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Yes, I do that too Catherine and got my couple of extensions finished up on the 11th. Do you recall my story about my client I called my boy-on-a-bike, the one that put his W-2 on my porch without telling me, that was out there much of the winter, and that I found after the season had ended? Well, I heard him putting his W-2 in my drop box late yesterday afternoon, and he rode off too quickly before I could call out to him. I had the return done about 2 minutes later, but had to get the extension.

yes

It IS a great forum. I started reading this topic and then realized it was from FIVE YEARS AGO, but the topic is appropriate for today so I'll leave it active. BUT I've always wanted to use this picture, so here it is anyway:

I filed an extension almost an hour ago and haven't received the ack yet. Maybe that is the reason, but I didn't receive any message. I did get an email from Drake this a.m. warning that the e-file processing of acks would take longer than usual because of the heavy last day volume and to expect any acks to take more than an hour to be returned back to preparers. That is to be expected and one of the many reasons I try not to wait until the final day to send anything in.

I'm like Catherine was in that I've been fighting a cold or the start of a sinus infection for several weeks. I've been going strong until this morning when I woke up with a bad headache behind my left eye. Ugh! Some OTC meds and sinus rinse with extra salt have helped tremendously and the headache is mostly gone now too. I've sat with my feet up watching on here for a while, sat in the sun and weeded around one rose bush and while I watched the dogs outside. Maybe I'll mosey on out to the mailbox soon. By Friday I should be rested enough that my husband and I will enjoy a nice relaxing dinner out somewhere.

I had a great season, finished the returns a little early, have already completely several clients' 1st quarter work and payroll returns, and today I'm taking it easy. I was able to add to the client base, grew the practice some, and made more money! Yay! Thanks to all who participate here to make this a great place to visit. I hope it will continue to grow and thrive, and maybe we'll will entice some that left to call this forum home once more. Finally, I want to say THANK YOU, ERIC, for providing this site and taking good care of us.

More questions. Did these returns also have refunds due back to the taxpayers that are being held up until the documents are provided? How long ago were these returns filed? I haven't had any clients receive requests to provide the 1095-A or any other data related to the PTC. I did have a client contacted by the State of PA requesting proof of 529 plan contributions for her grandchildren, but that is a different story.

Just because a client wants to do something doesn't make it correct. Unless the partnership had a change in ownership of more than 50% and therefore had a technical termination, then you and your client would be in error by filing 2 tax returns years, and even if they could or did this, the one for the period ending in Oct would already be late, so an extension is totally inappropriate for that situation. You need to file one extension for the entire year using the EIN and the new name. When the return is filed, you will check the box for name change on page 1 of the form 1065. The partnership can make its allocations to all of the partners for that short period based on the actual results of operations through the date in October and give only those details of that income/expense split to the partner that left. The remaining partners will also get a portion of that plus a split of the activity for the remainder of the year.

I haven't had one of these in quite a while, and it came out on the 1099R the following year, but I don't remember how that data was presented. I think it had code 8 and was reported the following year. The 1040 instructions say that the plan administrator must notify the participant which year to properly include the income. It's in the instructions to lines 16a and 16b under "corrective distributions". If the plan administrator said that the form will be for 2015, then I'd report it in that year since that is what the client told you, document the convo, and not worry about it today. Did the client receive anything in writing?

I had an issue with ATX handling one with a code Q back in 2012, and it was my husband's distribution so I knew all of the facts. Program insisted it was taxable unless I entered info on the 8606, completely contrary to the forms instructions and that code "Q". I'm glad to hear they've corrected that, at least, because it was quite frustrating. I had a client with one with code "T" for the past 2 years, and it is interesting that Drake didn't require it and didn't even mention it in the notes and messages. I'm not pumping up Drake here because that could allow someone to file an incomplete return, but if the taxpayer meets all the requirements for not having to file 8606 with code T, then ATX should allow the practitioner the ability to get rid of the form 8606 or override the taxable portion on the return and still allow the e-file.

