joanmcq

Ugh. I got this client because of the way I handled the MA audit for last year, so I know what to do if he is audited again, but still.....it took about 9 months for him to get his refund. Is the way I'm reporting it correct? And can I efile as an out of state preparer?

I got one of these too, and was flipping out. Actually if you put in just the code P, the P means it is an return of an overcontribution taxable in 2006, not 2007 (I had to read the codes on the back of the form to make sure) then it doesn't show up on the return at all, which I believe is the correct treatment. ATX seems to take the first code into consideration, not the second. You are supposed to amend the 2006 return. The problem with the software seems to be that if you just use the code 'J' it becomes fully taxable unless you use the 8606 page 2 to put in the basis. Then you have to jury-rig the basis to make the proper amount of earnings taxable and subject to penalty. I tried it every which way before I realized it was taxable in 2006.

I spoke to the client yesterday after I posted, and he said that apparently MA didn't have the NR form approved for efile last year. However, he used TurboTax last year, so I don't know if that was a TT issue or if the form really can't be efiled. Do you know?

No Sch C or F, no OIH. Unless he has a rental management business, no OIH.

Client telecommuted from Florida for a MA firm. Employer w/h MA tax on income, and coded the income as MA on W-2. Already went around with MA on the 2006 return, and per MA law, telecommuters are not subject to MA tax, but employer refused to correct W-2 for 2006 and continued error for part of 2007 (then he switched to an NC office, so rest of year not a problem). I am using the Line 13 NR apportionment worksheet to convert W-2 income listed on W-2 as MA income to zero percent MA income. Is this the correct way to do it? The form says not to use the worksheet for W-2 income, but the instructions say that it can be used if the employer does not issue a w-2 showing only MA income, you can use the worksheet to apportion. Of course, in this case the employer did issue a W-2, its just that the MA income is incorrect and we know they will not correct it. Also can this form be efiled? And should I attach a statement as to why the W-2 reporting was incorrect?

Yep, definitely NOT allowed.

Have a client with both MA and NC NR returns. Can I efile them if I am accepted for federal efile?

Hey, in CA (or maybe just all out west) we measure distance in minutes too! Wait, actually, we measure distance in hours, as in 'its about 3 hours to Reno. And (since I'm from back east, but not the south) I don't understand what I thought was the CA fixation with ranch dressing...

Me too. Of course, I don't know what I did before speakerphone...

Tech support? Call? Who's got time? I was just thinking about making a complaint about the program. And changing the asset to heavy SUV. It doesn't change the calculations, thank god.

I'm probably seriously overinsured, but I also have Philadelphia, but with a $5000 deductible and $500,000/$500,000. I have a small practice but a lot of stuff. I just renewed at $621/yr.

I've seen CP2000s that had all the info, and ones that didn't. However, I would take the bet that he had no withholding. As a preparer, I think you file the 8821 along with the 2848. You should have access to the client's account if you prepared the return. And the IRS will have the fed w/h and SS too; they just don't have the state info.

As I mentioned on another board, the TT program only provides a worksheet to enter your data. Does the same thing as a spreadsheet, but has the formulas built in. You provide the data entry. Now, TT can download data info from the brokers, but the accuracy of it leaves much to be desired. And it only downloads the B's and basis data if provided by the brokers.

i dont' know about the Rs but there was a special dispensation for brokerage firms because of the constant problem with the DIVs. since qualified dividends came about, they had problems getting the corect data in time for the Jan 31 deadline, so they were always issuing corrected ones.

Got one of these; confused the heck out of me...because its not taxable on the 2007 return (look up code P). Its taxable on the 2006 return, so you are supposed to amend.

You can tell them about the cyclical problem Ihave with vehicle entry on the 2106. Qualified nonpersonal use vehicle; not listed property. The asset entry vehicle worksheet says its only for listed property. Use the worksheet on the form (ie. 2106). 2106 vehicle worksheet only has mileage entry area, no actual expenses. Says to use asset entry if I want to take actual expenses. AAAARRRGGGGH! And the worksheet was correct in 2006; let me enter on the 2106. At least the depreciable value is low, so if I change it to a heavy SUV, the depreciation doesn't change. But it isn't correct!!!

