BulldogTom

Guess who just called today when her self prepared return was sent back? Looks like she wants to file MFJ now that we explained why she could not file single, why she would have to pay back the PTC, and why she needed to file a CA return for the wages she earned in CA. She really did not understand that she was getting the PTC, and she really thought that if she moved to another state by the end of the year she would not have to file in CA. How she came to those conclusions I don't know. I think now that she has all the correct information, we can make this right by both of them and then they can go their separate ways after we get the return filed correctly. Tom Modesto, CA

Not sure about the answers to your specific questions, but how about starting with the 4562? Was there one included with the return? It should have been. Since the business started in 2017, and if the form is filled out, it will show you the assets purchased and available for 179, as well as the breakout of the totals for 3 year, 5 year, 7 year etc. Next, I would ask for the financials for the company for 2017. It might be easier to recreate a return from the original documents (I bet you find errors that can get you an amended fee) than to try and use the limited information you have on the originally prepared return. That is just how I would approach it. Tom Modesto, CA

Who has plans anymore that have minutes? I have been on an unlimited plan for about 6 years. I don't like to call on my cell because the quality of the connection sometimes suffers in my office. Kinda weird. Good service most places, but not my office. It is OK, but not great. Tom Modesto, CA

I don't do enough representation work to make it worth my while right now. If I had to go through this every day, I would sign up. Tom Modesto, CA

Oh what a relief. Finally. 2 and a half hours for a 5 minute conversation. The guy on the other end was competent and resolved my problem quickly. Blamed it on a computer program not working properly. What else is new. Tom Modesto, CA

Mine has a cord. I am not fancy dancy like that. Hoping this gets resolved soon or I may have a puddle under my chair. Tom Modesto, CA

I really need to pee, but I can't take the chance that they will pick up while I am in the bathroom and I miss out and have to start all over again. Tom Modesto, CA

2 hours hold time and counting. I think I ought to get a Facebook account and live stream what I do while on hold for the IRS. I bet it would be a big hit. I could get my own YouTube channel and have people watch me play solitaire while holding for the IRS. I am real good at solitaire. Tom Modesto, CA

After holding for 25 minutes this morning, it looked like I was going to get through.....NOPE. "Due to technical difficulties, we cannot answer your call at this time. Try your call again later." Tom Modesto, CA

Hmmmm….I wonder if that will work with my client when they call me and say their account was swept by the IRS? Tom Modesto, CA

I have an offer number. Someone forgot to enter that information on the client's account. When the number was created, it should have been attached to the account. Seems simple enough to me. OK, someone messed up. But when you call, and they won't take your call, and when you do get to someone, they say they can't help? I could have faxed the official letter to PPS and they could have put a 30 day collection hold on the account while I tried to get to the right person to get them to do their job. If I can't get someone at the OIC office to pick up the phone, I am going to have to go to TAS to get this taken care of. And that will put extra work on TAS, which I guess is where we should start with every attempt to resolve an issue with the IRS. Normal means of dispute resolution are just not working any more. I am going to go play softball tonight and try and work off this frustration. Tom Modesto, CA

My client is under OIC consideration. We sent the offer 12/27/18, got the confirmation letter 3/27/19. Letter says they will respond by July 24. This weekend, I get 8 letters for my client saying they are going to levy. While you are under offer consideration, everything is supposed to stop. So I try calling collections. They are too busy to answer the phone. So I call PPS. They tell me they can't see anything on the record that shows we have an offer under consideration and I need to call the OIC folks. I call them and they are too busy to answer the phone. I am so sick and tired of these lazy (fill in the blank) never being able to do their job right. And I don't care if they are overworked or underfunded or any of that other bullcrap they put out there for justification of not doing their job. I don't have time to call them every single day until they decide to pick up the phone. It makes me feel like becoming a tax protester. The IRS SUCKS! SUCKS! SUCKS! SUCKS! SUCKS! SUCKS! SUCKS! Tom Modesto, CA

FYI, this is corrected in ATX. I am not sure when it got fixed, but I think sometime in the last week. The CA 540 CA is now pulling over the correct numbers. Tom Modesto, CA

When I have this situation, I enter the return as filed in ATX, and then do the amended. I name the original return "client prepared". Tom Modesto, CA

Seems like a lot of extra work for a minimal amount of clients. Unless a lot of your clients get notices. Tom Modesto, CA

Not a surprise at all. I bet they don't know yet if the data is compromised, and even if they do, they are not telling us yet. If they find out they are compromised, I would think it is their responsibility to notify all the affected parties and give them the free monitoring for a year. I think we will be shielded from liability, however, we will have an obligation to notify our clients as well. The degree to which we incur cost in any efforts to protect our clients will be an issue open for discussion. There have been so many of these breaches in other companies, I think if there is a data breach, WK will handle it just like Equifax, Yahoo, etc. Tom Modesto, CA

Thanks. That is something new to me. Tom Modesto, CA

Thanks DANRVAN. I was thinking of something along those lines, but was not sure that would be the way to go about it. Tom Modesto, CA

You are more than welcome. Happy to help. Tom Modesto, CA

@Ringers forgot to add...some of the escrow companies will provide the withholding certificate with the closing documents rather than mailing out at the end of the year. Have your client look for the 592 or 593 in their documents. You will need it for their return next year. CA will not refund the money without the information on that document. Tom Modesto, CA

You can use the smaller number provided you fill out the form correctly. The good news is that you work with the escrow agent on the withholding. You don't do it through the state. So long as you provide the completed form to the escrow agent, they should withhold the smaller amount. You can call the escrow agent and talk it over with them if there is any confusion. Tom Modesto, CA

So now the question is how to make this happen in the ATX software. Any suggestions? Tom Modesto, CA

Sorry for the bad formatting above. I am not good at this fancy dancy cut and paste and I don't do links. So my question is - the income is still excludible under foster care payments but is includible for EIC calculations? I think that is what this is saying. I have a couple of amended returns to get processed. Tom Modesto, CA

HSS payments are earned income for Earned Income Tax Credit May 16, 2019 The Tax Court has ruled that income that a taxpayer excluded from gross income pursuant to IRS Notice 2014-7, which treats qualified Medicaid waiver payments as excludable as foster care payments, is earned income for the purposes of calculating eligibility under the Earned Income Credit and Additional Child Tax Credit. (Feigh v. Comm. (2019) 152 TC 15) File amended federal returns for clients who qualify. Although California follows Notice 2014-7, it is unclear if the Tax Court’s decision will impact the California Earned Income Tax Credit because California also requires that the earned income be subject to state withholding. (R&TC §17052(c)(3)(A))

I think this is common. I think FDNY posted the fix in the past. Search for "Database server" you will see several posts on this topic. Tom Modesto, CA