Yardley CPA

Thanks, Jack. I did think of that but didn't know if that would cause a matching problem. I'll do that. Appreciate the response.

I have a client who received nontaxable sick pay while out on medical leave. The private insurer for her employer sent her a W2 with only box 12a checked with code "J" - Nontaxable Sick Pay. The box also included the amount of sick pay she received, but no other amounts anywhere on the W2. I am unable to create an e-file for this return. When I try, I receive the following error message: W-2 Warning - Payer 3. W-2 will not be transmitted. IRS requires wage amount greater than zero when e-filing or return will be rejected. This will not prevent e-file. Well, it does prevent the e-file. Can I just delete that W2 and then create the e-file? I assume the IRS will not be looking to match that W2? Thanks!

Thanks, Jack.

Is there a way to change the name of a return on the Return Manager? Husband and wife divorced. I continue to prepare the return for the Husband who has a Schedule C and would simply like to change the name of the return to just him. Possible? I thought I read somewhere on this forum that it could be done?

I received an email from ProSeries with a solicitation that indicates "Restore Order to Your Tax Season." I'm attaching a copy for you to see. It's obvious ProSeries is also hearing of all the ATX issues and I'm sure they have gained many clients as a result. I'm not looking to jinx myself, but I've experinced no issues at all. With the exception of returns taking slightly longer to open (opening in about 15 seconds), my rollovers, entering on returns and efiles have all gone smoothly. Printing has not been an issue either. I'm not sure why I haven't experienced the problems but wanted you to know my experience to date. Good luck and I hope all the issues are behind you soon.

Reporting from just north of Philadelphia. The region was slammed by Hurricane Sandy. Many folks are still without power and have been told it may not be restored for 5 to 7 more days. I’m fortunate in that I only lost power for a few hours. The Jersey Shore received an incredible amount of damage. Watching CNN shows just how severe the impact was. Some towns had 7 feet of sand pushed onto their streets. An amusement pier in Seaside partially collapsed and parts of the Atlantic City boardwalk were floating in the ocean. It’s very sad to see.

God bless Frank Sinatra. I'm waiting on one final client to give me the okay to efile and then I'll be pretty much done once I receive their 8879. It's been a relatively good year. ATX worked well and I've already renewed with them for 2012. My best to each of you. See you around this site over the next several months...until we start again!

If they converted from an IRA to a Roth in 2010 and deferred the tax to 2011 and 2012, it would seem the distribution from the Roth in 2011 should not be a taxable event. Isn't that the reason for converting it in the first place?

Based on what you have described, it sounds like "paper" is in your future.

Client was planning to enter into a contract to purchase a plot of land, with the stipulation that the lot could be built upon. Intention was to build a single family home. In going through the process of trying to determine if the lot was “buildable,” client incurred nearly $20,000 in expenses (fees paid to township, architect and engineers). It was ultimately decided that the lot could not be built on. Are any of the fees paid eligible for some type of loss on clients return? If so, where? Thanks very much.

Thanks, Harold. Somehow this post merged with my earlier one concerning attachments. Thank you.

I have little experience with Estate Tax. I am preparing the final return for a client who passed away in August 2011. Her will left everything to her daughter. Her estate was relatively small (assets amounted to less than $100,000). The paperwork that was given to me to complete the final return includes stock sales that took place in September 2011. The 1099 B Statements contain an Estate EIN. The daughter confirmed that that they did obtain an EIN for the Estate. It's my understanding that the final return should contain all activity up to the date of death. I believe the 1041 would contain activity after the date of deatn. I've read in other forums that some preparers have included stock sales (reported on 1099B's with an Estate EIN) that took place after the date of death on the final return and were never questioned. Is this practice acceptable in some cases?

MFJ client, with 26 year old twin sons who live at home when not in substance abuse treatment program. Clients pay for vast majority of their care and living expenses. Neither son has gainful employment and neither is required to file a tax return (nor will they file) due to their income being below the filing limits. I believe clients can claim their sons as dependents, but wanted to ask first. Thoughts, please?

Praying for you and Don, KC.

Thank you.

I believe it is okay to receive copies of 8879 via a scanned email attachment with the client's signature, correct? For those clients who choose to receive their completed return by mail, my procedure is to print off a copy of the return in pdf format. I then secure the file and email it to the client with the 8879's included in the attachment. The client reviews the information, prints off the 8879's, signs them and emails them back to me. The 8879's I keep in the file do not need to have a "wet" signature, correct?

I have a client who lives in Pennsylvania and receives a K-1 from a Partnership with a Michigan address. Would my client be required to file a Michigan return? Not familiar with Michigan returns and, while I will research it a bit, I figured I would ask. Thank you.

On the W2 entry screen, it should be input on "Line 14 Other." You'll note on the "Descrip" line there is a pull down that even has the name of the various New Jersey deductions.

I'm curious as to whether there is any requirement for the IRS to notify tax payers if they deposit an amount in the tax payers bank account that is different from the amount calculated on the return? I was informed today by a client that the refund amount indicated on the return was not deposited into their account...an amount $8 less was deposited. The amount is not the issue. I'm just wondering if there is any requirement that the tax payer receive some type of explanation? Does anyone know? I plan on calling to inquire but wanted to ask this board first. Thanks!

Thanks for your posts. I appreciate the information.

Husband and wife filing MFJ. Both 63 years old and both retired. Husband was diagnosed with Alzheimer's Disease and placed in a long term care home in April 2011. I believe the expenses associated with that care can be deducted as an itemized medical deduction on Schedule A. Would it simply be noted on one of the fill-in lines on the Medical Expense worksheet..."Long Term Care - Filer?" In addition, is taxpayer entitled to any other benefit? No wages during 2011 for the disabled spouse. Only pension income...no disability benefits. Husband did receive Social Security. Eligible for Schedule R? Any thoughts would be greatly appreciated.

Your election to choose April 15th has given the IRS the authorization to withdrawal the funds on "Tax Day." Since April 15th falls on a Sunday this year, and I believe April 16th is a holiday in Washington DC, the withdrawal may not take place until April 17th. Maybe try using April 13th as the withdrawal date?

I didn't think it was eligible and appreciate everyone confirming that.

It's my understanding that the purchase of an Energy Star rated refrigerator, purchased and placed in service in 2011, is not eligible to be included on form 5695? Is that correct? If I am wrong, what line would the cost of the refrigerator be placed on?

Received this from the State of NJ today and thought I would pass it along for anyone who may need assistance from them: NJ Tax E-News 2/8/12 The following item has been posted to our Web site: DEDICATED MAILBOX FOR TAX PRACTITIONER E-MAIL The Division of Taxation has created a separate mailbox for e-mail from tax practitioners regarding tax problems. To send a message to the practitioner mailbox, open the "Tax Professionals" drop down menu on the horizontal navigation bar and choose "Contact Us." Complete the electronic form and provide all the information necessary to process your inquiry. To send a message now, click on: https://www.state.nj.us/treas/taxation/contactus_tyttaxpractitioner.shtml