Kea

I got the documents yesterday, but that's on today's reading list (maybe tomorrow). So far, I've only scanned them. Didn't notice anything about tax treatment. Not sure they will address that since they are in the husband's SSN. And just to keep beating this poor dead horse. Once the Trust gets an EIN, I can report the interest on the 1041 without a problem even though the 1099s are issued in the SSN? Just attach for reference, maybe? Or a letter explaining what happened? I guess I'm learning something here. Just not sure I'll ever see this situation again to apply this new knowledge. Again thanks for helping me through this.

Thanks so much for all your help OldJack. I hope to be as smart as you someday so I, too, can help out! I haven't done any trust 1041s before just a couple of ones for decedents. On one I know I kicked out a K-1 to the beneficiary. I guess that means that won't apply here. Thanks for the heads up. But if they paid a lawyer anything related to the trust in 2011 I guess I could put that on the 1041?

One more thought - would it need the Form 8948 attached explaining why it wasn't e-filed? Or, they can figure that out when they see the SSN has already been used?

New address is on the return filed. So resident state for 2011 is different. Version client signed was old address. Version efiled had new address & wrong sales tax. I'll give them corrected to mail. Thanks!

I have never filed a 2nd 1040 - always just amended. When filing a 2nd 1040 by paper does anything special need to be written on it? I just changed an address on a return (client is moving to a different state). Form actually sent doesn't match the 8879 that they signed. Of course I didn't catch the error until after the return was accepted. Having them send the correct balance due with the corrected return seems better. Thanks!

Assets of the trust have been distributed to the son and are no longer in the trust. Trust no longer exists. Can I still get an EIN after the fact? Even with that, the 1099s have already been issued in the deceased SSN. IRS matching computers will have a field day with this one!

Even if I can get an EIN for either of them, what do I now do about reporting the 1099 INT in the husband's SSN? If I "ignore the trust" then I also have to ignore that the son is the beneficiary of the accounts? Kick to 1041 and then K- to son? I can't go directly to son through IRD nominee? FWIW the original trust was set up in 2004 and as I understand it, the husband was quite insistent that there be no EIN. He wanted it in his SSN.

Married clients had a living trust with husband's SSN as the tax ID. I reported the trust's interest income on the clients' MFJ 1040. In 2010 the husband died. The 1099 INTs still showed name of trust and husband's SSN. Again I reported them on the MFJ return for 2010. Everything passed to wife. In 2011 the wife died. The1099 INTs still showed name of trust and husband's SSN. I am now filing a 1040 for the wife, but the husband's SSN is not / cannot be on her Single return. The beneficiary of the trust is the son (who is also my client). I know that the income received after the wife's DOD gets reported on the son's return & I am familiar with the process of nominee interest for IRD. So, in theory, I wouldn't need a 1041 - I could just move the income from Wife's 1040 to the Son's 1040. However, no EIN was ever established for the husband since everything passed directly to the wife. Can this be reported on a 1041 for a trust (as opposed to a decedent) and use the SSN for the tax ID? Or, do they now need an EIN for the trust (that no longer exists) or for the Dad's estate? Or, do I paper file the return for the wife with a letter explaining why we are reporting her 1099 INT income even though it isn't her SSN? Total of both 1099 INTs is $2500 with only $200 after wife's DOD. Thanks!

I had a client misspell her own name in a signature before. Florence vs Florance. Granted sometimes I misspell my own name but that usually involved leaving out letter or maybe a transposition.

Using TRX Pro (Tax Works), I attached a .pdf to the return -- I think! How can I verify that it will get transmitted with the return before I actually send it? After I browse for the file, assign it to "federal" and click the checkbox, do I need to click the left arrow to move it to the whole list of forms or just click OK at the bottom? Either way, I don't see the .pdf file listed anywhere. Should I? I know back when I used ATX there was a tab where you could see what forms got e-filed. I've not run across this in TaxWorks. Is it there hiding? I might as well learn now, because I'm going to have to attach a .pdf at least one or 2 more times this season. Thanks

I have a client that has to file a non-resident OK return each year. It's a no go. Here's a website from Intuit that gives an e-file summary for each state. You now have to scroll to the bottom to get to the map & click on the state. Hope it helps: http://accountant.intuit.com/efatlas/index.aspx?product=LACERTE_TAX

FWIW, TaxWorks through TRX does this. From the software, you send it to the EF center. Then you log in there and tell it which ones to send. It will then show you the which files are still at the software company and which are at IRS. I ran into a similar problem and found that the file was still at the software company and was able to delete it from there before it went to IRS. I'm not sure if you can delete it once it is at IRS - I haven't had to try that. Granted that was a couple of years ago. With the new MeF, I'm not sure I could have caught it in time. And, yes, that means you have to mark the files you're ready to e-file twice. So it may not seem like a good system to everyone.

