Randall

Thanks.

Client arranged to receive RMD in December. Messed up by Fidelity, didn't get the distribution until January. No 1099R for 2021 but the 1099R for 2022 will have two distributions. He has letters from Fidelity admitting it was their fault. I had this situation some years back. I completed 5329 for the current year tax return, showing penalty and requesting it be waived which it was. Showed the total (both distributions) the following year. The amount in the past was small and didn't cause any tax. Current client says he's ok with paying the tax on both distributions in 2022 but wants the penalty waived of course. This seems to be the way to report everything. Anyone know of another way to report the income in 2021 without a 1099R for 2021 and double the amount on 1099R in 2022?

I haven't noticed an increase. But my office is in an old house converted to offices. There are several attorneys here who do divorce and they are busy, very busy. And have been before covid.

So, if I read this correctly, the child who is no longer a dependent in 2021 can claim the $1400 credit on their 2021 return. But the parents who claimed the child as a dependent in 2020 and received the $1400 for the dependent in their EIP3 does not have to pay it back on their 2021 return. It seems the IRS FAQ site is treating the EIP3 and the Recovery Credit as two separate things. Not just an advance of the same thing.

I agree now that there's additional info.

Off the top of my head, I would say yes. But you may contact the employer and request they reimburse the estate for the income tax withheld so the W2 will show zero tax withheld.

Does this affect us? Individual preparers? Or just the software companies?

Not too many for me.

I'm waiting for Ky 741 (equivalent to Fed 1041). Was originally scheduled for 2/3. Now ATX is saying 2/14.

That's what happened to me. Recently efiled both 2019 and 2020. Had to get EFC rejection, then re-create the efile in order to get the 2022 in the id number.

And am I correct to understand the parents don't have to pay it back? I know this was the case for EIP1 and EIP2.

I use two external hard drives. Rotate them. Keep one at home and one in the office. I also buy two new drives every couple of years. I don't trust the longevity of these things. I've had them go out. Plug it in and nothing. Pretty scary.

I do it myself. I don't have as much these days with the scanning. I got all the back paper files shredded long ago. I have a small office and keep a box under my desk foot area. When the box fills up, I bag it and take home where I keep my shredder.

Interesting. I didn't know how people got their training outside the military. I met a fellow hiker a few years ago. He was a Delta pilot. But he spent 11 years as an Air Force fighter pilot. Recently met a man and woman, recent West Point grads, Black Hawk pilots. So congrats to you and your son.

Congrats. Where did he get his flying training? Military? Air Force? or civilian?

Amen to that. That's why I'm probably only going to be around a few more years.

Me too. I've only got a few more years and I'm trying to cut back. No business returns, no rentals, side business Sch Cs, no farming, no high volume stock trading on your own. And even the fairly normal 1040s, I'll only be around a few more years so if they're looking for a long term preparer, I'm not the person.

It's real alright. Too real. And it's more weird than mentioned.

One more add on. If Grantor has the right to revoke, but it has to be unanimous with the two beneficiaries (his two children), does this change his status of sole power to revoke. And thus eliminate the stepped up basis eligibility on the date of 2nd death (grantor).

I'm a one man shop too and don't have an IT department. And I'm no techie. But I've found ATX to be quite good for me. There have been several times I've had to call but not too often.

Not sure if it's the same problem but last year, I got a new computer. I had downloaded the software on my old computer, then later on my new computer. I'm not sure what happened but the tech rep had to walk me thru to rename the old Server file 'old' and start a new Server file. Either way, this will require a phone call as joanmcq said. I definitely wouldn't try this on my own.

I've thought from the beginning the biggest benefit of the Roth is for people who will never need the money themselves and have a long time horizon for the investments. Let it grow tax free and leave it to heirs tax free. Most people think the opposite. They hear 'tax free' and take it now, think short term.

Have you gotten this resolved yet?

I'm in that situation too. I plan to contribute. My understanding is that the tax rules changed for contributions when they raised the age to 72for RMDs. If you are working and have earnings, you are now eligible to continue to contribute and get the IRA deduction.

I think IRC 1014 covers this. Specifically IRC 1014(b)(3) which mentions a trust. Thanks for pointing in a direction.