Catherine

Lucky for me my PTP clients all have small holdings; none of the "other state" info is within an order of magnitude of crossing the filing thresholds. Phew!

Admittedly the "over half of her own support" looks hard on $13K/year but... is she in a state school? Scholarships? Grants? Loans? Using UTMA funds that became hers when she hit 18? She could be making that amount, dealing with college costs, and still providing more than half her support. Whether or not that is _wise_ is another question. But if the parents are fronting money for school (including 529 plans and the like) it could be that she does not meet the 1/2-support test. Step #1: detail the support. All of it. Once you have that tied down, you can pursue the rest. Until that is tied down, none of the other questions can be answered accurately.

Thank you, Lion! I just ran into another one last night; two partnerships with items on the K-1 several of whose codes do NOT exist in the official IRS code listings. 20-Z -- who ever heard of 20-Z? Not just that, but 20-Z1, 20-Z2, up to 20-Z17. Yes, 17. Plus several more similar in 13, and 17; code letters that don't exist, with multiple entries each. Ack!

Oh, that's a good one; thank you!

I'm glad I'm not a mouse?!

Not necessarily. I have one of those this year, too -- and the codes given on the "statement" page do NOT coincide with the codes listed for K-1's in The Tax Book or anywhere else. Some of the codes the statement gives don't even exist! I had to look at the descriptions given and do my best to puzzle it out. Catherine

Hi Lucho -- Get used to the 1099-HC; you'll be seeing it used across the country as people are forced to prove to the feds that they have purchased a commodity. Box 2 is the EIN of the insurance company. Mass Schedule HC requires -- for EACH person, -- insurance company name, EIN, and individual's subscriber number. Those items are Box 1, Box, 2, and Box 5. Watch out for families, though -- subscriber numbers for families are sometimes all alike, and sometimes DIFFERENT. Plus,. sometimes the person on "spouse" is the primary subscriber; do NOT assume the "taxpayer" is the subscriber. Watch Box 3, as well. Subscriber number for other persons covered on the plan are on lines a., b., etc. You will need info from parents for young adults over age 18 who are still covered on mom & dad's plan. I have EIN's for EVERY insurance company authorized to sell insurance in MA if you need one for a young adult. The ins. co. name and subscriber number are on the insurance card, but not the EIN. There is also a checkbox for "did not receive Form 1099-HC" that might get you around the EIN requirement. Also be aware that those covered by Medicare, Medicaid, Tri-Care, Mass Health, & Commonwealth Care just need check boxes. "Neighborhood Health Plan" is a Commonwealth Care plan and gets the checkbox. In the immortal words of Zippy the Pinhead, "Are we having fun yet?"

Do check for transaction costs; I usually find these end up generating small ($10 - $30) capital losses due to broker fees.

Yeah but they only sell overpriced houses.

My letter says I will finish by 4/15 IF and ONLY IF I have every single piece of required information in-house by 3/20. No one EVER brings me every piece the first time; they always forget something. But every year I get people dropping off to get their spot in the queue. I do what I can and if they kvetch I point to the letter and say"everything means everything -- you were missing A, B, C and Q -- extension." No one has yet left in a huff -- and if they did my response would be "here's your hat and don't stumble on the way out." I have easier ways to hurt myself than half-killing myself to finish returns dropped off piece-meal.

Because you certainly don't want to deal with Fake-tors!

Quotes from Will Rogers: "There are men running governments today who shouldn't be allowed to play with matches." and my personal favorite (and back when the top tax rate was about 6%): "I am proud to be a taxpayer in America. But I could be just as proud for half as much money."

Client will wait 'til Monday, if need be. We have a call in to the OIC officer. Yes, client is indeed keeping up with the terms of the OIC. Although the IRS doesn't seem to be bothering to keep up *its* end. One requirement was for a FICA -- and it sat on the officer's desk for over a month and she had not even bothered to log in its' receipt; while he was waiting and waiting and waiting for his 2013 refund. He's still waiting for that, and praying his ex doesn't haul him to court for late payments in the meantime.

Good morning, all. Client for whom I filed a successful OIC a couple years ago called. He got certified letters from the IRS covering the two years we OIC'd stating "Intent to Levy" with the back tax amount, but under "Amount Owed" there is just an asterisk. Is this just a follow-up "keep up the terms of your OIC or you are _so_ screwed" letter? Or do I need to drop everything, cancel all today's appointments, and jump into representation mode (which is largely why I don't do representation anymore -- you really need a whole back office dedicated to support). TIA, Catherine

I always show it with the exclusion -- prevents nastygram letters demanding money later. 1099-S's sometimes get sent to the *sold* address, after the USPS forwarding time expires. Just because your client says they didn't get one, doesn't mean one wasn't sent. Remember, most people have a minor heart attack when one of those IRS envelopes shows up.

This one is also pretty apropos to all of us (although some might think adult beverage instead of food). http://imgur.com/u3S72a2 For those who don't click on links: Kummerspeck German Definition: Excess weight gained from emotional overeating. Literal: Grief bacon. (Picture in link has the above text placed strategically between slices of crisp bacon.)

I have passed on all the advice to my client. Thanks to everyone!

Thanks to all for all the excellent information! Will let my client know and see how he wishes to proceed with his customer. They haven't bought anything from his company in several years (and took a lllooonnnggg time to pay when they did) so I doubt he's willing to put much effort into placating *them*. Staying off the FTB radar is likely high on his to-do (to-don't?) list, though.

I understand that CA FTB is very aggressive (and NY isn't far behind). However I cannot find, from the CA FTB materials provided, anything to determine WHAT they think they want to tax or HOW to prove one is not subject to that tax. That's the help I'm looking for -- where to find whether these folks are subject to income tax in CA for the occasional sales they make there with NO nexus.

One of my clients is a corporation that sells industry-specific software tools, all over this country and internationally. They just got a letter from a (former? --no orders in a couple years) customer located in CA, claiming that since they are a "nonresident of CA" this customer will have to start withholding CA income tax on all payments unless they (a) get a waiver (via Form 588), or (b ) prove (via Form 587) that they are paying CA income tax themselves. Huh?!?! My client has occasional sales in CA; but has NO nexus there, no sales people, and any income they make is subject to corporate income tax here in Massachusetts. Yet the instruction-listed waiver reasons don't seem to apply. They are asking me for advice and I have NO idea what bee CA has up its bonnet on this one. Any info/advice? The CA FTB info the customer sent along has been useless. Yak-yak about "services" and "rent" and all manner of types of income but nothing about products (hard goods or "soft" like programs).

A real cute one!

So sweet! Thanks for sharing this.

It would, but a lot of these plans are set up to send $$ directly to schools or to owners, not beneficiaries. So if some of the funds are for books... there you have it. Also, I've heard tell of requests to pay schools that have NOT been answered in timely fashion. If the parent requests the money sent to them, there is at least a binary answer: they received the check, or not. None of this bursar's office says no - fund says yes and in the meantime the student can't register for classes! So I understand why parents may want funds sent to them.

Yes, Box 6 is checked.

OK -- I have usually put down full amount with a 2nd line backing it out again, to prevent the "hey, you didn't report this; you owe $$!" letters.