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Found 30 results

  1. Has anyone had experience with this message- Unfortunately ATX (even after attaching their software file "Large Address Aware") still unable to accurately process the file. Keeps shutting Down
  3. 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))
  4. It says balance sheet discrepancy. Also for PR partner # 1: when entity is other than individual...do I show their social security number or entity ID no? It is showing error when I put either kind??!!
  5. Husband and wife bought stock while living in community property state (AZ). The shares weren't gifted or inherited but bought with community funds. A few years later they moved to non-community property state (OR). Then in 2015 wife died and in 2018 husband sold shares. I believe that the nature of property didn't change after move to OR and he received a full stepped-up basis in 2015 when wife died in 2015. Am I correct?
  6. Hello all I should be filing extension for a corporation for which I intend to file 1120S & 2553 after extension. At present there is no 2553 filed yet. In form 7004 should I pick option 12 for 1120 or option 25 for 1120S. Let's say i have to pick 12 would it be fine if I submit 1120S & 2553 ?
  7. I prepared certification forms for my clients to sign who have CTC, ACTC, ODC, or OATC on their tax returens. I do not have enough HOH or EITC clients to worry about standardized forms. I have my clients read through the IRS garbage and then sign the certification, which I keep in my file as proof that I tried to be an IRS agent for a few minutes qand grill my clients. Most of the clients comment about the IRS language, especially about the definition of "dependent" for many of the credits. It gives them a new perspective of what we have to put up with year after year with more and more clarifications and exceptions to prior definitions. One client even said "Is the IRS nuts or what?" I just smiled . Anyhow, I have attached the forms I produced in case others would like to adopt them or modify them for their use. CTC, , ODC CERTIFICATION.pdf AOTC TAX CREDIT CERTIFICATION.pdf
  8. phyllisw

    Year of marriage

    Tax client married in August 2018 and had a baby in October 2018. Spouse qualified for PTC while single will have to repay due to income filing jointly. When calculating spouse's alternative family size as 1 she does not qualify but if she uses family size of 2 (her and baby) she does not have repayment. Is this acceptable?
  9. Have a client who owned custom kind of personal residence in IL from 2001 until August 2016 when he started renting and eventually sold in Sep 2018. I know I am suppose to look for FMV at time of conversion for calculating gain or loss. Since this is kind of custom house I cannot find comparable home values during August 2016. I looked at county website which shows assessed value which is way less than original purchase price. Can someone points me to any website or source where I can get an idea of FMV of this house in past August 2016.
  10. Is there any easy way to aggregate multiple trades or businesses in ATX? For example I would like to aggregate an RPE 1065 K1 activity with a Schedule C activity for purposes of computing QBI. Also, does ATX generate the required aggregation statement to attach to the tax return or does this need to be manually attached? Thanks for any thoughts, Shannon
  11. How are preparers entering data if you use secure file pro. In the past I have entered from original documents printed out. Is there a way to review input and show it has been entered.? If not how do you review a return for accurate data entry.
  12. So many questions are rolling in. Do I know the answers? Not always. My classes are late this year and will be held on December 2 and 3. I did order "Tax Planning for Individuals" 2018 Edition from Quickfinder and it has been a tremendous help. I did consider hanging it up, but this is too much of a challenge to miss out. Also, financial security is always an issue. We purchased a rental house in July. I just want to wish all of you the best of the best of tax seasons. Also, Happy Holidays to all.
  13. Moderator note - first 5 posts here were moved from another topic that was being derailed. Rita, LaVergne is simply Edsel on a client's computer. In order to post, you have to register, and the IP address of the computer in use will not allow a duplication of another name. Apologize if you were misled, there was no attempt to "hide" my identity. I think you know I would not hide behind a tree to post, even for unpopular subjects. The client's computer is in LaVergne, Tennessee. My engagement at this client will last until January when a full-time person will take over. Thus posts from "LaVergne" will be few and not last very long.
