DEO

I have an identical situation, only that the wife has already filed with another preparer as HOH claiming the EIC and CTC. The husband is illegal does not have a tax ID, came to me subsequently wants me file for a tax ID and file a tax return as a self employed. His papers are in process.

I am also a Certified Acceptance Agent. My dilemma is that if I filed him as MFS, if the IRS reviews his wife's tax return along with his, they might have to pay back the EIC because they are living together and he does not have a SSN. 

If I filed him as a single person along with his W-7 form to obtain his ITIN, then that might be a problem with immigration because the wife-legally married- is sponsoring him. This might have a negative effect on on the husband's application to be a green card holder.

I have referred to the husband's attorney and advise not file an ITIN and a tax return at this time, because this will create chaos in the home if the wife has to pay back the EIC. Let the immigration attorneys sort this mess out.

In Christian's case, you can paper file a joint return, and applying for an ITIN for the husband, only that the EIC would be denied.

Anything is possible, only a price is involved. 

E-filed client 2018 return and at the same time calculate and gave them their estimated tax vouchers for 2019.

Client called after forms were e-filed and indicated that IRS tried to debit her bank account for 1st qtr estimated tax. Client called IRS and had the first qtr tax resolved. However, IRS tried again and attempted to take funds for 2nd qtr.

I looked over all the forms and cannot find where I indicated for the IRS to take the funds out. Contacted CCH help, and support cannot help.  Support requested I called the IRS, that only they can help

Looked over at what forms were efiled and the estimated vouchers were included, but the estimated payment option was not completed.

My fear is that the IRS would now  try to take funds for the 3rd and 4th qtrs.

Does any one have an idea where in the estimated tax worksheets that would trigger the forms to be e-filed, so that I can avoid future disasters.

Thanks for any help

Dependent child has 14,000 in earned income.

I am looking into the ATX/Max program on how to tell it that the TP is being claimed as a dependent, so that he can pay the appropriate taxes, but cannot see the check box.

If I check the single box, then he gets the full exemption, which is wrong.

Any help is appreciated.

Thanks

Deo

Any one familiar with CAS payroll program.

I am on hold for 2 hours 30 mins and counting

I am getting an error message when trying to create a 941 e-file using CAS

'"VGL is still trying  to communicate with Payroll tax preparation Software" Would you like to keep waiting.

Any assistance would be appreciated.

Deo

Client went to HRB to prepare his taxes, apparently the employee did the return on the side. He bungle the return.

File husband as single with a huge tax bill

File spouse as HOH with a small refund using the rental property address.

On top of that he left out the 3 family rental and other info, plus filed the returns late.

I guess my starting point is to amend the TP return to include the spouse and then include the rental and other adjustments. I requested a transcript, because I am not sure what info was submitted to the IRS.

There would be a penalty since it was filed on 10/22/18. I therefore would have to seek a waiver of the penalty.

Your invaluable thoughts would be helpful.

Thanks 

Deo

TP purchased rental property some time back. Prior owner had a mortgage on property. At time of closing mortgage was not paid off for. TP kept on paying mortgage payments. It was only this year 8/2018 that TP was able to obtain their own mortgage for the property.

I am now finalizing the TP 2017 returns.  My question, given the fact that TP was paying the mortgage in 2017, who gets the deduction of the mortgage interest. The mortgage interest is a very sizeable amount(50,000.00). What makes it interesting now is that TP and the previous owners are not on speaking terms.

Thanks.

Deo

I have the solution.

There is an additional form which I missed, IT-360.1 which apportions the NYC taxes

Thanks never the less.

Deo

TP lived in Nassau county Jan-Jun, then moved to NYC Jul-Dec.

For some reason ATX software is not computing the NYC local taxes for the 6 months that the TP was living there.

I am trying to figure if I am doing something wrong with the allocation. I did input that he lived for 6 months in NYC.

I will appreciate any assistance in resolving the NYC allocation

Thanks

Deo

I have a Florida TP who had a rental property with his brother from Washington decided to formed an LLC last year.

What Florida business forms I would have to file along with the IRS 1065? Not too familiar with FL business taxes.

Previously I filed a schedule E with his personal. Now that he has converted midway during last year, do I have to file part year Sch E and part year 1065?

Thanks for your assistance.

Deo

I am getting an efile rejection on a NYS return. I tried updating the forms. I even deleted the NYS return but to no avail.

Any help woul be appreciated.

R9999 Unmapped Exception

04074 ELF Schema Validation Failure

Client's daughter received both a 1098-T and a 1099-Q.

1098-T 

Box 2 16,200-Amounts billed

Box 5 15,959-Scholarship

1098-Q

Gross distribution-14,100.00

Earnings-8,975.00

Basis-5,125.00

What is the appropriate/advantageous way to handle this so that TP can come out on top.

