Terry D EA

Thanks Judy and Deb, that is exactly what I thought. Oh well, paper file it is.

Thanks Tom and I think you are spot on and thanks for the word of caution. It is the taxpayer's responsibility to file ALL tax returns timely. As their previous preparer, I don't quite see how I can be held accountable for their failure to comply with the requirements of the OIC. They knew this up front without a question. Might not be the best thing to do here but, I am going to go ahead and try to take care of this. I have already explained to my client the risks. With that said, everything will be documented. They insist an extension was filed, I want a copy of that. I have already printed off the text and voice mail transcript of when they (the client) made the initial contact with me. Today, the client shows up with only some of the necessary forms to complete the return. Again, documented. If I don't get everything I need by the end of this week, I will set them free and refuse to work any further. Here is another question for you. I just learned the client's spouse is working in CA. I think the spouse has been there, lets say at least half of the 2018 tax year. Will they need to file a non-resident CA return, or part year CA resident and part year NC. Their tax home is NC. I'm not sure if the organization the spouse works for is paying all of the associated expenses or not. I am curious in case they want to retain me for TY 2018 so it will be another reason to send them packing.

Thanks for all the replies. All of them are very good suggestions. Just to clean things up a bit, the parting of this client was not unfriendly. I completed and filed the OIC and it was accepted. When they wanted me to start the State OIC, they found someone cheaper to prepare the State offer. I thought I was dirt cheap anyway but guess not. Apparently they retained the same person to file their taxes for TY 2017 and that's where it goes south for them. Yes, they are unorganized which is the major issue with me. I agree dealing with the IRS for the late return filing may not be a major issue but it will cost them. I don't know if they got any correspondence from the IRS regarding the lateness of the return yet. So, I guess we'll see. I will help them with the 2017 return completion. They always paid when their returns were finalized.

A previous client told me they found someone considerably cheaper than me to prepare their 2017 tax return. Okay no problem with me as this client has issues anyway. Now, here they come. They are under the guidelines of an OIC and must have all returns filed timely. According to the client, the new person did not follow thru. An extension was filed but as far as I can tell, the return was never finished nor filed. Of course, its an emergency and they are asking for my help. Would you take this client back? If I do, I feel like tripling the fee with a PITA multiplier added to it. Seriously, it will be an easy return but I am afraid there will be other problems with it. Part of me wants to apply Jack's theory of "Run Forest Run" What say ye?

Been looking on the IRS site for information regarding the electronic filing of a 2017 1040 return. Does anyone know?

Thanks for the heads-up John. I have two clients that I will be compiling the required documents to file the enc3 and this information is very helpful. I did see where they have closed down the enc3 filing until Jan 2.

Agree with both responses. I loaded 18 just fine and loaded 2016 when this machine was new without a hitch. I am also running Win 10 Pro. Did you install any other virus software or are you using Windows Defender. Defender is the default Windows virus program that comes with Win 10. Re-start the machine before calling support.

Damn that was easy. I guess I really went off the deep end and way over thought the math. THANK YOU!

Are you sure they're not from NC? Heck here, if they more than 6 snow flakes their going to the grocery store for milk and bread. I mean the stuff will fly off the shelves in minutes when the forecast comes out. I've never figured out how a milk sandwich tastes

Math Guru's help me with this problem. Trying to back into some figures in a client's books. Is this possible to do? Total sales = $35,038.71 NC Sales Tax rate= 6.75% /.0675 Tax paid = $1470.89 What portion of the total sales are tax exempt sales with the difference equaling taxable sales with a tax liability of $1470.89

I am almost ashamed to ask this. Does anyone have a copy of the 2013 OneDesk or OLTPro software??? I used this stuff back in 2013, cleaned it off of my machine and now need it to open an archived return. Unfortunately, the old return was not e-filed so I can't retrieve it from the OLT Pro webpage. I hope someone has it.

Judy, This machine could be turned into a good file server to use for backup in your office or maybe someone else can make use of it. It looks like it could effectively run Win 10 as well. Let me know if you can't sell it. I may be very interested in it.

Just one more thing. A short cut for deleting a form/screen click CtrlD. You will be prompted with a question like "Are you sure". Click delete and the form is gone.

Need a bit of assistance here. The client in my scenario is not 59 1/2 years old but has made contributions to this IRA for over 10 years. Still working on trying to get my hands on the 5498 forms to show the character of the contributions but that might be a tough hurdle to cross. In the mean time, and due to the fact my client does not meet both of the requirements for the earnings from the Roth to be tax free, but the contributions are, does the early withdrawal penalty exist on the earnings? I looked at section 408 and there is no clear language regarding this area. What I have done is calculated the earnings that would be taxable and included that amount as taxable income. My client will include the check for the amount in the response to the notice. If there is any penalties due, I will let the IRS calculate them. I a, getting the feeling the IRS will ask for additional information. Also, I realized that this response will not extend the deadline to petition the tax court. We will discuss this at length.