  14. Related Party sale – losses aren’t deductible. No problem there. But what happens in a related property sale of rental real estate at an overall gain, if there is (1) a loss on the land, but (2) a gain on the building? Is the loss on the land still disallowed? For example: • Related party sale total net gain =$10,000. Reported on 4797 it is made up of: • Gain on building = $20,000 • loss on land =$10,000 Does the taxpayer have to recognize a $20,000 gain on the transaction and loss on land is disallowed. Or does the taxpayer recognize a $10,000 gain. If this was not depreciable property (vacation home) there would only be “one total value” and there would be no disallowed loss . It seems to me the property is only split to calculate depreciation, but does that create a situation where the loss is disallowed?
  15. Decedent''s only asset left was a secured note/mortgage held on her home by former renter. In 2017 the individual died, her family that lived in it let the proprety go and did not pay the last 2 RE tax bills. Decedent's heirs filed for a quit claim deed and property was conveyed back to estate. Sold in 2018 at a county tax sale for 20% of original note, paid all costs and ended up with a "book" loss of about $50,000. Q1-Can they take the loss on the property, netting all legal fees - from the note's value at the time of default? Q2-Is it a capital loss to each heir, maxed by $,3000 loss limitation? Q3-if the estate is closed out does the loss go tothe hier and they carry it over if they are limited by the $3000 maximium loss? I am trying to help a family I am related to, but have little estate experience. Should I just hire someone?
  16. I have not ever had to address this issue. The client is dual citizen US and Eritrea. In order to maintain ownership of family home in Eritrea, they are charging her 2% tax on US earnings. I cannot figure how to exclude the tax paid to Eritrea. This is a $4000.00 tax with corresponding income double taxed. Any takers among this august group of smarter than me folks?
  17. I had been paying into a Sunlife LTD plan through my company. On my W2 from my company they listed at the top. The chart indicates your 2016 voluntary adjustments which are included (+) excluded (-) or did not affect N/A your federal wages. Box 1. They then list the voluntary adjustments Voluntary adjustments YTD amounts Federal Wages Long Term $173.27 N/A The $173.27 I paid is listed no where else on the W2. From Sunlife the W2 I received lists in box 1 the amounts Sunlife the disability provider paid in 2016. I am thinking as the LTD did not affect my wages and I paid it it should be non-taxable. Box 13 of the Sunlife W2 lists it as Sick Pay. How can I determine who paid the insurance. Me or my company. Sunlife says my company screwed up and that their agreement with my company was where it should be taxable.
  18. I need a bit of assistance. I have a new client who has a 1065 for business real estate rental, and a schedule C for investment sales. Her past preparer got into big trouble, and all his computers were ceased, but she was able to give me her last two years' returns. The first thing I noticed is that the 1065 activity is listed on Page 1 of the return and that there are no schedules L, M-1, or M-2. I know for a fact that there is $1.2mil in real estate in that business, but it doesn't appear to have ever made it on to the balance sheet. I'm thinking it probably won't hurt to keep the activity on page 1, although it isn't technically correct, but do I need to file Form 3115 to put the assets on the balance sheet and start depreciating them? Any insight is much appreciated.
  19. 2015 was the first tax season for me to use ATX (because of a job change) & after using Lacerte and ProSystem fx it was a nightmare! One of the largest struggles was oil/gas working interests. In the other programs I could enter income/expenses/depreciable assets for each well and the program would calculate depletion limitations/carryovers . I don't see any way to do this in ATX so used excel spreadsheets and then transferred totals into ATX. How do you handle oil/gas working interests? How do you keep track of depletion carry overs etc? any help is appreciated!
  20. I am a new tax preparer using the ATX software for the first time. I am working on a partnership return that has 57 limited partners and one general partner. At 12/31/15, one of partners transferred all of their partnership interest to a new partner. What specific steps do I need to do in ATX to make the transferor's K-1 final and the new partner picking up the tax basis of the transferor's partnership interests at 12/31/15. I know the old partner would receive all of the net increase/decrease of basis, plus all of the allocated income and deductions for 2015, but I need to know how to go about closing the old partner out and setting up the new partner in ATX. Any help would be greatly appreciated.
  21. Manoj Gupta


    I have a client with 40 PFIC accounts. Do I have to report each on a different 8621 or is there a way to combine them they way we do in 8949.
