BrewOne

A new custodian, if the client moved the account less than five years before, is required to use code "T". If they have had the account open long enough (with no recent conversions) I think the workaround is on the 1099-R worksheet. But make sure it qualifies.

IRS allows hardship, which I'd say applies if your software doesn't support the form. From the instructions: The filer should keep documentation supporting their undue hardship or other applicable reason for not filing electronically in the filer's records. For more information about mandatory electronic filing, waivers, and exemptions, see Regulations section 301.6011-13. If you use the U.S. Postal Service, and are located in the United States, file Form 5227 at the following address: Department of the Treasury Internal Revenue Service Center Ogden, UT 84201-0027

any change on the position not to request direct deposit when Form 1310 is present? This will be e-filed (I hope, box "C" is checked) and last name on bank account will match. Would be ironic if IRS policy is to mail check for any deceased person's refund while orders are out to eliminate checks.

One issue with the OIC approach: all returns must be filed, so she has to sign a return that shows her owing tax on the disbursement of her retirement funds. And of course the elephant in the room is getting the IRS to respond when OIC was a very slow process even before the gutting of the agency. Sorry, I didn't notice your comment that she can't afford a tax attorney.

hopefully someone who isn't as brain dead as me will chime in. It's not the identity theft, it's that you lost money in the pursuit of profit, and fall under Section 165 of the IRC: (2) losses incurred in any transaction entered into for profit, though not connected with a trade or business... Not sure of the mechanics and I would probably hand it over to a tax attorney.

lol. I guess you'll just have to look at the list. Dated March 20

see the thread "new development in taxpayers who were scammed" and the link Lee provided. Maybe they can zero out the income? Meets the profit motive requirement.

It doesn't help when you have to make entries on two K-1's--maybe I was working on the wrong K-1.

I've moved a lot of my clients to direct debit this year--I think it helped when I told them that is how I pay. But Tallahassee has had an epidemic of stolen checks, those who've experienced dealing with that are willing to try something different.

thanks for the responses. Yes, I looked at 2023, where I had calculated basis. I don't see anything that would have generated the 8949 entry on 2024. I'm going to treat it as a glitch. I really like ATX but when you get into the weeds, it's just not as robust as the $20-30k programs.

BTS: Social Security already moved to all electronic (not sure what they do for the 'unbanked'). I have an elderly clientele but moved my last "I want to see and hold the check" client to direct deposit this year.

Opened one of my most complex client's return and, without me doing anything, was already showing over $15k in the red. Found on the 8949 an entry for: Excess Distributions (K-1, 1065) $111,717 Looked at 2023 (K-1 attached) and found no anomalies, no incorrect entries. Worksheets show nothing unusual and certainly not a six-figure carryover. I know y'all might not have time right now, but thanks for looking. K1Puzzle.pdf

Good input--I have a thick file in my tax library on this topic. Rentals are commonly handled incorrectly; combining the complexity with the explosion of AirBnB plus little IRS pushback--good formula for confusion.

Your software may allow you to enter the numbers on the 1099-R (as you should) and then enter the taxable amount as having been rolled over. But I'm with Lee, first see if the issuer is amenable to either fixing the 1099 or explaining it.

thanks Joan. this turned out to be an internet issue, not ATX, for a change. But I don't understand how your internet can work with some websites and not others (and the speed test telling me I have a great connection). Reminds me of when I went into business for myself and my office wasn't hooked up to cable. The installer showed up, decides it's too much trouble to run a line to my office and uses the phone line (this was circa 2011). I said 'and now what'? He replied "oh, your IT person will do the rest." Really? 14 years later and still muddling through on my own.

great. I'm definitely connected to the internet, re-booted, no change, and same for ATX 2023. I guess it's a sign I'm done for the day.

taxnotes© has posted a couple of articles on a recently released IRS memo (ILM 202511015). From the NAEA bulletin "The January 17 memo...determined that taxpayers who were cheated in their attempts to invest could take advantage of the theft loss provision for 'transactions entered into for profit'; and wouldn't be limited by the TCJA's restriction on personal casualty losses."

I agree with Judy--the filing requirement is not met, but weighing the benefits of filing versus having to respond to an IRS letter...better to file.

I had a client with a voided 1095-A (still showing payments) and, following IRS instructions, I omitted the form from their return. Filed electronically with no 8962. I think we did wait a few weeks for the system to 'digest' the voided 1095-A. There is an IRS fact sheet titled "Corrected, Incorrect or Voided Forms 1095-A"

The IRS says to contact the creditor if the 1099-C is incorrect. "Verify your specific situation with the creditor. Your responsibility to report the correct taxable amount of canceled debt as income on your tax return for the year in which the cancellation occurred remains, regardless of the accuracy of the Form 1099-C you received." Maybe include an 8275 for your protection if the taxpayer insists they never owed the money?

right, ordinary and necessary. I accepted travel expenses for a dog trainer's trip to Sweden, but it was for a certification course not offered here.

You have to be careful about which category of Social Security income you are referring to. And beyond my ability to explain in just a few lines. But you can work, as long as you can't do "Substantial Gainful Activity" (current limit $1,620 a month of earned income).

Our local office (Tallahassee) closed awhile back but I recently found out it had reopened (in a new location). You used to be able to walk in and talk to an agent in about five minutes, even take your docs there and they'd do your tax return for you. Hard to believe.

If I have the 2023 SSA-1099, I will estimate their 2024 amount. Just had a call from deceased client's family who can't locate the SSA-1099 and had spent hours on the phone trying (unsuccessfully) to get through to the local office. Fortunately, when I checked the 2023 form, there was no withholding. Not sure what I would do without a 1099 where there was withholding--I'd probably leave the withholding off and let the IRS sort it out, but in our "brave new world" not a great option.

we were trending towards this anyway, and we may soon be close to 100% of notices starting with "CP"--the computer will be the only one watching the store. Dealing with a notice will be another matter...I would suggest establishing a de minimis $ amount that it's worth messing with.