Lion EA

I stopped working. Waiting for daughter to provide me a document appointing her executor. CT. CT does have a %; however, I suspect it doesn't apply to lawyers! This client had a LOT of investments and a house on Long Island Sound, so the % would be a LOT of actual $$.

At the end of March, in the midst of her battle with cancer, my client telephoned me to say she wanted to do everything herself and not to give her children any information. At the beginning of April, my client was distraught that none of her children were willing to be executor of her will, that her lawyer would charge her $600/hour to do so, and that she was searching for another professional executor, such as someone at her broker's office. At the end of April, I receive an email from my client's account with the Subject line "Jane Doe is my daughter and I want to have full access to my accounts: all stock quotes, other accounts in order to make appropriate tax end decisions concerning taxes" Her daughter has since then used her mother's email address to email me, and uses her own email as well. At end of May, her daughter sent me a copy of a POA. My client apparently signed a POA to her daughter in 2022, but never copied me on it. That POA is done, because my client passed away a few weeks ago. I include this in the timeline to show my uneasiness over who I should deal with for my client's 2023 tax returns on extension. So you can see why I want to have all my ducks in a row!

Thank you very much, Judy and Dennis. That's what I need to know to contact daughter. Yes, the POA is done. I'm at a biz client's site today (and have a colonoscopy tomorrow!) but was going to finish mom's returns Friday and contact daughter with what doc I need from her in her new position. With daughter's email to me this afternoon, I thought I better get some quick advice on what I need to ask from her to then be able to file mom's returns. Thanks to you, I know what to ask for. I remember that discussion, so I will look it up tonight. Thought I'd do all of that Friday, so feeling stressed. Client lived in CT near me, but daughter's in FL. When all the paperwork is in place, I might just upload the returns to her to print, sign, and mail.

I apologize, but I need a crash course! I'm at a biz client's site in another town. Client's daughter sees estate attorney today and wants copies of returns. Client had cancer and gave a POA to her daughter. I was working with daughter, in fact sent her return to sign, but she didn't want mom to pay and wanted to look for more medical deductions. Client died. Then daughter gave me more medical deductions. What do I need from daughter now to continue working with her? Court appointment? Or client's will designating daughter as executor? Or, can she be just a "family member" or beneficiary or...? I'll need Form 1310, is that even if we apply 2023 refund to 2024? Death certificate? Will this be a paper/mailed return? Thank you!

From TTB WebLibrary: Amending joint/separate returns. Spouses can amend separate returns to file jointly. Once a joint return is filed, taxpayers cannot choose to file separate returns after the due date of the return. Exception: A personal representative can choose to file a separate return for a deceased spouse up to one year from the due date of the return.

Business mileage on the island would be a biz deduction, not all mileage. Be careful about mileage that tries to turn personal mileage into business mileage. Does their mileage log support their biz miles? Ask lots of questions.

Read the divorce decree. Not to your question but just curious, who's been deducting the mortgage interest?

All thoughtful ideas. I'll pass them along to my stressed-out friend. Thank you for the suggestions.

Any of you have recommendations for a FL attorney experienced with probate issues? A friend is dealing with her mother's FL estate and dueling siblings in FL; friend is in CT.

Thank you all. I know I'm tired and confused. I read the instructions plus the instructions in my software. From the instructions: Who Must File You must file Form 8853 if any of the following applies... You (or your spouse, if filing jointly) were a policyholder who received payments under an LTC insurance contract or received any accelerated death benefits from a life insurance policy on a per diem or other periodic basis in 2023. See the instructions for Section C , later. Filing Requirements for Section C Were any of those payments made under a qualified LTC insurance contract? Yes Complete all of Section C From my software: Total Reimbursements Received For Qualified LTC Services Enter the reimbursements received, or that are expected to be received, through insurance or otherwise for qualified LTC services provided for the insured for each LTC period during 2023. These amounts should be shown in Boxes 1 and 2 of IRS Form 1099-LTC if Box 3 "Reimbursed amount" is checked. This entry carries to Form 8853, Section C My client's contract is Reimbursed Amount and NOT Per Diem, but I had to enter 365 days to make the math work.

