ETax847

ABW, thanks for the time saving tip! That was a tremendous help!

Still has yet to be announced

Since we are still in the middle of the pandemic, do you think the payment deadline will be extended again?

When are you guys planning on sending out your Tax Organizers? I put mine in the mail today.

Good to know and thanks again for all of your help!

Joe, ATX includes the Grantor Letter, so I should be all set! Thanks to everyone for all their help in clearing up my confusion! This forum has been a tremendous help over the years.

Joe, I opened up the 2019 software and see what you mean when the Grantor Type Trust is selected. Is the grantor letter a form in ATX or something that is created outside of ATX and attached to the filing?

Hi Abby, Thanks for the link. Farther down in the article it states: An irrevocable trust can be treated as a grantor trust for tax purposes when the grantor meets Internal Revenue Code requirements to become the owner of the assets. The irrevocable trust can be disregarded as a separate tax entity in this case, and the grantor will be taxed for all its income. Irrevocable trusts are referred to as "intentionally defective grantor trusts" (IDGTs) when they treat the grantor as the owner for income tax purposes, but not for estate tax purposes. The grantor reports trust income on their personal return in this case and pays any taxes due just as if the trust were revocable, but the trust assets aren't included in the grantor's estate for estate tax purposes when they die. This is a major advantage not shared with revocable trusts. The client set this up to remove the assets from his estate. That being said: 1) If no distribution is made, is it just a 1041, with a k1 issued to the client for the dividends, cap gains etc or does not trust return need to be filed? 2) when the daughter decides to take money out of the trust, how is that distribution treated in terms of reporting? Thanks for all your help!

New Client is creating an Irrevocable Gift Trust for his daughter that will be a grantor trust (client will be paying the taxable income during his lifetime). My questions are: 1) If no distribution is made, is it just a 1041, with a k1 issued to the client for the dividends, cap gains etc 2) when the daughter decides to take money out of the trust, how is that distribution treated in terms of reporting?

This is going to make for one fun tax season, not!

I side with Tom on this one.

All of the e-filed amended returns were processed timely. I'm going to wait until the efile window reopens in january and resubmit it electronically.

The IRS agent told me, the file was closed out with no comments entered by the agent in charge of the file. I now need to resubmit and start this whole process over. Beyond frustrating.

Thanks. So frustrating that the IRS is this incompetent.

I mailed in a paper copy of a client's 2019 amended tax return back in April. Today, I come to learn that the IRS closed out the file with no comments and I need to resubmit it. Is there any way I can E-file this or has that window closed?

How will they ever get caught up by the time tax season starts?

Every time I call the IRS to check on an amended return that we submitted in April they give me a new 16 week time frame to wait.

Thanks Yardley. I, too, am interested in your feedback and what hiccups, if any, you encounter.

I just received the offer email today. I cant justify spending an extra $500 for this extra functionality. Why they dont include these features in the normal version is beyond me.

Thanks Abby, that did the trick! I appreciate the timely response.

Where do I go to check the complete disposition of a rental property in ATX? On the Fixed Assets tab, I have entered in the disposition information, but none of the carry forward losses are flowing through. Any idea what I am overlooking?

I will do the same. Thanks for the feedback.

I received this email today: Congratulations! To thank you for repeatedly renewing your preparer tax identification number (PTIN) early, you have the opportunity to renew your PTIN before the season opens to other tax return preparers. The PTIN system is ready to accept your renewal from today through Oct. 15. Should you miss this opportunity, you can still renew your PTIN during renewal season beginning later in the week. All PTINs expire on Dec. 31 and must be renewed annually. You must have a valid PTIN if you plan to prepare any federal tax returns for compensation or you are an enrolled agent. The renewal fee is $35.95 and non-refundable. Get started at www.irs.gov/ptin. I was not aware of the renewal fee this year. Is anyone else planning on renewing their PTIN this early?

I've tried call the TPP Service Line over the past 3 days, but keep getting a message to try again later due to high call volume. Does anyone know a work around? Or have you had any luck getting through?

Great article. Thanks for sharing!