RitaB

I couldn't create 7004 e-file, and I found the thread created by Pat which caused me to check knowledgebase. Long story short, I applied to e-file business returns using my SSN, I now have a FEIN, too. I just had to delete FEIN and enter SSN, and now I can create. Hope this helps. If not, try the KB, there may be something that will help.

I copy everything I have used to complete a return. I also copy information that I don't need this year but I may need later, like info on mutual fund or stock purchases. I just had a client pick up her return on which she had stock sales with no basis provided. She knows nothing about what she's doing, and her records are a train wreck. Thankfully, I had copied all her info on past purchases, so I had what I needed. I would be waiting on info from her for weeks, I know. Not all clients are as helpless, I know. And, I respect those of you who require your clients to be totally responsible. I find that with my personality and the lack of understanding of what is needed on the part of MANY of my clients, it is easier on me to do things this way. Yeah, I have a lot of paper. It's worth it to me. Also, I have some clients that I know would blame me if there was any kind of problem with their return. If I have a copy of everything, it's pretty simple to correct any inaccurate "opinions." A guy came in with his crap Tuesday, and had $11,300 in "expenses." Ok, what? "Well, I noticed that last year, it didn't really matter that I had things divided up," he said. Instead of arguing about it, I just got his file out, flipped to his handwritten figures, and matched each one to an entry on Sch C, and there were many. I also pointed out that there is no line item on the schedule C for "expenses." He will come back with his "expenses" categorized. And, I doubt HE will tell ME how I completed last year's return again.

I believe you're out of luck. The whole deal revolved around the 2008 income, but if you got too much based on the 2007 return, you got to keep it. Since the amended return is just getting filed now, I think SP is off the table, and all that's left for your client is RRC. I am glad you asked, because I have a couple who had to amend 2007, taxpayer made an error which son picked up on and told me after filing. Mailed the 1040-X on April 25, 2008 (yes, 2008), and they have a big refund coming. IRS has been "reviewing" the amended return ALL THIS TIME. Clients qualified for $1200 FOR 2007 EITHER RETURN. They even got the letter saying they were entitled to $1200 Stimulus Payment, but they never got it. (Yes, I checked web site, too.) Now, on 2008, they only qualify for $600 RRC. They are elderly, in fact, the husband has had to go to nursing home, and they really need their refund. They also need the extra $600. IRS is really dragging their feet on the amended return. They have not requested additional info. I've called twice, and it's always, "The return is under review, no action is needed right now, and your client should hear something soon." I will be arguing for the extra $600, no question about it. Think client will get it?

Well, good. I've never been questioned either, and I've always attached Form 1040. Guess I thought since 1040 changed it was a "form related to the change." (Instructions for Form 1040-X) I guess I was too literal there. Thanks for the constructive criticism. I guess I'm getting away with my errors cause IRS seems to agree with me: http://www.irs.gov/taxtopics/tc308.html

I hate the Kiddie Tax, too. My first experience with it was just wrong. Church friend's weird husband, who tries to do it himself every year, called me on April 15 one year, (afternoon!), wondering if he could come in and let me give him some tips before he finished his return. I had no idea they had Kiddie Tax forms to complete. (Oh, yeah, I have a tip for you, all right.) I took one look, handed him three 4868 forms, and told him come back next week and leave everything with me; I'll do it, but I'm not "helping" with this. I doubt he even got to the Post Office to mail the 4868's before it closed, that's the kind of procrastinator he is. She divorced him, BTW.

Ok, I've been in the back praying... Sorry if I messed up your joke. Haha! Good one. (You dog.)

April Fools? For the love of all things good in this life, please say you're kidding...

No, they can't. David1980 gets credit for telling me: http://www.in.gov/dor/files/1345.pdf Per Indiana 1345: What Cannot Be Electronically Transmitted 3. Part-year or nonresident returns (IT-40PNR);

When you amend a return, attach every form that changes. That means you'll print and mail Form 1040X AND Form 1040.

David - I believe you need to use Table 1 for the worksheet line 3, since he retired before 1997. Just use his age, not comined ages for Table 1. (Don't check the box on ATX for combined ages.) Mine came out in agreement with program worksheet. (Guess I didn't even need to go through that worksheet, but I wanted to really think it through since I had nothing to go by from the prior returns.) My guy was age 57, and the number on line 3 was 260.

I have an office in town, and I'll never forget one EASTER SUNDAY, coming HOME from church and the phone is ringing. This turkey (not even a client, our kids played ball together) wanting to talk about his non-filing issues. Let me tell you, he did NOT become a client.

