Randall

I don't know why those with high volume would want to use ATX. I'm a one person office so it fits my needs very well.

Jack, I'm not having problems. I just play it safe with fewer things open at once. I have a new system, no problems. I do keep several programs open at once, say a webite, email, QB, others. But within ATX, I like to keep it as simple as possible.

As a side, I don't update with the open program. I go to ATX and download, then run the update. I also close everything else. I don't know if that has anything to do with the problem. It's just that these programs seem to be sensitive and too many things going on at the same time makes me nervous.

I don't get this comment. I've been a long time user of ATX. It's slow but I think that's the type of programming it uses. I haven't had the problems others have had, returns not opening or whatever. Something must be going on unique with them.

Nevermind. Found my answer. I had the spouse marked in the SEP worksheet.

Now I'm looking at SEP for client. If he contributes to SEP, he's an active participant and can't make the IRA contribution. But ATX is showing spouse also as an active participant. I'm wondering why he can't contribute to a SEP and she contribute to her traditional IRA based on his earnings.

DevM, thanks. That was it. W2 info from several years ago was still in the return.

My IRA worksheet is showing box checked for participating in an employer plan. I can uncheck it but I'm wondering why it defaulted that way. Client receiving Govt pension, both spouses receiving some RR SocSec equivalent. Client has a Sch C consulting business with high profit. Both ages under 70. I'm wondering if the box is checked because it's rolled over that way from several years back when client was still working govt job and was an active participant. I think I just need to uncheck the box but was curious why this box was checked in the first place. Maybe the program knows something I don't.

I have a similar situation. Surviving spouse received 1099R and I think there should have been two 1099Rs. There was a distribution with tax withheld and there was a rollover into spouse IRA. I have the statements showing the amounts. It was with a broker and the IRA and non-retirement account was with the same broker. A direct transfer. Sheesh. They just took a short cut in issuing one 1099R. I warned client of an IRS letter.

Thanks everyone.

Joan, activity not sold. I was wanting to confirm that PTP box is checked and not the passive box. With passive checked, loss goes to 8582. With PTP checked, loss doesn't go to a form, just a worksheet.

I was just going to post a question on this, a little different. Mine is not a final disposition. I marked PTP. Loss in K1 box 1 is suspended. Not showing up on a form, just in the PTP summary schedule. Is this correct? If passive activity marked, it shows up on 8582. But can't mark both PTP and Passive Activity (one or the other). K1 shows plenty of capital (tax basis). Does being PTP preclude it from being a passive activity. Yet the loss is still suspended so I assume it is in real terms, a passive activity.

If they have multiple accounts with the same broker, they can have the broker deduct the fees for all accounts from the non-retirement account. Therefore, getting the total fees outside the IRA and deductible on Sch A. That also lets their IRA build up more.

I do some work at home on my laptop. I have a ShareFile account. I use ATX export. But there were too many subfiles in ATX export to bother with ShareFile. I just use a Flashdrive. It may not work for you since you're working with another person.

Too many people have a trust created but don't do the necessary things to accomplish what they want done. Too many attorneys prepare a trust document, maybe explain to the client about putting assets in the trust, but nothing gets done. The accountant is usually the last one to know a trust even exists.

I agree with Jack. The last thing I want to do with any app is uninstall and reinstall.

Every now and then, I'll go to the Efile Manager, filter by those marked complete and review the status to make sure they're all accepted. I do that in case I've marked something complete by mistake. I also like to get extensions filed first week of March and first week of April even if I think I can complete by due date. Some things still might fall thru the cracks though.

I've even argued that several years were the 'first' time (because they were all at once, client had no activity, and didn't know a filing was required) and got penalties waive. Originally IRS waived year one, but charged for each of the other years.

Normally, there shouldn't be a local return to file unless self-employed as a business. I'm not sure about each locality so you should check their website. If he was working in that location, the tax is withheld. If employer continued to withhold after he moved, he probably has to get reimbursed by the employer. I know some cities (Cincinnati) have a return to file by residents who don't work in the city and don't have the city tax withheld. From my list of Ky locals (a few years old), the Georgetown/Scott County Revenue Commission number is 502-863-9805 (email: [email protected]).

I turned that over to my client last year to do himself. I think someone else suggested it last year as not wanting to take the responsibility. I still have the 8938 with the return.

Good outcome for you Joan. Advice for all clients, KEEP the policy annual statements FOREVER. The annual statements come out on the policy anniversary date (not Dec 31).

Most are just boilerplate stuff. Clients usually have no clue.

Burke, I agree. But I would have thought once the dividends paid to him exceeded basis, he would have received a 1099R showing taxable income each year. In the original post, it seems this is reported all at the end. Joan, the only thing I think you can do is get the annual statements if available. This would give you a complete history. Otherwise, your client is stuck with reporting the 1099R as is. Insurance companies don't always get this right. So if you have the annual statements and he's shown taxable income thru the years on his returns, you may be able to get a corrected 1099R or report it as corrected on the 1040. Another thing 'funny' in the original post is the ins company stating the taxable amount 'in their opinion'.

Judy, not sure I agree with this last part. Assuming no loans or withdrawals, the death benefit should be higher than cash surrender value. But since the policy was terminated or surrendered before death, something has happened. There must have been payments to him. Joan, don't get confused by the word dividend. It's just build up inside the policy (interest, dividends).

Not sure what's going on here. If dividends received each year, he should have received a 1099R showing zero taxable amount until basis ran out. After that, 1099R showing amount as taxable. But then the insurance company would have tracked that and would not be showing so much as taxable. So I'm not sure what's going on here. Check to see if you have past records to track this. Dividends inside a policy aren't really dividends as in a 1099-DIV. Like credit unions calling interest 'dividends' (they issue a 1099-INT).