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I have a client who has for many years been a general partnership with two partners filing a Form 1065 for rental real estate activity.  This year, without consulting me, they decided to form a limited liability company and filed all the appropriate paperwork with the Kentucky Secretary of State.  The entity is still be taxed as a partnership so technically nothing changed from a tax perspective except the name which went from "BW Associates" to "B&W, LLC."  As I understand it, I would simply have needed to check the "name change" box on the 2020 return and continue on my merry way.  Problem is, however, that they applied for and received a new Federal ID number for the LLC.  Because of this, do I need to file a part year return for BW Associates and a part year return for B&W LLC, or can I continue using the old EIN and try to explain to the IRS should they ever question why a return was never filed under the new number issued to the LLC?  To further complicate matters, they never completed the registration process with the state of Kentucky and as a result have no ID number for filing the state return for the LLC.  Why do people do things without asking questions first?!? Ugh.

Sorry for your loss. Prayers for your family.

I had someone call yesterday saying he owned three rental properties and he really wanted to do his own returns but wanted to know how much I would charge to teach him how to do the depreciation.  Say what?  I was less than kind in my response which is unlike me but it finally hit me at 4:30 p.m.  that the reason I was so grumpy was because I forgot to drink my morning coffee.

2 hours ago, BLACK BART said:

P. S.  

As long as I'm on the subject, anybody happen to know if T/P had no refund for '18 or '19 and and paid with a direct debit or a check - will they still have to fill out GET MY PAYMENT at irs.gov ? (By the way, that site was down for a while yesterday but was back up a while ago).

 

Per the FAQ section on the IRS website they will not use the bank account info if payment of 2018 or 2019 tax  was made via direct debit.  Those clients will have to use the IRS Get My Payment tool to input their bank info

13 hours ago, TAXMAN said:

Yes but the dcn number must be in the current processing year or it will bounce all over the place.

I currently have this situation with a 2018 return.  How do you change the DCN number?

Just now, Randall said:

I got an email from Ky Society of CPAs on Ky legislation.  Yes originally Interest was not included because it needed to be waived by legislation.  A new bill has passed and is waiting on Governor's signature to include the waiver of interest until July 15.  I'm not sure if it's official yet but I think it's coming.

 

 

Well, that is good to know.  Thanks for the update.

On 3/27/2020 at 6:23 PM, Randall said:

Kentucky has followed the Federal extensions.  In northern Ky, 3 counties (Kenton, Boone and Campbell) have followed the extensions.  Including the cities that report on the County form.  Several cities who have their individual form haven't reported an extension yet.  The Kentucky Society of CPAs has a link for which local jurisdictions are offering extensions.

 

It should be noted that according to the Kentucky Department of Revenue website that income tax payments received after April 15th will not be subject to penalty but WILL be subject to interest since Kentucky law prohibits the waiver of interest.

On 3/24/2020 at 4:39 PM, Margaret CPA in OH said:

I noticed a new form KY OL-S available for KY.  I appears to be similar to the Generic City Returns for OH but not sure.  I couldn't find it on the KY DOR website forms but it does appear to ask all the information that was/is on the OL-3.  Is it okay to use?  It would be great!

I've not used it personally but there is another preparer in my area who uses is without issue for our local city occupational tax.

18 hours ago, Randall said:

I'm 5 minutes from my office.  No staff, several attorneys in the building (old house converted to offices).  I can get caught up on my backlog in my office.  I've been letting clients decide for the last several weeks how they want to do things.  I've mailed some out.  I've had clients call from the parking lot and taken it out to them.  Some clients come in as usual.

 

So far we are still open for people to drop off information or sign returns but it's been pretty quiet.   I emailed the kysafer.ky.gov website yesterday and explained our process and procedure to make sure we were compliant and considered exempt from the order as a professional financial service but I have yet to hear anything back from them.  I imagine they are swamped.    

6 minutes ago, Margaret CPA in OH said:

Ohio is extended.

Thanks for that info, Margaret.  Being in Kentucky near the Ohio line I do a few Ohio returns so I was wondering if they had extended. Stay safe and healthy!

Governor Beshear ordered all non-essential businesses in Kentucky to close by 8 p.m. tonight.  Financial and professional services are exempt under the order but he stated in his press conference that he felt that most accountants could work from home.  Payday loan services are allowed to remain open.  Surely I am as important as a payday loans service 

According to the local news alert I just received Secretary Mnuchin just announced that the tax filing deadline has been moved from April 15th to July 15th.  He said on Twitter  that, "All taxpayers and businesses will have this additional time to file and make payments without interest or penalties."

I’ve set up a verifyle account to use in the midst of all this, including the ability to do digital signatures.  I sent my first 8879 to a couple today and she says it’s only set up for her signature (I used her email as the contact) and she can’t figure out how to set it up for his signature too.  Anyone know how I make this work?

