Terry D EA

Thanks Margaret, jsut as I thought. The only difference is I am not using ATX this year. The software that I am using doesn't support the 5227 so I have downloaded another software to handle this which is OLTPro or OneDesk. I thought I would give it a try. Not a great way to test a software on a return like this but at least I didn't have to cough up alot of money. Out side of that it would have been manual entry on all forms.

I believe this is based from OltPro. But I'll let you know how the CRUT goes. I may try a couple of individual returns. Might use mine as the guinea pig.

In February, the IRS filed a Notice of Appeal to the D.C. Circuit and moved for a stay of the district court’s injunction, pending the outcome of the appeal. The appeals court has now denied that motion, keeping the injunction in place and preventing the IRS from reinstating its return preparer regulation program until the appeals court rules on the case. Oral arguments in the case have not yet been scheduled. I agree with regulation but in the grand scheme of things, does it really matter? I have fixed quite a few returns preapred by CPA's and an attorney because they were prepared incorrectly. One this year a CPA had created the chartiable contributions just under the 5K to avoid the need for an appraisal. My client freely offered while doing a comparison from last year, "I don't know where he got that figure from". No amount of testing or level, amount of CEU's will ever prevent this from happening. I agree with IRS regualtions but it should be for all across the board.

<<<<<<It is also possible to have K-1s that are all zeros.>>>>> <<<<<BUT the K-1 exists. I still think the trustee should send out the K-1 even if 0.>>>>> Yes, Yes, and Yes. How many estate tax returns have you done that were all zeros cause someone filed for an EIN for the estate when it was unnecessary? I knowI have done a few. Avoids alot of problems and notices.

<<<<<<<<I think they will change their name and location and peddle some other software.>>>>>>> You may be right but I am one that will do extensive research on any company to find it's background if possible. Where TRX gets their revenue from I don't know or care, but anyone who buys anything from them without research or testing would be foolish. Everyone makes mistakes but the old theory comes thru here. Burn me once shame on you, burn me twice shame on me, burn me three times, well I guess there isn't a nice term for this but it is proven you can't fix stupid.

Okay, if you view my previous posts you will think I fell off the wagon here. I did download onedesk as they do support the forms for a CRUT return that I have to complete. I did this instead of manually filling the forms out as TaxSlayer Pro currently doesn't support them. OneDesk was free for the first year and it is up an running. Their pricing is fair. Here is what I want to know, those of you who have used it this season, give an honest response to the functionality, ease of use, etc; regarding this software. I don't want sales pitches as to how wonderful it is. No software is perfect and meets all one's desires. I am in the process of trying to make a decision for next year. I really want to stay with TaxSlayer Pro but if they cannot support the forms and changes that I have requested then it will be decision time. I promised my self that I will never make the same mistake again that I did with TRX.

>>>>>>Anyway, don't deceive yourself that a lower price means inferior service.<<<<< Agreed,I do charge a lower price than the average in my area. I do give quality professional service and am here year round to service my clients. I am apalled at some of the prices I see in my area. A MFJ return with a Schedule A ranges between 125.00 to 500.00. I am at an even $95.00 and see no current need to raise the price. As Jainen said, I am a one man show and choose to stay that way for a while. When I retire from my regualar day job, then it will be a different story. Only have four years to go and counting.

Again, I repeat, the most important thing here is to obtain the trust instrument. Once you do, there may be some amendments on the horizon. I personally would not proceed until I had that document. It is very important that one CYA and know the facts when it comes to preparing trust returns.

Just to add my 2 cents worth, the age of the client has no bearing it is the income if any. I am filing the final return for my deceased 102 year old grandmother. Folks in the family had not followed any earlier suggestions and all CD's stock accounts, savings, etc; had to be liquidated for medicaid purposes. I filed all previous years because of income from the CD's stocks; etc, She always fell under the income filing requirement but doing so, we have never heard from the IRS. While I don't like taking client's money for what may seem to be uncessary filings, I view it as an insurance policy. We invest thousands in insurance with the hope that we will never have to use it. Why not treat tax filings the same? Again, just my 2 cents worth.

