gfizer

I checked all of my EIC refunds today. All of them except one have been processed and either already deposited or show an anticipated direct deposit date. The one that still only shows it has been received was the first one I e-filed on January 31st but it has a Form 8379 with it so I'm thinking that could be what is slowing it down.

I created and submitted several this evening. Worked like a charm!

I always remove forms from the previous year that are not going to be used in the current year's return. Don't like all those pesky form tabs taking up space and I despise wasting paper printing blank forms if I forget to uncheck the print boxes!

I don't know the answer but I hope someone gives us one soon. I, too, am tired of wasting paper and toner when I forget to uncheck the box. And like you, Janitor Bob, there are some features of the new program that are growing on me. I just wish it wasn't so slow sometimes. I ran out of small talk topics while waiting for a return to print yesterday.....1 page every 3 minutes or so. Aaarrgghhh!

Hmmm. I like that idea but when I try it I get a message that says Locked Field: This field may not be modified...

I've had mine for a couple of weeks

Form 706 is due 9 mos. from the exact date of death (i.e. for a decedent dying 1/12/12 Form 706 would be due on 10/12/12)

Closing the estate is not the problem. I file 1041 forms all the time for estates that have been finalized during the preceding year. There is nothing reported to the IRS to notify them when an estate is closed until they receive a 1041 marked "final return."

There is no way that I know of to check e-file status from the return manager. I always do exactly as you suggested. I print a client list and then cross-check it against the e-file manager. I would be interested to know if anyone else knows an easier way as well.

Do employee contributions to Kentucky Teachers Retiremement qualify for the retiremement savings credit? As you know, the instructions list a variety of plan types and voluntary employee contributions to a qualified retirement plan as defined in section 4974©. Kentucky Teachers Retirement System is a defined benefit plan qualified under Section 401(a) of the IRC. Section 4974©(1) says a 'qualifed retirement plan' means a plan described in section 401(a) which includes a trust exempt from tax uder section 501(a). I think this means that the contributions, which are reported in box 14 (not box 12) of the w-2 as "Retirement" qualify for the credit but this late in the game my brain is fried and I'm second guessing myself. What do you guys think? Thanks!

Yes, the fences are his. They will be depreciated and he will opt out of any bonus depreciation. This is a program made available to local farmers by application to the fiscal court for the purpose of providing funds for farm improvements. It is my understanding that the money is available on a first come-first serve basis to those who apply.

Client files Form 4835, Farm Rental. Received grant funds from local goverment entity to build agricultural fencing on his farm. The government entity has reported the grant funds to the taxpayer on 1099-MISC as nonemployee compensation. If I report this as "other income" on Form 4835 wil this trigger questions from the IRS about why SE tax was not paid?

I have a client who was leasing a farm to an individual. The original lease was for a sum certain each year and had an initial term of 5 years with an option to renew annually each year after the initial 5 years. The initial term expired many years ago and the lease had been renewed annually for several years. In 2011 my client's grandchildren convinced her that she was not getting a good price (which she wasn't) and talked her into leasing the farm to someone else instead on a cropshare agreement. The original lessee of course got mad and sued my client. I don't have all the specifics of the lawsuit, but in a nutshell rather than the expense and time involved to litigate the matter the parties agreed to go to mediation and as a result my client agreed to pay the original lessee a lump sum cash settlement which the Settlement Agreement says is for "settlement of his claim to an extension of the lease." Logically, in my mind at least, I would think that this payment should be deductible by my client, but where and how? Should it be amortized and if so how long? Is there anyone else out there who has had any experience in this area or who can offer a suggestion as to how the payment should be handled? Thanks!

Thanks. I think it is properly reported on 1065. The partnership, which is a multi-member LLC, is made of 3 siblings who inherited their grandmother's farm.

I'm having brain lock. I have a general partnership whose only activity is farm rental. Do I report this on Form 8825? I appreciate your help.

For the past 25 years I have prepared taxes at a local law firm. After last tax season I gave my notice and will be striking out on my own this year. I expect most of my clients will follow me and of course I hope to adverstise and pick up new clients as well. Currently, I do about 200 returns. Most are farm returns and trust/estate returns. I know I need E&O insurance coverage, but I have no idea how much coverage I need or where to start to get it. Can anyone give me some ideas about how to determine coverage amounts, expected cost of premiums, and maybe share the names/contact information for some reputable companies? Thanks for your help!

I have inherited several 990-PF returns for non-exempt charitable trusts filing 990-PF in lieu of Form 1041. These trusts are administered by one of our local banks. The trusts are very small in nature - most have less than $1,500 in annual investment income. Problem is this, the fiduciary spends/distributes only the income from the trust which in most cases is pursuant to the direction of the trust instrument. This was not a problem when interest rates were good, but now earnings rates are so low that they are not meeting their required 5% annual investment return and are starting to get creamed by the 30% excise tax for failure to distribute income. Does anyone know where I might start looking for information about converting these back to filing Form 1041, or if that's even possible, or have any other ideas or suggestions. This is becoming a vicious cycle and it's only going to get worse because most, and sometimes all, of the income is now being used to pay tax so no distributions are being made for charitable purposes. I'm sort of at a loss as to what to do.

Just depends on if the POA is a durable power. The general powers of attorney prepared by our office specifically include the power to sign and file federal and state tax returns and contain language stating that they will not be affected by the disability of the principal.

I prepare tax returns for an investment club which is organized as a general partnership consisting of 21 members/partners. The club began in 1988 with each member contributing $500, which was used to purchase stock. The club receives stock dividends which are held in a money market account with a brokerage firm. In addition, each member makes an annual contribution of $300. A couple of times each year, the members meet and decide what new stocks to purchase with the accumulated dividends, annual contributions and any gains from stock sales. No funds are ever distributed to the individual members. Each year we prepare a 1065 and pass the dividends, interest, and any gain or losses through to the individual members/partners. In 2010 the club decided to sell substantially all of its holdings, thereby netting a gain of approximately $145,000. I have shown each stock sale on schedule D showing the sale price and the cost basis. One of the members is insisting that since they never received any cash distributions of the income and yet paid tax on it every year, that the income amounts provide additional basis. I disagree because the income was used to purchase other stocks thereby providing basis for those new stock purchases. It appears to me that we would be double-dipping if we use the income as additional basis and then also use it as basis for the other stock acquisitions. Since we are talking about an $83,000.00 difference I thought I would get some input from you guys. Any thoughts?

I'm having the same problem. I really think it's a program glitch.

Anyone heard when we should be able to e-file fiduciary returns? ATX website says it should be available in late January but obviously that didn't happen. I've got 10 sitting on my desk I sure would like to get rid of.

Same here except its been 23 years for me. This was the most stress-free tax season I've ever had. Now on to 990-PF returns. Yuck!

I'm just really glad that I don't have anything to efile today. Sent the last of them yesterday. However, I would like to receive my acks instead of the famous (or infamous) "fatal error" message.

I filed an amended return showing no money sent with the originally e-filed return which had a balance due for a client a couple of years ago. It all worked out in the end, but be prepared for hate mail from the IRS wanting to know where the payment is until the amended return finally gets processed against the orignal return which took about 3 months in my case. Save yourself some heartache and let your client know right up front to expect correspondence.

I have a married couple who both receive a w-2 from their respective employers for 3rd party sick pay. W-2s correctly show wages in box 1 and no other entries for tax, social security or medicare withholding. Other than social security disability this is the only income they have. They each received their $250 payment. Does the 3rd party sick pay count as earned income and qualify them for the $300 balance of the making work pay credit?