From the IRS site regarding excess contributions and deferrals: Correction of excess deferrals after the year. If you have excess deferrals for a year, you may receive a correcting distribution of the excess deferral no later than April 15 of the following year. The plan can distribute the excess deferral (and any income allocable to the excess) no later than April 15 of the year following the year the excess deferral was made. Tax treatment of excess deferrals not attributable to Roth contributions. If the excess deferral is distributed by April 15 (of the following year), it is included in your income in the year contributed and the earnings on the excess deferral will be taxed in the year distributed.

I think the only way you are going to get this to not show up as taxable and still e-file the return is to fill out the basis on the 8606 because of the code T. If it had code Q, it would (should) automatically know that it is entirely nontaxable, but the program can't determine that with code T.

Sure feels good to be done, doesn't it?

Yep, and for the 3 years I've been using it the price hasn't increased, and probably hadn't before that. I don't miss those annual 10% price increases from ATX each year or their "handling" fee tacked on either. It's much more for much less. It's lightening fast so I can prepare more returns More easily prepared Handles out-of-state credits without any fiddling around like ATX required that was a big time suck Allowed me to easily convert to paperless by using their integrated document manager Program, document manager, and scanner all work seamlessly together Integrated email to contact clients or Drake and attach anything or all from return Automatically password protects and encrypts files for emailing or storage Great price and negotiates a great discount on tax research

Agree with Lion. We have to read what those transactions are to determin how to report them appropriately. The latest one I had with code "X" were noncovered "other transactions" that included the cash in lieu payments for fractional shares and the sale of a PTP.

I agree with you, cbslee.

What numbers do you put on those extensions?

What kind of information is being requested? Are these self-employed?

I just got this in my email: IRS Reject F8962-043 The IRS recently confirmed a processing issue regarding reject F8962-043 and has indicated that the issue will not be resolved in the near future. The IRS's recommendation at this time is to paper-file any returns that receive this reject code in order to ensure they are timely filed. Reject F8962-043 states: “Form 8962, Line 28 'AdditionalTaxLimitationAmt' must be equal to the tax limitation amount from the Repayment Limitation table (see Form 8962 instructions) based on Line 5 'FederalPovertyLevelPct' and filingstatus 'IndividualReturnFilingStatusCd' on Form 1040 or 1040A.”

Do you think the premiums will be different if the marketplace could calculate all 10 people's coverage at once vs. calculating them separately and then adding those numbers together?

form 1116, line 2 - put any expense deductions directly related on this line. Those might include state income taxes directly related and investment expenses on Sch A (for example - investment advisory fees for a portfolio that holds all foreign investments) line 3a - those indirect expenses from A that are listed in the instructions - medical, r.e. taxes, general sales tax line 3b - any other indirect expenses from A that aren't on lines 2, 3a, (but not any interest, it has separate lines) plus any deductions on form 1040 on lines 23 - 35 lines 4a and b - prorata share of mortgage interest and other interest. You might find pub 514 helpful, especially around page 16. I think you are getting hung up on this because you have to do some thinking and input a few numbers, and because you don't know how to prepare it and have 2 programs that you are trying to rely on to do the work for you instead of understanding the process. If you understand the goal, maybe it will become clearer about what goes on the form. Take a step back and look at the entire form and you'll see that what the form does is takes all the deductions and breaks them up into pieces and comes up with the portion that applies to the foreign income.

Lion's correct. You can e-file extensions with refunds or with balances showing where the client isn't paying in with the extension. Only those that are authorizing a withdrawal for a payment needs the 8878

I answer your post in the Drake subforum. This isn't specific to Drake; you should check and enter proper amounts no matter what program you are using. As I said in my other answer, I can't tell you what else might belong on that line specifically for your client because I don't know what is on that return. Are there any other deductions on the return that aren't related to any specific item of income?

I can't adequately answer your question beyond what is in the instructions for Form 1116 because I don't know the other items that you are reporting on the return. Are there any other deductions from gross income that aren't directly related to any specific income?

I still have it on my computer and am half afraid to uninstall it in case it creates some sort of disaster in the process.