  22. Hello I have this question regarding HSA contribution by greater than 2% shareholder. I know these are reported under line 1 of W2 and box 12 code W for HSA contributions & code DD for health insurance premiums. Since HSA contribution code W amount is flowing thru to form 8889 and software is regarding as employer contributions and disallowing HSA contribution deduction. I searched online but this looks remain unanswered. Does anyone has idea how to get around and have software take deduction. I am posting from IRS notice 2005-8. For employment tax purposes, when contributions are made by an S corporation to an HSA of a 2-percent shareholder-employee, the 2-percent shareholder-employee is treated as an employee subject to Federal Insurance Contributions Act (FICA) tax and not as an individual subject to Self-Employment Contributions Act (SECA) tax. (See Announcement 92-16, 1992-5 I.R.B. 53, clarifying the FICA (Social Security and Medicare) tax treatment of accident and health premiums paid by an S corporation on behalf of a 2-percent shareholder-employee.) However, if the requirements for the exclusion under section 3121(a)(2)(B) are satisfied, the S corporation’s contributions to an HSA of a 2-percent shareholder-employee are not wages subject to FICA tax, even though the amounts must be included in wages for income tax withholding purposes on the 2-percent shareholder-employee’s Form W-2, Wage and Tax Statement. The 2- percent shareholder-employee, if an eligible individual as defined in section 223(c)(1), is entitled under sections 223(a) and 62(a)(19) to deduct the amount of the contributions made to the 2-percent shareholder-employee’s HSA during the taxable year as an adjustment to gross income on his or her federal income tax return.
  23. I have been preparing form 1040 NR-EZ for a friend of the family on an unpaid basis. The lady in question is in her late 80s and lives in France. Her tax liability stems from a small survivor's pension she receives from a US multinational for which her husband worked based on the time he worked for them in the USA. He - now deceased - and she were/are both French nationals. I do not sign the returns. I prepare(d) them and sent them to her for review and signature and she files them with the IRS For a number of years everything has been running smoothly. Unfortunately, in the 2014 return, one digit in the ITIN was mistyped (a 2 instead of a 1). To make a long story short, the IRS has notified her that she "needs to take action" but not about what action to take. On her behalf I tried calling many IRS numbers but it is no longer possible to select an option to talk to a person. Today I visited the local IRS office and was informed I needed to submit a PoA on Form 2848 before they could talk to me. Enter the problem: I am not a licensed tax preparer nor do I intend to become one (time would be too short anyway). It appears to me that Form 2848 deals with paid return preparers who do require a CAF number and ITIN. a. How can I get a valid PoA given my situation b. Which form should be used c, What to do about CAF number and PTIN Any help, insights or suggestions greatly appreciated!
  24. https://www.congress.gov/bill/114th-congress/senate-bill/137 Something to watch out for. The bill aims to empower the IRS to directly regulate tax preparers, which was the missing element behind the Registered Tax Return Preparer (RTRP) program. The text of the bill (which I can't find again) simply adds "and tax preparers" to relevant sections of existing Title 26 code. The bill seems sluggish so I have my doubts about it passing. But bad ideas have a way of persisting and then making their way into legislation, so be prepared for the IRS taking control of our profession. Then it'll be more and more requirements each couple of years, and higher and higher fees to comply with those requirements.
  25. I can't believe TRX is still in business. For those of you who are new to their software, it is not reliable at all. Last year Tax Firms and Tax Preparers using TRX had a combined lost of hundred of thousand of dollars. Not only that but I doubt that the software issues caused by TRX may have affected return customes for this coming tax season. I dont advise to purchase TRX software since they were so irresponsable last year making changes to their software during the heaviest tax preparation times causing a tremendous loss for all of of us. Their business has not ever been in Tax Software Development. Their business has bee based in retail only...selling someone elses software and providing tech support at a lower price. IF YOU WANT TO HAVE A GREAT TAX SEASON, STRESS FREE, THEN DON'T PURCHASE TRX SOFTWARE. I highly recommend UTAX a reatailer for Crosslink software. UTAX will work out a great price for you. Good luck. Elsa
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