Catherine

If your client is the sole grantor, is the trustee, and retains powers over the trust, then everything is reported on the 1040 as if the trust doesn't exist. If there are multiple owners (except MFJ), a fiscal year, and other complications, then 1041's and 1099's and all the rest are required. Catherine

I've seen it done a couple of ways by preparers. Your clients will definitely have to file by mail. 1. File by mail and don't send anything else. IRS may or may not catch the dependent. If they do, they'll send a letter and then you respond. The dependent meanwhile sends in a 1040X "un-claiming" self. The response letter refers to this 1040X that's been filed. 2. File by mail, include 1040X for dependent. I'm not sure which way works "better" or "faster"; that may depend on exactly who gets what. And any refund will definitely get delayed. The dependant may balk this year; being claimed as a dependent means no stimulus payment. Catherine

Federal's don't need signatures if there is no payment being made. Just submitted one myself after talking to the client by phone. Catherine

Watch out though -- Massachusetts extensions with no payments are getting caught in a limbo of "Validated by EFC". They have some internal coding problems with these forms. Federal are going through fine, and I have no other-state extensions. But at this point, all MA extensions that I have are going out on paper. Catherine

Watch out for OD'ing on acetaminophen!!! You can damage your liver badly!! OD'ing on motrin just makes your ears ring.... but don't mix the two, either. Catherine

My preferred recipe is 2 motrin, one cup of strong tea or coffee, some valerian extract in water (the three preceding being a roll-your-own Fiorinal), then a good dose of Tiger Balm (menthol and camphor) ointment rubbed into the forehead. Works like a charm. And the Tiger Balm is fragrant enough to keep others at a safe distance (safe for them, that is). Catherine

Thank you; it confirms what I told her last week. But the TIAA-CREF rep told her yesterday that I was wrong, wrong, wrong -- so I needed to check myself. And being a sole practitioner, this is where I can check.

Question came up today: Client has a 401a plan at work; she does not contribute. Employer contributes for her. Can she deduct an IRA contribution? I can't find definite reference that she can OR that she can't. Thanks.

Hang in there; the 15th is coming. We're all close to the same spot right now. And this is a safe place to vent. Steam boilers come with a pressure relief valve; people should, too. Catherine

I always put them in individually because of the different FEIN's.

My old laptop used to get real toasty. On hot days when the AC wasn't on, I'd set the thing on top of one of those herbal cold packs (I have a couple that live in the freezer). That kept it cool for a while.

Had a couple of email solicitations for "outside accounting services for your clients". After the second or third, I wrote back (politely) that if they know so little about this field that they send solicitations NOW, then they are obviously too ignorant for me to refer clients to them; please remove from your list. They did (I think; at least no more emails from them!), and it felt good to send off. Catherine

I generally add a 50% re-do charge for a "substantial" rework (as this obviously was). If it's a matter of one 1099-DIV or something that got forgotten, I'll generally let it go. Although any discount they may have earned either gets lessened or discarded in that event. Catherine

Our anniversary is April 1st -- my husband wanted a date that he couldn't forget. Or, if he did forget, could then later claim it was all part of a plan.... He drags me off every year for a nice dinner, with the admonishment, "No tax talk!". Catherine

Hi Bob -- Years ago, I developed not an organizer, but a "document checklist", detailing the kinds of documents I need to get from each client. The top starts with basic info (including DOB, the $3 to campaign funds, stuff like that), then a section for income and one for deductions and credits. It runs to 3 pages (2 sheets of paper with duplex printing). I used to send out organizers -- and they either came back unopened, or briefly annotated quickly devolving into "see attached". Waste of paper, time, and postage for me. Be happy to send along my document checklist for all and sundry to take a look at and use whatever parts they see fit to scavenge. While it would be nice to see last year's info -- that's why I have a big monitor and have last year's return open while working on this year's. Works for me anyway, and saves postage and frustration. As it is, I commonly come across my document checklist in my unopened client letter in the packages.... and have to dig out the signature page from the engagment letter for them to sign! Catherine

The problem I've been having with letters is limited to Massachusetts. Whenever I do a multi-state return, the MA letter goes flaky; it sets itself to "no balance due, no refund" - despite the actuality of a refund or balance due. The other oddball glitch (again MA-only) is that the return _cover sheet_ leaves off the state name completely. So I've had to train myself to manually edit the cover sheet and letter anytime there's more than one state involved (and one of them is MA). Catherine

Would love to have a more detailed review _after_ tax season. While I love the ATX program, there have been e-filing problems for several of my returns this year. And it's always good to keep money-saving options in mind, especially for a small practice like mine. Would love to hear, for example, how it handles multi-state, non-resident, and part-year returns. Catherine

I gotta say -- I am disturbed by the viciousness being hurled at this ATX person in this thread. REGARDLESS of one's opinion of the management at CCH, can't we take the high road here? Let's assume that this person is here in good faith, and wants to help if possible. And then we judge by his actions. I sure wouldn't want to be judged by some of the "actions" I've seen posted here. If you're one who's really steamed, think of it as "enough rope to hang himself" - and wait to see if he does. We've all been blamed - and reamed out - by clients who are _furious_ about a tax bill they've been presented with. Not fair, is it? It's not our fault the tax laws are the way they are, or that the client did something patently stupid. So let's not blame this guy when we know of _nothing_ he has done to harm any one of us in any way. Catherine

In the Asset Entry screen, top left will show a box "Show Assets For:" with a drop-down list. You can assign assets to the C or to the F, and look at the list for either C or F, or both, or Sch A -- or wherever they go. Catherine

Well, this is also one client who would probably _never_ kill in anger. To do that job they are trained to be absolutely cold and calm; angry or upset people make mistakes -- and that leaves the job uncompleted and the worker dead. But there sure are some jobs I'm very glad not to have. Assassin is definitely on the list. Catherine

How nice! Couple of years ago, I got a really bad cold during tax season. A couple who are clients of mine sent me a gift box from (if I recall) "Grandma's Chicken Soup". It had a huge (like, about four days for my whole family's worth) vat of really tasty chicken soup, a box of quick biscuit mix, a card, and a very silly pen shaped like a carrot that my younger girl still (about three years later) has on her desk. It was really good, and greatly appreciated. And several clients over the years have sent me thank-you cards, too. It really does feel good to be appreciated. Catherine

Extend the return and figure it out later. Don't you just _love_ these late complications! And how the income turns out to be Italy-sourced only _after_ you tell him he has to file in Mass.... Catherine

"Maine residents: If form is filed with the federal return, attach Forms 4562, 6251, and 8801. Attach Schedules K-1 to support income and deductions. Enclose W-2 and any 1099ME forms showing ME tax withheld. Do not staple or tape." That's the instructions from the Tax Book on assembling paper-filed returns. It _looks_ like they want substantiation from the Federal of anything "unusual" (i.e., non-ME wages, standard interest, etc). Under the heading of "it doesn't hurt if it substantiates positions taken", I guess I'd say to include it. Address for refund: PO Box 9111 Augusta 04332 Address for payment or "no balance": PO Box 1067, Augusta 04332

Massachusetts requires non-residents to pay Mass tax on income earned from Mass sources. This very specifically DOES include partnership income. It may tick off your client, and Mass might then look back, but it's what is required. Catherine

It was over before I saw it -- but who gets to EAT this monster trout??!! 64 pounds could feed quite a few of us, and trout are yummy! Catherine