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That would be considered stockpiling and is against the rules of being an ERO. Transmission of the returns is supposed to occur within a reasonable time after the ERO has all the required information and signed documents in order to process the return, and any more than 3 days delay is stockpiling. The exception to this rule is for returns prepared and ready to e-file prior to the IRS' MeF opening date for the filing season. See pub. 1345.

Even if the IRS has the outside party reporting, it won't accumulate that data like doing a SFR. If it is handled like the first 2 EIPs were, I'd expect IRS to use the 2019 for anyone that hasn't filed 2020 by then.

If you are SURE that the credit doesn't apply AND the wage deferral into retirement entered from the W-2 isn't needed AT ALL for the state return, you could omit the entry of the retirement plan contribution on screen W-2 and delete the 8880. See if that works to generate a correct return for your client's fact pattern.

Your client is out of luck and won't receive any more stimulus funds. The payments were actually an advance on the Recovery Rebate Credit claimed on the 2020 return, not 2019. Because the 2020 returns weren't in the IRS system at the time of issuance and the agency had only either 2018 or 2019 returns to base the payments on, some people got more than they should have compared to if the 2020 tax return income had been available at the time payments were issued, and in those cases there is no payback. When you work through the credit calculation, if the person's combined total for both stimulus checks is less than the credit calculated, then that person gets the remaining amount as a refundable credit on the 2020 return that either reduces the amount owed or increases the return.

I remember reading that form 502LU wouldn't be ready by MD Comptroller until sometime in March, then each of the software vendors will have to add that to their programming and test it. Does ATX have it? Drake doesn't.

Just enter W-2 as it was issued. It's possible that the W-2 is correct if the employer elected to defer the employee's FICA withholding between 9/1/-12/31/20 as described in Notice 2020-65. Here's the IRS brief summary, and the notice is accessed by clicking the "guidance" link in the first sentence. https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding

The answer is on page 15 o Pub 3112 that I quoted shown below, but like the others have said, I wouldn't do it either. First, how are you going to get the return into your system without preparing it, even if it is mostly just data entry? Second, what exposure do you have if you spot things that are clearly in error , especially if you suspect intentional disregard of the tax law?

Can he be using your boss's EFIN? Possibly, but your boss should check the number of returns filed under that EFIN to be sure before proceeding. I said possibly because unless the former employee is still accessing the firm's software, if he has purchased his own software as an ERO he would have to provide his own EFIN and PTIN to the software provider and enter that in the setup, and all of that would be transmitted with each e-filed return. Considering all of this, if your boss sees that more returns have been filed under the firm's EFIN than he knows the firm as prepared, then at that point he should contact the IRS. I think that the IRS would replace his EFIN without the 45-day wait. Below is a page from the IRS that may be useful: https://www.irs.gov/tax-professionals/how-to-maintain-monitor-and-protect-your-efin#:~:text=The firm must call the,to request a new EFIN.

Title changed so you may have some chance of having other members actually want to open and read your post!

Yes, for an S corp I'd use the Other Adjustments Account.

Bonnie, I'm so sorry to hear of your loss. As others have already said, please know that you have our support and are here for you when you need us.

@ampCT , I think you are describing the process of editing the original contents of the document itself. I was talking about using the typewriter function to add notations on after the fact, not change its original text. Unless it was changed by an update as ampCT says, I found a video that shows where to find this, if it's still there. Toward the top right of the page, open the Tools drop-down area, then open the "Content" and under the subsection "Edit Text & Objects" you should see "Add or Edit Text Box". Clicking on that should bring up the typewriter function, unless it was changed by an update. This youtube video was made in 2017 that clearly shows where it was in Adobe Pro 2017. Hope this helps:

Tracy Lee posted a thank you in the above-linked topic instead of here that caused that old topic to be bumped up. I hid that post that she figured it out and posted her appreciation.

Go to Tool menu at the right and look for the function that says "Add or Edit Text". Adobe keeps changing the name of this. For anyone else looking, try the help menu and search within the program for "add text" or google that along with your specific version of the program.

Acrobat X Standard.

I use Adobe Acrobat and it has a typewriter icon as one of the choices at the top. It allows the user to change fonts and font size. Click that and then click the spot where you want the typing to start and the cursor should appear. It also allows for editing the text later by double clicking on the spot and the text will appear in a box that can be moved in its entirety, and I use that for alignment purposes, but it also will allow for editing the text or changing the font or size.

I do use that link and agree that a checkbox would be very helpful.

This is annoying me with every return I work on. I hope we get a program update to allow the preparers to check the box at the bottom that says not to claim the RRC.

As part of best practices, each of us should check our EFIN to verify that the number of returns IRS reports as e-filed matches our records. So I'm curious about a couple of things. You already have your own clients on the side, and it sounds like this person that was fired also had clients on the side, and both of you were/are using boss firm's software remotely to prepare returns under boss firm's EFIN? Is that what you are doing? Or do you have your own EFIN and using the firm's software? Also, why you are asking about this and not your boss?

Guess what came in today's mail - 1444-B in only my name, so the husband's was sent with both our names. Keep that in mind for your MFJ clients.

^ what Abby said. All of it.

Some of mine are in earlier than usual and more impatient. Of course, I expect that the procrastinators will try to not gather their data until the beginning of July if the deadline is extended.

I don't have AAA on any of my clients' S corp's sets of books. Use retained earnings in the S.E. section. AAA, OAA, PTI, Accum E&P... those are all tax return elements only.

Mine was wrong. Had both of our names on it but had the amount for only one of us. Maybe it was the letter for my husband since his name was first, like our return, but still.... Now I wonder if I'll get a letter too, and will it again have both names????? Obviously I know how much we each received.