N/T sort of - It's the darnest thing

[jklcpa]

This is another strange season, for sure. Many more of my clients dropped off their information earlier than ever this year but no one is in any hurry to pick up the completed returns, even those that have nice refunds or tiny balances owed. 

[FDNY]

I’m noticing something similar.  Did more returns in February than in previous years but my revenue is behind last year’s.
 

 

 

[schirallicpa]

It's insane.  The same thing is happening here.  I have a huge pile to do.  and a huge pile done that need picked up.  

[jasdlm]

Individuals dropped off early, but many of my corporates are saying things like 'Oh, whoops ... I'm in Tahiti ... I'll be back on the 27th and get you my 'stuff''.

[Lion EA]

Lots of drop offs earlier than ever. Huge HOLD stack on my floor for missing info, waiting on IRS/software (did you read about the March change to inherited non-spousal IRAs?), or just need to re-proofread now that that last schedule/form is finally in the software. I'm buried but very, very backlogged.

[TAXMAN]

What was that change. I am like everybody else, pile to go, a lot of missing info.

[Lion EA]

Newest temp regs say you DO need to take annual RMDs from inherited IRAs and then the remainder by the end of year 10. Prior, but still very new, regs said take any amount(s) in any year(s) or none at all as long as entire account is emptied by the end of year 10. So, those that inherited in 2020 and 2021 may have some prior year RMDs to take. Or extend 2021 to see what happens with March's proposed change. It's so hard to keep track.

[Yardley CPA]

I've found posting completed returns to the portal has saved me a ton of time.  I still put together paper packets for a few clients, but the majority have transitioned to electronic and it is much less time consuming.  

 

[Catherine]

Glad we're not the only ones. Yeah, tons of completed returns with no one bothering to fetch, lots of super-early drop-offs. Coupled with a number of usually-early clients from whom we have heard nary a peep. Very weird year.

Plus the IRS still has not decided if the MA paid family/medical leave pay is taxable or not.  MA says they'll accept whatever the feds decide. So all of those returns wait to be finalized.

[GLJEANNE]

My Feb was pretty normal, but I feel like a lot of people are waiting longer than usual now.  I'm afraid they got used to extended seasons, and now are procrastinating more than ever. 

[BulldogTom]

On 3/11/2022 at 11:43 PM, Lion EA said:

Newest temp regs say you DO need to take annual RMDs from inherited IRAs and then the remainder by the end of year 10. Prior, but still very new, regs said take any amount(s) in any year(s) or none at all as long as entire account is emptied by the end of year 10. So, those that inherited in 2020 and 2021 may have some prior year RMDs to take. Or extend 2021 to see what happens with March's proposed change. It's so hard to keep track.

Just seeing if any of you have had any updates on these proposed regs.  Have these regs become final?   Or still proposed?   

My clients don't like this requirement.   We do have to follow the proposed regs, right?   The old law was 5 years and the regs said take it out any way you want so long as it is gone by the end of 5 years.   The new law only changed the number of years, so IRS is making the required distribution rules up themselves (not unusual, no judgements being made).  

Tom
Longview, TX

[Lee B]

19 minutes ago, BulldogTom said:

Just seeing if any of you have had any updates on these proposed regs.  Have these regs become final?   Or still proposed?   

My clients don't like this requirement.   We do have to follow the proposed regs, right?   The old law was 5 years and the regs said take it out any way you want so long as it is gone by the end of 5 years.   The new law only changed the number of years, so IRS is making the required distribution rules up themselves (not unusual, no judgements being made).  

Tom
Longview, TX

An online search found a long list of articles about this situation. A quick skim of the articles reveals a number of variables that need to be considered.

[Lion EA]

I'm still not sure. And, I had a client call this week that inherited her mother's IRA and asked me. She'll have to wait until after 17 October. I really can't remember everything that's passed over the last three tax seasons, especially which IRS regs are final. And, so little published since Covid, just FAQs!

[Lee B]

My advice to my clients will be for them to contact their fiduciary and follow their advice.

After all the fiduciaries are the ones with the high paid legal and tax advisory staff.

They are also are the ones who issue the 1099 Rs.