kcjenkins

Because the geniuses in DC are always changing and/or adding to the code.

I'd only add that if the tenants are using a portion of the land for their livestock, I'd include that portion with the house on the rental expenses.

I doubt if there could be any MORE detail, Easy, but it certainly should take care of getting rid of EITC 'shoppers' .

JohnH, your post was totally clear. And yes, that is how they seem to handle 1099-B's, so it's logical that they may start doing the same thing with RMDs. Would not surprise me, I'm just surprised they have not been doing it that way already.

Well, I'll add one possible reason, if the parent getting the child support was given custody, or at least shared custody, and the other parent wants to keep the kids full time, or most of the time, that parent may pay the child support to keep the other parent agreeable to 'giving up' most of his or her time. I know of such cases.

She's a beautiful dancer.

Best I could find was these: http://www.irs.gov/uac/Rejected-Return-Help-for-Free-File-Fillable-Forms http://cchsfs-atx.custhelp.com/app/answers/detail/a_id/15058/~/top-irs-individual-reject-codes-for-tax-year-2014 http://www.efile.com/how-to-correct-an-irs-efile-tax-return-rejection-error-code/ They used to publish a list of the reject codes, apparently they decided that was no longer necessary. It appears the spouse either already filed separately or someone else filed with their SSN. Although option 2, [fraud] is certainly a possibility, option one should always be checked first, because it happens a lot more than you might expect.

Thanks for that link

IRS Warns of Impact of Failing to File Taxes on Obamacare Tax Credit Eligibility Washington, D.C. (August 7, 2015)By Michael CohnThe Internal Revenue Service is warning tax preparers that clients who fail to file their tax returns for last year run the risk of missing out next year on advance payments of the premium tax credit for health insurance under the Affordable Care Act. In an email to tax professionals Friday, the IRS urged tax practitioners to remind their clients who received advance payments of the premium tax credit in 2014 that they should file their 2014 tax return as soon as possible this summer, even if they have an extension, to protect their eligibility for advance payments from their health insurance marketplace in 2016. “Depending on the situation the IRS is currently sending Letter 5591, Letter 5591A or Letter 5596 to taxpayers who received 2014 advance payments, but have not yet filed their tax return,” said the IRS. “The letters remind taxpayers of the importance of filing their 2014 federal tax return along with Form 8962, Premium Tax Credit, as soon as possible.” For more information, the IRS included links to information on Understanding your Letter 5591, Understanding your Letter 5591A, Understanding your Letter 5596 and the ACA What’s Trending page.

Love it !

Sure sounds like a part of the sale transaction to me. Clearly not SE income, but I think you are correct on §1001( b )

1249627_10152037995970804_1397929109_n.mp4

I would list it as wages, so that the C matches with the 941's and 940. I use Cost of Labor for legitimate subs not employees.

I agree with Jack, the IRS will make the determination. Based on what you say, odds are she will not get any of the refund, but she might. And regardless, you should file it just to establish her position as innocent spouse.

Margaret, as Catherine said, I saw the post - but did not answer because I did not have anything to share but sympathy. But Lion did have an excellent answer, which I very much agree with.

If you have the ack, call the help line if the notice does not include a number to call, and you should be able to clear it up easily.

Well, while the general rule is to deduct only 50% of the cost of furnishing meals to your employees, you can deduct the full cost of meals that qualify as a de minimis fringe benefit [see section 2 of Publication 15-B], and meals you furnish to employees at your place of business if more than half of these employees are provided the meals for your convenience. You could make a good case that since the court is one of his " place of business" and he is feeding them for his convenience [discussing the state of the trial, assigning them things to look up, etc] the meals would be 100%.

Marvel Superhero Debt Squashed by IRS By Michael Cohn July 24, 2015 Marvel Entertainment Group, the company behind the superhero comic books and hit movies, landed in Tax Court this week, and lost a battle against the Internal Revenue Service. The case, Marvel Entertainment Group v. Commissioner, dates back to financial problems that Marvel had before a string of box office smashes revived its fortunes, not to mention an acquisition by the Walt Disney Company in 2009. But in 1996, some of Marvel’s business units filed for bankruptcy and they excluded the cancellation of indebtedness income from their gross income for a shortened tax year ending Oct. 1, 1998. Marvel then reduced each of the member entities’ share of consolidated net operating losses according to their previously excluded cancellation of indebtedness income. It then carried forward into a successor affiliated group a consolidated net operating loss of $47,424,026 and used that amount to offset the income of the successor group for taxable years ending Dec. 31, 2003 and 2004. The IRS disagreed, however, arguing that the tax code requires Marvel’s 1998 tax attribute reduction to occur at the consolidated level rather than the individual entity level. The IRS determined deficiencies of $2,144,756 for tax year 2003 and $14,453,653 for 2004. The Tax Court sided with the IRS. Hard to believe, but even with the Hulk, Captain America, Thor, Iron Man and Spider-Man in its corner, the Marvel universe can still lose against the IRS. Still, as with most of the Marvel hits, there’s bound to be a sequel.

