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Chowdahead

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Everything posted by Chowdahead

  1. This is always a perplexing one for me... I have a client who neglected to tell me he somehow has 2 Uber driver accounts. So the IRS recently sent him a CP2000 owing over $15k, including a "substantial tax understatement penalty" of just over $2k doe not reporting a 1099-K and 1099-NEC related to the 2nd account. The letter provides an option to either agree with the changes or disagree and submit evidence. Response can be mailed or faxed. Well obviously he needs to file a 1040-X because none of his expenses (i.e. ALOT of mileage and Uber fees) were reported on his original return, so he will owe a lot less. My question is, should I e-file the amendment, or fax the 1040x it with a copy of the letter? Or do both? Finally, should the CP2000 be referred to in the 1040X explanation?
  2. Can someone be so kind as to remind me what the timeline is to correct a rejected e-file that was transmitted last night? I browsed through IRS Pub 4163 but I must be too cross-eyed at this point to see it. I seem to remember a 24 hour rule.... I also noticed in the ATX Newsfeed that the IRS recommends that any e-file rejected that contains Direct Debit info should instead be retransmitted without the debit payment info and the taxpayer should make the payment on the IRS website instead, but the return will be considered filed timely if retransmitted and accepted. Has anyone here experienced a situation like that? I have 2 in this situation.
  3. That would be extremely helpful! If not, I'll tell my clients to go to IRS.gov.
  4. Yes both amended return files containing the 1040X were accepted.
  5. Does anyone know if Direct Debit is allowed for tax owed for 2022 Amended Returns? I have 2 clients who had to file amended 2022 return and they had relatively small balances of $700 and $200. I selected Direct Debit on the 1040 E-file Info form in ATX and entered April 18 as the payment date on both the federal and state. No errors reported upon error check. But the client letter still says they should send a check to the IRS while also saying the debit for the state balance will come out of their checking account on April 18. I'm confused.
  6. Does anyone know if this also includes Direct Debit for tax owed for 2022 Amended Returns? I have 2 clients who had to file amended 2022 return and they had relatively small balances of $700 and $200. I selected Direct Debit on the 1040 E-file Info form and entered April 18 as the payment date on both the federal and state. No errors reported upon error check. But the client letter still says they should send a check to the IRS while also saying the debit for the state balance will come out of their checking account on April 18. I'm confused.
  7. I recently discovered that ATX will no longer be supporting or offering Paperless Plus. I believe they were supposed to offer a cloud-based alternative but I haven't found it on their website yet. PaperlessPlus was not great and frequently had technical issues for me. But it integrated well in ATX so that's why I kept using it. Anyone recommend another software product that I can use to scan customer documentation (i.e. tax forms, IDs, signature forms, etc?). I really don't wan to return to storing paper after 5 years of being paperless....
  8. There was a thread floating around regarding this. Parent had filed 2019 and 2020 return with dependent and received $1,400 EIP3 for the dependent. Now the "dependent" is filing their 2021 return on their own and not as a dependent of their parent. Can they claim the $1,400 Recovery Rebate Credit? Will they receive it? All logic tells me no, but there was info here that seemed to indicate IRS guidance is that they do in fact qualify. Thoughts?
  9. The 2021 1040X appears as approved on ATX Support, so am I assuming correctly that it is being accepted by the IRS? I have a client who wants to claim EIC using 2019 income.
  10. I have a New York resident who resided in NYC in 2021 and wants to claim the rent credit up to $500. According to https://www.tax.ny.gov/pit/credits/new_york_city_credits.htm and https://www.tax.ny.gov/pit/ads/efile_addnyc208.htm this is claimed on form NYC-208. However, I cannot find it within ATX. Anyone here familiar with this particular form or credit from NYC?
  11. My concern then is why are other software vendors not having a similar issue?
  12. Are Are you speaking of a 2020 return? Because to my knowledge for TY2021 using 2019 income for the CTC is no longer necessary since it is virtually entirely refundable now . It is still an option for the EIC at the bottom of the EIC Questions tab in both 2020 and 2021.
  13. Sch EIC Questions worksheet is like a maze even more so this year...
  14. Does that affect many clients? Because the lack of the MA Non-Resident form essentially makes it impossible to file RI and CT state returns either because both of those states allow credit for taxes paid to MA, which I cannot calculate.
  15. Ughh.. MA-1-NR/PY is now listed as being available on Feb 14! It was supposed to be released today Feb. 7 and originally was slated for Feb 3! I told alot of clients they would be all set today based on the prior info. This is crazy. I have never seen a major state form not be available 3 weeks after filing season starts, and this is my 18th year with ATX! I've already had 2 clients ask me for their documents back because I am unable to file their MA return, and I have about 3 dozen returns on hold. I can't even tell them how much their state refunds are without this form, unless I do them manually and I don't have time for that. I've submitted a support ticket. This is frustrating!
