Pacun

Does anyone have sample letters to the IRS for different situations? Maybe one with code numbers and explainations. I am trying to file a return for a father whose wife left less than a month ago. They have 5 children and the mother made about 8K and father makes much more. Wife told husband that the children were going to be claimed by her and her family. The children were claimed and my efile was rejected. This is the letter I am drafting to the IRS and I will have to paper file. I am not sure who should sign the letter, myself or the taxpayer. INTERNAL REVENUE SERVICE Dear Sir or Madam: I tried to efile my 2010 return but it was rejected because my dependents were claimed on someone else’s return. These are the facts regarding my return: 1.- I am filing 2010 as married filing separate due to the fact that my wife left in January 2011. 2.- My wife, my children and I lived in the same apartment at the address above in 2010; except for the month of October when she left and came back in November. 3.- My wife and I renewed our rental lease in August 2010 and my children were attending school/day care in Washington, DC where we resided in 2010. 4.- I supported my children in 2010 and lived with me. 5.- Besides my wife and I, no one else lived with my children and no one else supported them in 2010. 6.- I am claiming 4 children and allowing my wife to claim our youngest, who was born in 2009. 7.- Since my wife and I are legally married and lived in the same household during the last 6 months in 2010, I am filing as married filing separate since none of us qualify as head of household. 8.- Please allow me to claim my children since I would win the tie breaker because I have the highest income of the two parents. 9.- Please issue my refund at your earliest convenience.

I still cannot send. I wonder if it is only my problem. I will call tomorrow.

I clicked on receive acks from efile and it never finished verifying my information. I am able to update the forms. I powered down my computer and then tried again. I get a message that reads that I have another connection is in session and that I have to wait for that session to finish. I am not able to transmit or receive acknowledgments.

All the time, state returns go to the IRS since the IRS has access to the social security database AND the ITIN database.

Debt cancellation is not taxable if TP or whoever is in his shoes is insolvent.

It is amazing how people talk about the tax system or government. The analogy is specifically for tax-cuts. Remember that the diners have been paying $100 for a while.

I have noticed that H&R block charges extra if there an amount on line 21, can that be deductible without the 2% floor?

Wow, I guess we need to check our mail this and next week.

If the question is about bookeeping, you are correct. If the question is about reporting income on the tax return, I think they have to report all the income in 2010 whether TP is cash or accrual.

Did you get this invitation by mail? I think they sent a bunch of letters in November and I guess this is your second letter.

It doesn't matter if TP is cash or accrual in this case. Claim of Right Doctrine – This principle states that income should be recognized at the latest when it is received, even if received in error and ultimately repaid. This doctrine rests on the principle that each tax year stands on its own, and if the taxpayer has unrestricted access to the funds at the end of the tax year, such amount is taxable in that tax year. If the amounts are subsequently repaid, a deduction is allowed that year.

I don't think you are doing something wrong. I know how computers work and to avoid issues like this, I am scheduling appointments for Feb 15 for all my clients who have houses and use schedule A. I have schedule someone for Feb 13th because he is traveling on the 14th. That's the only exception I am making. I do not want this to become a nightmare for me at the end of Feb. Yes, my clients are dropping their documents but I am not asking them to sign anything until I am ready (allowed) to efile.

Welcome back Jainen. I forgot to realize that the child lived with both parents at the beginning of the year. My answer will be correct for next year if parents don't sleep in the same room.

Don't downgrade Windows 7 to XP mode for no reason. If you do that, you might as well buy a 3 year old computer. I am running Windows 7 64bit and programs that do not run on 64 bit operating system are installed using the 32 version automatically. I have 2007, 2008, 2009 and 2010 running properly. I am running IE on both 32 and 64 bit and I have not installed either.

I had that problem but lately, I have been asked if I want to release the state when I received efile acknowledgements. I think the program was not doing it by itself automatically. The other choice is to go to each return HELD and check if its Fed counterpart is accepted. You need to open that return, create the state efile and click do not hold it. Go to efile manager and efile/send the created efile files.

Reduce basis by this amount.

Maybe Catherine needs to post a disclaimer to avoid any liabilities. lol

I spend about 30-60 minutes after the snow cleaning my car. I can see your cars are cleaned by default. Nice city.

Yes, he can use the loss at 3K yearly.

Once the client signs form 8879 you have a time limit to transmit that return, correct?

Coolísimo.

I have been telling my people to come back on Feb 14 and I told them that no one with itemized deductions will be able to file their taxes before St. Valentine's day. I was happy that a guy who doesn't sign returns and he prepares schedule A for everyone with prefiled child care and/or non-cash donations was not going to be able to get my clients. My thought was, since he doesn't efile, he will be out of business for the first month and I WILL BE efiling my clients since a few of them itemize. I was wrong. The guy and his workers are running at full force and printing returns and telling people to mail them. What will the IRS do when they get this returns before the 14th? They go in a pile anyways and they will be processed in a couple of weeks. While I am telling my people to come back on Feb 14th, this guy is finishing all returns. My clients think I am a lier and people are picking up their papers and going there. What do you think the IRS will do if they get a return with schedule A today? Remember, that preparer doesn't efile or sign the returns. The max that will happen is that the return will be returned. I think the IRS should NOT have posted Schedule A on their website until Feb 14. They should NOT allow software developers to have sch A approved until that date. I believe my competetion got a hand from the IRS this year.

I am pretty sure you offered her to get a FEIN.

While I was checking the preferences on ATX, I think I saw a check mark "create all returns using MeF"? Do we have to check that?

Based on my statistics, 99.99% of my clients keep the old number. I only have 100 clients.