Lion EA

Should I drag them out to the street?

Yep, talking with client confirmed that view. He boards a ship, his work location, at a LA port. He lives and works on the ship for a month or so in international waters. He returns to his family home in CT between assignments, about a month off each time. No withholding was done for LA. Filed CT resident return and RI nonresident, because a prior job withheld for RI when he was actually in the Pacific Ocean in international waters (but had left from a port called Newport in OR, so some HR person coded his work location as Newport, RI, and withheld accordingly. Client had direct deposit and did not see his paperwork while on the ship for a year, spanning two tax years, as his mailing address was his parents' home in CT.) He was always a CT resident from birth; once a CT resident, CT does not consider you a nonresident until you leave AND "stick" the landing, establishing that you actually live someplace else. Doesn't want to lose their residents and their tax money to FL where many have winter homes, buy their cars, etc.

Are EAs still exempt from the NY's definition of commercial preparers? I have lots of commuters. And, CA? I know if you're in-state. But, I have about one per year PY CA and PY CT or NY. There's another western state that has preparer registration, Oregon? Utah?

Was it his pension? I think on the usual line for pension and usual line for withholding. A long time ago, I had a US citizen who'd been overseas for a few years but was back in the states. He received a 1042-S for investment income. We reported it as usual. But, I had him deal with the brokerage to get future years reported on his consolidated 1099. That's really not the right reporting form, but few companies would change their 2013 reporting after the fact. Hopefully, it's early enough for your client to deal with 2014 reporting. And, to have the withholding stopped.

Thanx, Lynn.

OK, talked to client (instead of just him mom) who says he's on a ship 200-500 miles out in international waters for a month at a time, them back to CT for a month, and repeat. So, NO work location in LA or CT or any state. With work location in international waters (explains why no state withholding) and CT has always been his home and continues to be his home between "voyages," he's taxed as a CT resident, right? CT considers you as a resident until you move to another state (or out of the country) and "stick" the landing. He hasn't moved out of CT as far as I can tell, per CT's rules. His work location is in international waters. He could live in LA or anyplace. With a month off at a time, he chooses to remain at his parents' home in CT. But, I would think it's just commuting to get back to the port when the ship is ready to sail, yes? How would LA view this? Is he just visiting his family in CT? He's not required to live anyplace, just be on board the ship when it's ready to sail.

Finally talked to client (up to now, it's been his mom). He's assigned to a ship 200-500 miles out in international waters for a month or so, then back to CT for a month or so, and repeat. Only works on ship, not in CT and not in LA. So, I think taxed in CT where he resides, right?

Client lives in CT with parents. A Louisiana employer hires him to work on a ship in the Gulf of Mexico for a couple weeks at a time, then sends him home, then back again, etc. Withholds federal FIT but no state. He has no other work location in CT or LA or anyplace else other than a ship for a couple weeks at a time. During 2013, this began in April, so less than a year. But, it has continued, so now more than a year. Does LA have any claim to him? Does he need to file a LA return? I think we lost any benefits to a temporary job when it went over a year, right? But, I'm most concerned with his work location. If out in the Gulf of Mexico, is it LA or no state?

New twist. Young man lives with his parents in CT. Works for Galliano Marine Service, LLC, in LA who sends him on a ship out in the Gulf of Mexico for a couple of weeks. Then he returns to CT for a couple of weeks until he's sent back out on a ship, usually in the Gulf of Mexico for a couple of weeks. During 2013, he did this back and forth since April 2013, so not a whole year. But, it continues, so over a year. Are these temporary assignments? He has no other work location, no land location in any state. Employer withheld FIT but nothing for any state. (He had a job on a US Navy ship off the coast of Italy that also withheld FIT but no state when I first took on his family as clients.) Does Louisiana have any claim to him?

