Cathy

JKL, You took the words right out of my mouth..."She's one that won't be invited back next year." Life is too short for such nonsense, and you can count on the fact that she's a tad bit smarter than she lets on. Not too big of a tad, but a tad anyway! With all of the changes that have come and gone and will come again next year, if you don't give it your all, you don't come back! You may even be told to go somewhere else before next year! Take care, Cathy

Robert, Robert, I think your answer to "How is that possible?" is in the prior sentence (same paragraph). It's the wife...the husband is a single wage earner for the family and the wife is a stay at home shopaholic and may have found a nice little place to gamble too. I have seen couples like this and God forbid, something tragic happens with the wife. After, the widower trucks on and always has plenty enough to pay me without asking me to hold his check. I can say this outloud because I'm a female too! Not one who would live way beyond my means....but nevertheless I have seen it happen too many times over the years.

Why is it not correct for a person who is claiming their own dependency on their return and is covered by the parents insurance wrong if the box is checked to show that she was insured the entire year?? I had a return today that I had not gotten to the line to check to show that a MFJ couple had insurance. My ATX program had already included a penalty on the return!! We saw this last year whereas ATX changed several times (back and forth) to include the credit if the box was not checked either by accident or not checking on purpose.

Jasmin, You might want to look into "Go To My PC" a neat app that lets you work on your computer from a different location than where the computer is housed. The other location can be from another desk computer, etc.. I've use it often. My DIL works for a huge insurance company and introduced it to me. She uses it such as when she has a sick child and needs to be home but has to get a presentation finished for a meeting, etc... Take care, Cathy

I read the link to IRS talking about the "pilot" program with these new codes. And, of course, what didn't surprise me in the least was the following: " However, omitted and incorrect verification codes will not delay the processing of a tax return." Why should IRS take these codes seriously when, for years (and it's probably still occurring) they have processed returns where a spouse's birth date (including the month, day and year) is incorrect and issued refunds without questioning the returns EVER.... Wonder how many bogus refunds were issued without correct taxpayer dates of birth year after year??One of the most simplest forms of security control but no one at IRS could program their computer systems to recognize incorrect taxpayer birth dates. Pitiful!

Form 5695 has been modified and appears to be ready for the Windows credit that I've been waiting on. Sch A has been modified to accept the PMI payments.

Thanks Lynn, Unfortunately, I was born in December and as a result, I'm a stickler for details and had to take a look at the new law itself (Act No. 375). I also looked at the history of the Act from when the bill was filed until it became Act 375. It appears that it started off just to repeal the $25-$18 credit, but upon amendments, etc...it ended up doing more than that. I don't know if it's a case of some single Senator or Rep. or several of them that wanted more placed into the bill, but however, it did happen. Last minute inserts in bills is a common way for one or more to get what they want without having to discuss it, etc.. It's happened before and will continue to happen...just the way it works in Louisiana anyway. I'm going to give the legal department what I found and forget about it so I can get some work done. If it needs to be "fixed", they can do it in the regular session this year. If not...so be it. I had enough of dealing with every single division of the DOR the year I discovered the financial problem that was going to plague Louisiana concerning the generation of hefty refunds to those who bought vehicles that were labeled "Flex Fuel" for those vehicles that could use regular unleaded gasoline or unleaded gasoline with 10% ethanol. Thanks for your help, Cathy

Hi Lynn, I do agree that the $18 credit is gone as Act No. 375 of the 2017 Regular Session, in part, states the following: (In reference to R.S. 47:197(D)(2)) "Section 2. R.S. 47:297(D)(2) as amended by Section 5 of Act No. 125 of the 2015 Regular Session of the Legislature is hereby repealed." There is more to Act No. 375 that just the repeal of the $18 credit. They "sunset" the tax credit of the tuition, cost of supplies, etc...to "before January 1, 2017" which eliminates the credit for all intents and purposes for the 2017 tax year....HOWEVER, that same section of R.S. 47:297(D)(1) goes on to state: "unless the deduction for the payment of tuition and fees for nonpublic elementary and secondary school tuition is taken for the child as provided for in R.S. 47:297.10. If you take a look at 47:297.10 you'll see that the nonpublic and the public schools that are run by a public college or university still have the tuition credit available. Cathy

Look at your Preferences, I think is where I found a check box in the program to allow or not allow pop - ups in the program. First time I saw it was for the 2017 returns. It's there (box to check)...hope you find it.