Trust me, clients love you when you take a notice like a CP2000 that says they owe beaucoup tax and turn it into a small refund (or even better a large one). You are a hero, es[ecially if they are coming to you because they got a CP2000.

KC, I don't see any check box on the bottom of the vehicle input tab; there is only input for mileage on the 2106, and the yes/no boxes for 'do you have another vehicle' etc. On the asset entry, it won't let me enter ANYTHING on the vehicle worksheet; it tells me to enter it on the appropriate form. The vehicle info tab says it is only for listed property, if I change the type of vehicle to vehicle type 6 or 7 instead of type 2. Last year, all the actual expense info was on the 2106; now the 2106 worksheet says to use the asset entry form for actual expenses, and the asset entry tells me to use the 2106. HELP!!!! Or maybe I should just make this a truck/ SUV over 6000 pounds. But it isn't correct, and I shouldn't have to do this. It worked last year!

If it was his 'second home' then no need to amend to remove interest. But he sure doesn't get a loss on the sale of a 'second home'.

The CP2501 doesn't require an amended return; they would like to see a sch D, and if you compute a small refund, then put that in your letter. Get a POA and write a response along the lines of 'we admit the stocks omitted from the return. They were sold at a $____loss. this change results in a refund of $________. Here's a worksheet showing the cost basis info. and attach a D. You probably won't have enough of a difference to require a state amendment.

My most complex problems come from state K-1s, and state different passive loss carryovers. ATX is terrible for these; all differences must be calculated manually and the passive loss worksheet is not intuitive. Profx did all of the state differences seamlessly; with K-1s it had/has a 'state if different' column and the state k-1s are entered side-by-side with the federal entry. I know not all states have different K-1s, but CA does, and so do my NY clients. I stopped taking bonus depreciation on my own return just because the state/fed differences on my rentals were such a pain on the 8582 worksheet.

I've seen other pension plans split...CSA-1099-Rs for one, state of CA pensions. If done right, spouse gets his or her own 1099. If this was an IRA, it could have been split, and part go to an IRA in the wife's name. What kind of account was it? Although at this point, he is pretty much hosed. Another, why don't they call us first moment!

Client had 100% biz use vehicle (carpet cleaning truck) he owned and used as an employee in carpet biz (not his own biz). Got canned and started own biz with same truck. Had been using actual expenses and depreciating truck. Truck cost $6000 when he bought it from the employer (employer required employees to purchase truck) and had 4109 of acc. depreciation when converted to the Sch C biz. Do I use $1891 as the basis of the truck for the biz? Is there any gain loss? do I just dispose of vehicle in ATX and have it not calc gain/loss, and then just move it over to the Sch C asset entry at $1891 basis? Or should I just take a shower and go back to bed? oK, after this addendum, shower and bed. I give up. I've had this as a qualified nonpersonal use vehicle, and used actual expenses on the vehicle worksheet in asset entry. Now the vehicle worksheet says to enter the expenses on the appropriate business form. Do not use vehicle worksheet. However, on the 2106, there doesn't seem to be a place to enter actual expenses, only mileage. Putting the vehicle expenses on the Sch C vehicle entry allows the depreciation to calc along with the standard mileage. Any answers?

If I was a legislator, I'd get paid more, have better health insurance, and more vacation. If I was the god of California, you bet the budget would be balanced!

Well, my sig other is into computer graphics, synthesizers, computer animation. So whenever he starts with his gibberish, I give him some of mine. Neither understands the other one bit. Sometimes, if I need to really get something off my chest, I will preface with 'I know you won't understand a word of this but just listen and nod occasionally. Then I'll let you tell me something about synthesizers.'.