kcjenkins

They claim to be working on letting it be efiled 'soon', and certainly it should not be that hard to program for receiving them. After all, efile is not about the 'processing' of the return, which will no doubt continue to be looked at carefully. Efile is just about the method of receiving the data to be processed. True, sometimes we will probably still want to paper file them, if the return in question requires multiple worksheets and supporting documents, etc. But many amendments are just to add a missed W-2 or interest income or such, and could be very easily efiled and processed very simply.

Until he gets a 1099-C I would do nothing. Then, it will be an issue in the 2011 return. The numbers may be significantly different when he gets the C.

Yes, I talked to a support person, and also left a note in the 'suggestion box', so I expect it will get fixed soon. Just need to double check it when applicable, until we know it is fixed. I also talked to the AR efile Help Desk, and they told me what I did would work for them. In fact, it was from them that I learned that the excess Housing Allowance, which used to be on Line 10, Minister's income, was now on the AR 4. I'd never have thought to look there for it!!!

Generally, the sale of a gift would either be on Sch D for a capital asset, like the cow, which might have basis, and on Line 21 for the crop sale, since there would be no basis.

Issue Number: IR-2011-20 Inside This Issue IRS Announces New Effort to Help Struggling Taxpayers Get a Fresh Start; Major Changes Made to Lien Process WASHINGTON — In its latest effort to help struggling taxpayers, the Internal Revenue Service today announced a series of new steps to help people get a fresh start with their tax liabilities. The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens. “We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” IRS Commissioner Doug Shulman said. “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.” Today’s announcement centers on the IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include: Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens. Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill. Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement. Creating easier access to Installment Agreements for more struggling small businesses. Expanding a streamlined Offer in Compromise program to cover more taxpayers. “These steps are in the best interest of both taxpayers and the tax system,” Shulman said. “People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens.” This is another in a series of steps to help struggling taxpayers. In 2008, the IRS announced lien relief for people trying to refinance or sell a home. In 2009, the IRS added new flexibility for taxpayers facing payment or collection problems. And last year, the IRS held about 1,000 special open houses to help small businesses and individuals resolve tax issues with the Agency. Today’s announcement comes after a review of collection operations which Shulman launched last year, as well as input from the Internal Revenue Service Advisory Council and the National Taxpayer Advocate. Tax Lien Thresholds The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised. Currently, liens are automatically filed at certain dollar levels for people with past-due balances. The IRS plans to review the results and impact of the lien threshold change in about a year. A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors. Usually the government is not the only creditor to whom the taxpayer owes money. A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter. A lien can affect a taxpayer's credit rating, so it is critical to arrange the payment of taxes as quickly as possible. “Raising the lien threshold keeps pace with inflation and makes sense for the tax system,” Shulman said. “These changes mean tens of thousands of people won’t be burdened by liens, and this step will take place without significantly increasing the financial risk to the government.” Tax Lien Withdrawals The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals. Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government. In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens. Direct Debit Installment Agreements and Liens The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios: Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement. The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement. The IRS will also withdraw liens on existing Direct Debit Installment greements upon taxpayer request. Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored. In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements. “We are trying to minimize burden on taxpayers while collecting the proper amount of tax,” Shulman said. “We believe taking away taxpayer burden makes sense when a taxpayer has taken the proactive step of entering a direct debit agreement.” Installment Agreements and Small Businesses The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate. Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay. The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business. Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less. Small businesses will need to enroll in a Direct Debit Installment Agreement to participate. “Small businesses are an important part of the nation’s economy, and the IRS should help them when we can,” Shulman said, “By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations.” Offers in Compromise The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers. This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less. OICs are subject to acceptance based on legal requirements. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay. Related Items: IRS Begins Tax Season 2009 with Steps to Help Financially Distressed Taxpayers; Promotes Credits, e-File Options (IR-2009-2) IRS Speeds Lien Relief for Homeowners Trying to Refinance, Sell (IR-2008-141)

It does not stop the penalty. But if you have the option to direct which items you are paying, you can pay the ones that lead to personal liability first, so that you minimize the penalties. Whereas, the IRS will otherwise apply the payment first to the ones that you are NOT personally liable for.