Thank you, Lynn. Young man, so doesn't respond to emails. I'll call or even text him today to find out where he lives/lived. He's had multiple temporary jobs as well as those expected to be permanent (marine engineer sometimes on a ship out to sea or docked someplace), and the LA job began after the start of 2013. I'm not even calling up the state returns until I find out where his 2013 tax home(s) was, which states are nonresident and which resident. You might see a PM later today!

At this late date, in this large family of multi-state returns, son has CT, RI, and LA. First time preparing a LA return. Anything I need to watch for? Like MA rental info or PA cities or having to know NY counties or school district or parishes...? By the way, his employer is in Cut Off, LA. Just emailed my client to see where he lives.

It was an employee of a law firm referring a client to an attorney at a different law firm. So, ETax 847, is your client a lawyer or a secretary or...?

My software does have that function. The lady in PA told me to fax it to her when efiling 2012, so I did both! For 2013, I actually did only the .pdf and not the fax as the refund was something like $2 so not a big deal if delayed (it's my kids and a free return, so they really can't complain!). CT also requires me to keep the other state return with the 8879 (CT accepts the federal 8879) in case they ask for it. But then, CT still doesn't receive e-filed trusts (you can upload returns on the CT site); say they will later this year.

Agree with KC. I do a couple of PA returns and have to fax (mail is also an option, but they state they will not process the refund until they receive the other state return) to a special number. Call Indiana's efile desk.

(1) Interest from sources in one of the Contracting States, being interest to which a resident of the other Contracting State is beneficially entitled, may be taxed in that other State. Interest from sources in Australia, being interest to which a resident of the US is beneficially entitled, may be taxed in the US.

Does the treaty say it is?

Worldwide income. But, a foreign tax credit is available for taxes paid to Australia on the same income.

I would read the IN instructions or contact IN. I work with a couple of states with similar requirements for paper returns, but for e-filed returns the states just require me to keep a copy of the other state return with the 8879.

Green card holder? On what basis did he receive a SSN and right to work in the US? Or, what treaty provision have you used to not report his worldwide income?

I just started typing "p" and IntelliConnect suggested things such as Per Diem and Per Diem Rates. I chose one of those and then looked for International and Foreign in the title and beginning text that's displayed.

Citizen? Permanent resident? Report worldwide income.

Below is one of the choices using IntelliConnect for "per diem rates": News: Federal Tax Day - Current, I.3, October Maximum Per Diem Rates for Travel in Foreign Areas Released, (Sept. 26, 2014) - October Maximum Per Diem Rates for Travel in Foreign Areas Released...released a listing of maximum travel per diem allowances for travel in foreign areas...14,417.421 October MaximumPer Diem Rates for Travel in Foreign Areas Released

Thank you, all.

I still have 8879s both on paper and electronically. So far, my electronic files go Clients, Name, Year. So keeping the 8879s in either the year of the return or the year filed would not make them hard to find in my electronic file. (And, yes, on desktop and an external drive offsite and a flash drive onsite.) Finding paper, until I stop using it, would be a bit more shuffling to check my file still labeled DCNs for the year of the return and looking forward until finding it in the year actually efiled (or moving backwards from now until I locate the year filed). I don't have a lot of clients, so either method would not take me much time to track down that piece of paper. Just wondered what all of you do. Mostly worried for when I start shredding older folders and have to check when returns were actually efiled. But, as long as I don't shred anything that isn't also scanned/saved electronically, I'll have everything someplace (a few places). I learned at Block where we filed 8879s by DCN. So, we had to locate the return, hope we could read the DCN handwritten on it, and then find that number in the DCN file to locate the 8879 with W-2s and other withholding. It was more or less chronological, but still a big pain. Now I file alphabetically, so much easier.

I'm filing a few 2011 and 2012 trusts and individual returns now. Would you file the prior year Forms 8879 with current year (either paper or electronic) because that's when it's filed, or with the 2011 and 2012 forms because that's the year they pertain to? I'm especially concerned about paper documents. If I file them with the appropriate prior year, then when I eventually shred documents from that year it'll be too soon for the late filers. What do you do?