The K-1 is used to report income/loss for the beneficiaries,fiduciary or the estate, trust;etc. Why in the past would not a K-1 have been prepared? By your statement it appears the children are beneficiares of the trust. What type of trust are your speaking of? The best thing you can do is obtain the original trust instrument which will or should contain information regarding the taxation of the trust. I think that ATX is giving you the right flag here as the K-1 is needed.

Hi Margaret, I am going out on a limb here and assuming you are still preparing CRUT returns. After some research this year, and knowing full well the penalties the IRS will be happy to assess for filing this return on the wrong form, I have found the 5227 form replaces the 1041-A and that the 5227 is to be filed with a K-1 and other assocaited schedules as needed. Are you in agreement with this? Also, in the past, I used to pick up the K-1 form by connecting a 1041 to the 1041-A and 5227. Now that the 1041-A is no longer needed, how are you creating the K-1? If any one else is preparing any split interest type trusts or annuities that uses these forms, please feel free to chime in.

>>>>>I know I won't buy early like I did with TRX.<<<<<<< This is my exact feelings. I bought TaxSlayer Pro and have been 95% happy with it. No problems just some missing forms that they claim they are working to include next year. I have a CRUT return on the way which TaxSlayer does not support the 1041-A or the 5227 form. I have asked they add those forms. While this is not a common tax return they do exist. Other than manual paper entry, does anyone know of a pay per return program that would handle this type of return? It would be part of a 1041 package. On another note, I want the discounts but seeing how much it cost me this year, I am willing to forgo them to be sure I will have a good workable product. I want to attend some of the seminars where the tax vendors are there. Anyhone know of any in NC?

I too am troubled by "her half of itemized deductions" Waiting to hear

I have a CRUT (Charitable Remainder Unitrust) to do. Will this software handle this type of return? Need form 1041-A, 5227 and 1041K-1. If so, I may give it a try. How and who do I contact to find out?

It never ceases to amaze me the number of people who have no idea what is on their tax return. Also, why the statement " I don't know where that figure came from" when they are responsible for each and every line on the tax return. I have a client who several years ago gave me a 1099 for jury duty in the amount of 1200.00. I asked him what kind of jury he had been serving on and his reply was IRS tax court. He stated the biggest defense attempted was " I didn't know or I trusted my accountant"; etc and the IRS response was simply why? I make absolutely sure my clients know what is on each and every line of their return. I review the return with them when they have an appointment as well as when they drop off the return. Drop offs get a review when they pick up the return. Maybe this is a bit extreme but it avoids the obvious "I didn't know". I questioned a new client this year as to the amount of charitable deductions of the previous year and she said without taking a breath, "I don't know where he got that figure from and I trusted he knew what he was doing" It was obvious to me that he took the limit within 50.00 of the 5,000 to avoid having appraisals. A CPA non the less which proves to me that no matter what designation you put behind your name, it doesn't mean you are automatically ethical.

Just to add, and I am pretty sure you know this, return the software certified with a receipt request so you can prove you did so in the event they try to bill you for it. If you didn't give up any credit card information I don't see how they can force you to pay for it.

Let me take a moment and chime in on this. I agree with the check list from tetspa to a certain point. I would not advise anyone to use Turbo tax in a professional capactiy as the IRS has stated that a professional who is paid to prepare tax returns cannot use software that contains the words "self-prepared". In addtion to previewing software, I think it is important to make sure the software you are buying meets all of your tax return prep needs. Because of the TRX snafu, I went with TaxSlayer Pro. While it is good software and I have had literally no problems at all, they do not support any forms used for Trusts. I have crut that uses forms 1041-A and 5227 and they are not available. I had a client this year claim energy credits for geo-therm system and NC offers a 35% credit. TaxSlayer did not support these forms and it cost me additional money for cute.pdf pro to be able to scan .pdf forms and enter information on them and the return had to be mailed. On another note, the reports, supporting statements; etc with TaxSlayer are excellent. I too am in for the TaxWorks review if with Mike D. TaxWorks did cover every type of return that I do but some of the supporting statements don't look too professional for me. So, try to check everything. I for one will not under any circumstances try TaxExact again for free or if they paid me. I just think it is that bad and should be trashed. I am not renewing this spring as that was a lesson well learned. I will spend a significant amount of time tying to be sure that whatever product I buy, fits my practice and I have vowed that I will never get into the situation again that I was in this year.

