Lion EA

I've heard that it can come up during an audit, that an extension would be invalidated then if filed with zero owed or an unreasonable number. I don't know if one instance would move an auditor to then open a "preparer project" to look for more zero extensions from that same preparer. I'm filing more than I'd like to this weekend. I think I've heard back from everyone who's going to make a payment. But many more clients have asked for extensions without further response to my queries. Their numbers are not on my ceiling. I figure it's like basis -- if they didn't give me what I need, then it's zero.

Post your solution for other sleep-deprived, stressed, rushed tax pros who can't possibly remember every thing they need to remember at the exact moment they need it.

I have one client who moves back and forth from CT to OH (gets rehired by Highlights and moves for a couple years, then returns to her mother's house in CT for a couple years, rinse & repeat) and a CT kid who attended college in OH and worked a bit while in college and maybe one more. Drove me crazy!

Depending on your software, you could e-file this all along.

I sign, because my clients ask if they think my wet signature is missing! But I have my software set to print my signature, so it's always there and legal, if I forget to wet sign. The last time I checked, the IRS and all the states I prepare, accept the printed-by-software signature.

When all else fails, reboot.

You have to use Form 8949 to report the DOD cost basis to be able to show her actual gain/loss for her month of ownership. Plus, the IRS has the Form 1099-B so its computers will try to match to her return. Get the DOD values for each of the sales from her ML stock broker. In fact, have him print her gain/loss statement using the DOD cost basis for each transaction. He should upload it to a ML portal and give you access. Download it to your computer. Then you have the documentation you need to prepare her return and to include in her tax folder for her to keep. Also, save a copy of her ML gain/loss statement in your electronic file for your client, just in case she gets any IRS correspondence that you will respond to for her.

I have a couple clients who text me pics. Even if the pic is readable, I have to figure out how to save it, usually email it to myself and then save in the client's file on my computer. Time wasted on an extra step or two. Usually the pics are NOT readable. Even the email attachments, if not .pdfs, are odd, such as just one quarter of the page. "But I sent it to you." ScanStraight is a creation of Jason Staats who's a tax preparer. I haven't tried it out, but I did download it at his opening discount price. Jason's heavy into AI. I think ScanStraight's strength is that if you get a bunch of pics from a client, you can "fix" them all at once. I think you move them all into one folder in ScanStraight and then process the whole folder. Scannable is by Evernote so if you use Evernote (which I don't) it's there for you. Save to Evernote or camera roll. Send via email or Share by all the usuals: Message, Mail, Notes, Copy, HP ePrint, Files, Open in..., or your favorite printer app. It's great at cleaning up photos, turns those gray backgrounds white, smooths out folds and creases, makes "stretched" areas readable, finds the document when you're the photographer. I think I said I've used it to take a photo of the messy attachment on my monitor to get something readable and worth saving without having to print to paper. Scannable's a one-at-time thing, where ScanStraight will do one or batches at a time. Hubby teaches piano and has a lawyer student who travels a lot and uses Scannable to send and receive documents when on the road. Hubby downloaded it (it's FREE) and uses it to send music back and forth to his students. It was very handy while he taught remotely during the thick of Covid, but even now he has kids that forget their music or need something new right this minute. He told me about Scannable, so I use it and try to get my clients to use it. The newer iPhones (mine is an old iPhone 6+ or something) do a good job without an app.

Has he had the same insurance company the whole time? I had to look in the bound books at the town clerk's office for information about my house built in 1961, but amazing detail was there! There's the microfiche at the library for local newspaper reports of real estate transactions about his duplex or similar buildings at a similar time. He just needs to get close enough for government work with a $45,000 purchase price.

I use and recommend the free Scannable app. I try to convince my clients to use it. When they don't, I can use it to scan my monitor with their unreadable jpeg image so Scannable can clean it up. Jason Staats soft-launched at $20 (it might be $40 now) ScanStraight: New Launch I soft-launched a new app over the weekend, ScanStraight. It's steeply discounted for the next week while it's in early access, but essentially converts terrible smartphone document pics into tidied-up scans. Imo this ought to be in the toolbelt of every firm admin. https://scanstraight.com

You probably want to contact ATX Technical Support first thing Tuesday morning. This is a privately-run community for tax preparers, some of whom use ATX in their practices. Maybe an ATX user has encountered your problem and has a solution, but reach out directly to ATX. There's also an ATX-sponsored chat that might provide technical help.