This client gave me very little that was not reimbursed, at least per the documents she gave me. So, I put her dentist or some drugs on Schedule A. I made the assumption that her other (undocumented) costs reported to her LTC insurer matched what they reimbursed her. The cover letter states, "All benefits paid to reimburse you for such expenses are non-taxable." Should I NOT file Form 8853 since none of her benefits are taxable? I don't want to risk a matching letter.

I really struggled to fill out Form 8853 from this 1099-LTC. Do you prepare many? I made it work, but feel like I'm repeating one number on two lines. It's the Reimbursement type and NOT the Per Diem. If you have the time, because it's reimbursing for actual qualified medical cost, I have... Line 22 showing the costs to match the Box 1 reimbursements Line 24 also showing the reimbursements It feels wrong, but gives Line 26 as $0 taxable payments.

My first Form 1099-LTC. Reimbursed amount checked. Qualified contract checked. Cover letter states NOT taxable, but REPORTED to IRS. Do I leave it off return? Will client get a letter. She's in hospice, and her daughter has POA and wants this done now. Is there a way I should or could report, and then back it out, to ward of a future IRS letter, a CP-2000 or whichever?

I'm on there with an old biz address where I was an employee plus my current home address. All have my cell, however. I don't use my cell much, so don't answer calls on it if a known name doesn't show. I hadn't thought to check our kids. Hubby checked his name and mine, so I knew I showed up and checked myself. Long ago, Hubby's health insurance at his employment, maybe Anthem, had a breach, so we froze our accounts at the credit bureaus way back then. Glad we did.

Efficient Government is an oxymoron. So, you're saying that the IRS's best hope is that the CPAs that are disgusted with the lack of work/life balance at the Big 4 might apply to the IRS. I think you nailed it all. Thank you for your review of Werfel's speech.

We have to ask a LOT of personal questions. Form 8863 asks: 26. Was the student convicted, before the end of 2023, of a felony for possession or distribution of a controlled substance? Yes — Stop! Go to line 31 for this student. No — Complete lines 27 through 30 for this student. Form 8863 Instructions: Line 26. Check “Yes” if the student was convicted, before the end of 2023, of a federal or state felony for possession or distribution of a controlled substance. If you checked “No,” complete lines 27 through 30 for this student. If you checked “Yes,” the student isn't eligible for the American opportunity credit; skip lines 27 through 30 and go to line 31.

Ditto

My phone is usually in my purse in the bedroom. It's time consuming to retrieve it and fire it up when my software asks me to type in a code they sent to my cell. What is an authenticator? Is it an app for my phone? I guess I'll have to glue my phone to my hip.

Did the attorney say no Form 706 is needed? Or, Form 941? Get it in writing from your client. If your client returns later for you to prepare a return, then charge the same or more per hour than their attorney!

If your client is a clergyperson of a mainstream religion, his church employer most likely has the benefit of a regional &/or national organization with printed materials, workshops, etc., to help both clergy and church treasurers with the unique issues of clergy pay. Also, read publications by William F. Geisler, Beverly J. Worth, and IRS Publication 517.

He can request enough FIT withheld to cover both his FIT as well as his SE tax on his return.

Thank you, thank you. She did find more deductions, so she'll be doing eSign when complete. And, if she doesn't get all her deductions to me tonight, like I told her, she'll have to wait until 6 August when I return from Hubby's family reunion to complete her return. Back to packing...

Completed returns and got signature on 8879. Then (before e-filing) she thinks she has more medical deductions. How much can tax &/or income &/or deductions change withOUT requiring a new 8879 signed. I remember something like $10 in tax, but can't find anything on topic now. She has a refund and is over the 7.5% for medical, so any deductions she has will increase her refund. We're leaving for hubby's family reunion in MA very early tomorrow morning, so if I don't e-file today, it won't get done until 6 August or later.

The IRS is broken!

Sale of Home.