What if the parent goes into a nursing home and kids sell home before mom dies? Technically her home LE but I think they are splitting money - early inheritance??? If the kids sell the home before the mother dies, the funds from the sale go to the nursing home for Mom's monthly R&B, medication, etc.. Assuming Medicaid is paying Mom's expenses.

I tend to think that the sooner you take the tests following April's deadline this year the better insofar as the questions should follow closer to what you have been accustomed to for all of these years. If you wait until late 2018 or 2019, you'll be dealing with the newer rules and regulations as a result of the new tax laws. I'd rather try to stick with what I know now than wait and take a chance on what I'll have to learn for the 2018 filing season especially since we are still waiting on confirmation of some Extender tax issues for our 2017 returns in progress. Food for thought: I've had clients in the past who have asked me if I was an EA. When I would tell them "no", the vast majority of them would say they were relieved because I wasn't an "IRS Agent". Just a free perk of living in the country! Take care, Cathy

Thanks, Lynn! I appreciate your help! The $25 ($18) credit had a section number for just that particular credit...and of course I'm away from my computer but will pass it on to you in the morning. Rather than the Act sunsetting the credit as it did with the uniforms, fees, etc..for public schools, the language of the act was that this credit was repealed. Thanks again! Cathy

IRS did announce that PMI is still deductible, and a couple of other things in their notice: IR-2018-33, Feb. 22, 2018. I found it under IRS.gov/Extenders where it says check back often. I had been looking earlier today and again several hours later...guess if we just check it once or twice a day. The Extender legislation wasn't signed until 2-9-18 from what IRS stated (The Bipartisan Budget Act). Fine time for them to do their job!

Hi Lynn, Please give me your opinion on my take of the Education Credit that the instructions says: "Act 375 of the 2017 Regular Legislative Session sunsets the credit. The credit is no longer available to be claimed on the 2017 tax return and thus, has been removed. (RS 47:297 (D)". It appears that the credit is still intact for the non-public students with the same $5,000 limit for those taxpayers. ACT No. 375 (appears to me) to have ended the credit for the home schooled and public students regarding the $18 credit (that used to be $25) as well, and those same students will no longer have 50% of uniforms, supplies, etc.. applied as a credit. RS 47:297.10 appears to leave in place the $5,000 deduction for the non-public students and the students who attend a public school that is run by a college (such as U-High run by LSU in Baton Rouge) whereby the student has to pay tuition, etc such that a non-public school does. Also Act No. 375 appears to also leave the non-public credit in place with the language in the ACT 375 in 297 (D)(1) which states in the last sentence in that section: "unless the deduction for the payment of tuition and fees for nonpublic elementary and secondary school tuition is taken for the child as provided for in RS 47:297.10. The form for the credits for both public and non-public schools is still included in the return, and both are functional with figures. When the bill for the credits was first introduced, it was done so by a Senator from our area. He left out the non-public students but I called his office and pretended like they just made an error. They then included the non-public students. He has since left the legislature so I don't know whose bright idea it was to make this change. Hate to bother you....just wait until you have time....August, or September would be fine.... I can understand why the instructions for the Education Credit aren't complete as it looks like the author is possibly someone who hates injustice as much as I do. The instructions are in the 4th paragraph on page 1, under "What's New for Louisiana 2017 Individual Income Tax". Take care, Cathy

Years ago, I had the "pleasure" of being audited. Because I took bad advice from three (3) separate CPA's from across the country, I had to pay and received my letter for the next year shortly after. After seeing exactly how the audits were performed my first trip, the second trip I went in and had a 1040 with Schedule C, etc. audit with almost every line scrutinized thoroughly. I was in and out in fifteen minutes with orders to go back home and tell my husband (it was his business) that if he didn't take me out to eat that she....well, let's just say, IRS employees are humans too....she was going to come kick his a** back to Baton Rouge. She told me I probably wouldn't get another letter as I got back a refund ($7.32......she kept begging me to think of anything I forgot to put on the second return when I initially filed it). So maybe getting a small refund on the next audit will help do the trick. Someone really needs his a## kicked for having to go back 5 more times after the first audit! If I had a client who was audited 6 times, I think that client would be looking for someone else to prepare his return! (You're either a kind soul or your "client" looks back at you in the mirror every time you look.) Take care, Cathy

I think the issue has already been moved from the "to do" list to the "done" list! l

My suspicions were confirmed yesterday that IRS doesn't stop an E-Filed returned if an incorrect birthdate is used for a spouse on the E-File Info page. Remember hearing at seminars that the dates of birth for the taxpayer and spouse were going to help prevent fraud. Huh....it might indeed help if returns with incorrect birth dates were rejected! This really doesn't surprise me.

