BrewOne

A lawyer would probably be talking statute of limitations. I'm thinking no penalties on taxpayer's reporting of item missing from a filed return, just interest--but that may just be the way things should work.

the first return I e-filed this year we requested a waiver. There is $1,335 (the RMD) in 52a. 52b through 54b, all zeroes. On Line 55--Line 54a: RC (1,335) a Waiver Explanation accompanies the return.

Once I realized the IRS only recorded dollars--nothing after the decimal point--I started rounding down (essentially ignoring any cents) on tax forms; I did get push back from one client whose total withholding didn't match the number (-$2) I entered but I convinced them my system matched what the IRS has on record and was worth it. Even though I was taught rounding up from .50, completing my second year doing this and I'm convinced it's the way to go. Plus it makes it easy to deal with those bank statements folks bring in with $0.97 in interest on them.

getting back to the original question: has anyone here electronically filed a 1040 in ATX marked "superseding"? and my follow-up--has anyone here e-filed a 1040 in any software marked "superseding"?

IR-2022-130, June 23, 2022 [announcement of e-filing of amended returns] ...Additionally, a new, electronic checkbox has been added for Forms 1040/1040-SR, 1040-NR and 1040-SS/1040-PR to indicate that a superseding return is being filed electronically. A superseded return is one that is filed after the originally filed return but submitted before the due date, including extensions... I don't think this ever came about (or it's not in ATX)--I believe an amended return filed before the deadline acts the same.* *just did a bit of digging--technically it's not the same thing but in most cases it won't make a difference.

it's tricky. We aren't always aware of the connections clients have with each other. I thought I had mine sorted but one of the clients I had "fired" called me for help with their partnership and I told him I was retired and he replied "No you're not."

the balance due option (online) throws some folks because they don't see an amount even though they (recently) filed. I've had to reassure them that it's okay--the important thing is they've chosen the correct option (and not estimated taxes, which is now prefilled for 2025). Obviously in this case the amount due will be unknown by the IRS.

in response to Tex, then that must have been the local instructor's "interpretation" of basis rules for the program. I would be okay if they just said this is "out of scope"--instead of plugging in zero, they would be a lot better off with a paid preparer.

I get your concerns--I don't use a fiduciary's address on one trust because she lives in California--the money and the beneficiary are in Florida. Don't want CA getting any ideas.

Max, I guess I don't follow, because it looks like you're making some of the scholarship non-taxable and using it for a credit. But it could be that it's April 9th...

you do the best you can. document your work and show that it's a reasonable number. Back in the olden days (when IRS might look at a return), the IRS would accept it. I went through Tax-Aide training this year just so i could be comfortable sending my easy clients to them. I was not happy when, during the Capital Gains section, they said if the client can't supply cost basis to put in zero. That's terrible.

they certainly can. but I have a partnership that is one rental property and on January 15, I have a clean spreadsheet delivered to me. So I think there has to be room to charge less. Same with a trust that has one consolidated 1099 with all the 1099-B stuff in the covered category. But I'm afraid they are going to have sticker shock when I retire.

Joan, I'm fried as well, but I can tell you that charities don't get K-1's.

I'm mostly 1040's now but the number of clients with complex K-1's has multiplied--Enterprise Partners in Texas (I think it's a pipeline) must have a very convincing pitch for the number of brokers in Tallahassee who put it in my clients' portfolios. And I just did a Form 6781 for a client who I'm certain had no clue what their broker was up to. So I simplified by getting out of corporate returns, only to have partnerships and 1040's get more complex. Would be hard to specialize in estates when so few Form 706's are filed now. I imagine it would be very hard to specialize in representation now. Pricing is a tough nut--but if you're busy and someone new comes along, that's the time to enforce a minimum price.

When a colleague retired, one of the clients I inherited raised miniature horses. After doing one return and not thinking much about a small loss, he returned with a bigger loss. That's when I started digging--the first year I did was the best (closest to breaking even) year he'd ever had! I remember a stat--70% of farms show an annual loss--but even horses are supposed to be profitable some time. And keep in mind the "2 out of 5 years" (horses, 2 out of 7) profitability is not absolute--I've seen the IRS disallow from the get go, although I believe there is an election to have the IRS postpone the determination on new ventures.

Fixed assets: under disposition, put converted to personal use and that will stop the depreciation. You can leave them in fixed assets, handy if they're ever sold.

I stopped including with the return when ATX stopped allowing me to fill it out without having to say (lie) that the form was required.

I use five lines per donee, arbitrarily picking one line for the basis, amount, etc. More than one donee, looks like ATX generates a Summary page.

direct deposit has been allowed on an electronically filed 1040-X for a couple of years (IRS notice February 2023--no mention of direct debit). I would be concerned that direct debit might not happen by the chosen date. My understanding is that e-filed amended returns do not jump the queue, they just get there quicker.

Are you talking about efile? first four letters of the last name. I'm not certain about birthdate matching causing an e-file reject, something sticks in my brain about getting the month and year correct.

Hi Marilyn, Sorry, I didn't communicate very well. I was speaking of entering what's on the 1099-R form in ATX and then what you can fill in on the ATX (1099-R) worksheet.

Don't have ATX open at the moment, but I believe you would put the full amount as taxable and there is a box immediately below that to indicate how much was rolled over. Just checked--yes, you fill out the 1099-R as shown on the form, then use the box below Box 2a "Rollover amount included in Box 2a"

follow up: Talked to caregiver and an assessment was made before client moved from independent to assisted living--she'll ask for a copy Monday. Hopefully that will ease my mind--we're talking about claiming $80k instead of $8k.

I recently filed a return with a Schedule A for a client in a memory care facility, which I was comfortable claiming 100%. However, the client I'm working on now (still mentally competent) moved from independent to assisted living, where the facility's letter helpfully states "Up to 100% of expenses may be deductible, consult your tax professional." I have asked if there was an assessment done before he moved and am awaiting a response. For such a significant deduction, I am going to require a doctor's letter that the individual is chronically ill (I think this would be similar to qualifying for Long Term Care payments). But wondering about the timing of this letter/assessment--should this be contemporaneous to the move to assisted living?