Thanks for any assistance.

IRS is accepting business returns.

I have filed two this week and they have been accepted.

It was exceedingly too late, to contact the IRS.

I did some research, and file the NYC Corp tax as a C. My understanding is that NYC follows the IRS and a copy of the Federal form has to be attached to NYC return. So I did use the NYC-2 form.

My only problem was that the info on the Federal 1120 does not all flow to the NYS CT-3S, it had to be manually entered.

Thanks again

All necessary papers were forwarded to the IRS and NYS to change Corp tax filings from C-Corp. to S-Corp.

However, the IRS received their form late, so that the change over will be effected from 01/01/17, whereas NYS has accepted and their change over to S-Corp is effected 01/01/16.

My question is regarding NYC General Corp. Tax, who does NYC follow, the IRS or NYS.

Thanks for any help

Deo

TP called me last night.

He is a consultant with an extremely large US firm.

Sent to Toronto for an 8 weeks assignment. Working Monday-Thursday. Travelling back to US for the three other days Will be paid by Canadian counterpart.

He never applied to Canada for a tax id, neither a work permit.

When he will be filing his 2017 taxes, I know that he will have to include his worldwide income.

What is puzzling me at this time, is the fact that he did not have a tax id or working papers in Canada, how the income will be handled by the Canadian authorities.

I know it is early, but I am just getting a jump start.

Any thoughts would be helpful.

Thanks 

Deo

Spouse with a legit SSN was deported. TP supported spouse  in home country.

Can TP clam spouse?

Thanks for your assistance.

Deo

Any help is appreciated.

Client formed an LLC early 2016, presumed he knew what he was doing.

This February(2017) want me to file a FINAL NON RETURN.

He did not know what he did at the beginning. I asked him if he made an election, to be treated as an S-corp. Not sure.

We decided to file a final 1120 return, with the assumption that he had made an election.

IRS responded that they have not received a form 8832, and a statement explaining reasonable cause for failing to file Form 8832 by the original due date.

I am at a loss how to respond.

Your assistance is greatly appreciated.

deo

 I tried recreate two times, but same result.

I have not filed this return before, this is the first time.

MY SECOND ERROR MESSAGE

Federal 1040

Federal Individual E-File is already accepted or pending acknowledgement.

We have discarded the e-file. Please note that if you resubmit an e-file before

the original e-file is acknowledged, we will discard the resubmittal. If you are certain

we do not already have the e-file, please notify Customer Service.

I received two e-file errors tonight, and do not know where to find answers.

Your assistance is appreciated.

The first error is as follows:

X0000-005 Federal 1040

The XML data has failed schema validation. cvc-pattern-valid. Value '-000003' is not facet-valid with respect

to pattern '[0-9]{1,6}' for type

'#AnonType_TotActiveTimePrepSubmissionTsFilingSecurityInformationReturnHeaderType

Received from client a RRB-1099. Have not done one in a long time.

The top portion of the form(blue0Tier 1 benefits), where it says 'client copy', do I have to include that amount in the return. I do not know if I am over reading, but the instructions says it is equivalent to Social Security, whereas in another part of the instructions, my understanding of it says that Tier 1 benefits are not taxable.

Your assistance in determining whether it is taxable or not is appreciated

The bottom portion (green), RRB-1099-R, portion of it is reportable,

Thanks for your help.

New client came with her tax papers. She indicated to me that she contributed $2400.00 to her IRA. I asked whether it is a traditional or Roth. She said Traditional.

later that evening, she called saying it was a Roth. I then told her that no deduction. She was OK.

Now comes the next part, was that since 2012, her previous preprarer has been deducting the Roth IRA on her tax returns.

What is the best course relating to her previous year taxes, amend the returns paying back the taxes along with penalty and interest or ????

Thanks for your answers.

De4o

TP 6 children were taken by NYC child welfare agency since 2015 and placed with their grandmother. There has been a court case going on ever since, and every time the case is called up, it is rescheduled by the agency. When the 7th child was born last year the agency attempted to take the baby, A new judge was assigned to the case. The matter went to court and the TP prevailed. As per the parents they provide financial support for the children and when they have to go to the doctors, they take them. I want to believe that the grandmother receives some time of benefit from the agency. TP also commented that they are going to win the case.

My question at this time is, can the parents claim the kids as dependents and the child tax credit.

Any guidance is appreciated.

Thanks

Deo

TP left the U.S. about 18 years ago and migrate to Canada to live with her spouse. Since then she has not given up her status in the US, neither has she filed any taxes.

She was filing Canadian taxes jointly with her spouse since she started living there.

What taxes would she be liable for in the US since she has not given up her green card?

Your input is highly appreciated.

Deo