Lion EA

I deleted the IRS QuickAlert after my software issued an update. But, maybe this will help: The IRS has a new requirement that third party designee information for preparers be included in the electronic file for Individual returns. On Release 2009.03001, changes were made to automatically default to preparer name, phone number and PIN. A disqualifying diagnostic still issues in the case where the Randomly Generate ERO PIN (1040 Only) option is selected in Office Manager > Alternative Filing Options > General, because the PIN number is not being recognized appropriately in the software. This issue will be resolved as soon as possible. To eliminate the disqualifying diagnostic you may do any one of the following: Enter a specific ERO PIN (all return types) in Office Manager > Alternate Filing Options > General. Enter a specific ERO PIN for the specific preparers in Office Manager > Configure Staff. Enter a specific ERO PIN in each return on or General > Electronic Filing > Paperless E-file > ERO Self-Selected PIN (Interview Form EF-1, Box 53). We apologize for any inconvenience. Essentially, if you check the box, you must have all three fields: name, telephone, and PIN, and the PIN has to match what you use elsewhere. If you don't check the box, you don't have to fill in anything. They won't accept Preparer, and if Preparer or anything else in in the name box, then you have to have the phone and PIN. Call your software!

You have an extra month for e-filing. Only the paper filed were due Monday. That buys your client some time to get more info to you.

My son told me to keep Jolly Ranchers on my desk, and I have ever since. Works well since I don't like hard candy too much to ignore them. I have some milk chocolate $ coins, too ( I'm Dollars & Sense, LLC) but I prefer dark chocolate. Since all are individually wrapped, clients and I feel safe. And, since neither is my favorite candy, I'm not nibbling all day. When I moved and sent out postcards, one line said, "The Jolly Ranchers are waiting for you!" since a couple of clients had actually called me to make sure I'd still have Jolly Ranchers.

A very :bday:

It may be the printer memory or the printer speed or both and not your computer at all. There are some different settings, such as start printing immediately or wait until entire job is transferred. And, my last year at Block with ATX for entity returns, the printing was painfully slow. Had not been before and was not at home. The techies tried multiple things. It would print out each page and pause to catch it's breath before continuing. It made me hurt just to listen to it. Certain sections would zip out, maybe the worksheets. But, do all the clean up type things that others recommended to your computer also. If you have a VMS subscription, I'd call them to look into your situation.

A very :bday:

A very :bday:

Even without getting into when a baby becomes a person, the fact that the IRS treats those that are born during a year differently from those that die during a year is a pain to explain. And, then there's adoptions. Or, what about an immigrant who can actually CHOOSE whether to be taxed as if a resident for the entire year?! If they couldn't make uniform work for Uniform Definition of a Child, we have no hope when adding all other ages!

From the payer's viewpoint, it is an early distribution. The payer did not certify your client as disabled, sounds like his doctor did and the SSA, too. Form 8329 is not a workaround; yours is one of the reasons for the Form. From your client's viewpoint, 03 is the explanation and Form 8329 is how you explain the situation to the IRS. I have used it. And, I haven't had any clients get IRS letters from it. I wouldn't be surprised if your client hears back, especially if this is his first year. But, you said you have documentation.

Or, line 7. You'll have to ask questions to learn the facts and circumstances.

An S-Corp shareholder who provides services to the business should be an employee and receive a reasonable salary. Maybe not if there's not profits from which to pay him. But, otherwise, he needs to run payroll. Do you provide payroll services? You may have even more work from this client!

Now, that's good to know. Interesting. When a baby is born during the year, don't we have to use 12 to tell the software the baby lived with the parents for all of the months it was alive, even if less than 12? Or, are we supposed to use the actual number of months?

A very I think we're duplicating, but when you have birthdays only every four years, we have to bulk up when we remember!

Only the owner can depreciate the vehicle based on percentage of business use. As an employee of his S-Corp, he would take unreimbursed business expenses on Form 2106 to Schedule A on his Form 1040. He could have an accountable plan at his S-Corp to reimburse employees such as himself for business use of his personal vehicle and submit an expense account periodically. Then, the S-Corp could deduct the expense without the employee having extra income. Do a little reading re S-Corp greater than 2% owner/employee fringe benefits. Not very intuitive and not the same as C-Corp employees and not the same as partners. That's why you should charge the big bucks!

I don't think the IRS cares, so unless you're trying to push the client into leaving (too late for this return) or to pay you, just update your notes and time line in his file to document what you did and why and what you knew and when. When you catch your breath after tax season, send him a short and sweet letter telling him you will not be able to prepare his returns in the future.

It used to be possible to efile if DOD was during the tax year, guess SSA updates their information; but NOT if DOD was this calendar year AFTER the tax year you're filing, SSA not updated yet or something like that. But, your issue sounds like the DOD was just missing and needed to be included before retransmitting. Let us know. We never know when we'll have to file one of these.

I'm shamelessly bumping this up...

A very :bday:

Sounds good to me! Have a very :bday:

Have a very Catherine's up early this morning to beat our usual well-wisher!

Good point, KC. With all the changes stepdad made and proposed, keep a really good time line.

Have a very :bday:

Wow! Lots of ways to look at this, and the only way that matters is your way. I think that with the son your original client and the son not an owner or an officer in this new company the way the stepdad NOW describes it, I would handle this a lot like a divorce. If you had a long-time client that married and then not long after was in the midst of a divorce, what would you do? Keep your first client and decline the MFS return of his spouse? You could hand back stepdad's source documents and any work for which you were paid, explaining that you have a conflict of interest with no further explanation. You could also use a technique many mention: quote stepdad such a huge price for the "do-over" that he'll leave of his own accord. You know stepdad well enough by now to know if the latter will create more hard feelings than the former. In this situation, you want to take the calmest route. Looking forward to reading everyone's suggestions. Good luck.

When and if he has a sale, his cost basis is the V amount on which he's paying taxes as already in his ordinary income + any amount he paid out of pocket or had deducted from his proceeds to purchase the stock. If a same-day sale, there should be no gain and probably a small loss equal to any commissions/fees he had to pay. But, an exercise of a stock option is not a sale, so find out if he owns the stock or sold it.

Form 5329 can be e-filed. Exception 03 if I remember correctly.