Thanks for all the replies on this but I am hanging with jasdlm for now. I have alot of work to do for this client so a little more research won't hurt.

Smart move on your part but I just didm't have time so I took the chance and all is well.

Yes, the adjustment is positive as you have stated. Over stated the expense and understated income. After I re-read my post, I guess I was expected folks to read my mind. Too much depreciation claimed has a negative affect on net income and that amount is added as a postive to net income. Geez! Too Tired I guess.

Two individuals own a piece of rental property bought for the sole purpose of rental activities. 2012 is the first year this property was placed in service and available for rent. How would I split the depreciation. It is simple enough to split the income and expenses on Schedule E but the depreciation is throwing me a bit. I am of the opinion that these two guys should become a partnership and in doing so, problem solved. Too tired to think.

Taxed, re-read my post and you will see that the amount of the incorrect depreciation is listed as a section 481 adjustment and in this case a negative. The negative amount is added as other income as outlined in Pub 946 and in Rev procedure 2008-52. If this had not been done but one or two years, then an amendment could be used. Due to the fact it has happened over several years, then the 3115 is the way to go. >>>>>May I say that perhaps businesses when they find out they have double counted an asset they just keep it that way until the depreciation schedule run out or they get audited whichever comes first<<<<<< May I say that any company doing as you state is scarey to say the least and is risky. What position would they take if they were audited? I would hope they have a sharp enough accountant to recognize this mistake and take the appropriate action.

Here is what I know at this time. I don't really give a $%#@ if this is a real company, if it even exists, if it is a cover up or anything else TRX may have morphed into. All I know is the check has apparently cleared the bank as it has been deposited over a week ago. Good for me and a few others but sad for the rest if they still don't come thru. Why only a few of us have received a check is beyond me. Just lucky I guess. I certainly hope you get what is due you.

Okay, here is what I have taken from all of this. jasdim, thank you for directing me to page 13 of Pub 946. As you stated, it is only a Pub but it has cleared the mud from the waters. Use form 3115 to request a change in accounting for the incorrectly claimed depreciation from the IRS. I will look into the automatic approval mentioned in Revenue procedure 2008-52. If this is what I think it is, the approval should be automatic based on the amount. Once approval has been received, then an adjustment under section 841 is made and the incorrect amount of depreciation claimed is listed as other income on the 1120S and in this case, the total amount can be added this year. Now, I feel more comfortable with what has to take place and this is simplier and proper way to handle this. Jainen, KC, or anyone else, if I still need some guidance here please feel free to give it. As usual, I can count on you guys to help when it is needed. THANK YOU!

Jainen I am sticking with you and KC on this one. I have been studying the 3115 Schedule E to change the depreciation mistakenly taken. My question is as the others, The 3115 form makes no provision for adjusting/correcting the amount of depreciation that was previously claimed. Claiming duplicate depreciation has over stated the depreciation for each year and understated net income/loss. This company has experienced large losses for the last four years. If the depreciation was not duplicated, the loss would be reduced but not to the extent that it would make a significant difference or result in a net income taxable to the shareholder. We are looking at a total of approximately 3600.00 for this time period with losses each year ranging from 75k to 120k. On another note, this company is in the process of liquidating and selling off assets to pay it's liabilities as we speak. Operations has ceased for obvious reasons. Before you criticize me too much, this is not an area that I am very strong in. I am studying and researching this extensively to be sure it is handled in the correct way. I am not concerned with billing here as much as I am getting this corrected and do apprecite your advice here. What steps are necesary to correct the amount of incorrect depreciation claimed? I see how and where to use form 3115 but do not understand how to correct the difference in net income/loss that would result from removing these assets.