Yardley CPA

Randall...I agree with you, there isn't much in regard to binary attachment specific to a tax return. Maybe cbslee is willing to share what was found?? It seems binary attachment points to a pdf file. Here's some specific information in regard to an efile return rejection: A return that requires a supporting document in PDF form will reject if it is transmitted without the PDF or if the PDF is attached at the wrong place in the return. In the reject, the IRS refers to the the PDF document as a "binary attachment". I think in your case, the statement you included was the answer. I'm glad it was accepted.

We're not required to audit our client's, correct? We're required to ask questions and to obtain a certain comfort level in the positions we make on their returns. I spend extra time with clients when they have a Schedule C, on expenses they claim, including going over the IRS regulations. I'm not auditing them, however. If my client provides a reasonable answer to my questions, I'm good. I always play devils advocate and provide them "what if" scenarios in regard to the IRS potentially knocking on their door. As long as they recognize the issues which may present, I rarely refuse to prepare a return. I think communicating the IRS provisions and making sure clients are fully informed is paramount, but I'm not conducting a full blown audit. In regard to Door Dash mileage, my personal belief is that mileage from your home to the first restaurant/stop, and back home after your last delivery is mileage that should be questioned given the individuals circumstances. Mileage in-between stops, going from customer 1 to restaurant 2, and so on, assuming they are not conducting personal business, seem like business miles. As long as what the client is claiming is reasonable, I'm good and place it on the return.

I have an Oklahoma non-resident (full year New Jersey), MFJ. They purchased a home in Oklahoma in 2005 and rented it throughout the years, not continuously. They sold that property in 2021. There was a gain on the sale of the rental that was partially offset by passive loss carryover. There was also a gain on the sale of the land. Total combined gain amounted to $80K. In completing the Oklahoma 511NR, I noted the entire gain is being brought to zero due to Oklahoma Capital Gain Exclusion. Just making sure this is correct and ask those familiar with Oklahoma to provide some input. Thank you.

So that you're not implicated in any way? If they choose to pay by check, and you explain the risks associated with that, the onus is on them, no?

@G2R Never a pointless reply. Thank you for chiming in.

For my New York experts, I continue to use this form for several clients who live in New Jersey but work in Pennsylvania. While completing Schedule A, I note that the allocation percentage is very close to 100%. During this pandemic, the vast majority of these clients have worked from home. The research that I've done suggests that working from home, in most cases, is not a necessity but a convenience. As such, New York finds that if the company is located in their state, you're considered a non-resident worker in their state. Just making sure nothing has changed in regard to this? I know there are some exceptions, but generally speaking working from home doesn't normally decrease the allocation of New York income, correct?

I know some states have extended their due date for filing returns. Has anyone read/heard of any potential federal extension? I'm hoping if that is the decision the government is moving toward, they make the announcement sooner versus later so we can plan accordingly. It's only mid-February and this tax season already feels way too long.

That's precise.

Correct, as precisely stated in the post, the IRS suspended more than a dozen letters. That's the precise quote.

