BoatBanter.com - Income Tax Time

wrote:
On Sun, 18 Mar 2018 20:57:08 -0000 (UTC), Bill
wrote:

wrote:
On Sun, 18 Mar 2018 12:18:53 -0500, amdx wrote:

On 3/18/2018 7:26 AM, John H. wrote:
On Sat, 17 Mar 2018 19:44:06 -0400, wrote:

On Sat, 17 Mar 2018 18:00:15 -0400, John H.
wrote:

On Sat, 17 Mar 2018 16:36:18 -0400, wrote:

I have not screwed with that K-1 for years. I take the distributions
as ordinary income and the IRS seems to be happy. It may be costing me
some money but the hassle is not worth it. I doubt the extra tax I pay
would cover buying Turbotax. Besides Harry should appreciate me
supporting a good cause, "Uncle Sam", with the money.
I figure if they ever do get around to auditing me over the K-1, they
will owe me money.
Have you ever done a "what if" on Turbotax taking the distribution as
income? Just curious. I stopped buying Turbotax the first year it
screwed up on my K-1. I had a bunch of boxes it never had me entering
and the instructions on the K-1 said I should be doing it. That was
the first year I started just taking it as income.

I've never had a problem with it, other than it being a PITA. I just
put the numbers in the boxes TT
tells me to.

I did that for years and it worked great, then one year there were not
enough prompts to get all the information in. I suppose there might
have been an update but things were not on line like they are now.
Like you said, the K-1 comes so late, you have a time constraint
getting the forms in. I was not sure I had time for a mailed out
update.

That caught me last year. The K-1 came about three weeks after I'd
filed my Fed and state taxes.
That called for an amendment. Amended the Fed, but forgot to amend the
state. A couple months later
I got a nastygram from the state, with a penalty of a couple bucks. Oh
well, live and learn.

I have my taxes done by an accountant, a couple years ago I picked
them up with the efile sheet for the wife and I to sign.
I returned the efile sheet, got home and checked the mail box, there was
an amended 1099! I immediately called the accountant, they had already
efiled, I had to do an ammended 1040. I have got ammended 1099s in mid
March a few times.
Now, I don't have my taxes done until later March.

Mikek

I think I told you guys, I just got my refund from 2011 or something
along with a $571 interest check I had to declare as income. That was
an amended return too. I had even forgotten the refund had not arrived
yet. I amended the return within weeks of the original but that
screwed them up for 5 years or something

I had to file an amended return last year. 2 days after the efile. Sad,
you have to paper file on amended returns. Biggest tax problem I ever had
was because of paper filing. They lost the return. They lose 2% a year.
Machine readers,eat them or something. They slapped 28% withholding on
my accounts, Even though they owed me money on the return. But took time
to reprint and refill. They removed the withholding requirement, but
seemed to miss about half the accounts. But I do not have to pay
estimated payments to the Feds.

On mine, they gave me credit for my filing on time and since the
amended return actually got me more back there was no penalty but they
did hold up my refund for 5 years or so. (I hope)
My biggest fear is they are going to decide they paid me twice and
whack me for 10 years principle and interest in a few years or
something.
I am always afraid when the IRS says they made a mistake.

They owed me money, so there was no penalty, but the 28% withholding kept
me in huge overpayments. I still get $12-14k back. The interest I lose
is not as much these days, but still 3-5% investment money.