Catherine

Client's spouse has had a couple of foreign accounts, always well under the limits for FBAR filings. However in reviewing some old records they were going to shred, he discovered that back in 2011 it's possible that one account went over the limit for less than a week. He will have to dig out old conversion rates and the detailed history of the account to see if it happened, or didn't quite happen, or just looked like it might have happened. Anyone know where I can look up whether or not FinCen wants a 12 year old FBAR filing and if so doing would open up a bigger can of worms?

At least you are confused at a Higher Level and about More Important Things? (or not)

I used TaxAct well over 20 years ago, and liked it. At the time, it rapidly became too limited for me because it did not, back then, support non-resident or part-year state returns. Jumped ship for ATX, and then to Drake in 2013 during the 2012 filing season fiasco. So my information is decidedly non-current

If it's a free social media "service" then it's you who is the product being sold!

Hey, once you figure out how to fake "ethics" you've got it made! Which always makes me chuckle at the hours-of-ethics cpe requirements. Either you're (trying your best to be) honest and moral, or you're lying about being honest and moral.

I've seen this for years, and figured it was so each spouse would know about liability - and if one took the other's letter, then they have mail fraud as well as non-payment of taxes for which to go after him/her.

Yes, you can save pdf copies of all forms (individually or all at once) immediately. The fees are low - working from memory here, for years it was $3.49 to print/mail/efile and $2.99 to efile only (you get pdfs in all cases). I think it went up a bit this year due to postage cost increases - maybe $3.99 and $3.49. You don't get a 1096 for 1099 filings, but there is a W3.

I worked with a CPA auditor when a company I worked for was having an audit. He most specifically did NOT want to look at any of the weird things I was seeing - refused point-blank. At that point I figured an audit was just a useless rubber-stamp paid for to put lipstick on a pig.

I tried to get rid of one PITA client this year by suggesting VITA and local free-file services, telling them I had to increase my fees but they could get good service for free. Nope; they came back saying they'd rather pay me more, because they like and trust me. Ah, well.

I draw the line at anything outside the tax return that has large preparer penalties attached (even when filing is done correctly based on information given by client that turns out to be incorrect). So, no FinCen 114 (FBAR) forms - just the link to the online forms, and a suggestion to print the pdf first and fill it out where one can double-check all the info before submitting. I will include 8938s in a return. I would touch exactly none of these corporate filings.

These folks (Corvee) keep sending me solicitations to buy their planning software (which may be very good, but I'm not interested). But they also send me links to blog posts. This one, on GoFundMe fundraisers, may be useful as a client handout (email-out). Corvee GoFundMe article For those who won't click links, here is the text (missing all the nice formatting): Over the past decade, GoFundMe has turned into the biggest crowdfunding platform there is. Many of the fundraisers on GoFundMe are charitable in nature, so it’s natural that people would wonder: are my GoFundMe donations tax deductible? Like many questions involving taxes: it depends. If you are donating to a qualified 501(c) organization that has set up a GoFundMe page, then yes. There is a list of certified charities so donors can know if they are making a tax-deductible contribution. If it’s not a qualified 501(c), then it’s considered a personal donation and therefore is not tax deductible. Deductible Vs. Non-Deductible Donations on GoFundMe GoFundMe actually started out as CreateAFund in 2008. It later morphed into GoFundMe in 2010. As a platform to raise funds for almost any cause, GoFundMe donations are considered personal in nature, unless they’re made to a 501(c) organization that has registered on the site. All donations made to personal GoFundMe pages, as opposed to specific 501(c) charity fundraisers, are considered personal gifts — which are not guaranteed to be tax deductible. It can be confusing because you may be doing a charitable thing on GoFundMe, but just because a gift is charitable doesn’t make it automatically eligible for tax relief. Easily Save Clients Thousands in Taxes Scan client returns. Uncover savings. Export a professional tax plan. All in minutes. Request a Demo Look out for other unintended tax consequences from direct contributions to individuals. Because these gifts are not considered charitable, giving large amounts over the annual exclusion gift amount may trigger a requirement to file a form 709 and report the gift amounts. The recipient themselves will not be taxed on the money received. How it Works: GoFundMe raises money for individuals, groups of individuals or organizations. Among these, there are two types of fundraisers: a standard campaign or a Certified Charity campaign. With the standard campaigns, many GoFundMe organizers are individuals who have raised money for a cause and can deposit the money raised into their own personal bank account. While many of the personal causes are good, worthy causes, such as money raised for tuition, medical expenses, funerals, etc.,these gifts are being made to people as opposed to registered charities and as such they generally are not tax deductible. A Charity Campaign, meanwhile, collects donations that go directly to a 501(c)(3) organization. In these cases, the GoFundMe organizer doesn’t handle the money; instead, the funds are sent directly to the charity via the PayPal Giving Fund. This special fund was set up by GoFundMe to facilitate gifts to registered charities. Donors receive receipts from the PayPal Giving Fund, which allows them to claim possible tax deductions. Find More Deductions With Tax Planning Software How Giving on GoFundMe Works Donations to nonprofits are usually tax deductible. The IRS allows you to deduct up to 50% of your adjusted gross income (AGI) if the donation is made in cash, although 20% and 30% limits sometimes apply. For 2020 and 2021, the 50% limitation is suspended, allowing individuals to donate up to 100% of their AGI. Thus, giving to specific 501(c)(3) organizations on GoFundMe could prove to be a good way to reduce tax burden. Just be sure to get your receipt from the PayPal Giving Fund. Remember that personal donations (meaning direct contributions to individuals) through GoFundMe are likely not tax deductible. To claim any possible deduction, itemize deductions on your tax return using Schedule A (Form 1040). Typically, charitable donations could be eligible for deductions if they are given to: A religious organization Federal, state and local governments Certain war veterans’ groups Nonprofit schools and hospitals Charitable contributions typically not deductible include donations to: Foreign organizations Political parties, action committees (PACs) or fundraisers Individuals Foreign governments For-profit schools or hospitals Social and sports clubs Labor unions Homeowners’ associations Note that a large percentage of donations on the GoFundMe platform are to individuals, making them non-deductible. What About GoFundMe.org? There can also be donations made directly to GoFundMe.org, which is a separate entity from GoFundMe. GoFundMe.org is a 501(c)3 public charity that is independent of GoFundMe with a separate board of directors and leadership. While it works closely with GoFundMe, GoFundMe.org cannot receive payments from any GoFundMe campaign except for fundraisers for which GoFundMe.org is identified as the beneficiary. So, you can make a tax-deductible donation to GoFundMe.org that is promoted on the GoFundMe platform. The federal tax ID number of GoFundMe.org is 81-2279757. GoFundMe, however, is not a qualified 501(c)(3) charitable organization, so be sure you check before you give!

