couple of years ago you posted for us as we were going into the countdown to April 15. I hope your departure is not due to any serous health or other issues. Wish you well and may God Bless you!

I am right handed but taught myself to run the mouse with my left hand. It save me time when inputting data. By doing so, I can keep my right hand on the number keys and move from line to line or cell to cell with the left hand. I am so used to it that it confuses me when I sit at somebody's computer which has the mouse sitting on the right hand side of the keyboard.

There is no tax on transfer of trust corpus to the beneficiary.

The problem was the agent did not applying the tax laws properly and the taxpayer did not use the proper channels to resolve it. I have dealt in situations where two divorced taxpayers try to claim the dependent. I have been told and come to believe that the agent often will take the side of the mother. I have also found it is a waste of time to make phone calls in these matters. Your client took it in his own hands so you did not have the opportunity to make written responses in a timely manner. The fact that the client blotched 2014 by not going through the proper channels will have no bearing on a favorable determination for 2016. I believe form 12203 needed to be filed before the notice of deficiency was sent out on October 4th, but you should get a written notice saying whether it was accepted or not. The time to file form 12203 is before the notice of deficiency (90 day letter) is sent out. If the tax court petition had been filed on time, the case would have gone before an appeals officer in an attempt to resolve it before going to court. I recently resolved a client's case at that level where his ex had also claimed the dependents. There is no basis for amending 2013 and 2015 as I understand they are not covered by the 8332. The fact that an agent did not properly apply tax law for 2014 does not mean the IRS will follow that position in future years. It looks like your client might be out $4,900 for 2014, (lost refund of $3,300 and balance due of $1,600). I don't know how the taxpayer advocate can help if client did not act in a timely manner. If it's worth that amount for 2016, your client should go ahead and take the exemption and go through the proper channels to get a proper determination for that year. You do not need a "final determination' for 2014 to file for 2016. Just take a fresh shot at it. Please keep us posted on this, but it sounds to me like the client missed his opportunity for an appeal by filing 12203 late and then missed the tax court petition deadline. It will be interesting to hear what the TA has to say, but I don't think she can help if statutory deadlines were missed.

The instructions say to input the taxable income and tax for the specific base year. So if he was not required to file in 2012, I would leave that part blank. Due to the mathematical maze of Schedule J, he might end up with little or no savings since he is not jumping up into a high income tax bracket. And if he does, I am not aware of anything in the code that says he is not entitled to it. Reg 1.1301-1(b)(1)(iv) clearly states that the taxpayer does not need to be engaged in farming in the base years.

Why would you amend 2013 and 2015? Not following you on that part. In regards to 2016, I would file and claim it since client is entitled to it. The sooner the better to get the process started and get the issue before an appeals officer if needed. Maybe you will end up with a better agent to work with and won't have to go that far. Maybe ex-girl friend will not even claim for 2016. Maybe client learned his lesson and will allow you to handle it in a timely matter. Maybe you will get a favorable determination for 2016 before IRS closes the case for 2014. Good luck, Dan

Have you looked at the instructions to Schedule J? I don't think you have to be a farmer in the base years.

So sounds like mother filed, claimed daughter and triggered audit. Client has 8332 which would give him exemption, unless 8332 was revoked. In that case mother would have to attached a revoked 8332 to her return. The revocation would have to be made before 12/31/13. She is also required to keep proof of delivery to noncustodial parent or proof that reasonable attempt was made to deliver. Without knowing what communications you have had, I would write a letter to the IRS addressing the above issues and stress that your client has met all the requirements for claiming his daughter per Reg. Sec. 1.152-4(b)(3)(I), in absence of a timely revoked 8332 by the custodial parent per Reg. Sec. 1.152-4(e)(3)(i)-(iii). Hopefully the TA will pick up on this as well, or maybe it needs to be brought to her attention. You mentioned in your other thread form 12203 has been filed. I don't know if it will be considered since the notice of statutory deficiency was already sent out at that point. Hope this all work out, but ultimately client is responsible for taking it on himself and waiting until he got over his head.

Not sure what the issue is. So ex wife is custodial parent and signed 8332 for year 2014 which was timely filed by your client?

Just bumped this up as a reference for your current thread.

Agree. You can still submit information to the IRS and they will consider it. But you do not have the option to appeal.

I don't think the IRS will budge on the deadline since it is statutory. I would not rely on the advice of the Taxpayer Advocate in regards to filing the petition after the due date. I am not saying its not worth a try but I don't believe it will go through. Lynn mentioned that only an attorney or a Tax Court qualified non-attorney may prepare and file the petition on behalf of the taxpayer. However, the petition does not need to be signed by anyone but the taxpayer (enter that door at your own risk) and you can represent your client before the appeals officer. You mentioned a form 8332 involved, any other details you can share with us?

90 days is 90 days including weekends and Holidays, but I believe the 90 days cannot end on a weekend or Holiday. The final date is usually on the notice. The notice was dated Oct. 4? By my math 90 days would = 27 days in Oct; 30 days in Nov; 31 days in Dec and 2 days in Jan. January 2nd was a Holiday so January 3rd was the due date.

Sorry I overlooked that part in my previous post. You will run into the Constructive Ownership rule found in section 267.. The abandonment could be treated as a sale to a related party, the corporation.

I believe your client should treat it as an abandonment per Reg 1.165-5 (I)(1) "To abandon a security, a taxpayer must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for the security." Reg 1.165-5(a)(1) defines a security as "A share of stock in a corporation". Reg 1.165-5 (I)(1) Also states that an abandoned security is treated the same as a worthless security In that "the resulting loss is treated as a loss from the sale or exchange, on the last day of the taxable year, of a capital asset."

Didn't dawn on me you are dealing with Qualified Restaurant Property. Now it makes sense.

I agree with Sara, and in some states it makes sense to gift. In Oregon the inheritance exemption is only one million and there is no gift tax.