Yardley CPA

Easytax...I certainly appreciate your input and info regarding my SSA-1099 question. Much appreciated. As for your suggestion of sending ice and snow this way, I'll refuse that. Keep it there as we have enough to deal with in south eastern PA. Think whatever you want to think of me...ungrateful, unappreciative...whatever.

Lion, you're correct: "If you went without health insurance during 2014, you’re now facing a modest financial penalty of $95 or 1% of your income. Next year, that penalty will increase. All of this is news to some uninsured people. That’s why, as predicted, the federal government and some state exchanges are creating an extra open enrollment period to help these people out. The extra period is for people who who haven’t been paying close attention to the latest and hottest Affordable Care Act information. The penalty has been an unpleasant surprise for them as they file their 2014 tax returns. In case they would prefer to just get some health insurance instead already, the open enrollment period is opening back up just for them. The open enrollment season and tax season don’t line up very well: without a qualifying life event like switching jobs or a divorce, new insurance enrollments end on February 15. That’s when most people are just getting their documents together to file their tax returns. The extended enrollment period will run from March 15 to April 30, with new insurance plans beginning on the first of the month following signup. Those dates are for states that use the Healthcare.gov exchanges."

I believe he can get it through the marketplace (open enrollment through the ACA for 2015 is now over) or on his own (outside of the marketplace).

Please confirm my understanding that the amount that should be reflected on line 20a (form 1040) for Social Security Benefits is the amount in Box 5 (Pink shaded box on SSA-1099). Thats what I've always used and that is what the instructions on ATX ask for. I have a new client who is paying a bit more in tax this year compared to last. In reviwing her return last year, I noticed that the preparer used Social Security Benefits "Paid by check or direct deposit" as the amount on line 20a. Seems like a mistake in my book but wanted to throw this out there to make sure I wasnt missing something?? Thanks! Happy Sunday! We're expecting some Snow and Ice in the suburbs of Philadelphia today.

Well said, Judy.

Its not a matter of whether or not someone can round. Obviously, I'd like to think we can all round. My point was simply stating that from a programing standpoint the form should be able to accept cents and then round automatically....just like the other forms in the program.

I believe we discussed this topic last year and I know some people round on their own. Is there a reason form 8949 is not programmed to round automatically? Almost every form I use on ATX allows you input numbers with cents and the form is programmed to round. Its a nice feature from an input standpoint because you can simply input exactly what the numbers are on the various W2's amd 1099's we work with. For whatever reason, ATX has programmed 8949 to not allow cents during input and its not a very effiicent process.

Small businesses won’t have to file Form 3115 to comply with repair regs. http://www.journalofaccountancy.com/news/2015/feb/form-3115-repair-regs-for-small-business-201511829.html Small business taxpayers will be allowed to make certain accounting method changes under the tangible property (or “repair”) regulations without filing Form 3115, Application for Change in Accounting Method, the IRS announced on Friday (Rev. Proc. 2015-20). The revenue procedure also allows small businesses to make certain accounting method changes on a cut-off basis, that is, with a Sec. 481(a) adjustment that only takes into account amounts paid or incurred, and dispositions, in tax years beginning on or after Jan. 1, 2014, the effective date of the repair regulations. For purposes of the revenue procedure, a small business is defined as one with total assets of less than $10 million on the first day of the tax year for which the accounting method change is effective or average annual gross receipts of $10 million or less for the prior three tax years. The IRS reports that since issuing the final repair regulations it has received numerous requests to make the process of applying the regulations simpler for small businesses and especially to allow them to apply the new rules on a cut-off basis and without filing Form 3115. In response to this feedback, the IRS is allowing small businesses to make tangible property accounting method changes with a Sec. 481(a) adjustment covered by the revenue procedure on their federal tax return without including a separate Form 3115 or separate statement. Taxpayers that wish to file Form 3115 may do so, however. In addition, the IRS is asking taxpayers to comment on whether the de minimis safe harbor under the tangible property regulations for taxpayers without applicable financial statements, which is currently $500, should be increased. Comments should be submitted to the IRS by April 21 to the addresses in the revenue procedure. In a prepared statement, Barry Melancon, president and CEO of the AICPA, welcomed the changes announced in the revenue procedure, saying, “The AICPA and the state CPA societies have made numerous requests on behalf of our members and their small business clients for this relief over several months. We appreciate that the IRS understood how burdensome the regulations are for small business and acted to provide relief for 2014 and future year tax returns.” In one of several comment letters to the IRS and Treasury, the AICPA stressed the significant burden that small businesses would face to comply with the rules and urged the agencies to change the retroactive application. The AICPA believes these changes will reduce the administrative burden and compliance costs for small businesses this year and will have an immediate impact on the tax preparer community. — Sally P. Schreiber ( [email protected] ) is a JofA senior editor.

I'm sorry to hear that. I'm not having any issues connecting and not sure what would be causing that.

