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Schedule E required - income from renting room ?

 

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Schedule E required - income from renting room ? seaweedsl 03-07-2008
Posted by Phil Marti on March 10, 2008, 2:27 pm
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"seaweedsl" wrote:

> Well, TaxBrain is certainly doing a good job of faking it. Has
> anybody gone to their site to see if they can tell? I only got so far
> before they wanted me to sign up and I'm not quite ready to go with
> them (main question here is pending).
>
> I wonder why they claim to be the only ones and, of course, if they
> truly can do it. Did the IRS relent and start offering the service on
> a trial basis? Have they found a work-around? Maybe they actually
> just print the stuff out and mail it in for us?
>
> I would be interested in your opinion after checking it out... is
> TaxBrain known to be a decent company or is it likely that they are
> doing a bait-and-switch?

I was curious too, and had the same experience as you at their site. I did
check at the IRS site and found a link to Tax Brain, so they're not a total
fraud. However, that link was in connection with online payment of balances
due.

As someone mentioned, the general rule is only current filing season returns
can be e-filed. I haven't seen any IRS publicity about the ability to
e-file prior years' returns, which is odd but doesn't necessarily mean
they're not testing something special with one provider.

I suggest you send IRS an inquiry with reference to the Tax Brain site's
claim and ask.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- >>
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<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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Posted by Ernie Klein on March 10, 2008, 3:46 pm
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>
> I was curious too, and had the same experience as you at their site. I did
> check at the IRS site and found a link to Tax Brain, so they're not a total
> fraud. However, that link was in connection with online payment of balances
> due.
>
> As someone mentioned, the general rule is only current filing season returns
> can be e-filed. I haven't seen any IRS publicity about the ability to
> e-file prior years' returns, which is odd but doesn't necessarily mean
> they're not testing something special with one provider.
>

>From IRS PUB 1345 -- Handbook for Authorized IRS e-file Providers of
Individual Income Tax Returns:

<quote>
Returns Not Eligible for IRS e-file

The following individual income tax returns and related return
conditions cannot be processed using IRS e-file:

--Other than current year tax returns;
--Tax returns with fiscal year tax periods;
--Amended tax returns;

"Filing individual income tax returns using IRS e-file is limited to tax
returns with prescribed due dates in the current year. An individual
income tax return cannot be electronically filed after the 15th day of
October following the close of that tax year even if the taxpayer has
been granted an extension to file a return beyond that date."

<end quote>

Since this is one of the documents that 3rd party e-file providers are
supposed to follow, it seems pretty clear. If they are actually
e-filing prior year returns it would be interesting how they get by
these requirements.

--
-Ernie-

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by D. Stussy on March 11, 2008, 11:28 am
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> > I was curious too, and had the same experience as you at their site. I
did
> > check at the IRS site and found a link to Tax Brain, so they're not a
total
> > fraud. However, that link was in connection with online payment of
balances
> > due.
> >
> > As someone mentioned, the general rule is only current filing season
returns
> > can be e-filed. I haven't seen any IRS publicity about the ability to
> > e-file prior years' returns, which is odd but doesn't necessarily mean
> > they're not testing something special with one provider.
>
> >From IRS PUB 1345 -- Handbook for Authorized IRS e-file Providers of
> >Individual Income Tax Returns:
>
> <quote>
> Returns Not Eligible for IRS e-file
>
> The following individual income tax returns and related return
> conditions cannot be processed using IRS e-file:
>
> --Other than current year tax returns;
> --Tax returns with fiscal year tax periods;
> --Amended tax returns;

There's also one other condition - that's not listed:

Any individual whose accounting method is not "cash basis." (cf. other
than IRC 446(c)(1)).

With those (few) individuals, their W-2/1099/other-IRP documents, which are
reporting on the cash basis of accounting, will usually never match.

> "Filing individual income tax returns using IRS e-file is limited to tax
...

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on March 10, 2008, 5:53 pm
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Phil Marti wrote:
>
> I was curious too, and had the same experience as you at their site. I did
> check at the IRS site and found a link to Tax Brain, so they're not a total
> fraud. However, that link was in connection with online payment of balances
> due.
>
> As someone mentioned, the general rule is only current filing season returns
> can be e-filed. I haven't seen any IRS publicity about the ability to
> e-file prior years' returns, which is odd but doesn't necessarily mean
> they're not testing something special with one provider.

Actually that's not the "general" rule. It is THE rule. period.
>
> I suggest you send IRS an inquiry with reference to the Tax Brain site's
> claim and ask.
>
Won't do any good to do this. However in fairness I can say that IRS
has in the last year been CONSIDERING making previous years' returns
available for efiling, but has not implemented the plan.

ChEAr$,
Harlan Lunsford, EA n LA
and ERO, and ET

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by seaweedsl on March 11, 2008, 10:40 pm
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>
> > The IRS tells us practitioners that ONLY the CURRENT year's cycle (2007) may
> > be e-filed. That hasn't changed since the first e-file pilot projects about
> > 1990.
>
> Well, TaxBrain is certainly doing a good job of faking it. Has
> anybody gone to their site to see if they can tell? I only got so far
> before they wanted me to sign up and I'm not quite ready to go with
> them (main question here is pending).
>
> I wonder why they claim to be the only ones and, of course, if they
> truly can do it. Did the IRS relent and start offering the service on
> a trial basis? Have they found a work-around? Maybe they actually
> just print the stuff out and mail it in for us?
>
> I would be interested in your opinion after checking it out... is
> TaxBrain known to be a decent company or is it likely that they are
> doing a bait-and-switch?
>


O.K. I finally signed up with TaxBrain, went to prior years filing,
filled it out for 2005 and it came up as a 2007 form when I went to
print it out, not 2005.

I tried going back at it a different way and came to this:

quote:
IMPORTANT
» 2005 Returns are no longer accepted by the IRS electronically.
» 2005 Returns must be printed and mailed.

So, I went into a chat session:

Ben: Hello. How may I assist you?
me: I want to clear up if Taxbrain is doing a bait and switch or
simply discontinued a service
me: "Prior Year State & Federal Income Tax Return Preparation, and
Filing." This is what your prior year page says
me: http://www.taxbrain.com/prioryear.asp
Ben: Yes, you can print and mail it, the IRS doesn't accept electronic
filing
Ben: A lot of sites do not allow you to print out a prior year return
or prepare one.
seaweedsteve@yahoo.com: So why does the site say you do?
Ben: It doesn't say electronic filing, it might be poorly worded, but
it means that you are able to print and mail your return.
Ben: On the beginning page for a prior year site, in big red letters
at the top it does say that the IRS does not accept e-filing from
prior year returns.
Me: Yes. I think it's deceptive. The statement: "Prepare Prior Year
Taxes Online Income Tax Return & e-File" is clearly wrong. I suggest
you inform your marketing dept that people are complaining about their
bait and switch style marketing. Meanwhile I'll inform people on the
Tax group I'm in, as your site was being discussed as to whether it
was a legitimate claim or not. It clearly makes the claim.
Ben: On which page are you finding this? So I can speak to our
developers
Me: http://www.taxbrain.com/prioryear.asp
Me: Just clarifying and letting "you" know. Have a good one.
Ben: I'll be sure to tell someone right now. Thank you.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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