I suspended all face-to-face appointments and went to drop-off or secure file transfer only starting today.  I have a fairly large elderly client base so I am offering to pick up information for those folks, although the majority of people I've seen out and about are the over 60 crowd.  

On 3/4/2020 at 6:51 PM, Randall said:

I just noticed my letters are saying Kentucky tax should be paid by April 20.  I don't know if I missed something about Ky delaying payment date or if it's a glitch.

I noticed the same thing early on.  Weird.  Not sure where they came up with that date.

I have had this situation several times.  I simply paper file the parent's return claiming the dependent and at the same time mail in the amended return for the child.  The parents receive their income in the same time frame as any paper filed return.  This very thing is the reason that I prepare a child's return for free when I do the parent's return.  

I have an Old Order Amish client with 8 children.  He works for an Amish employer and both are 4029 exempt.  The employer issues a W2 form showing Box 1 wages but no social security or medicare wages, which is correct.  When I input all of this information in ATX the software tries to allow him the refundable additional child tax credit.  If the earnings were from self-employment this would not be the case but I am supposing the reason it is allowing the credit is because these are W2 wages.  I still believe that the 4029 exemption disqualifies him from refundable part of the credit but I can't really find anything definitive and that I simple need to override the credit on the 8812.  Anyone have any thoughts or experience with this situation?

No - you add the amounts from BOTH 1095A forms to arrive at the figures to put in columns A & F of Form 8962.  Both 1095 A forms should have the same amount in Column B so you use that amount (don't add the two forms) for column B of 8962.  Be sure you actually have two different 1095A forms and not 2 copies of the same form.

6 minutes ago, Tracy Lee said:

So if I understand this correctly, even though the married couple each have their own plan and their own statement; because the statements are identical and Part 1 shows both the spouses name on both statements, I need only to add the amounts from one of the 1095s because this is the credit for both of them?

11 minutes ago, Tracy Lee said:

I need to enter two 1095-A statements for a married couple but can't seem to find a way to enter the second one.  I'm only able to enter data on form 8962 for the filer.  What am I missing to be able to add the wife's statement?

  (Column A - add amounts from all forms 1095-A and enter the total; Column B - all 1095-A forms should show the same amount for the SLCSP premium so enter the amount from column B of only one Form 1095-A; Column F - Add the amounts from all 1095-A forms together and enter in column F)

FROM THE INSTRUCTIONS FOR FORM 8962:

"Column (a). Enter the annual enrollment premiums from Form 1095-A, line 33, column A. If you have more than one Form 1095-A, add the amounts together and enter the total on Form 8962, line 11, column (a). This amount is the total of your enrollment premiums for the year, including the portion paid by APTC. If you or a member of your tax family was enrolled in a stand-alone dental plan that provided pediatric benefits, the portion of the dental plan premiums for the pediatric benefits will be included in the amount in column A on the Form 1095-A that reports the coverage in your primary health plan. If your plan covered benefits that are not essential health benefits, such as adult dental or vision benefits, the amount in this column will be reduced by the premiums for the non-essential benefits.

Column (b). Enter the annual applicable SLCSP premium from Form 1095-A, line 33, column B. If you have more than one Form 1095-A, enter the amount as follows. • If individuals in your coverage family enrolled in more than one policy in the same state, you will receive a Form 1095-A for each policy. The Marketplace should have entered the same SLCSP premium, which applies to all members of your coverage family, on each Form 1095-A. Enter the amount from column B of only one Form 1095-A—do not add the amounts from each form. However, if you got married in December of 2019 and you and your spouse, or individuals in your and your spouse's tax family, were enrolled in separate qualified health plans, add the amounts from Form 1095-A, column B, for each plan (or plans) and enter the total. If you got married in a month other than December, your applicable SLCSP premium may not be the same for every month. If it is not the same for every month, you cannot use line 11. • For individuals enrolled in qualified health plans in different states, add together the amounts from column B of the Forms 1095-A from each state and enter the total on Form 8962, line 11, column (b).

Column (f). Enter the APTC amount from Form 1095-A, line 33, column C. If you have more than one Form 1095-A, add the amounts together and enter the total on Form 8962, line 11, column (f)."

Client has a geothermal system which was installed several years ago.  He had to have the compressor replaced this year to the tune of $2000.  As a repair, would this qualify for the energy credit?  I'm thinking no but of course the client thinks yes.

None of mine filed on 1/31 have been accepted either

Same problem here. I'm only seeing it when there is a Schedule E in the return.

I received the Tax Book but there was an additional charge for it.

I wish when it tells you some of the forms in the return are not approved for efiling that it would tell you which ones.  I'm not expecting to be able to efile Form 741 this year.  I wish we could.  Those are about the only forms I still paper file.

I had the same problem last year (and many years prior).  Upgraded to a new computer this year and haven't experienced the problem so far. Fingers crossed!