ILLMAS

Good news, yes you are able to request an ITIN for banking purposes, see page 7 of the instruction, however you need to meet one of the requirements. https://www.irs.gov/pub/irs-pdf/iw7.pdf

No, but I no longer prepare last minute returns.

Does anyone know if one can apply for an ITIN (foreign individual) for bank purposes? MAS

Here is a beautify chart I recommend to avoid the confusion: https://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/ACA-Individual-Shared-Responsibility-Provision-Exemptions

So far this year I have had about 4-5 people bring in their form 1095-B and the form show coverage only for a few months when the TP has had insurance, been to the doctor, have paid their co-payments for the whole year. What are the steps you take to complete the return?

Good read on the 90-day waiting http://www.willis.com/documents/publications/industries/healthcare/20140716_50391_BULLETIN_HCP_ALERT.FINAL.pdf

Done, thanks for the reminder.

I had posted a similar question, but someone mention that employers are now required to start insurance on the start date not 90 days (trial date).

This calls for a free tax return preparation, I always do free returns when they say I look like Brad Pitt and charge double when they say I look more like Richard Kiel.

Can someone recommend a place online to order a corporate book? Thanks

Here is the questions I went through with my client: Use Code 2 only if the employee/taxpayer has not reached age 59 1/2 and you know the distribution is: A Roth IRA conversion (an IRA converted to a Roth IRA). A distribution made from a qualified retirement plan or IRA because of an IRS levy under section 6331. A section 457(b) plan distribution that is not subject to the additional 10% tax. See Section 457(b) plan distributions on page 12 of the IRS instructions for Form 1099-R for information on distributions that may be subject to the 10% additional tax. A distribution from a qualified retirement plan after separation from service in or after the year the taxpayer has reached age 55. A distribution from a governmental defined benefit plan to a public safety employee after separation from service in or after the year the employee has reached age 50. A distribution that is part of a series of substantially equal periodic payments as described in section 72(q), (t), (u), or (v). A distribution that is a permissible withdrawal under an eligible automatic contribution arrangement (EACA). Any other distribution subject to an exception under section 72(q), (t), (u), or (v) that is not required to be reported using Code 1, 3, or 4. All the answer were NO, and after I explain to him the code appeared to be incorrect, he had was okay paying the penalty since I had informed him since the last time we talked. MAS

Story first: Back in October/November 2015 TP called to let me know he was withdrawing his retirement because he was losing money, I said fine, just make sure to take out 10% for the penalty and another 15% federal taxes. Fast forward to this past Saturday, TP brings in his 1099R with code 2, right away, I confirm his age (56) and if he knew why they might put a code 2. His response was he didn't know exactly, he thought he was withdrawing it with the penalty and the only think he could think was when he decided to withdraw the money, at that point his employer was switching plan administrators and maybe there was a mix up. Anyway, I pulled out from IRS regulations on code 2 and non of them applied to him, so I went ahead used code 1, I have been thinking about all weekend and wanted to see if I did the right thing? MAS

I was doing a some research and it seems he can prepare it on ATX, override the preparers information and then scan it to pdf and upload to Efast2 filing.

Client portal works too.

Q: My associate needs to prepare a form 5500 and asked me if he can use my ATX to efile the form for his business, would there be a problem doing so? He uses Proseries and the form is not supported. I have never prepared one so that is why I am asking. Thanks MAS

1120s

TP refinanced her home in late 2015, she had the monies transferred into her business bank account (according to her, because her bank is a community bank with old technology), she's been taking out money little by little to rehab an investment property not related to her business. Here is my accounting question, the checking account balance at 12/31/15 was $200,000 +, TP does not know exactly how much of the balance belongs to the business, but says, it's probably less then $2K, I am going to post an adjustment for the difference against loans from shareholder to tie to the bank statement, would you agree this is the proper route? Also, I am going to post another entry to recognize accrued interest expense on the loan, even though the loan was not really a loan, and have her report the interest on her tax return. Do you agree or suggest another something else? Thanks MAS

Ok, I am going to delete form 7004 and then add it back, hopefully this will resolve the problem. MAS

I have submitted a couple business extension and a few were rejected, my associate is also having the same problem, anyone else? Any recommendations? Thanks MAS

Correct, I verified last year W-2 to make sure she didn't change exemptions. I had a couple of clients in the past say, I am claiming zero but I just had it changed on 12/31/XX....

I have a TP that is going to file MFS, her W-2 gives the number of exemptions (zero in her case) and Married. I know I am going to get an earful as to why she owes, she is also claiming her father as dependent, my question is, aren't the payroll tax tables designed to balance out at end of the year? Or by filing MFS, that is enough to throw people off?

Ex TP called me again, yes she did go somewhere else and I am actually happy. I am bored here at the office and if anyone wants to know why I am happy please PM me.

Let's change "done" to "prepared"

I would think the final cost will be on Sch A as either legal fees or if you know the 2016 legal fees, reduce 2015 selling price by the legal fees, and in 2016 use that amount against the actual legal fees to break even.

TP left me a weird message today, "I am getting my tax return done right now, but I have a question"? WT_