Don’t Trust the Shoebox What to do when you’re not sure about your clients’ documents July 24, 2015By Jeff Stimpson Proof may be in the pudding, but it sure isn’t in the shoeboxes and scribbles that clients cart into a lot of tax preparers’ offices. What’s the best way to point out that clear and complete records are indispensable when it comes to staying out of tax trouble – and how do you handle clients who refuse to provide it? “As subtly as possible, we ask for substantiation,” said Enrolled Agent Twila Midwood of Advanced Tax Centre, Inc., Rockledge, Fla. “We advise them that if we’re asking the questions, then IRS certainly will ask the same questions on audit. Our engagement letter clearly states that [clients] have the final responsibility and must have and keep all records to substantiate any item on the tax return.” Doubting a client’s records runs a gamut of problems and issues, said EA Sherry Whah, of Anchorage, Alaska: “Lack of records,” she said, “records that are unclear or estimated, claiming dependents that do not appear to be appropriate. When these issues arise, I inform the taxpayer that I’m concerned. I further note that it’s much easier to report it correctly now, rather than risking an audit and a potential penalty.” “We’re frank with the client, maybe even passive-aggressive,” said preparer Jim Loperfido at JGL Management Consulting, in Auburn, N.Y. “It works: Some get it, some don’t, but all understand that we want to help them.” Riling ‘the dishonest ones’ Preparer Jeffery Sauer in Minnetonka, Minn., sees the biggest problem in car logs or logs of business miles. “There’s probably a lot of people not keeping the detail but still submitting. I rarely allow a client to submit more than 90 percent business use of a vehicle – I’d doubt those situations.” Donations are also a records minefield. Midwood said that it’s “surprising the number of clients who still feel that IRS ‘allows a certain amount’ without proof” regarding Schedule A donations. “Educating clients in this area has been a challenge,” she added. “Our questionnaire addresses this in that we state that they must have proof from the organization. We do require that taxpayers sign and date the questionnaires.” Added Becky Neilson of Neilson Bookkeeping in Sheridan, Calif.: “Clients who don’t have donation tags with the nonprofit they were donated to and the date, I won’t accept,” she said. “Another trouble area is small business. I expect to see a printed P&L, not just numbers they pull out the air.” “Asking for printed P&Ls or detailed statements will rile up the dishonest ones pretty fast,” added EA Bob Smith of Albert Lea Tax Service LLC in Albert Lea, Minn. “We do a little test by questioning a couple numbers they provide, and it doesn’t take too long to figure out if they just don’t have good records or they are intentionally misrepresenting the information.” Loperfido had a new client “come in upset that she was audited last year and wanting someone else to check this year’s work. We first did a cash flow analysis that showed she spent $12,000 more than she earned. She was flabbergasted and actually a little upset with me and asked that we check our work. Our work was fine, and a deeper look at her records showed that she writes checks (some to family) for work that are not always cashed. A lot of these checks are written in December. A further look also revealed that she carries uncashed checks for years.” What to ask for Whah requests proof of income from bank statements, 1099s and cash receipts and proof of dependency, especially for the EITC. When a taxpayer simply lacks certain income documents, said Whah, “I’ll extend them and with a [power of attorney] go online in mid-July and request the income information from the IRS,” she added. Yolanda Johnson, an EA at Tax Accountants Inc., in Orland Park, Ill., also relies on additional documentation, additional questions – and, again, mention of what the IRS thinks of sketchy records. “This usually is enough to cause taxpayers to remove information that is questionable or doubtful,” she said. ‘Squidgy figures’ “I ask to see accounting records,” said Janie Biddix, an EA at Advanced Tax Specialists Inc., in Dalton, Ga. “If these are in question, I ask the client if the records are correct per their knowledge of their business. For example, one client was involved in insurance sales. Being familiar with the assets of a franchise insurance agency, I questioned the assets listed on the accounting records for depreciation. They didn’t like my questions and were afraid of consequences, so I released them from my services.” J. Alan Fagan, an EA at The Mattox Group, in Marina, Calif., said that strict due diligence when onboarding a