jklcpa

I still have one Delaware ack yet to come back. It is for a senior citizen that typically takes longer for DE to approve, so I'm giving it a little extra time. DE returns have a due date of 4/30 so not too worried about it yet.

Well said, Maribeth. I don't agree 100% with the politics on either side of the aisle, and I don't mind anyone expressing their view as long as it isn't a rant. I learned some things the other day from Catherine about the global warming debate that I hadn't heard from either party because the radicals on each side are too busy...well...being radical. I enjoy the diversity of the group and reading all of the posts, and I love cake. To Florida Tax Man, I agree that Bobby might be reading this forum for himself. Some of your posts made me smile, some didn't. I simply read most all of the posts and move on. I don't really care if the NT posts are separated or not. Most of the threads end up somewhat hijacked and stray from the initial posted topic anyway. It makes me smile because no one here ever points that out or gets reprimanded for hijacking a thread that causes the discussion to wander off in another direction. Other forums I'm on, the hijacker might get blasted by other users or the moderators. It's refreshing to see that we bean counter types that are perceived to be sticks-in-the-mud aren't that rigid. The name might need an update, but whatever it turns into, I'll be here. Thanks to all that participate and make the busy season a little more bearable.

^ and that is why I don't wait until the last day to file extensions. I filed mine days early except for one. That one last client owed money and wasn't covered by the 90% rule, so I had to wait for them to respond with how they wanted to pay the money owed. They didn't get back to me until Sat evening at 10pm. Their extension was filed at 10:01pm. This was a new client that came in on 4/9, breaking my owe rule there, I agreed to take this simple return. It's only complexity was they live in PA, husband works in DE.

Terry, I didn't think you were, but over the years, each time a preparer here picks up a new client that was prepared in a prior year by a CPA, if a mistake is made, there has been some bashing like we CPAs think we are better than EAs and RTRPs. I don't think like that. I like to think I received a good education and took a test that proved my competency in a variety of areas. I do my best to keep up with the ever changing tax laws and to pick CPE that will keep me up to date and will benefit the clients in my practice. Believe me, I am human and I make my share of mistakes. I know from hindsight that I've had clients lie to me only to find out later. Those that I find out about I tell them to amend, but I can't force them to file it. Those clients that lie are asked to move on. I try my best to produce excellent work at a reasonable price. There are many people on this forum that are not CPAs that I hold in high regard and I know are much more knowledgeable than I am. Sorry that's a little rambling and disjointed. One thing that really frosts me is when I sit in a group-live CPE seminar with my peers only to see them working through a self-study course, working on their laptop, repeatedly answering text messages, reading for pleasure, or disappearing completely (yes, a few years ago one young person bragged about the golf he'd just played and made it back for the mid-afternoon head count!). I pay for those courses and really want to maximize the learning, but then there are these others.... Totally frustrating to me. The staff of the state society of CPAs now stays in attendance to "babysit" the group so some of this is being curtailed. Sorry for the rant. It's a pet peeve of mine.

To add to my post above, the online yellow pages still has him listed for bookkeeping services with the EA after his name. Maybe he has some RTRPs working for him. I'm not sure at this point. He has a variety of businesses in his name, not just the accounting practice, and a few of them are run out of the same building. At one point I think he or someone was also acting as a mortgage broker from that location too. If anyone would like to read about this one unethical EA, here is a nice summary of his actions from his appeal of the charges from 2011. Part of the fines were almost $600,000. Here's the link: http://courts.delawa....aspx?ID=180390