I recognize this is not the most professional approach, but I would not be able to listen to that. I would have to mention the spirit of the EIC is for those who find themselves out of work and not for those who choose not to work. Yes, there are many who freeload and the EIC is not perfect by any means, but I wont have someone like that sit in front of me and complain about low EIC refunds and not catching a break on hospital bills. It's her choice not to work and it's her choice not to have health insurance. It would be my choice not to complete her return. I couldn't complete it and would place everything back in the envelope and hand it back to her, telling her to go to H&R. May not be the right approach to increase my income, but it certainly would be the right approach for me personally.

Does North Carolina have a form similar to the Federal 8879? I am preparing a return for a NC resident and prior to efiling wanted to see what forms are signatures placed?. Thanks very much!

Zoom...did you try rebooting?

rfassett...thanks to you and everyone who have chimed in with their guidance (and maybe others will continue to post on this topic as well, that would be great.) Based on these explanations, I think its fair to say, we may all have clients with Schedule C's and Schedule E's and Asset Depreciation that we need to analyze but in the end, a 3115 or any type of safe harbor election may not be required. As long as we all do our due diligence and try to ensure, to the best of our knowledge, that assets, depreciation method selections and repair and maintenance expenses were handled correctly. If we feel somewhat assured that they were, then form 3115 will not be filed as part of the return. I know that may be a simplistic approach and I'm not suggesting we shouldn't continue to stay informed on the topic, because obviously we should...but we shouldn't go crazy over it either.

Much like Margaret, I have read up on the issue and still have more questions than answers. I recognize that I should have taken classes on the topic but I did not. I did buy a CPE course that was provided on this forum in an earlier post on the topic and found it helpful but I still have questions. With that said, can someone provide a brief explanation on exactly when a 3115 is required? I'm sure there are many instances when it is needed but can someone give a general explanation on when the 3115 is necessary? If clients do have a Schedule C or Schedule E and they have Repairs/Maintenance Expenses and also have depreciation expenses and do not file a 3115 (because they believe and their tax preparer believe it is not necessary) does that warrant immediate scrutiny by the IRS? Will they automatically receive some type of IRS notice...or is it as a result of an audit that it would determined that a 3115 should have been filed? And if no 3115 was filed what are the ramifications of that? Just trying to get a better grasp of this and would appreciate any guidance. Thanks very much.

Does anyone know if ATX provides any type of alert (when checking the return based on the forms filed) indicating an election may be needed?

Very sorry to hear of your loss, Naveen.

Client received K1 from dissolved partnership which included a cash distribution on Line 19A of just over $500. It is not automatically carrying to the 1040. Should it be? if so, to Schedule E? I have very little experience with 1065's and would appreciate any information you can provide. Thank you!

Did you try rebooting your computer and attempting to update afterwards?

I know I should probably keep my mouth shut as I don't want to jinx anything but ATX is working well for me. It's humming right along with no issues whatsoever. I run on a standalone machine and never experienced any real issues in the past and find that this year everything from the installation to the performance has been real smooth. Hope everyone using ATX (and any other software for that matter) are also experiencing good results!

I found myself in the directory. http://www.accountingtoday.com/news/irs-watch/irs-launches-tax-preparer-directory-73577-1.html http://irs.treasury.gov/rpo/rpo.jsf IRS Launches Tax Preparer Directory Washington, D.C. (February 5, 2015) By Michael Cohn The Internal Revenue Service has launched a new,online public directory of tax return preparers as part of its effort to promote its Annual Filing Season Program for testing and continuing education of tax preparers on a voluntary basis. John Koskinen This searchable directory on IRS.gov will help taxpayers find a tax professional with credentials and select qualifications to help them prepare their tax returns. “This new directory will be a practical tool for the millions of Americans who rely on the services of a paid return preparer,” said IRS Commissioner John Koskinen in a statement. “Taxpayers can also look to these tax professionals for help if they have questions about the new health care provisions on this year’s tax forms.” The directory is a searchable, sortable listing featuring the name, city, state and zip code of attorneys, CPAs, enrolled agents and those who have completed the requirements for the voluntary IRS Annual Filing Season Program. All preparers listed also have valid 2015 Preparer Tax Identification Numbers, or PTIN. Taxpayers can search the directory using the preferred credentials or qualifications they seek in a preparer, or by a preparer’s location, including professionals who practice abroad. Tax preparers with PTINs who are not attorneys, CPAs, enrolled agents or Annual Filing Season Program participants are not included in the directory, nor are volunteer tax return preparers who offer free services. The IRS said the directory can also be a resource for taxpayers who want to get help from tax professionals on the Affordable Care Act tax provisions that affect returns filed this year. To help taxpayers navigate the different types of professional tax help available, last December, the IRS unveiled IRS.gov/chooseataxpro, a page that explains the different categories of professionals. Taxpayers can also use a new partner page available on IRS.gov that provides links to the web sites of national non-profit tax professional groups, which can help provide additional information for taxpayers seeking the right type of qualified help. In 2010, the IRS launched the Tax Return Preparer Initiative, which generally requires anyone who prepares federal tax returns for compensation to obtain a PTIN from the IRS. As of the start of the filing season, more than 666,000 tax return preparers have active PTINs for 2015. Currently, anyone with a valid PTIN can prepare federal tax returns for compensation. At a minimum, taxpayers should make sure their tax preparer has a valid PTIN and includes it on the tax return. However, in 2013, a federal court invalidated the IRS’s efforts to require mandatory testing and continuing education of tax preparers in the case of Loving v. IRS, which an appeals court upheld in 2014. In response, the IRS unveiled the Annual Filing Season Program last year to provide testing and continuing education on a voluntary basis.