new client often heads off eventual questions and problems. “We establish from the very beginning that our firm does not tolerate squidgy figures. From time to time issues do arise, most notably with mileage logs and schedule C expenditures. We provide every client with a complimentary electronic mileage tracker for smartphones. For those clients not as tech-savvy, we designed a spreadsheet they can print and complete manually.” His firm also meets quarterly (“no less than semi-annually”) to review the activities of clients with Schedule C businesses. “I ask to see more information concerning the records. Sometimes I then look the information up on Google or other areas on the Web,” said EA Susan Floyd of Egner’s Tax Service in Paducah, Ky. “Depending on their answer or the severity of the issue, I will dismiss them as a client,” said EA David Spaulding, a principal at Janover LLC in Garden City, N.Y. “Over the last few years, I had two potential clients come in with returns that were wrong to the point of fraudulent. I dismissed one and the other I told that the only way I’d prepare a subsequent return was to amend the prior one and adjust the information into the current year.” “Our clients are mostly old-timers we’ve known for 30-plus years, so no need for doubt,” said R. Dale Dixon, an EA at The Tax Surgeon LLC, in Smyrna, Ga. “If a new person comes in, we make them provide detailed backup documents, at least until we get to know them.” “I keep pushing and questioning until I either get real answers or send them home to find them,” added EA Jaimee Hammer in Cherry Hill, N.J. Remember your risk “We politely ask, on average, two to three a year to leave,” said Smith. “They go willingly, which tells me they were doing something wrong. Sometimes one will feel offended, and we offer to reconsider if they bring the documentation. We will do the return if they do document the area of concern.” Preparer Paul Knapp at Exact Income Tax Service, in Santa Fe, Texas, provides problem clients with “examples from our experience of what IRS has accepted and refused to accept. In one sense, we doubt every client’s records and provide info that lets them revise as needed. Most don’t, because they’re confident in their own records,” he added. EA Michael Harvey Baum of Naples, Fla.-based Baum Accounting, Tax & Computer Help sends a written request – usually an e-mail – to a client when he doubts a record. “I ask the client to verify in a written response the information or provide additional details,” said Baum. “I then keep the e-mail as part of my work papers and I also provide a PDF copy of the same work papers to the client.” “I request [a record] in writing and have clients sign that the records are accurate as written,” said Neilson. “I also put this in my formal engagement letter. In addition, I explain that they need hard copies of all of their records in case of an audit and that if they don’t have the records the expenses will more than likely be disallowed.” “If they don’t have a bookkeeping system in place,” she added, “I offer that service for an additional hourly fee.” Toward many such clients, there’s ultimately one response. “I fire clients all the time, including friends and family,” said blogger and EA John Dundon II of Taxpayer Advocacy Services Inc., in Englewood, Colo. “People efficiently substantiate their claims or go away.” “Ask a number of additional questions and let the client talk and talk. Most people can’t keep a lie straight,” said EA Mele Perrego, of Clayton, N.C. “If the explanation seems to confirm my suspicion, I ask if they have ever read the perjury statement on the tax return that they sign, and generally I’ll read it to them. Then I ask if they know the penalty for perjury. They may be willing to risk jail or penalty for a few bucks. I am not.”

Terry, the point, I believe, is to make it possible for the client to fill in THIS YEARS new info on the computer, rather than printing the form for them to fill in by hand.

Max, I thought that only could be done when it involved innocent spouse, which just proves you can always learn something new. The dead spouse might qualify for CNC I suppose?

Joanmcq is a member here, you can pm her. I sent you Tim's LinkedIn contact info.

They filed a joint return, so each spouse is liable for all the taxes on that return. There is no way he can now separate "his" liability. MDEA is correct, the ONLY option is an installment agreement. I would start with a 433-D, filing that out will give you a much clearer view of the likelihood of success at either an OIC or an acceptable installment offer.

Tim Parris is who I always turned to for questions on Canada, I think Joan also is familiar with the rules in Canada.