Testing and initials after one's name are no guarantee that the person always acts in a professional and ethical manner. At least the IRS testing tried to weed out the preparers with too little knowledge of tax law that simply bought a tax prep program and hung out a shingle. If only IRS would do more about some of the returns from the big box chains that have those obvious errors that we all see from time to time. I get a little tired of the CPA bashing from the RTRPs and EAs. We are all human beings that make mistakes once in a while, CPAs included, and we all have clients that are less than truthful or simply don't tell us things because they don't know how it impacts their returns. There is a local EA that owes and runs a high volume tax preparation office. He was repeatedly warned by our state bar assn to cease and desist from the practice of law, his actions made the paper on more than a couple of occasions, and he was assessed some hefty penalties too. The fines were a % of the revenues from those services. He was writing up trusts, wills, other legal documents, and giving legal advice. He also tried to circumvent the testing and education requirements and tried to become a CPA by trying to use an influential state congressperson to intervene with the State Board of Accountancy on his behalf. His actions were so unethical that one of the national CPE providers now uses him as an example in their Ethics courses required for CPAs and actually names him in their text. His office is still open for business.

ATX used to have more flexibility, some of that was taken away this year. I was a longtime user since almost the beginning, it had worked very well in past years, and it was a good fit for my small practice. That being said, I can't consider using it again unless CCH changes their refund policy since I did receive a refund from them. Their current policy says that I can't ever request and receive another one. What if that future program is defective or doesn't work for me? I won't throw money away. Drake worked well for me this year. It was faster in almost every respect and handled my multistate returns better than ATX ever has. It might not be for everyone though, and that's why we have choices that should be evaluated each year. None of us knows what the future of any of these programs will be as technology changes and as programs are rewritten. I like JohnH's policy of having a program in reserve.

Jack, I thought it obvious to be a rhetorical question and not to be taken seriously. I sincerely feel bad for those of you that stuck it out with ATX and for the emotional toll and financial damage that it has caused. For those of you that had success using ATX, well...congratulations to you, but I think you are in a small minority of ATX users.

Yes, Drake efile servers had intermittant problems that the company said were mostly resolved by 11pm. Drake has contacted the IRS to make sure that the extensions will be accepted as timely received if efiled on the 16th or mailed in by paper. They issued as broadcast of sincere apology and also said that any users whose clients are assessed a late penalty because of this should forward that to the company to take care of. Do you think CCH or ATX would have done that?

I'm not sure that that information is actually transmitted. I think it is only used to get to the proper level of standard deduction with the entry in box 39, test age limits for eic, etc. My state of DE has additional benes for those over ages 60 and 65. Is the client close to your age? When I have this situation, if I've had to estimate a DOB to continue on with the prep, I've always marked the input field as "estimated", and now in Drake as "flagged for review". Drake has a nifty checkbox on the notes page to hold the return so it can't be efiled until the note is resolved.

For those of you still hard at work in your offices that might not follow a news feed, there were 2 explosions at the Boston Marathon, a third controlled explosion by the police and a 4th device found. Two dead, six in critical condition, 2 dozen or more others injured. I'm sure those numbers will rise as the full scope of this tragedy is revealed.

So for those of you whose states allow itemizing when the federal is using the standard deduction, do your states have their own itemized schedule or does it use the federal? Delaware isn't really a pain because it starts with the federal and makes a couple of modifications. Also, both ATX and Drake do properly calculate and report the itemized deductions on the DE return, it's only that the federal Schedule A doesn't transmit with the state e-file. The first year I was efiling I didn't realize the A wasn't being sent and one client got a notice to send in the Sch A after the season was over.

I have to check each of those because Delaware is a state that allows itemized deductions when the federal uses the standard. It is a pain because when this occurs, I have to submit the returns separately and tell the program to force the itemized on the federal so that Sch A will transmit with the state, all the while being careful not to submit the federal that way. Any other way and Delaware doesn't receive the Sch A even though the return has the itemized deductions on it.

Before many of you disappear for the season, I'd like to hear your recommendations for a good scanner. I don't have a lot of space to put more equipment, so I think a flatbed is out. Is there an advantage to one type over the other? I don't think I'd ever go totally paperless. I like to have a printed copy of return, but I would save a lot of time and paper if I could store the client's source documents electronically.