The domicile question is relevant, though. No, she wasn't in the US - but the house her ex and her kids live in in MA is where she stays when she is in MA (most amicable divorce I've ever seen!). And she has been here for some months now. MA would likely assert that she has never relinquished MA domicile. Since there is no tax due, we're going to file in MA as a resident and be done with it. After this she's no longer going to be my client (foreign corporation ownership issues way above my comfort level) and the foreign tax expert person can deal with any MA complications (happy to confer with him/her once I get a Section 7216 authorization, should he/she want). Many thanks to all for the questions, comments, advice, and thoughts on different aspects of this oddball circumstance.

Those are now termed "spoiler alerts" Tom.

We knew what you maetn or meant. Or whatever! Best way to find errors and typos is to hit "Send" (or "Enter"). Works every bleeping time!

I have the clients send me copies of checks (with issue date) plus copy of statement showing the deposit (dated) when the rollover happens, and save it. That way when the CP2000 shows up in 6-18 months, the client isn't scrambling to find documentation that, at that time, is at least one year and sometimes more than two years in the past.

Many of these will say "AMENDED" rather than corrected, at the top of the form. That way you know there have been changes (some of them marked!) but as far as the IRS is concerned, it's original.

Less than $3,000. MA personal exemption is over $4,000. No payment to either feds or state.

Especially when considering the trouble with getting postal deliveries to many countries, having friends or family in the US who will accept your mail and pass along any important items by email it should be completely acceptable. I do know it's fine to use a paid service for this purpose (a client who used to live in the Philippines used a Florida-based service for just this purpose) - but why should one be forced to pay, when there are friends and family available? Another client, who is outside the US, uses her grandmother in the midwest as a mail-drop address. But we don't file a state return for her; under the filing threshold and it's a state that is less obnoxious than MA.

And that's the question. Ex is domiciled in MA and works there. She, since the divorce, basically lives in Argentina. But she uses his MA house as her US address (very amicable divorce; friendliest one I've ever seen and it's a bit unnerving frankly) and yes we don't want potential complications. That's why I was thinking of filing the MA return.

Just don't hold your breath!

Client lived outside the US for 2022 but is currently in the US. Almost no taxable income (divorced, still getting funds from assets held jointly with ex-spouse as they get on well and haven't gotten around to untangling a number of the financial accounts yet). The concern is that even though client was not resident in the state in 2022, she is using a MA address for federal return. I don't want her getting a nastygram from the state a year down the road demanding "where's the return for 2022?!" Any down-sides anyone can tell me about if we do, or do not, file a state return for her for 2022?

I'd put it in Word and then copy and paste from there into the 1040X. Does ATX allow that? Good luck! At least you don't have to deal with three completely separate issues with thorny explanations each.

Considering how much other prices have hiked up, it's not fun but hardly a deal breaker. I looked at UltraTax a few years ago, and Drake price for next year is still like half of what UltraTax's price was from 4-5 years ago.

I gave up on reporting directly to the SSA a year or two back after many login issues; just wasn't worth the bother. I use EFileMyForms for the few W2s I file, and let them worry about it. To heck with 'em.

I looked it up, and the summary blurby said this: "Section 897 Dividends refers to any distributions made to the extent attributable to a Section 897 capital gain. This capital gain is defined as US Real Property Interests (USRPI) and is recognized by the recipient from the disposition of a USRPI." Good thing they added the bit about USRPI gain, because the first sentence all by itself is as useless as as a glass of water against a blast furnace's fire.