chadlonetree Posted March 8, 2011 Report Share Posted March 8, 2011 Client received a letter from the IRS that "they may owe SE tax." Their business wasn't very profitable this year and the SE tax health insurance deduction brought their SE tax to zero. I entered their SE health insurance deduction on 1040 as well as the "Magic Blue Box" on top of Sch SE. IRS computers didn't seem to like it. They are going to assess SE tax in 20 days if no documentation is sent in. I have written and sent the letter already, just wondering if I missed something here. Anyone else have this prob? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 8, 2011 Report Share Posted March 8, 2011 I'm expecting it. Using the SE health insurance on Schedule SE brought client down to zero, so software (ProSystem fx) did NOT include Schedule SE. I see a letter coming... Quote Link to comment Share on other sites More sharing options...
Edward Posted March 9, 2011 Report Share Posted March 9, 2011 Isn't this something that just changed for 2010? If so, it sounds strange that IRS would be looking at 2010 returns already? Any comments? Quote Link to comment Share on other sites More sharing options...
chadlonetree Posted March 9, 2011 Author Report Share Posted March 9, 2011 Client sent me the letter. I am holding it, it is for the 2010 return. Quote Link to comment Share on other sites More sharing options...
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