Margaret CPA in OH

Wouldn't the client have a 2004 or earlier return with her number on it? If not, you or client can request a copy of a jointly filed return from a prior year from IRS.

How did the client dispose of his ownership interest? Did he sell to other owners or back to the corporation? The corporation has the option of closing the books as of the change in ownership or simply allocating in the program the percentage ownership during the year. So long as he was a shareholder, he should receive the allocable share of profit or loss (given basis)on a K-1 for that period of ownership. I don't immediately see why or how he was not on the payroll as an owner, assuming that this is a corporation (shareholder is your term). If this was a partnership, that another matter. More information would be helpful.

:bday: and many more!

I recommend again CMI Software (cmifixedassets.com). I use the Demo version and pay $99 annually for updates and tech support. It keeps Tax, Book, and AMT and is pretty easy to use. I have 18 different companies and always reconcile the amounts with the bookkeeping software and tax software. I works for me and the price is right.

Today, yes, today, wife of clients call to ask about the unincorporated association to which she belongs - a 'club' or something at the university dating back to the turn of century. In 1977 they received an EIN but no one knows what the application stated as to entity type. They do not have a tax-exempt letter so status is apparently taxable but what, if any, filing requirement would they have? I can't find anything on the IRS website about such creatures. My reference, "Tax Planning and Compliance for Tax-Exempt Organizations" by Jody Blazek mentions unincorporated associations but only in the context of applying for exempt status. Any ideas as to filing requirements for this group? Thanks!

:bday: and many more!

It is good that we all lift up each other because, as evidenced by these posts, many are suffering without telling others for whatever the reason. MargaretMort and bstaxes, thank you for sharing so that we can put names and personalities to our thoughts and prayers. We all celebrate together and we share burdens and sorrows. As was said, this is more than just a community, it is an extended family.

OMG! Where did you get that picture of me? It was supposed to be just a little friendly gathering of, you know, little old ladies...

Whoa, KC's on a roll today! We all really need some chuckles 'bout now so much appreciated!

:bday: and many more!

:bday: and many more!

Thanks for the great tip! I was wondering, though, if that was needed if the return is efiled. I mean, I thought the barcode was for mailing. And when I prepare to efile, I don't get the message that the number of pages is needed. In any event, I do appreciate the clever way you have provided.

I have a MA return for a client. When I run the check, I get a red message that I have to enter the total number of pages to correctly print the state required 2D barcodes. I am hoping to efile but need to send the paper client copies for these elderly folks to look over first. When I create the efile, the message does not appear. Any worries?

I just checked my list of hotline numbers and have 800.829.4933 as specialty tax. I have had to call about CRUT and/or other trust returns so that number may be the one for those non-individual, non-business, non-payroll, etc. returns. Thanks for sharing!

:bday: and many more!

:bday: and many more!

In my engagement letter is verbiage to the effect that I won't audit or otherwise verify the information the client provides, that the client has the final responsibility for the returns and should review carefully before signing. It also states that, in the event of audit, the client may be requested to produce records, documents, etc. While that is probably sufficient I, like you, have on occasion had cause to 'suspect' some information provided. On the new organizer from ATX this year, I really appreciate the statement called 'Attestation and Signature:" To the best of my knowledge the enclosed information is correct and includes all income, deductions, and other information necessary for the preparation of this year's income tax returns for which I have adequate records. Sign_____Date___ That may be from ProSystem, I don't know. But I do ask all clients to sign that even if they don't fill in the organizer because it says 'enclosed information.' This is in addition to the engagement letter. If you still feel uneasy, I suggest you bite the bullet and decline the engagement. I don't think you should compromise your integrity. Last year I fired a very good client when, after I pointed out the necessity of declaring local income and filing, he said to not bother as others didn't. This was after he acknowledged, in writing, the legitimacy of the tax owed upon reading the link I provided. Good luck!

THAT was funny to me. I have a great caricature from an artist friend showing Jesus peeking around the stone at the tomb and looking quizzically at a fancy Easter basket with bunny, candy, etc. I imagine the thought going through his mind about what has become of this celebration. The quote with the picture is "Take, eat, this is my bunny." I know that Jesus has a sense of humor or he never would have gone through this week.

That is strange, isn't it? Out of curiousity, I clicked on a K-1 entry for 1041 and it says it transfer to, as you probably know, Sch. E, Ln 42 & Sch. SE, Opt Wkst. So I checked the instructions for Sch. E, Ln. 42 and it just says something about not being charged a penalty for underpayment of estimated tax if... Do you think is should go to a Sch F? It does seem strange if it is information only that Sch SE might be involved and the filer wouldn't be charged an underpayment penalty. Hmmmmm....

KC, where are you finding these great Shoe cartoons? My local paper no longer carries the strip and I didn't realize how much I missed them!

Really good one, indeed!

Thanks, Robin. That seems to have done the trick. There is a place on the 2555 for the foreign address but the 4868 wasn't working. Now I have only the 10 digit daytome phone number to deal with. I suppose I could/should put mine but get 2848 signed first. Thanks for the hint.

It is helpful to be aware of current events, however. When my husband and I married 31 years ago, it was a Sunday afternoon with the reception in our home. As the time drew near, several people were asking if we had a television and would it be on. After scratching our heads for a few days, we realized it was Super Bowl Sunday, Jan. 21, 1979. We were not football fans so it wasn't on our radar screens but clearly on the minds a some. We are grateful that they chose to attend and we did have a television on.

A client moved to Switzerland and wants to extend with a payment. I'm struggling with the foreign address because it doesn't fit State and zip code conventions. I want to efile with a direct debit payment but can't seem to get past the address and the 10 digit phone daytime phone number. Any suggestions?

Thank you Don. I knew someone would would elaborate and/or correct me. And my folks this year fit the criteria to file so I confess I didn't commit to memory the entire instruction. To answer the poster I just quickly went to irs.gov and pulled up the instructions for 8606 but didn't read the entire thing. Back to my corner...