Thanks Dale. I really appreciate it. I'm glad it sounds like I'm doing it right. Even if I don't have the "semantics" correct, I think at least I have the taxable income correct. And that's the most important part!

Looking at the worksheets in Pub 537 (installment sales) I see where they discuss the FMV at date of repo for personal property, but I don't see it for real property. So it doesn't apply here? I got the cost of repossession & FMV of land @ repo today. Purchased 10/08 for $30K Sold 12/09 for $25K In 2009 reported $5K loss on Sch D on sale of land Total payments received, including down payment = $17K Balance remaining = $8K (interest was / is reported on Sch B in 2010 & 2011) Cost to lawyer for repo = $1500 FMV @ repo = $19 Gain on Repo: Total payments = $17K (no gain on original sale) less Cost of repo = $1.5K taxable gain on repo = $15.5K Basis of Repo: Unpaid Balance = $8K = adjusted basis on date of repo (since no gross profit %) +Taxable gain on repo = $15.5K +Repo cost = $1.5K Basis in repo = $25K (which brings us right back to the original sale price) So after all the computations, I report on Sch D the "sale" of the note? basis of note = $9.5K = $8K + 1.5K = unpaid balance + cost of repo selling price = $25K = Basis of repo Acq Date = 12/09 = date of sale of land Selling date = 5/11 = date of repo long term gain = $15.5K Then the next time he sells the land the basis = $25K. Have I finally got this? Does the decrease in FMV come into play so that the Sch D gain is only $9.5K? ($15.5K gain calculated above less 6K loss in FMV)? It seems like he "sold the note" for $19K since that is the FMV of the land he got back. I'm sorry I keep bugging y'all on this one. I just seem to have a huge mental block trying to wrap my head around this. Yes, I get that the "gain" is the principal payments he received because he now has the land again. My biggest hangup is determing what goes on the Schedule D - what is he selling in 2011? The note?

Client filed a Form 3520A and used their SSN for a identification. (And due to the extra dash left out a digit.) IRS assigned an EIN last fall. Looking at the letter from IRS today I noticed at the bottom that IRS requested an SS4. I thought the SS4 was just for requesting the EIN and would not be necessary after the EIN was assigned. Should the SS4 be filed now? Is it a "big deal" that it wasn't filed last fall right after they got the IRS notification? Thanks

I'm pretty sure you are safe from gun fire. I think the worst that will happen is the e-file will reject with a number / name mismatch. At that point you'll know pretty quickly if there is a problem. Good luck.

Are both in client's name? Could one be the transfer from the son to the client & the other for the withdrawal?

I'm not sure, but I believe it still works OK. Both the EIN & SSN are 9 digits, but I don't think the IRS computer really cares where the dashes are. As long as the number & name match up it should be fine. But I'm not really sure if all EINs are different from all SSNs? Do they each use their own unique numbering system?

It needs to flow to Line 13B of the K1. I haven't filed a 1041 or used ATX in several years, so I can't give you specific instructions. (I'll be doing another 1041 in another couple of weeks, but it will be in TRX.) And I agree with Jainen about requesting the IRA to reissue the 1099R.

There won't be any tax from the 1041. The income & withholding will flow back to the bene's 1040.

It sounds like it will need to go on a 1041 with K1s back to the beneficiary of the distribution.

They ended up claiming more expenses & the alimony. Still a very big tax bill. I would never have thought that IRS would care about getting extra money, either. But in my NATP update class the instructor pointed out that "wrong is wrong" whether it's too much income / expenses or not enough.

Thanks Dale. That's basically what I was looking at in my original post. I was trying to modify Worksheets D & E and using 0% gain & $0 profit. So by entering 0s on those lines, what I listed was what the formulas simplified to. Then by adding in Jainen's help, I modified my original summation by the change in FMV. I think I'm finally geting this! I just have to work through these things logically & here I was getting hung up on the lack of "sale", i.e. the repo undoing a sale. But if I think of it in terms of the note being "sold" it starts making more sense to me. Thanks to all.

Thanks Don. It was the Control <D> part that alluded my brain.

In the list of (all) forms on the top left, there is one for PO (Preparer Options). That form gives you a box to check for printing electronic signatures. I know last year someone posted how to set defaults. I'm not at my work computer right now & I haven't done it this year. But I --think-- you could right-click on whatever box and you got a menu that let you set a default value to whatever was in that box at that time. If it wasn't a right-click menu choice, it might have been option-click or alt-click or ???? I'll see if I can find it tomorrow if nobody answers before then.