Lion EA

I answered all to the best of my ability. Even after having most of a 2 CE update class Wednesday night cover ACA, there's a lot I don't know still. And, there's a lot of time that I will not spend researching questions that don't concern my clients; I'll answer what I can from the top of my head or my texts. The "shared" policy type questions require calculations probably not done by our software, so until I have a client who needs such, I'm not researching it now while I need to be working on payroll taxes, the prior year returns that I postponed until after 15 October, the 2014 partnership that dropped off today, my hubby's birthday this month, two church fundraisers in January, etc. If OP is still stuck after reading the instructions for Part 4, he can come back here and someone might have time to help him with the math. I need to start 3115s now also. I think they're going to be a lot more time consuming than 8962.

I have a client who brings ME lunch. And, I charge a lot.

What program did you do payroll in? Why can't you use the same program to generate W-2s and 1099s? QB? Peachtree? The write-up module of your tax software? Or, for just a few, handwrite them on free IRS forms, with e-file for the "red" 1099s to the IRS. Or e-file the reds and print everything else on plain paper. You can use regular envelopes, don't have to buy special envelopes. Do print on them that phrase about Important Tax Information when you are addressing the envelopes. Also, you are supposed to cut the forms apart for the recipients, though, if not using perforated paper.

Don't know if the IRS will use the same date as Fidelity for the outstanding loan/distribution of if they use the original date of the loan. But, for the distributions after separation/after 55, use 01 on Line 2, Form 5329 as the Exception to the 10% Penalty on Early Distributions. Read IRC Section 72(t)(2)(A)(v)

If he withdraws from his 401(k) after separating from service and after turning 55, there is no additional 10% penalty.

The SE savings comes from profits that are NOT due to services of the shareholders, but a return of capital, work of employees, that kind of thing. If most of the income comes from services of the shareholders, then their "reasonable" salaries will be most of the profits, and there won't be much of an SE savings. I charge more for a 1120S than for a 1065 and a lot more for an 1120S than a Schedule C and even more for a 1065 than a Schedule C (gotta make the balance sheet balance, for instance). If they meant to be a partnership when they organized the LLC, then they can't tell you in 2015 that they weren't a partnership in 2014. Or, use Lynn's method. Ask them a lot of questions, preferably face-to-face, to help them tell you what tax entity they were during 2014.

I like The Tax Book Deluxe Edition spiral bound (is also three-hole punched, so you can unspiral and put in a binder) for quick answers, something in plain English to read to clients, cites to go to IRC and elsewhere for further research, etc. However, their online version is actually easier to search, email, print out only the selection you want, whatever. Also for paper, J.K. Lasser's Your Income Tax Professional Edition. I'm using CCH's IntelliConnect more and more as easy to search, can get explanations &/or Code &/or Tax Court &/or.... Also, easy to search, keep a folder on my computer for topics I refer to (Partnerships or CT or...), mark my favorite sources to search, print just the selection I want, email directly to a client, access from within tax prep or while searching from Chrome, IE, Google, doing more and more with IntelliConnect as I learn more about it. Have the mobile app on my iPhone.

Check her SS-4 EIN application to see how she intended to file; or her IRS letter accepting same and issuing her EIN. (There is no tax entity LLC, only a state-by-state legal entity.)

I think I need to raise my rates so we in CT aren't charging less than you all in AL.

Form 8962 Part 4 Shared Policy Allocation handles much of what you asked, plus a mid-year divorce but full-year health coverage on one policy, that kind of thing. Not only the coverage, but the pro rata part of the Advanced Premium Tax Credit will follow the child from the mother's plan to the father's tax return, for instance. And, your clients have been reminded on TV, radio, and in print to contact their exchange if a life-event happens, such as losing a dependent, change in income, etc. This isn't our fault. Charge what it's worth.

In my ACA update class last night, the instructor showed the chart from page 2 of the Form 8965 instructions with 8 Exemptions Claimed on tax return only, 6 Granted by Marketplace only, and 4 that can be either. In addition, the Income below filing threshold Exemption needs No Code See Part II. All the Exemptions that can be Claimed on tax return (6+8=12) have the letter Codes to use listed in the chart. The 6 Granted by Marketplace note Need ECN See Part I. The instructor in another class said, "If you can't find an Exemption, you're not trying hard enough."

Your software might have a fixed assets program that can stand alone or flow into your tax program.

HP have been work horses for me. I still have my first 4L (3L?). Too slow for printing tax returns, but hubby uses it. My 2550n is still going strong, also a bit slow for tax returns but nice color. I use a slightly newer P2055dn for returns: fast, quiet, small footprint. And, an old L7780 for copying, faxing, printing, color, duplexing, some scanning when I need the flatbed (have a Fujitsu for scanning). The only repair I've ever needed was new rollers on the old 4L.

Paper returns that will be scanned by the IRS &/or state? Checks? I e-file everything I can, so don't know.

And, some scanners come with the full Adobe Acrobat, so check if you're buying a new scanner anyway. Or, your software may have a good Adobe add-on for organizing tax files.

But, you're great just the way you are! Don't change! Happy New Year!

IntelliConnect.

Fujitsu 6130 with some letter at the end. Upgraded from ScanSnap. So far scanning to a Clients folder and then Name and then Year with no special software. Hope to return to CCH's Scan & Flow if I can get my misbehaving computer replaced.

Merry Christmas!

Once I've given the return to the client to review and sign the 8879, I Lock it. My company copy was a .pdf. And, any further opening in the tax program does NOT get saved upon exiting. (We're talking looking at something I couldn't drill down to in a .pdf, finding out where I entered something last year, that kind of stuff; not a real change before transmitting or an amendment.) I click on No.

DOL Technical Release 2013-03 and IRS Notice 2013-54 and DOL 6 November 2014 guidance.

And for those looking for more classes on the ACA: The ACA On-Demand Package 4 webinars 6 CPE $121 Available at www.natptax.com/monthly/aca

It also notes: For more information on the ACA, visit natptax.com and click on the Tax Knowledge Center/Affordable Care Act.

December 2014 page 10 just 1 1/2 pages.

NATP's Tax Pro Monthly has a short and to the point article on the questions we need to ask re ACA to do our due diligence. The questions are each short and to the point. There is also a list of questions NOT to ask (the kind where we expect our client to interpret the law and not us). The article is only a couple of pages. If you're looking for a brief list to communicate with your clients or just wanting to know how to word questions during client interview, I do recommend this article.