Article from AccountingToday...amazing: http://www.accountingtoday.com/news/irs-watch/irs-rehired-hundreds-of-mishbehaving-employees-with-conduct-problems-73580-1.html IRS Rehired Hundreds of Misbehaving Employees with Conduct Problems Washington, D.C. (February 5, 2015) By Michael Cohn The Internal Revenue Service rehired hundreds of former employees with prior conduct or performance issues, including employees who failed to file their taxes, falsified official forms and misused IRS property, according to a new report. The report, from the Treasury Inspector General for Tax Administration, acknowledged that most rehired employees do not have performance or conduct issues associated with prior IRS employment. However, TIGTA said it identified hundreds of former employees with prior substantiated conduct or performance issues ranging from tax issues, unauthorized access to taxpayer information, leave abuse, falsification of official forms, unacceptable performance, misuse of IRS property, and off-duty misconduct. TIGTA reviewed a random sample from more than 300 employees with significant prior performance or conduct issues who were hired between January 2010 and July 2013 and determined that the IRS appropriately applied OPM suitability standards, such as determining whether applicants had prior criminal activity, material false statements, or illegal drug use. “Based on the types of prior performance and conduct issues we identified, rehiring certain employees presents increased risk to the IRS and taxpayers,” said TIGTA Inspector General J. Russell George in a statement. TIGTA found that nearly 20 percent of the rehired former employees sampled with prior substantiated or unresolved conduct or performance issues had new conduct or performance issue, such as tax noncompliance or unauthorized access to tax account information. Between January 2010 and September 2013, IRS records show that the IRS hired more than 7,000 former employees, 78 percent of which were temporary or seasonal positions. Hundreds of former employees were rehired, even though they had previous conduct or performance issues. For example, 141 former employees with prior substantiated tax issues, including five who the IRS found had willfully failed to file their federal tax returns, were hired. Other substantiated issues from previous IRS employment included unauthorized access to taxpayer information, leave abuse, falsification of official forms, unacceptable performance, misuse of IRS property, and off-duty misconduct. Although they may meet OPM suitability standards, rehiring prior employees with known conduct and performance issues presents increased risk to the IRS and taxpayers, TIGTA noted. During the audit, IRS officials stated that prior conduct and performance issues do not play a significant role in deciding the candidates who are best qualified for hiring and that they believe they are applying Office of Personnel Management suitability standards appropriately. In addition, IRS officials stated that the OPM and IRS General Legal Services should be consulted to determine if full consideration of prior conduct and performance issues violates federal regulations. TIGTA recommended that the IRS Human Capital Officer work with General Legal Services and the OPM to determine whether and during what part of the hiring process the IRS can fully consider prior conduct and performance issues. IRS management agreed with the recommendation and said they have already requested written opinions from General Legal Services and the OPM but believe that the current process is adequate to mitigate any risks to American taxpayers. “IRS already fully considers prior conduct and performance issues before the final job offer is issued to all new hires,” wrote IRS human capital officer Daniel T. Riordan in response to the report. However, TIGTA said it remains concerned because IRS records indicate it is hiring individuals with significant prior conduct and performance issues.

Thanks very much!

I may have missed this topic being posted at some point, but does anyone know when the 1040 Planner may be available? Maybe someone saw something on the official ATX Forum?

Based on a strict interpretation of the rules, it sounds like HOH is an option: Married Persons may be Considered Unmarried for Tax Filing Purposes A married person may be considered as if he or she were unmarried for the purpose of qualifying for head of household status. To be considered unmarried, the person needs to be legally married and have lived in a separate residence from his or her spouse for at least the last six months of the year (July through December). Furthermore, the taxpayer would need to file a tax return separate from his or her spouse, and needs to meet the other two criteria for head of household relating to the Support Test and the Qualifying Person Test. In other words, the married person would need to (1) reside someplace separate from the other spouse for at least the last six months of the year, and (2) pay for more than half the cost of maintaining their home, and (3) have one or more qualifying persons living with them at their separate home for more than half the year. Just wondering what the spouse will file (not that he is your responsibility)...MFS?

Although I'm from the East Coast, I'm rooting for the Hawks! Have a good Superbowl Sunday!