  16. Is anyone here using an answering service or has used one within the last couple of years? I'm looking for some recommendations and some info about how much they typically cost, etc, and also how effective they are? I did a quick Google search and found mostly advertising links etc with no real world information from actual businesses who use them.
  17. Thanks, I actually didn't see that regarding the CTC. Makes sense.
  18. Massachusetts resident and non-residents aren't scheduled to be released until Feb. 3, which is the latest I have ever seen for MA. Whenever this happens it's hard to tell if this is an ATX issue or a State Department of Revenue issue. Anyone know if other tax software is having a similar delay? I know it's only a few days away, and may happen sooner, but I have a more than a handful of returns on hold because of it. It's crazy that filing season started a week ago and MA forms still aren't available in ATX for e-filing.
  19. I have a client whose wife and 2 kids arrived in the U.S. in August 2021 and they are filing 2021 tax return jointly. I believe they can claim the Recovery Rebate Credit for the wife and 2 kids, however because the credit amount would be large ($4,200), I want to be more comfortable with the info I am giving them. The husband already received his EIP3. My trusty U.S. Master Tax Guide says they only cannot be a nonresident. According to the Recovery Rebate FAQ on the IRS Website you must have a valid SSN and resided in the U.S. in 2021. However I don't see any specific time requirement (i.e. 31 days, 6 months, etc) Seems to me like they qualify. Any thoughts?
  20. I was under the impression that payment protection only came into play when the taxpayers income reduced the credit amount, not when the actual child was not on the 2021 return. Otherwise the IRS would be issuing the credit for the same child twice, but to different filers, no?
  21. This form or the calculation in ATX is not as straightforward as it could be, so I wanted a second opinion to ensure I am calculating it correctly. https://www.irs.gov/pub/irs-pdf/f1040s8.pdf If I check 13A, then I complete Part-1B. If the individual received Advanced Child Tax Credits (ACTC) payments, I enter that total amount on Line 14f, in this case $1,800. If the taxpayer doesn't have any dependents on their 2021 return, this will generate a repayment tax on Schedule III, which is expected. However, a red error will then generate regarding Part III Line 30, asking for the number of qualifying children taken into account in determining the annual advance amount you received for 2021." Initially I thought I should enter "1" here because that is what the payments were based on (1 child). However, entering "1" on that line will wipe out the repayment tax for the ACTC and clear the error, and that seems wrong. Entering in "0" on that line will reinstate the repayment and clear the error. Is this correct and is the correct entry in this case "0"? Then I am assuming that if the taxpayer received ACTC payments for 2 dependents but is only claiming 1 on their 2021 return, they will only need to repay the ACTC on that dependent, correct? Food for through, The form doesn't ask to specify which child the ACTC is being repaid for so I can only imagine how the IRS will issue the entire CTC amount to the parent who actually files for the child, unless they assume it is the child who was left off as compared to the payments. I'm going down a rabbit hole here...
  22. I have always used a rep to renew but last year she never returned my calls and I was forced to renew online for the first time.
  23. So the consensus is that I should not file an amendment with the same amounts but different W2 Payer info, while explaining the amendment under Explanation of Changes on Page 2? Would the Payer info on the W2 Entry form being different not typically trigger such a delay? The IRS Where's My Refund page is useless as it has said "Your tax return is being processed" since March with no specific info. I know there may be two forms the IRS uses to authorize the preparer to discuss a client's return with them. One is the 2848 Power-of Attorney which I believe is more effective. I can't remember the other. Is the 2848 generally sufficient?
  24. I prepared a return for a family member back in March. The return as EIC and CTC but nothing unusual. She hasn't received her refund yet but she has received 3 letters from the IRS stating they are working on their return but they need more time etc. However, a letter has not arrive in over 2 months, even though the last one indicated the would respond within 60 days. I assumed the return was caught up with the sometimes aggressive screening process the IRS uses for HH and EIC returns, but I know these are her kids that reside with her and there are no shenanigans happing in this situation so I figured the refund would arrive in a few months, but nothing yet. I took another look at the return and realized I made a mistake on the W2 entry form. Apparently she used to work for a temp agency and had since become a permanent employee for the same company. However, obviously the W2 was now being issued by the the company and not the temp agency. The W2 amounts are all correct but the payer info such as EIN and Company Name and Address are different. So what is the most efficient way to address this issue since it's sort of caught in IRS system limbo. Should I electronically file an amended return with the correct W2 Payer Info and indicate the mistake on the 1040-X? Should I call the Practitioner Priority Line? I have hesitated to file an amendment because I don't know if that will make it worse and delay it more. She is understanding but I feel bad because not only has her refund taken this long, she also hasn't received any of the Advanced Child Tax Credit Payments. I'd like to get it resolved prior to next tax season but that's looking like a long shot.
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