Max W

Someone at the IRS had indigestion eating too much turkey, including the leftovers and overlooked the depreciation. If the business was disallowed, so too should the depreciation have been disallowed., as well as the leftover. At times, the IRS seems to have trouble with depreciation and I have run into a few cases where they messed things up. Happy Thanksgiving!

Thanks, FDNY. Hope you and your family have a great Thanksgiving.

Does NYS allow a late filing penalty abatement? Do they allow a first time abatement like the IRS?

After getting all the docs for filing a 982, I fill out the IRS worksheet (pub 4681 p 6) and then have the client(s) sign it.

I'm sure the IRS will give the client Brownie points for "coming clean". NOT!

The returns can be sent on one package provided each return is in a separate envelope, marked with the year it pertains to. Otherwise, it often happens that only the top return gets processed. I suggest getting both the IRS Wage and Account transcripts. A lot of things could show up that would affect the returns.

The IRS only looks back 6 years. If the prior year returns (more than 6 yrs) are sent to the IRS, they will be rejected, unless they are still open because of an assessment made in a SFR.

Letter FTB 5818 is probably a revised version of the old FTB 4502. 4502 had 399 rejection codes and you needed to know the rejection code to respond to the letter. There was a number to call you could try, 916-845-7088. It may or may not have changed. The FTB website has been completely changed and links and letter numbers are not the same, making it impossible to navigate. "Documentation of the business" is pretty vague. You need to find out exactly what they want. Sometimes the Chat line can help, or at least point you in the right direction.

There is no limit. The IRS can audit every year if they think it necessary.

No. They are payments from the insurance companies for services performed as a medical professional. If there are some payments in Box 3, they should probably be included, as well.

Viele Danke!

Vogelscheiss!

Only immediate kin/relatives can get copies of birth certificates. Non-relatives can get the records when they become public, but there is a little wait before they do become public -- 100 years.

If a 1040x is filed one day late, it will not be accepted. Other returns not accepted are those with no change in tax liability, those with missing forms or insufficient information and frivolous returns. Otherwise, all others will be processed. An audit reconsideration is an entirely differenent animal than an amended return. Audit recons mostly happen after when the taxpayer is a no show for the audit and an assessment is made. Then anything that was disallowed has to be substantiated with receipts, bank stmts, cancelled checks, etc., just like at an audit, but it is all done by correspondence. In my expereience it is easier to get more favorable results than going to a face-to-face audit.

Although, interest keeps accruing, it only gets posted periodically, maybe every couple of years, or when some event triggers it.

Only open years, the last 3, can be amended, and older years where there is tax due and only the tax can be reduced, but no refunds.

All joking aside, the numbers look to be way out of whack. Six dollars at 6% would double in 12 years. The late payment penalty of 0.5 %/m maxes out at 25%. There one of two possibilities; the amounts were miscalculated; or, they are related to something else, such as estimated tax penalty. Before doing anything else, I suggest that a copy of the Account Transcript be obtained for that year. The transcript will show what the penalty is for and when it was applied.

Yes, Child Care Credit!

Thanks to everyone!

It hasn't been filed yet, but the software indicates it is ready to efile. There is one more question. She (HOH) itemizes. Does he (MFS) have to itemize ,too?

JohnH, I like your last suggestion. It takes the uncertainty out of the other ways of handling this, which could lead to delays and complications. Even if the Jan 15 payment is late the penalty, since it is the last qtr, is only going to be 1.2% ($72).

That did it. Clicked in HOH qualifier and it took the dependent off of the 1040, but kept CCC. Thanks for your suggestion. The folks at Drake are good, but don't know everything.

That's right, but has to be listed on return in order to get CCC. So, the return that is filed second has to be paper filed, because the first SSN will block the second. I checked with Drake and they concur.

The question was really about efiling. Only one can efile as the dependent is going to be on both returns. She doesn't qualify - makes too much money. Thanks to both of you.

Couple separated early last year. She is custodial parent of 2 children, but is allowing him to claim (8332) one as dependent for CTC. Can she claim CCC for this child? And, if the child is listed on both returns, won't this prevent efiling of one of them?