The IRS has suspended the automated mailings of more than a dozen letters, including collection notices and notices pertaining to unfiled tax returns. If there are plans to extend the filing date beyond April 15, hopefully they communicate that sooner versus later. https://www.irs.gov/newsroom/irs-continues-work-to-help-taxpayers-suspends-mailing-of-additional-letters IR-2022-31, February 9, 2022 WASHINGTON — As part of ongoing efforts to provide additional help for people during this period, the IRS announced today the suspension of more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax, and the IRS has no record of a taxpayer filing a tax return. These mailings include balance due notices and unfiled tax return notices. The IRS entered this filing season with several million original and amended returns filed by individuals and businesses that have not been processed due to challenges of the historic pandemic and is taking this step to help avoid confusion for taxpayers and tax professionals. “IRS employees are committed to doing everything possible with our limited resources to help people during this period,” said IRS Commissioner Chuck Rettig. “We are working hard, long hours pushing creative paths forward in an effort to be part of the solution, rather than the problem. Our employees continue to expend every effort to balance a confluence of multiple, unprecedented demands − including successfully starting the filing season, working our inventory of unprocessed tax returns as well as looking for additional ways to minimize burden for taxpayers, tax professionals and businesses. “Our efforts are not limited to suspension of these additional letters and the possibility of similar actions going forward. We have redeployed and reallocated resources throughout the IRS and have implemented innovative strategies in an ongoing effort to provide a meaningful reduction in our inventories,” Rettig said. These automatic notices have been temporarily stopped until the backlog is worked through. The IRS will continue to assess the inventory of prior year returns to determine the appropriate time to resume the notices. Some taxpayers and tax professionals may still receive these notices during the next few weeks. Generally, there is no need to call or respond to the notice as the IRS continues to process prior year tax returns as quickly as possible. However, if a taxpayer or tax professional believes a notice is accurate, they should act to rectify the situation for the well-being of the taxpayer. For example, the IRS cautions people with a balance due that interest and penalties can continue to accrue. In addition, IRS employees may in select circumstances issue notices to particular taxpayers to resolve specific compliance issues. The IRS does not have the authority to stop all notices as many are legally required to be issued within a certain timeframe. The IRS will continue to assess other changes and system modifications that the IRS may be able to implement to assist taxpayers on an array of issues. The IRS will continue to make information available to taxpayers throughout the filing season. The IRS encourages those who have a filing requirement and have yet to file a prior year tax return or to pay any tax due to promptly do so as interest and penalties will continue to accrue. Visit IRS.gov for payment options. The suspended notices include: Individual Taxpayer Notices Notice/Letter Number Title Description CP80 Unfiled Tax Return This notice is generally sent when the IRS credited payments and/or other credits to a taxpayer’s account for the tax period shown on the notice, but the IRS hasn’t received a tax return for that tax period. CP59 and CP759 (in Spanish) Unfiled Tax Return(s) - 1st Notice IRS sends this notice when there is no record of a prior year return being filed. CP516 and CP616 (in Spanish) Unfiled Tax Returns – 2nd Notice Request for information on a delinquent return as there is no record of a return filed. CP518 and CP618 (in Spanish) Final Notice – Return Delinquency This is a final reminder notice when there is no record of a prior year(s) return filed. CP501 Balance Due – 1st Notice This notice is a reminder that there is an outstanding balance on a taxpayer’s accounts. CP503 Balance Due – 2nd Notice This notice is the second reminder that a there is an outstanding balance on a taxpayer’s accounts. CP504 Final Balance Due Notice - 3rd Notice, Intent to Levy The IRS sends this notice when a payment has not been received for an unpaid balance. This notice is a Notice of Intent to Levy (Internal Revenue Code Section 6331 (d)). 2802C Withholding Compliance letter This letter is mailed to taxpayers who have been identified as having under-withholding of Federal tax from their wages. This letter provides instructions to the taxpayer on how to properly correct their tax withholding. Business Notices Notice/Letter Number Title Description CP259 and CP959 (in Spanish) Return Delinquency IRS sends this notice when there is no record of a prior year return being filed. CP518 and CP618 (in Spanish) Final Notice – Return Delinquency This is a final reminder notice that we still have no record of a prior year tax return(s).

