HV Ken

This new tax will impact our personal NY clients with > $10,000 in Schedule C (self-employed) income. Is there an easy way to search our client database to find all our clients with Schedule C income ? Even better would be to find only those that meet the new tax requirement. Any suggestions welcome and appreciated! See: http://www.nystax.gov/mctmt/default.htm

I attended the CCH webinar on this tool the other day. The tool automates your interaction with IRS eServices and is relatively inexpensive. Was wondering if anyone has any experience with it and would offer a testimonial, or a reason not to purchase? Thanks, HV Ken

http://www.irs.gov/irs/article/0,,id=20623....html?portlet=7 This year, anyone, regardless of income, can e-file their extensions at no cost from a home computer using IRS traditional FreeFile or FreeFile Fillable Forms. E-filing a request for an extension using either form of FreeFile is convenient, safe and secure, and taxpayers receive confirmation to keep with their records.

Either hire more help or get some new music..... They do "apologize for the continued delay" and assure me my "call will be answered in the order it was received".

I don't understand - the 1099R still gets reported to the IRS, and they are still going to match the return and ensure it is reported. Why would you want to exclude it? Whether there is tax withheld or not seems irrelevant...???

:angry: :rant on: What is with these stupid LPL Financial gain and loss statements? Can't they total each fund for us? After all, aren't we in the COMPUTER AGE????????? :rant off:

Wanted to thank everyone for their replies, suggestions, war stories, etc. This discussion has been very valuable for me - I gained some new insights and can consider some alternative approaches. Thanks again!

Curious to gain some insight from others on how you break the news to a client who wasn't expecting to owe - especially THAT MUCH. In our case, we have a home office, so our interaction may be more personal with our clients than some of the store front offices can be. Our practice is to handle this in person due to the strong emotional response this type of news induces. Inevitably this generates many questions, and the best way to explain what is going on is when all the data is in front of us and the client. After their shock and emotional outburst (usually the wife yelling at the husband!), we try to say something like: "the tax return is like a report card - it merely reports on activity that has already occurred." And typically if people weren't expecting to owe the amount we calculated because they have variable components to their return, we would say something like: "given the many variable parts that make up your return, we would recommend you check in with us each quarter (e.g. June, September) so we can help you adequately plan while the year is unfolding." Appreciate your insights and experience! Thanks!

It might be useful to you, but I would never use it. What I do to prevent this, is after generating the e-file (and ensuring there are no errors etc.), I then go to a worksheet I know I want to print (like the Comparison, for example) and check the box to print. This causes the ATX program to think I have made an update to the return, and the e-file status is therefore no longer "created". This is one way I ensure I never send an unintended e-file. I have additional checks I do when actually transmitting - I have never sent an unintended e-file.

I seem to recall something along the lines that when it comes to Schedule C self employment income, there was some rule/test that it needed to show a profit in 2 out of 5 years, otherwise it was considered a hobby and treated differently. I did some searches, but could not locate anything in an IRS publication that actually states this. Is there a reference to such a stipulation ? Thanks for any help / insights.

I have one that is 41 pages. You couldn't pay me enough to type all those in. I am a big fan of the consolidated entry and 8453 approach.

You are allowed to put the consolidated information on the Schedule D and then send a copy of the summary attached to a 8453.

So you call the charge card company, enter the credit card info and amount, receive a confirmation number, enter it on the return, and then efile. Not sure what you mean the charge amount can be sent later - you have already entered into the charge agreement and received the confirmation number. There is nothing more to do after you enter the confirmation number into ATX and submit the e-file. Nothing gets sent later. Since I haven't done one of these this year, I don't remember what date the charge is processed - I am going to assume you either specify a date or it defaults to 4/15.

I am thinking he means THIS community, not the other one that has been resurrected.

What works for me is to create the MFJ return, then duplicate it 2x - in duplicate #1 make it MFS for TP and in duplicate #2 make it MFS for SP. If you enter the tabs for "F" "S" and "J" on the original, it also makes the task easier.

My understanding is that you process the charge card, get an acknowledgment code, enter that code into the return, and then e-file. That's my memory anyway from doing it last year - have not done one yet this year.

After the e-files are selected and you press transmit, another screen appears with just the selected returns and you have to press transmit again before actually sending them. I cross-check that last screen to my 8879s before initiating the transmission. This has saved my bacon on more than one occasion.

The 8453 allows for the provision to send in the details and report the consolidated numbers on the Schedule D: "Schedule D-1, Continuation Sheet for Schedule D (Form 1040) (or a statement with the same information), if you elect not to include your transactions on the electronic short-term capital gain (loss) or long-term capital gain (loss) records." Even at $3/entry, it is not worth my time to type in over 100 transactions some of these traders perform. Although maybe if they got a bill for over $300 just for their Schedule D it would make them think twice.... Nah! Seems the only people making money at this are the brokerage firms getting their fees for every trade performed.

i just got another rejection - this one had the NEW YORK, so I called support. There is a new program version (not a form) released today that will fix this. So make sure you are current with your program update.

Curious - is this the rejection error you were seeing: MEFNY04074 CT ELF Schema Validation Failure ?

I had this happen as well - called support - got immediately connected - helped me fix the problem. The issue was on the front page of the NY return (CT-3) the blue box for the state is now a pull down and the value cannot be NY, but must now be NEW YORK. See if taking care of this fixes your problem. As long as your e-file was initially sent on time, it is considered timely filed, even if there was a rejection that you subsequently resolve.

To answer my own question, decided to try one import on an extension (what is there really to lose anyway?). Import prompt to replace or copy, so I replaced and all the info from the laptop went into the server. I guess all is well in the world again! Thanks!

Does the import from the 2nd computer back into the 1st computer just replace the return on the 1st computer? I guess what I am asking is what happens when you import a return on top of the same return that already exists?

What I found is that process wipes out all my complete flags (check box). Unless they fixed it? I have refrained from "Synchronize" since having that experience a few years ago.

OK - here is what happened to me yesterday. Now I am looking for some advise on how to reconcile.... Cable internet was down for me on yesterday. Needed to finish last remaining corporate extensions, and couldn't efile without internet. Loaded ATX onto my laptop. Generated e-files on desktop. Exported returns from desktop; stored on flash drive. Went to local wireless spot (hotel lobby). Updated ATX on laptop to latest everything. Imported returns from flash drive. e-filed! phew! Now, in order to get everything back in sync. Do I: 1) export from laptop and import to desktop? Questions: What happens to the existing version on the desktop? Does what is imported just overwrite the version on the desktop? Should I first preserve the existing return on the desktop (rename them) and then import? -OR- 2) Just simply receive acknowledgments on the laptop? Questions: Would I lose the e-file history (Acknowledgment History) within the return? Thanks for any insights.