Catherine

One of the worst things about tax season is the overlap with Lent. Now I want chocolate...

Obviously it has to be excluded, because having a fraudulent transaction canceled does not result in cancellation of debt income. Sure, use that line, but perhaps also the 8275 (is that the right form number?) - taxpayer disclosure information, anyway - where you put the facts of the case. But maybe worth checking with whatever attorney dealt with the purchase cancellation to get chapter & verse of state law to support the taxpayer's claim.

I had someone call today, looking for help in how to look up whether a particular local charity has filed a public charity report on the state Attorney General's site. As if I knew in the first place, give a bleeping hoot in the second, and third would do such work for a stranger for no fee at any time. What gives with some people?!

I have a mail slot in my front door. I tell people, put the envelope through the mail slot. Nope! They leave it between the back door & back screen. Or between the front door & front screen. I've even heard "I couldn't because the slot was blocked" - yeah, by the @#$%$#@ lightly-rolled hand towel that's just a draft stop, that I told them to IGNORE, but instead they ignore the sticky note that says push the towel IN with your envelope. Including people I have demonstrated the towel to. Too stupid to pour sand out of a boot when directions are written on the heel, that's what they are.

At least those rip off FAST. Unless they're stapled in place.

Oh, and like that is supposed to be a good reason, Judy?

There is a difference between assisted living, residential care with medical assistance, residential care with extensive medical assistance (memory unit, etc.), and skilled nursing care required around the clock, as for someone in a coma. The last is considered 100% medical.

Mostly I have found in previous years that at best, the client gets a letter from the custodian stating "we sent $x to charity y as a QCD, as you requested." But the amount does not get included on a 1099-R, even as an addendum/detail added. Or the amount does get included in the 1099-R, and the clients then don't give any QCD info to me, and there is no adjustment made because you can't adjust something you know nothing about. This detail at the bottom was the first I'd seen, and what I needed was the referral to the special tax treatment section that I did not know about, and for which I thank Lee B.

I've added disposal fees, staple removal fees, and more. Some clients learn & clean up their acts. Others just pay. Either way, I figure it's a win. Try it! If you don't have an easy way to burn it all, as does mcb39.

None, in this instance.

No box - it was a separate sentence under all the boxes. So weird.

I wish I'd known back when Rita held that lovely get-together. I'd have done some more-careful looking in my driving around. Thanks for posting this!

Just this. Sounds really good to me today.

I have a 1099-R for a 2024 distribution, which shows a distribution amount in Box 1, same amount in Box 2, and a "taxable amount not determined" in Box 2a. At the bottom of the form, it also states: "$X of the above distribution was a direct distribution to charity under IRC Section 408 (d) (8)." My guess is that I deduct the direct charitable contribution from the Box 2 taxable amount (and state distribution amount), yes? I have never seen this before; what I have seen is direct charity not being listed at all and not included in any of the distribution boxes. A new thing in general, or just these people (TIAA) and this account in particular?

Congratulations!!!

Eric Green has been doing just about daily short updates on the IRS situation. Here's the youtube channel. https://www.youtube.com/@TaxRepNetwork

While I understand the desire to be DONE on April 15th, I also don't want to work myself to the bone three months of the year. I use extensions extensively (intended doubling up) and work steadily while still taking Sundays off all season. Do what works for you, but remember that extensions are your very good friend. I'd rather put a client on extension and do the returns correctly the first time, than rush to finish and find an error - or get a corrected consolidated 1099 - months later that makes an amended return required.

Paging @Lion EA as I know she does a bunch of NY returns.

Lawyer up, fast. Him especially and he should start gathering information but not talk to any IRS agent (other than to say "my attorney will be speaking with you") from here on out. But she needs to, as well, as they may want to see what she knew. You probably don't need an attorney instantly, unless she has discussed this with you other than this morning in a panic as to who to talk to. Green & Sklarz in Connecticut have an excellent reputation; try them.

Glad to be of assistance!

I am probably over-thinking this. Elderly couple died in 2023; he in mid-year, she just before the end of December. No trouble with 2023; it was too late in the year for anything to go anywhere but personal. There were EINs set up for her irrevocable trust and for her estate. Not for his; it all went to her as surviving spouse. She inherited everything from him when he passed. She also had a will that directed everything owned be poured-over into her irrevocable trust as soon as she passed on. However, as various monies came in, some had checks made out to her, some to him, some to the estate, and some to the trust - which eventually, but not initially, sucked it all in. What I'm thinking is that everything that came in for her, or him, or the estate, gets reported on a 1041 for the estate, and only things that came in specifically for the trust get reported on a 1041 for the trust. If only to prevent letters in July of 2026, asking for tax on unreported income received by the estate. Anyone want to tell me what I've got 100% wrong? I'm listening.

remember, @Eric gave us this one some years ago.

On t he theme of SALY - the Ceiling Numbers?

Magic 8-Ball says "Answer Hazy; Ask Again Later."