Yardley CPA

I believe you are required to report the missed distribution on the tax return. I have a client who had a missed RMD during 2013. In reviewing her information she provided me this year, there was a 2012 Form 5498 from Ameritrade. Line 11 was checked (If checked, required minimum distribution for 2013) and it provided the amount of the RMD. I had my client call to confirm that an RMD was to be made and Ameritrade confirmed it should have been. Client has taken the steps to have the distribution made. In reading through the instructions for form 5329, I interpreted them the same as "jasdlm." I believe the 5329 should be included on the 2013 1040 (at least I hope it should.) The instructions also provide information on how to request a waiver of the tax and what needs to be done in order to do that. I've attached the link for the 5329 instructions. See page 7, middle column bottom. http://www.irs.gov/pub/irs-pdf/i5329.pdf

Thanks very much for all of your feedback. I appreciate it!

I'll have to look into that, JKL. Thank you.

Schiralli...thanks very much for your response. Should the estate normally be closed within a respective period of time? What happens if the homes are never sold? If the siblings continue to "use" them (one for rental and the other for personal use?) Does the estate remain open for that period of time? I would think not, but wanted to ask. Thank you again. May I PM you if I need to?

I have little experience with Estate tax. Established client came to me this year and indicated that his Mom passed away in November 2012. Included in his tax packet is information from his Mom's estate. He is the Executor. The Mom owned the home she lived in and an additional home that was used as a vacation home. Both homes are relatively low value (FMV at DOD around $150K each.) In addition, savings account with a balance of around $100K. A few shares of MetLife stock. Besides this, no real assets. Client has sister who is also involved in the Estate. Everything is split 50/50 and they are on very good terms. Savings account and stock proceeds are to be distributed to a few nieces and nephews Home that the deceased lived in is now being rented (as of 10/1/13) Second home is unused and remains in the Estate. I am preparing the 1040 returns for both my long time client and his sister (new client for me this year.). I have included Schedule E's on both of their personal returns, each sharing the income and deductions on a 50/50 basis for the rental home. No 1041 was filed for 2012. I assume there was some interest and dividends received during 2012 from the date of death until the end of the year. I do have 1099 forms for interest and dividends for 2013 ($280 interest, $24 dividends) I assume I need to file a 1041 for 2012. I plan to file a 1041 for 2013. I also have to find out if a final return was prepared for the deceased. Questions: - I assume a 1041 is needed for 2012? - When preparing the 1041, does the bank account savings balance need to be reflected anywhere? - How about the value of the homes, is that reflected anywhere on the 1041? - I'm told interest and dividend income is to be distributed to my client and his sister. I will prepare a K1 for each? - The savings fund and stock proceeds will be distributed to the nieces and nephews during 2014. Does a K1 need to be prepared for each of those individuals? Any thoughts or suggestions would be greatly appreciated. Thank you!

Any state that I had included on the previous years return rolls over automatically for me.

No issues for me. In the spirit of full disclosure, I had no issues last year either. I'm working on a stand alone and I have always felt ATX is an excellent program. Some of the quirks I would like to see corrected for next year (assuming there is a next year): - Biggest issue for me is the 8949 issue (as mentioned by JSH). It makes no sense to me that the form makes you round. When entering W2 information, Interest, Dividends...all those forms allow you to enter the entire number and the program rounds for you automatically. Why shouldn't 8949 work the same way? Some of you may say, "I round myself and have no issues with the form." That's all fine and good, but from a pure data entry standpoint, it would be so much more efficient if the form allowed you to enter the whole number. - It would be nice if form 8283 had a Payer Manager ( similar to W2 and Schedule B ) and stored the names and addresses of the Goodwill and Vietnam Veterans and all the other charities that people make non-cash contributions to. - I also would like to see improved education credit input features. Besides these relatively minor things, I'm happy with the program and I hope ATX is around for 2014 returns.

Not one of my clients contributes to that.

Great question, JMD. I assumed that it would only be sent to the Fed but you know what happens when one assumes.

Here's what I was able to find to confirm an attachment has been successfully added to an efile. Attaching PDF Forms and Other Documents to Returns.pdf

I found my answer.

