BrewOne

Florida's Sunshine laws make it easy for us (and crooks), company EIN's are public record. Convenient when I need a daycare tax i.d. number, but I don't what to say when the IRS says we are supposed to protect our EIN's.

When refunds do not match calculated amounts, correspondence will follow. Unfortunately for us, the money arrives before the explanation.

I had a (former) client who I hadn't heard from in 4 years text me at 6:00 pm Friday asking me to do a trust and individual return. This was the normal pattern when they were my clients. I told them I was "pretty much" retired and to call Block Advisors. Just remembered--one summer I sent them a warning they were about to hit the 60 day mark (minimum penalties kick in). They contacted me on day 61.

obviously the income ratio should not be .94--if $5,648 was in Box A, Lines 1 and 16, you'd get the correct result. ah, kathy beat me to it

So, there's nothing wrong with the 1099-R--the custodian has no idea if the taxpayer rolled it over or not. 1099-R Worksheet--enter the data (and code) that is present. In ATX: Box 2a, below "Taxable Amount" there is another line "Rollover amount included in 2a"--that's where you handle it.

I should have said, "If a client wants us to file a zero extension for them"

If a client wants to file a zero extension, tell them to go online at irs.gov and use Direct Pay to pay something before the deadline--counts as filing an extension. If they balk...not a very good client.

just enter the amount that was rolled over at the bottom of the 1099-R worksheet, will show zero taxable on the 1040. Didn't need to be issued if it was institution to institution--but it could be correct if taxpayer moved the money themselves.

The person who set it up made a lot of money. Apparently enough to "incentivize" brokers.

good question

I got my renewal letter--I have until May 31st to accept, which is the usual date. I moved away from Max awhile back as I curtailed my business and just buy the ATX 1040 package--renewal is for $1,033.60--which I wouldn't recommend if you are doing more than about 125 returns--the per charge cost adds up quickly, especially with partnerships, trusts, and if you need more than 3 different state returns (although at least you don't have to pay until you download the return).

Lynn, you probably already looked, but just in case...did the pass-through entity have any kind of statement like "Composite Return has been filed for all qualified non-residents unless indicated otherwise"? I was stressing about one last year when I realized the partnership had already payed the tax.

We have to be careful with comments on clients' investments. I tell the client do not tell your advisor that your accountant thinks this is a terrible investment (learned the hard way). But I will speak my piece on Limited Partnerships and Publicly Traded Partnerships that brokers buy for a client without running it past them first and with no regard for the tax preparation consequences. I just told a client with what should be a simple return that last year their broker had invested $3,500 of their money in a PTP that generated a -$400 loss and about $1,000 worth of tax forms. Another PTP they owned had $30 income but about 20 entries on the K-1.

I think they need an online account, because Direct Pay (which doesn't require an account) will ask for a confirmation number if you want to look up a payment

has worked fine with the few clients I've tried it. And as you mention, they have been older clients; younger ones I've pointed them towards Direct Pay. Just had another instance of client's check going missing--the 1040-ES arrived but not the 1040-V. Even though elderly, I think he is savvy enough with the computer to use direct pay going forward. We have a serious problem in my area with stolen checks, including those dropped off inside the Post Office.

same here. But I have yet to see a brokerage service list fees that are specifically related to the account being a trust, which is a requirement for those fees to be deducted.

I have more and more clients moving in this direction (or using Direct Pay at irs.gov). The fewer checks they put in the mail, the better--serious problem in my area with stolen mail and check washing. And all refunds either rolled over or direct deposit. I think I have one client this year who will be receiving a check.

the time I tried OLT the acknowledgments were very fast, so I knew it was possible. ATX remains slow in comparison, although their State acknowledgments are a bit faster now.

I didn't call. I've tried Support twice in 12 years and both times ended up more frustrated than before I contacted them, so I just figure out workarounds.

that is correct. out of the blue. Fortunately, I saw the large amount due when I opened this return and went hunting for the culprit.

Second time this has happened to me this year (first was my own return), initial opening of a return in ATX that's been rolled over and there are entries on the 8949. This one was short term gain from "excess distributions" to the tune of $97k. Because this client has a complicated K-1 (1065), I thoroughly went through last year's return and all the worksheets (including basis). Definitely nothing that should show up on this year's return (except some passive losses).

come to think of it, that's how I was paid at H&R Block (And why I wasn't keen on bailing out preparers who started returns they didn't know how to do).

https://www.dol.gov/agencies/whd/fact-sheets interesting stuff

I don't believe it's possible. Fortunately, the software should select the proper Federal forms that need to be attached to each State return. Do you have the All States Guide? Might want to check requirements to attach W2's, etc.