Thanks for replies., I did push the heck out of the broker. He was able to come up with a statement that shows the figures I need to address the letter. While they are for TY 2013, the adjustments mean a very small tax due using those figures. So, I am including a breakdown of the statement and how the taxable portion was obtained. Now, it will be the waiting game to see if the IRS accepts the response. Doing it this way still keeps the tax court petition option open.

I agree on the attorney being out foxed here. I believe the opposing party attorney knows the new rules and signing after 12/31 means the opposing spouse or payee does not have to include the amounts as taxable income either.

Client received a letter from the IRS regarding a distribution from a Roth IRA for TY 2016. This is not a CP2000. The 1099R was coded J, no exceptions apply from a Roth IRA. The IRS is stating the full amount of the distribution is taxable. I am currently waiting on information from his broker regarding the character of the distribution. I have advised them of the ordering rules that principal is distributed first, then earnings. They are having a difficult time trying to come up with the character of this distribution or any documents supporting what the principal and interest was. What I know is my client started contributing to the IRA several years ago beginning sometime in the early 90's. He is under 59 1/2 years old. But no tax on the principal only the earnings. In TY 2017 the 1099R was marked the same way for a smaller distribution but the total distribution box was checked. Certainly some of these funds are earnings. My client has until Tuesday Nov 13th to respond to keep his rights to petition the tax court available. I can't believe that no one seems to know what the principal and earnings were for this account. The IRS is going to assess 20K+ for 2016. Don't know how to address this situation. I can't even assume the ordering rules were followed as of this moment, no proof of anything. How would anyone here handle this?

My thought exactly. However, it is nice to double check with others. Thanks so much!

Would an automotive repair business be considered a qualified business activity for the domestic production activities deduction? I have looked at several articles and I don't think this is a qualifying business simply because it is a service industry and not manufacturing or producing anything. What do others think? If anyone thinks this is a qualifying business, please post a reference with your response.

I have been dealing with this for some time now. The pain goes a little further south of the lower back area and usually resides chronically in the same area I sit.

>>>>>>>please don't pay the mechanic but rather make the check to the non profit and have the non profit pay the mechanic.<<<<<<<<<<<<< This statement sets the condition of the contribution. This from Pub 526 Conditional gift. If your contribution depends on a future act or event to become effective, you can't take a deduction unless there is only a negligible chance the act or event won't take place. The original post stated the charity did not sell the car as they planned on using it. The OP also questioned the need for the 1098C or would the statement received at the time of donation be suffice. Also from pub 526 Exception 1—Vehicle used or improved by organization. If the qualified organization makes a significant intervening use of or material improvement to the vehicle before transferring it, you generally can deduct the vehicle's fair market value at the time of the contribution. But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. The Form 1098-C (or other statement) will show whether this exception applies. I would advise the client they can only deduct the FMV of the vehicle. Normally, needed maintenance or other repairs don't increase the FMV value. These repairs may increase the price at which the vehicle is sold. FMV is always the trade in value or lowest value given. I would tell the client to donate the value of the repair cost in a separate donation without any stated condition. If total of the FMV of the vehicle plus repairs exceeds the FMV, you can only deduct FMV. >>>>>>>>So, If a Donor says this $5,000 can only be used to buy food for the hungry... The donor doesn't get a deduction? <<<<<<< Maybe I wasn't clear but that is not what I was stating. Yes, the donation you mention is deductible. This would be the same a stipulating a donation to a specific cause or mission, fund or other charitable need.

I have to agree with this. To receive a tax deduction for a charitable donation, you cannot stipulate what the donated amount is to be used for. Pacun your suggestion, in my opinion, does exactly that. I am confused with your reasoning. The donor gets the full 5K with the proper paperwork without separating any amounts. Separating the two donations into two different categories, really does not have any additional impact but could cause the allowable deduction to be the 4K.

DANRVAN, thank you for the references. Your explanation of the my client's thought is no doubt spot on. I will be discussing this with him in the next two days.

cbslee we were typing at the same time. RingCentral will port a number as well.

I have used RingCentral for years. They are reliable and only cost about $12.99 per month. I think I started using them in 2007 and have had no reason to change. In case you're interested, they also have VOIP phone services. My business line is part of my package with Verizon so for $9.95 per month, I can't beat it. I know some folks hate links but here is a link to their site. https://www.ringcentral.com/sem/fax.html?BMID=GGECUSEP&CID=sem&RCCN=Google_US_Search_Brand_Exact&RCAG=AAA_Brand_High_Volume_Fax_[Exact]&RCKW=ring central fax&RCMT=e&AD=247353180181&gclid=CjwKCAjw5ZPcBRBkEiwA-avvk_8I5SREPNOQyDcg1Wn62-A4yu_1lDkuYtJ5PVAJ7jAZRPBSxdUDiBoCy-kQAvD_BwE