BrewOne

good question

I got my renewal letter--I have until May 31st to accept, which is the usual date. I moved away from Max awhile back as I curtailed my business and just buy the ATX 1040 package--renewal is for $1,033.60--which I wouldn't recommend if you are doing more than about 125 returns--the per charge cost adds up quickly, especially with partnerships, trusts, and if you need more than 3 different state returns (although at least you don't have to pay until you download the return).

Lynn, you probably already looked, but just in case...did the pass-through entity have any kind of statement like "Composite Return has been filed for all qualified non-residents unless indicated otherwise"? I was stressing about one last year when I realized the partnership had already payed the tax.

We have to be careful with comments on clients' investments. I tell the client do not tell your advisor that your accountant thinks this is a terrible investment (learned the hard way). But I will speak my piece on Limited Partnerships and Publicly Traded Partnerships that brokers buy for a client without running it past them first and with no regard for the tax preparation consequences. I just told a client with what should be a simple return that last year their broker had invested $3,500 of their money in a PTP that generated a -$400 loss and about $1,000 worth of tax forms. Another PTP they owned had $30 income but about 20 entries on the K-1.

I think they need an online account, because Direct Pay (which doesn't require an account) will ask for a confirmation number if you want to look up a payment

has worked fine with the few clients I've tried it. And as you mention, they have been older clients; younger ones I've pointed them towards Direct Pay. Just had another instance of client's check going missing--the 1040-ES arrived but not the 1040-V. Even though elderly, I think he is savvy enough with the computer to use direct pay going forward. We have a serious problem in my area with stolen checks, including those dropped off inside the Post Office.

same here. But I have yet to see a brokerage service list fees that are specifically related to the account being a trust, which is a requirement for those fees to be deducted.

I have more and more clients moving in this direction (or using Direct Pay at irs.gov). The fewer checks they put in the mail, the better--serious problem in my area with stolen mail and check washing. And all refunds either rolled over or direct deposit. I think I have one client this year who will be receiving a check.

the time I tried OLT the acknowledgments were very fast, so I knew it was possible. ATX remains slow in comparison, although their State acknowledgments are a bit faster now.

I didn't call. I've tried Support twice in 12 years and both times ended up more frustrated than before I contacted them, so I just figure out workarounds.

that is correct. out of the blue. Fortunately, I saw the large amount due when I opened this return and went hunting for the culprit.

Second time this has happened to me this year (first was my own return), initial opening of a return in ATX that's been rolled over and there are entries on the 8949. This one was short term gain from "excess distributions" to the tune of $97k. Because this client has a complicated K-1 (1065), I thoroughly went through last year's return and all the worksheets (including basis). Definitely nothing that should show up on this year's return (except some passive losses).

come to think of it, that's how I was paid at H&R Block (And why I wasn't keen on bailing out preparers who started returns they didn't know how to do).

https://www.dol.gov/agencies/whd/fact-sheets interesting stuff

I don't believe it's possible. Fortunately, the software should select the proper Federal forms that need to be attached to each State return. Do you have the All States Guide? Might want to check requirements to attach W2's, etc.

preparers don't have access to someone's IP PIN; the taxpayer will have to retrieve. Even with an 8821, the IP PIN is not on a transcript and, unlike other IRS correspondence, you're not copied on the January IP PIN letter.

reminds me of an audit of a coworker's client. Taxpayer had claimed 95% but showed the auditor that the vehicle was 100% business use. He asked her why didn't she take 100%? Answer: "Because Ms. _________ won't let me claim 100%!

I've had to dummy up a 1099INT before. One fallback on OID: there is a de minimis rule (Pub 1212) if the OID is less than 1/4 of 1% of the instrument. The pub gives an example of a $1,000 instrument with OID of $20--this is not reportable as it is less than the $25 threshold for a $1,000 instrument. There is also information in Pub 550.

Anyone else have this problem--certain clients' documents reeking from what I assume is a "generous" use of air freshener in their home and car? I don't think the clients have a clue but I have to let the papers air out for a few days before I can deal with them. Any ideas of a polite way to broach the subject?

and yes, if they filed an extension they have three years from the filing date to claim a refund.

IRS press release--file by May 17 2024

There should be an entry for Line 20, Z on the K-1. As Abby mentioned, scroll down past that to a separate "Section 199A Information" to make entries.

Beth Logan remarked that she never opens email on her work computer and with Judy's episode, I'm thinking of doing the same thing. Not sure how inconvenient that will be, but I'm going to give it a try.

I agree on the pro/am call. And yes, gambling losses (to the extent they are reporting gambling winnings) can be reported under "Other Itemized Deductions" on Schedule A (IRS Topic no. 419). Also Publication 529

Okay, if it's not a hobby I guess you can't lump it all together because you can't take any losses, you can only zero out personal items sold at a loss. You need to report the total amount from the Schedule K-1 but you should only pay taxes on the profitable items. The IRS says if you get a 1099-K for a personal item you sold at a loss that you can put it on Schedule 1 (8z) and then put a negative amount on Schedule 1 (24z) to zero it out. This is going to be a big problem going forward and I would look at Schedule 1 before I tried to put everything on the 8949.