I try to not let Spring totally pass me by even though I have weed beds, not flower beds. If it's a nice day I'll walk outside with a client when they leave, and I have frequent breaks to take the dogs out for their potty time. I now have chickadees nesting in a box on my front porch and a gorgeous weeping cherry tree in front of my office window that is beautiful. Too bad most of my clients are too early in the year to see it. Two dogwoods will show their blossoms in a couple of weeks and just in time for my birthday. They do makes me sad though because they were a gift from my parents, and my dad is no longer with us. Those dogwoods were his idea.

I think she is OK because she withdrew the excess contribution and earnings before the due date. See instructions for Form 8889 under "Excess contributions you make". If the taxpayer makes excess contributions, withdraws them, and doesn't claim the excess as part of the deduction for HSA, then no penalty is the way I read that. Or, if she takes the deduction that includes the excess and then shows the distribution (I think line 17 of the 8889), that would flow to 1040, line 21 as other income. IF she is 65, she meets one of the exceptions to the penalty and the 8889 includes a checkbox to show that an exception to the penalty is met. BTW, the penalty for excess distributions is 20%, not 10%.

I'm sitting with my feet up and having a Dove bar. I have 2 projections to do tomorrow for 1st quarter estimates, and one last extension...if I can get an answer from this last client! I'll have a total of 4 on extension, all of which are 99.9% done and waiting on one small entry on each.

You don't need a signature if no money is being electronically withdrawn from the taxpayer's account.

I'm sorry. It is hard when we build relationships with our clients over a long career. Most of the people I service are more than just clients to me. I've had 3 recent losses. First was husband of an elderly couple that I've known since college. He died of Alzheimers and in his younger days was brilliant, and to see his mind go and the body waste away was simply awful. Second was a husband that fought melanoma for about 10 years that had finally spread to most of his organs, spine and brain. I delivered their return on a Tuesday in March. He was in a hospital bed in their living room and passed 4 days later on that following Saturday. He was in his early 60s. Third was a friend of my husband's that had dermaschlerosis that affected her lungs as opposed to her skin being affected. She was in her mid 60s and chose not to be on a ventilator and basically died from lack of oxygen.

That is crazy and you are right, the system does stink. I have an elderly woman and her daughter as clients. I have known them my entire life and went through school with the daughter since kindergarten. The daughter didn't graduate HS because sometime around the age of puberty she deveoped severe schizophenia, paranoia, and other mental challenges. She can function (sort of) if she remembers to take her meds. She found a job that paid a small amount but it became almost more disabling than just living with the mental challenges she faces daily. No way she could live on the little bit she earned and she could not continue working. She's now 53 and still lives with mom who is in her 80s and in poor health. Mom fought hard to get the daughter qualfied for disability benefits, and even now sometimes she has to go through some process to have the drugs reinstated as being necessary. The amount of disability is very small, nothing she could live on, and no one has an answer to what will happen to her when mom passes away. She has a brother that won't be stepping up to that plate. It all makes me very sad.

No! Rejected? What was the cause for *all* to be rejected? ETA - I typed too soon. I just checked and that final PA return was just ACK'ed as *accepted*.

I was just going to post about this. I have one remaining from PA, filed on the 10th. I figured the delay was because it's a PA resident with TP and SP both working in DE with the credits. Plus the states couldn't pick up returns or send ACKS through with the MeF being down for a period of time yesterday. That's been resolved and I received DE ACKs, so it's a definitely a holdup with PA.

^ Until this year, it was a bunny hop for me.

Yes, I had a couple that filed separate returns one year and the wife filed her return first through some free service claiming the standard deduction. Husband came to me with Sch A deductions. House is in only his name alone with the mortgage and r.e. taxes that are paid out of a checking account with his name only, and funded solely by him. Wife did not want to listen when I told her to file an amended return. She did get the letter from the IRS. I've been preparing a joint return ever since.

Nothing is showing up on line 10 of the form 1116? Have you filled in the other information on page 1 in the deductions section? ATX isn't the easiest program to use for the 1116, but I seem to remember that the program would allow the full credit in the current year but wouldn't have the information to really calculate it correctly including those carryovers if this deduction section isn't completed.