Guy comes in this morning, late as always, three out of three years, (congratulations, you're consistent if nothing else). Just so dang chipper, you know? Has his copy of last year's return, with all the associated crap, and this year's stuff. I barely greeted him, yanked this year's stuff out of the mess, and sent him on his way carrying last year's stuff: "Don't call me, I'll call you." (I remember he likes to call and see how it's coming along...) As he's leaving, he's looking back: "It should be pretty easy..." Wow, I wanted to throw something at him. Other than that, it's been a pretty good day...

David - I had this same situation, and the widow couldn't find ANY old tax returns. I asked her when her deceased husband retired, even though I figured there was no way she'd know or be able to find out. Without missing a beat, she fired off the date: Sept 02, 1994. I was stunned. It was their daughter's 20th birthday, and they just always remembered that. I used Instructions to 1040, pages 24-25, and found everything I needed to know. It was a good day. Maybe you can try that. I hope she remembers!

Income from debt cancellation after DOD also belongs on the Form 1041. Believe you can deduct attorney fees (for handling estate business) and funeral expenses. (I assume estate paid them.) Maybe other deductible expenses, see Instructions to 1041 and Pub 559. I would also prepare 2008 1040 for Mom with that line 21 statement reporting the debt cancellation, and subtracting it with a statement explaining that the attorney who "handled" everything gave the wrong ID number to the issuer of the 1099-C. You'll have to write in the "Deceased, blah, blah, blah" cause ATX won't do it again and if you unprotect the 1040, you don't have room in the cell. Don't ask me how I know. Haha!

Oh, good. You may already know this, if so, sorry - if this liquidated all his ROTH (in all accounts everywhere, and I don't think it did when I read OP), you can take the loss on Sch A. That may not even apply, but thought I'd mention it.

It sounds like when he withdrew the $1450, it had declined in value to $1392. If that is correct (ask the client if he got a total of $1392), try putting a "zero" in the 1099 entry for Box 2. It might help to read Instructions to 5329 and 8606, although neither of these forms needs to be used because the excess contribution is treated as if it never occured if withdrawn before the due date of the return. If this is a return of excess contributions and no earnings, you're correct - none is taxable. It seems that you may need to attach a statement; I can't remember, but check instructions to 5329 and 8606.

I know! It's everywhere!!!! I got my Taste of Home magazine yesterday, and there are recipes in here for "cappuccino cinnamon rolls" AND "petite sticky buns." You better believe I'm makin both on April 16.

I would fill out return correctly, and supply proof later if asked, which I doubt you will be. (Documentation now would be ignored or lost.) I'm sure this happens all the time, just get your part right, and don't worry about. That's my motto. I have a client who is 69 years old, and Northern Trust puts code 1 in the dang box every year. I called em the first year, then realized I don't have time for this. I just complete Form 5329 and move on. Can't save em all, Hasselhoff.

Well, just that once.

This is what I do.

She is impersonating someone who knows. If you go from Sch C to Form 1065, you'd have to have a new number. Look at instructions for SS-4, bottom of p. 4 - top of p. 5: http://www.irs.gov/pub/irs-pdf/iss4.pdf Also, Form 8832 applies if they want to be taxed as a Corp. I don't recommend that. Or, even forming a partnership, as ya'll know... Edit: Also, you can apply for the number online at irs.gov. You need to have client sign the SS-4 authorizing you to apply.

Yeah, and you wake up at 3:00 am wondering if you checked the ^&*% stimulus payment for that client that already picked up. You remembering thinking about checking it, but the phone rang and it was your PITA / slacker client that took forever to pay asking, "When are they sending out this year's stim-a-lus checks?"

Yeah, the ladies are correct. And, best of all, just when you get everything under control, the new partner will take a hike. I really hate joint ventures. I mean, if half of marriages end in divorce, and both parties knew it would last forever, good luck going into business with someone that you may not even like a lot... Also, be prepared for the whining, "Why can't we pay ourselves payroll? The lawyer said we could." Sorry, that was all completely uncalled for, I know. Just venting a little.

I did a MA non-resident, and I hope I never do another one. There was no way to come out without losing money or my client on that one. I don't think everything links up properly even if you do use all the worksheets. Of course, I may have been missing something that should have been obvious, it happens, especially to me!

Oh. Well. That explains a lot. Haha! Thanks a lot!!!