Thank you...over $80K

My client shares custody of her child with her ex. Each year they alternate taking head of household as the child lives with each parent almost equally. In the year that the child is claimed, they live with that parent for more than half the year. My client claimed the child in 2020 and received the ACTC of $1,500 in 2021. Since she is not claiming the child this year, the return looks to have the $1,500 paid back. I want to make sure this is correct...I believe it is. In researching this, the information suggests the parent who claimed the child in 2020, claim the child again in 2021 and obtain form 8332 from the ex. Can anyone confirm my understanding that the $1,500 should be paid back under this scenario? Here is some information I came across: 1. I am receiving the Child Tax Credit advanced payments, but my child does not live with me in 2021. What do I do? If you claimed your child on a 2019 or 2020 tax return, the IRS may have automatically issued you advance CTC payments. Use the Child Tax Credit Update Portal (CTC UP) to opt-out of advance payments. Your future advance payments will be stopped. If you are receiving payments for multiple children, later this year, you will be able to remove a child from your Child Tax Credit information and continue to get payments for other children in your household. If you haven’t filed a 2020 tax return, you can do so to provide the IRS with more current information about your family situation. Your future advance payments will be stopped after your 2020 return is processed. Note that the IRS still has a backlog of tax returns to process, so you may experience delays. If you choose this option, your advance payments will not be stopped until the IRS has processed your 2020 tax return. Using CTC UP to opt-out may be a better option to stop your advance payments sooner. You can use CTC UP and still file your 2020 tax return, which may be worth the potential wait if you’re eligible for other tax credits (federal or state). Continue receiving CTC advance payments if your child’s other parent agrees to allow you to claim your child on your 2021 tax return (which you file in 2022). They will need to sign and give you Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. You will attach Form 8332 to your 2021 tax return to claim the other half of the CTC.

Merrill Lynch Tax Reporting Statement includes an amount in the miscellaneous information section of $5,500. In revieing the statement further, it shows the income as "Other Income from Canada" which was reported to the IRS. I assume this is simply listed on the return as just that, Other Income...flowing to a 1099 Misc and reflected on Line 8 of the 1040?

I switched to ProSeries Professional this year after being an ATX user for eon's. For me, converting the data from ATX to ProSeries went very smoothly. I followed their tutorial and it reacted exactly as it should have. As far as I can tell, all the data has populated ProSeries appropriately. I have a stand alone computer, not a network. Not sure if that makes a difference but wanted to mention it. I'm sorry to hear you are experiencing issues and hope they can be rectified.

Yes...my wife and I received the letters reflecting the same amount on each. My immediate thought was what you stated. To their credit though, the letter does indicate "If you file a joint return for tax year 2021, you must add the amount in Box 1 from both letters 6419 and enter the total amount on Schedule 8812".

I've never pulled a transcript. I want to get that monkey off my back though. Once you get the POA, you have to upload it to the e-Services site as part of the process?

In the past, there has been discussion on client transcripts in this forum. I have never had the need to pull a transcript. I see it can be done through e-Services. I assume it's a fairly straight forward process? How long does it take to obtain the transcript? I see it's sent to my e-Services secure mailbox. What do I need in order to do that? A POA or an IRS form that the client provides to me? I appreciate any insights. Thank you.

Thanks for the post, Judy. Good information.

Congratulations!!!

We're fortunate that our area provides free shredding days throughout the year. Various not for profit groups in our town and surrounding towns hold these events. In some cases, our state representatives and government entities also hold them. I look for when these events are offered and use them for my shredding needs. A local shredding vendor also has set hours where they offer shredding services for $10 a box.

Yup...January 24th it is. https://home.treasury.gov/news/press-releases/jy0553 I sent my clients an email informing them that I would start to prepare returns in early February. Given tax forms should flow in by January 31 (if we're lucky), I like to wait even further. Over the last few years, some forms have flowed in up until mid-February or later. But you have to start sometime, so I'll begin around February 5 this year. I also informed them we should be ready for delays this year. What normally would take the IRS a couple of weeks to a month to process, and then issue refunds, could take longer this year. Last year, several clients waited months, literally. So who knows what this year will bring.

I selected "auto renew" when I donated a few years ago. At least I think it was auto renew. That makes the process very easy and automatically charges my card each year. Eric...thanks for all you do.

As Catherine stated, no problem with anyone dropping off information. I only discuss client information with the client, but if a "daughter, neighbor, or friend" wants to drop it off for them, so be it.

Sending everyone good wishes for a happy and healthy 2022 and a tax season filled with "easy" returns.

Thanks, Elrod. This is helpful.