Jim Oh Bkkr

10 hours ago, Catherine said:

Does that count towards a filing requirement?

Only if there is a "physical" location (or travels into the location to conduct business) within the taxing locale.  (ex. I had a truck driver, lived in the county, came into town to load [US Mail].  Did NOT file or pay local as our local rules were 2 hour presence within the city limits.))

This thread reminds me of the old days of tracking my ATX updates (disks). 

Presque Isle to Louisvile to Ashland Ky (my local distribution center) in one day.  "I should have it in the morning."

Nope, I have an Ohio zipcode so it went to Columbus Ohio, then back to Ashland Ky for delivery.  Every time.

And there "should" NOT be a filing requirement for the local, IF tax is withheld because they "work" in the locale.  Now if they own a business (or rental) in the locale...

19 hours ago, Catherine said:

young couple with a passle of kids

And if they're low(ish) income, Ohio has a NON-refundable EIC (based on Fed EIC).

With a 4th Qtr move, it may be moot, but always look at MFS for a couple. (Federal taxable income in the SAME bracket, w/o MFS traps.  ie. SS being taxable if living together.)

Income from direct treasury investments is exempt. (Most brokerage houses either calculate, or give the %s of applicable mutual funds.)

True "survivor", disability (prior to min ret age), military pensions, ALL railroad retirement are exempt.

Medical OOP over 7.5% is deductible.

Look for school district taxes in addition to local.  In southern Ohio, there is practically NO SD taxes (thank gosh), but I've encountered a hand full.

Maybe the original account was from a NONqualified plan.

10 hours ago, Sara EA said:

told me again it was deductible.

Reminded me of a potential client years ago.  Demanded I give him the elderly/disabled credit (Sch R), because his old guy did it.  Two years of prior returns, both included -0- on Sch R, 1040 also reflected NO credit, but he insisted.  Good times!  (Didn't there use to be one of those emoji things showing "beating your head against the wall"?)

This was the only thing I found, three weeks ago.  But nothing happened, and I tried several times to open.  Days later, I noticed several downloads of the same thing, didn't realize it was a download and not a "page".  No software I have would open a .xlsm file.   I finally found an online viewer last week, but as you said, it wasn't helpful.

I seem to remember that you used to have to attach a 1099 IF there was tax withheld, but even that stopped many years ago.

Just a follow up.  This finally went through yesterday, Feb 20.

8 hours ago, BLACK BART said:

"It's direct to another bank - we don't have to send him one."

"We CAN, but we don't have to."  So we preparers are left to deal with the aftermath.  No client wants to get a "nastygram" 2-3 years down the road, so we have to verify if they "did" or "didn't".

1 hour ago, Randall said:

I almost fainted.

These notices always seem (seemed) to land in the TP's mailbox on Friday - so they have to sweat it all weekend. 

My story is no different, six frantic messages on my home phone from client Friday evening.  Then he was beating on the "locked" door of the office @ 6:00am Saturday morning.  State Farm 1099 for 1K, IRS said 100K, the tax bill for this small garage was almost 3 times the highest Gross Income he had ever reported. (BTW, this TP died from a heart attack in his late 40's.  I know this didn't cause it, but I still remember the stress it caused.)

30 years later, this still p*sses me off to think about it.  And this organization now has a $700,000 (that we know about) stockpile of ammunition? ? ?

28 minutes ago, jklcpa said:

difference in the error codes is that the line numbers on the 1040

This was my thinking also.  "Since the "post-card" fiasco left us all this blank space at the bottom, let's break out all the "wage" types on separate lines."  They just forgot to include the various w/h entries in the fix.

Thanks Judy, I saw the same things you're saying for error code F1040-071-05, but not for F1040-071-07.  A subsequent "startpage" search found a Taxslayer help page that said - paper file.  But the Drake error page leads me to believe that once the IRS fixes the problem, it can be resubmitted.

The cap gain solution, (I saw), didn't make much sense.  It said to do as you suggested, but then also said to enter another $1 on one of the schedules - I assume to zero it out.

I just would like to see a place @ irs.gov that would address when this fix is/was made.

I use Drake, and it says this:

Quote

Form 1040, 'WithholdingTaxAmt' must be less than the sum of the following: [ 'WagesAmt' and 'TipIncomeAmt' and 'TaxableInterestAmt' and 'OrdinaryDividendsAmt' and ('IRADistributionsAmt' or 'TaxableIRAAmt') and ( 'PensionsAnnuitiesAmt' or 'TotalTaxablePensionsAmt' ) and 'SocSecBnftAmt' and Schedule 1 (Form 1040), ( 'UnemploymentCompAmt' and 'TotalOtherIncomeAmt' ) and ( all Schedule C (Form 1040), 'TotalGrossReceiptsAmt' )] unless one of the following is true: (1) Form 1040, 'CapitalGainLossAmt' has a non-zero value; (2) Schedule 1 (Form 1040), 'OtherGainLossAmt' or 'RentalRealEstateIncomeLossAmt' or 'NetFarmProfitLossAmt' has a non-zero value; (3) Combat Pay has been excluded from wages.

I re-checked the return, it was accurate, and resent it.  Then it said the above, but added something about it being a known issue with the IRS (though it referenced Line 1g only, this return is Line 1h?).  That a correction will be made in early February.

I can't find any reference to F1040-071-07 to be able to check to see if/when the problem is corrected.  Any suggestions?

And school districts?  I don't deal with S/D's much, so I'm not sure about "business" liabilities.

I always attach a copy of the POA to the 8879.

Damn Judy, I feel like I just found a long lost friend.  Many memories of conversations with you on the old ATX "tree" board! 

Hope sure hope life's been good to you.

18 hours ago, mcb39 said:

...young people with children; most of whom knew exactly how to play the checks and balances in order to receive the highest amount of EIC.  Yes, we had to do the due diligence, but so many of them had it all figured out before they ever came in. 

This!

(And it always gave me a little chuckle when they, almost 100% of the time, called it the "unearned" income credit.)

Had one of these!  Less than 2 weeks after e-file (3/14), client received (DD) an odd amount - not an even dollar amount.  Early August, they received an additional "odd amount" (Total was, within reason, the refund amount plus interest).  I was never able to get to the PPL, nor was the client able to contact the IRS.  

No explanation whatsoever!

If I've learned anything from getting transcripts from bursar's offices, the colleges, (as I suspected), had all the information to "properly" fill out 1098's from day one.  To date, I have only seen one that was properly completed.

FWIW Lion, I probably would've mailed the kids documents to CA, absent adequate documentation to deal with the mother!

18 hours ago, jklcpa said:

include only investigative costs incurred during a general search for or preliminary investigation

But the SECOND to last sentence describes Tom's situation as I read it???

21 hours ago, mcb39 said:

no desire to place my clients on a Cloud.

This reminds me of a forum signature that echoes my thought:

"There is NO cloud, only other people's computers."

Simplified to a "post card", resulted in a 2 page 1040 now being about 5 pages on average.  Gotta agree with @Lion EA

33rd, and if they continue like this season, I might make 40.  Same 'ole, same 'ole 6-8 extensions. 

Last year it was 40-45% of clients, and seriously thought of hanging it up.