Is there a way to see the pdf attachment on the efile? I attached it correctly based on the instructions I received (while return is open go to E-File tab, select attach pdf.) I then created the efile. Is there a way ti ensure the pdf attached?

MsTabbyKats...I think all of us have felt, at one time or another that we don't "click" with a client or two. Ultimately, we provide a service and if a client wants to speak to me on the phone or meet face to face, I try to accommodate that. They are the client and if that makes them “feel better,” than so be it. The extra time I spend with them would also be reflected in my invoice to a certain degree. If you’ve been dealing with the client for the past month, it may be a bit late to tell her you can’t complete the return but you may be able to suggest an extension so you can spend more time with her discussing it? I know what you mean about asking her to go away. I've felt that way too at times. J Good luck!

Rolling along!

Client made a $250 contribution to an IRA at his bank. Client has two bank accounts with the bank. Bank took the $250 contribution out of both bank accounts and deposited $500 into the IRA. Once the mistake was found, bank withdrew $250 and returned it to his normal checking account. As a result of this "withdraw" from the IRA, bank issued client a 1099-R showing a distribution from the IRA. Client has not received a Corrected 1099-R. Bank told him to include a copy of his bank statement showing both $250 contributions to the IRA and the withdraw of $250 with an explanation of the mistake. I've never heard of this and felt a Corrected 1099-R is what is needed but wanted to throw it out there and see if anyone else has delt with a similar situation? Thanks!

Thank you, KC.

In this years back-up information, MFJ couple included a copy of a matured life insurance endowment check stub. Distribution was made in February 2014. I realize this should not included on the 2013 return. I'm wondering if it is taxable on the 2014 return. Here's what was on the stub: Congratulations! We are pleased to provide a check for $48,295.45, which represents the proceeds from your matured endowment. Source of funds: $17,518.00 Face Amount Of Insurance $34,127.96 Paid-up Additional Insurance $617.14 Termination Dividend $3,967.65 United States Income Tax Withheld $48,295.45 Amount of Check I assume a portion of this is taxable. Will the insurance company issue some sort of 1099 in January 2015? Thanks very much.

Thanks very much for all the feedback. The foreign exclusion normally wipes out any tax due. I'll be sure to include the 8938.

The wife is a resident and citizen of South Africa. My preference would be not to treat her as a resident. With that in mind, is there a way to only report the husband (my client?) Can I prepare MFS for him and just include the wife's name and a statement indicating she is a South African citizen and resident? Would that draw scrutiny from the IRS? Not looking to do anything "wrong" but not looking to include the wife and her income if I don't have to do that.

I have a single client who has been living and working in South Africa for the past several years. This year, he advises me he has marreid a South African citizen during 2013. I assume his return will change to married filing separate? Will I have to provide his wife's name and identifying number on the return? Is there an identifying number for a South African citizen? Any thoughts would be greatly appreciated.

I believe you are right, Margaret. Here is an excerpt from an IRS article: Taxpayers must sign a new declaration if the electronic return data on individual income tax returns is changed after taxpayers signed the Declaration of Taxpayer and the amounts differ by more than either $50 to "Total income" or "AGI," or $14 to "Total tax," "Federal income tax withheld," "Refund" or "Amount you owe."' Here's the link tot he article: http://www.irs.gov/uac/Signing-an-Electronic-Tax-Return

Thank you, All!

Based on this information: Client received Form 3921 showing: - Date Option Granted 4/30/2008 - Date Option Exercised 4/25/2013 - Exercise Price Per Share $21.27 - FMV per share on Exercise Date $35.90 - No Of Shares Transferred 62 No 1099 B was received. Would the Purchase date be 4/30/2008? I know the Sale date is 4/25/2013.

I check the HUD-1 to see the real estate tax activity reflected on it.

I have a client who has lived in Pennsylvania their entire life. Parent who passed away owned a home in West Virginia. Home was willed to my client and sold during 2013 for a loss. No other West Virginia income. Does a West Virginia Non Resident Return need to be filed? Thank you.