OUCH

Did I make it clear that there is an easy 'workaround' for that bug? Yes, it's a pain, but not a big one, just a little twinge. You 'add' the AR 4, and you go to the line 7 worksheet and do 'start link' on the total and then then go to the AR 1000F and do 'finish link' on line 8. Done. Everything else works just fine. And yes, I confirmed with the AR efile help desk that that will work fine for them.

Excellent answer, Jainen.

The error message should have an 'occurrence' number, which indicates which one has the problem. Even if the t/p's ssn is where you were sent, if the occurrence number is 3 then it's the first child, as 1 and 2 would be the t/p and the spouse.

I'm guessing 'next year' but who knows, there are such things as Miracles, right?

Not yet

Yeah, she will talk to her friends, and someone will tell her how to get it by telling the preparer that she had 'babysitting money earned' or cleaned houses for cash, etc, and then the preparer, who may be as innocent as the driven snow, will file her a Sch C and an EIC, and she's got a nice check coming. Assuming, of course, that she has a child or two. The cheaters tend to hang out together and they share these things, so she will find out just how much to claim as income to max out the EIC.

Yes, but the executor signs "as executor" and the 1310 explains it all to the IRS.

When processing a Minister's return, the program is not pulling the Clergy W-2 to line 8, nor is it picking up Excess Housing Allowance. The program SHOULD pull the amount from the Line 7 WORKSHEET TOTAL to line 8. In the past, AR had a separate line for Ministers, and the program worked fine. Now, the worksheet for Federal Line 7 works right, but the info does not feed to the AR1000F. The workaround is to go to the Fed Line 7 worksheet and link the total to the AR line 8, and add the AR4, which is where the nontaxable portion of the housing allowance now shows up. The AR4 is not being added automatically, as it should when there is Housing Allowance on the Clergy Worksheet. If you add the AR 4 the amount does automatically show up.

WAS THAT AN ARKANSAS AMENDMENT?

FYI. From PPC update. *Employment Taxes優esignation of Deposits: *The IRS noted in informal advice that taxpayers making federal tax deposits to satisfy employment tax withholding requirements have no right to designate between trust fund and non-trust fund taxes. The IRS's policy to apply voluntarily tendered remittances of tax in accordance with a taxpayer's instructions applies to tax *payments *, not tax *deposits *. To have a payment, the IRS must assess the tax. An assessment cannot be made until an amount is due and payable, and employment taxes are not due and payable until the due date of the return. Any remittance before the due date of the return is a *deposit *and not a payment. CCA 201105034 .

Loved that one.

Yes, there is no requirement that a married couple live together.

There is a bug in the AR amended return program. The program is picking up the REFUND from the original as a PAYMENT, thereby INCREASING the refund on the amended return rather than decreasing it by the amount already received. I have reported this to ATX, but for anyone doing one now, you need to go to Line 40 and correct it.

If she is smart she will come back, but often this type of person will try to use your work this year as a 'guide' and do her own again. Which, given the constant changes the Congress makes these days, is almost always a bad decision.

New Round Of I-9 Audits U.S. Immigration and Customs Enforcement (ICE) has started to serve another round of I-9 Notices of Inspection (NOIs) to businesses nationwide. ICE is expected to issue NOIs to over 1,000 businesses in the next few days. The NOIs require in-person inspection of I-9 employment verification forms and payroll documentation. Targeted employers are given three business days to prepare for a meeting with federal officials for review of the requested documentation. In the recent past, ICE has selected businesses for audit based on specific leads and information regarding allegations of hiring unauthorized workers, exploiting workers, and paying unfair wages. ICE also has targeted certain industries, including hospitality, manufacturing, and construction. Fines for uncorrected technical and substantive errors on the forms range from $110 to $1,100. Higher fines apply for knowing employment of unauthorized workers. Even if you do not receive an NOI in this round of audits, we recommend that you take this opportunity to conduct an audit of your I-9 compliance and policies.

You can cancel it yourself, or you can ask him to do it. I'd choose the first option, since he does not sound too reliable. The second page of the instructions for the 2848 tells you exactly how to do it.

The emoticons showed up because the emoticon is made by typing a capital B followed by a ). So when typing a cite that uses a capital B, you need to insert a space after the B, or else you need to turn off the emoticons entirely. PS, I removed them for you by inserting the space for you.

Oh my God......that one cracked me up. I almost fell out of my chair. :spaz: