Christian

In looking over the various increases in what will be our workload this season I am going down to the store and buy several additional bottles of ibuprofen or acetaminophen. I wish you all good luck as I feel sure we will need as much of it as we can get.

It's always great when you see a child realize his dream and succeed. Congratulations you did good.

I wonder where the backlog of returns now sits. A client signed his mother's return some years back as POA. Even though a POA had been included in a prior year return and was on file he got a letter. It took two years to get it resolved.

The withdrawal rules with a few exceptions require non spousal beneficiaries to withdraw all funds over a ten year period in whatever amounts they elect as long as it exhausts the account. I have a lucky client who stashed away over $1,000,000 in her accounts and about fainted when she found out her only child will have to withdraw it over ten years instead of over her estimated life time. So much for following the established rules and then Wallah Congress scuttles them and changes the facts.

Back when IRA accounts were first created there was no Roth IRA account. In retrospect If I had been able to contribute to a Roth back then I would have NEVER contributed to a regular IRA account. The line back then was something like "You get a tax deduction by contributing now and on retirement you will likely withdraw your earnings at a reduced tax rate". I am sure that rang true for many. For me my RMD's place me in a higher marginal tax bracket. Frankly I would have been better served by simply buying regular mutual funds and paid the tax. All my capital gains in my IRA accounts are taxed at my highest rate instead of the 15% or 20% that would otherwise be the case. If they came from a Roth no tax. If I were a young taxpayer just getting started the Roth is the way to go.

I have no clue whether my client the father has an income greater than his girlfriend the mother of his child. In any case she claims a child from her prior marriage. Good grief. I just attended an IRS webinar today and it looks like tax simplification has gone south yet again. I came away with a brain fog not unlike these people who have had Covid. For my part I am with cb my client list is moving toward the easier returns as I simply no longer have the stamina to research all these opaque rules.

I have a couple who live directly in front of me. He a fireman and she a public school teacher. They have a child and have never married and live in the same home. He claims HOH and claims his son and she claims a son from her former husband and files HOH. I do not prepare her taxes and have not bothered to check if this arrangement provides a greater benefit than their being married but I will bet a dime to a dollar it gives significant advantages. If the Service was on it's game a simple match would show two people claiming HOH at the same physical address duh. Another client whose is single with AGI in excess of $160,000 woke up one morning to discover the Service had dropped $1,400 of EIP into his bank account. I inquired if he planned on sending it back and got a hearty laugh and the reply "Only if they request it".

Y'all gotta admit my state does field some unique tax folks ! I shoulda said Saber squeak.

I too used Saber back in the day. When I converted to computer prepared returns I think. Normally with ATX I renew in May online and if any issues arise I try dealing with tech support. I've looked at other programs over the years but stayed put as using ATX is for me simple and since I know what forms are needed for a given return it's time efficient. Sorta miss that roar when the program boots up though.

What was it Jackie Gleason used to say "Oh how sweeeeet it is". I ,of course, realize many of you do not know who he was.

Well Wisconsin is kinda cold especially in winter (-30). Maybe she might like to move to a warmer location.

When I began preparing taxes in 1983 an instructor in the tax school asked if anyone might want to join their staff in the upcoming tax season. If so he advised I can promise you the biggest can of worms you will ever encounter. After now almost forty years I can attest to the factual accuracy of what he said so long ago. A Happy New Year to all.

You may very well be correct. I have read free file is restricted to five filings by the various providers but ,of course, have no clue how rigidly it is enforced. My thought was the Service might have some way of checking the number of returns efiled from a given IP address. I note that Intuit has discontinued participation in the program this season.

I have often wondered if the Service has any means to ferret out the likely legions of tax preparers who do not obtain a PTIN and merely file returns through the free file system using the self prepared info at the bottom of the form. A few practitioners in our area have simply sorta disappeared and my thinking is this is where they have disappeared to.

I finally got this resolved by diving into the WK maze of information. To this date no one can tell me if my contact rep exists.

I have for a week or more been attempting to get my code (usually sent to me by email) for my U S Master Tax Guide Online. In the past it was sent by my sales rep but she has been unreachable so far. After conversations with several other folks I asked to have a new rep who could send the necessary info but no luck there. They sent me a link to establish a code for CCH Answer Connect which I dutifully followed and was advised that a password already existed for my email and try again. I have one for my WK account and one for my ATX software neither worked either. I guess I will need to sit back and see if I ever get it from my rep who for all I know may not even work for WK anymore.

I suspect I misspoke. His shares are being acquired by the purchaser and not tendered to the existing company.

A client has shares in an S corporation which is going to be sold. Under the agreement he will tender his shares but the payments for them will be made in three payments over the period 2022-2024. He will have a capital gain from the sale and since it is in instalments I am wondering if it should be reported on Form 6252. I have reported the sale of real estate assets on this form but no sales of stock and am researching if this is allowed.

I have downloaded my ATX 2021 software. I have been trying to get the password to the integrated tax research product that comes with my package. My account rep is missing in action. After trying and getting tech support I got passed around like a basketball and never got anyone who could get the usual email with the info out to me. I suppose they will get it to me sooner or later.

Well I am going to call Richmond and hope for the best and while I have them on the phone to ask for the explanation for why they did not pay me my $61 tax refund from last year which explanation was promised but never received !!

I finally located this in my tax info. "Tax withheld at any point in the year is treated as if evenly paid throughout the year". This is for federal income tax withheld. Does this apply to Virginia income tax as well. I am unable to locate wording to this effect in the regulations so far.

You have answered my question completely. This is the first time I have needed to address this matter as most folks cover their tax due through W-2 or 1099-R withholding monthly. Thanks for all the input too all.

I myself was hit with a penalty for underpayment of estimated tax one year. If you consider a withheld payment in December as having been paid throughout the year would not a three month amount of the December withholding be credited along with your quarterly estimate to compute an underpayment or overpayment for that quarter ? That is what I am getting at.

This pretty much confirms the point. I note he has been paying quarterly installments for some time but will be drawing a MRD this year so in estimating his tax for next year I will be mindful that should he incur a penalty in future related to underpayment of quarterly estimated I can add his annual year end payment to his other quarterly payments. Good to know.

A client I have takes his annual MRD from his IRA in December each year. He has federal and state income tax taken out when he does. In reading my Kiplinger tax letter awhile back I was surprised to note that it stated that federal taxes withheld on a once a year distribution are treated as if paid throughout the year which means he can add a monthly addition to his quarterly federal withholding. I assume you would divide the amount withheld by twelve producing a monthly figure which can then be included in computing his quarterly payments. I have not encountered this before and would appreciate any info from the forum.