I was going to mention the land vs building value being higher for land here in the northeast. Does he have an insurance contract from his first full year of ownership, because only the building would burn and not the land. You might be able to infer the ratio from that plus his purchase price.

Extensions are our friends!

Oh, thanks, I don't use ATX, so data entry is different. And, I just found the latest (I think) IRS notice that states the only CA counties NOT qualified are Lassen, Modoc, and Shasta. Now I need to check addresses of my clients. Happy Easter/Passover/Ramadan/Spring/Tax Season!

What "main form"? Are you talking about when you file their Form 1040? Or, are you filing extension Forms 4868? I thought we did NOT have to file Forms 4868 for our CA clients (except in about 3 counties). And, while I'm typing, what are the three (?) counties that do NOT get automatic extensions?

eSign uses questions to verify ID. For my colleagues that use Verifyle, they create their own method and document it in Verifyle.

My question is why isn't the actual payment (was it $100,000?) divided proportionately into the various categories for the year of that payment? In other words, no extra "income" tacked onto a return when that "income" is over and above what was actually received in that year. I haven't done a sale in ages and do remember something about gain due to depreciation in the first year, but your research re non-compete payments and the comments here don't lead to any special timing on the non-compete total.

I use CCH's eSign and even my elderly clients manage. Those that do everything on their phone, can eSign on their phone or computer or tablet or... The price has gone up to $5 per a set of returns (H/W for IRS, CT, NY, & CA is $5; S with IRS & CT is $5). That's fine for me with a few complex returns and not a lot of simple returns (I have NO simple returns!). Anything to save me time. Little children don't have the financial footprint to pass the KB ID verification, but from HS through old age, my clients use it. Whatever program you choose for electronic signing will save you time collecting verified signatures.

Thanks for reminding me that my now-room-temperature tea is still sitting here!

Have one before or after your corresponding customers!

NY uses the Convenience of the Employer rule, so unless his NYC employer requires him to be in CA (schmoozing with clients, training, brick & mortar job site, etc.) NYS & NYC consider his wages to be NY-sourced. If your client's in CA because he wants to be in the CA sunshine or whatever personal reason, his wages are NY-sourced as far as NY is concerned. CA looks at his work location (and where you, Catherine, and I and others here, deliver our work product). CA and NY are two aggressive states to work in, and they don't play nice together!

I get to play with my 3 year-old grandson this weekend, so that's fun!

Current and two prior years.

Similar. Memorial service last weekend, and the family asked me to be the liturgical assistant, so I had readings and prayers to prep. "Kids" coming for Easter weekend. Clients have passed away, and their families need lots of information and help. Son going through a divorce, and that affects their partnership returns as well as their personal and makes visiting the granddaughters much more complex. Clients inheriting multiple partnerships with multiple real estate and step-up elections. Clients opening businesses and closing businesses and receiving corrected Forms K-1 and corrected Consolidated 1099s. I entered this season still behind on 2021 returns. It will be more extensions than ever. I'm trying to calculate all the extension payments I need clients to make tonight. I have one who didn't make her ES payments and now wants me to "do the ethical thing" per the CPA that lives next door to her re her balance due with P&I because she brought me her 2021 documents in November 2022; not only is she not paying me, but she wants me to pay her. I thought this would be an easier year with Congress doing a bit less about tax, but too many of my clients upped their complexity an order of magnitude. Hubby scheduled our exterminator tomorrow for a time when he's down at church with the organ tuner, so Tuesday will be a stop & start day. I need an uninterrupted block of time to prepare an S-corp on extension to get the K-1 to the personal return preparer. I've simply stopped caring as much.

I think (going through the same for a CA resident with a CO K-1) that the disaster extension covers the IRS and CA, and that you need to file a NJ extension. I think.