I'm afraid he also has some exposure with IRS. Several years back, I remember IRS telling tax practitioners that many farmers were losing money year after year after year. If I remember correctly, what they basically said was the tax practitioners could be held responsible for continually showing losses for a farmer(s) if it was common sense to said practitioners that these farmers were either involved in hobbies or plan out stretching the truth. I was relieved as it gave me a way out. One of my clients called several CPAs he knew personally before he left my office. Each CPA repeated my feelings about these type clients.....go somewhere else.

Couple was married 22 to 23 years when the spouse died....

It kind of sounds like the days of yesteryear.....the year, that is, when the board was shut down because they didn't like comments in regard to the issues that we all had that one year in particular when it was a fight every time we had to file a return!!!!! The board just vanished...poof...no word....just vanished! Oh, yes, I do remember well!

And for the correct answer: Go to IRS.gov and search for "Do you need a new EIN number". There are a couple of cases where a new number is needed by a Sole Proprietor. Looked for the "Edit" button but couldn't find it....was going to "fix" my first reply and hoped no one had read it....oh well!!!

An EIN stays with a sole proprietor for life. And a new number was proper for a corporation as the corporation is a separate entity from a sole proprietor. Regardless of what business the INDIVIDUAL sole proprietor is in, he uses the same EIN number for his INDIVIDUAL business(es).

Is the letter you are referring to your initial letter before the lien is placed (30 days prior to if memory serves me correctly)? If so, take a deep breath as you have time to make sure your house won't be considered in the lien. First thing I would do would be to make eye to eye contact with the person who is in charge of legal documents such as mortgages, etc. That person is called the Clerk of Court in Louisiana. Anyway, go to the proper County that your home is domiciled in and get with the head knocker. Don't even give the other County a second thought. How are they going to put a lien on property when it's not even located in their County? The person in charge in your County can put a flag on you property if he/she even feels like it's necessary, but I'm willing to bet you will be told you have nothing to worry about! I would be extremely amazed if your property already has a lien from IRS on it, but go and visit your County's office IN PERSON so you will know all is ok!! Take care!

I'm sure we have all given each of our clients the mileage log requirements more than once to say the least. One of my clients went to an audit without me as I had warned my clients that no mileage log and you go on your own! The auditor was so impressed with how well prepared the client was pertaining to all other aspects of the return (it was a full line by line audit...I told her how to get organized and what she needed to do...didn't do her job for her...just guided her).....getting back to the auditor, she told my client to go back home that evening and "reconstruct a mileage log" and even gave her several tips on how to stretch the mileage to make it work out to the total miles she claimed. To make a long story short, it was a "nothing owed" audit. Illmas, to make a long story short, I would sit down with the client (maximum 15 minutes) and tell him what IRS expects to see on the mileage log. I might even go so far as to print out blank forms for him to use. It's not your fault neither your responsibility to do what should have been done before his return was prepared. And don't let him/her please dumb and helpless....I'd then wish him well and tell him I hope he gets through before the July 4th holiday. And....sure....after HE gets completely through with his log.....totals, etc...., COMPLETELY THROUGH, I'll be glad to look it over before your audit. With an "associate" like yours, who needs enemies?? Take care, Cathy

That's exactly what it sounds to me. There are any number of things that could have happened such as since the e-filed return was accepted, another return was received for the taxpayer(s) through the mail. It sounds like the agent working on this case is very inexperienced, and in trying to keep from calling the client fraudulent, wording of the correspondence is not ideal to say the least! Years ago, there were two systems that reviewed the e-filed returns for correctness. One system was used on the initial e-filing of the return and right before the refunds were released, another system was used to review the return all over again. Sounds like the same type of situation still exists today...it should if it doesn't anyway!