Thinking about switching to Taxslayer Pro.. Opinions please!

[oceanlovin'ea]

That is just what I was going to say....we have gotten off the original question. I have used TaxslayerPro since I started my own business. I was not sure what to use and when to the IRS Forum. Taxslayer had a booth there. I went to a presentation and thought it looked easy to use and reasonably priced so I bought it. I have never been sorry.

I know the point of being easy to use is from a person's point of view. I find it easy to follow through on a return as things kind of go in order as on the tax return. I don't find myself in a spot that I say "where do I go next?"

Tech support has always been super. Answer phones quickly. Help you through something. I haven't gone to their seminars for the past few years but I am sure that some of my questions would be answered if I went and saw the changes in person. They do have a manual in the program if you run into a problem.

I was going to change to Drake a couple of years ago because they offered a client writeup with their program. But I didn't like the look of the reports....looked like an old-fashioned typewritten report. So I didn't change. I am going to try Taxslayer Books this year. (Trying to get away from QB)

I do about 175 returns a year, including some 1120-S returns. Haven't had any problems. Give them a try. Think you will be satisfied.

Linda, EA

[spanel]

We are way off topic!!

Please start a new thread... otherwise..

More Opinions about the Tread topic please.


Chris

[David1980]

I think as long as you follow the guidelines set forth in IRS publication 1345 you're fine. That if they really cared they'd specifically state such. While what you've said is true that the 1099-R gets transmitted and whatever you keyed in box 2a will be transmitted I'm unconvinced it needs to match anything.

So, I agree to disagree. Let's move on.

[dtlee]

Having a coded line for it does not mean IRS matches it with anything. I use to think the name and address of the recipient of a W-2 and 1099-R needed to be entered exactly as it appears on the W-2 and 1099-R. Those are coded lines as well, but do not have to be entered exactly as they appear on the form. I have been ignoring those for years now and never had an e-file return rejected for it.

Hence the reason why I contacted the IRS for clarification as noted in my other messages.

[Bees Knees]

Box 2a is transmitted in the e-file record to the IRS. That has been true since the first returns were e-filed and is still true today.

Having a coded line for it does not mean IRS matches it with anything. I use to think the name and address of the recipient of a W-2 and 1099-R needed to be entered exactly as it appears on the W-2 and 1099-R. Those are coded lines as well, but do not have to be entered exactly as they appear on the form. I have been ignoring those for years now and never had an e-file return rejected for it.

[dtlee]

Drake also puts a signature line on the 8867. Was that to correct an error?

I do not think you can assume that everything that any company or person does is always done for the same reason or for only one reason.

Drake does some things because their federal programmer likes it that way. Drake does some things because their customers have demanded it (right or wrong). Drake does some things because their accounting arm would like the feature. Drake does some things to comply with their understanding of the code and regulations. Drake does some things to correct an error.

I have never said in any message on any forum anywhere that Drake only makes changes to correct an error. I have said on many forums many places that Drake has made changes to create an error. Just because I said they corrected this does not mean I believe (as many of their customers do) that everything that Drake does is correct.

When Barbara Goines from the IRS first taught us about e-filing (and she is now since retired) she told us that the monetary fields on the 1099-R, W-2, W-2P, and W-2G would be transmitted with the return and needed to be entered exactly as shown. There are fields that she taught us were not mandatory (like the Account number fields on the 1099-R and the second line address fields on the W2 and 1099-R), but certain amount fields (like wages and winnings and taxable pensions distributions) must be entered accurately.

I am sure that there have been changes since those days (like the elimination of the W-2P) and there is little documentation of what the IRS does and does not consider critical on these records. For example, the Account Number field is transmitted but there is nothing I have seen anywhere (except from that early training) which indicates whether or not this is of any value to anyone if entered or not entered. Plus, many software packages require us to enter certain fields in a codified way to allow the package to carry the amounts to other forms even though the values are not used by the IRS.

That is why I contacted the IRS directly to determine if they no longer use this field for matching purposes or require it to ever be entered. They do. They want it. They want it entered as it is on the source document.

Drake does not do everything correctly and does not make every change to correct an error nor does any other software company.

[dtlee]

Box 2a is transmitted in the e-file record to the IRS. That has been true since the first returns were e-filed and is still true today.

Sorry that it has taken so long. I did not want to simply tell folks to read through Publication 1346 and the four pages I extracted are too big to attach.

Here are the fields transmitted with a Form 1099-R to the IRS:

Extract from Publication 1346, Part 2

Please note the fields referenced in the IRS correspondence I received have not changed. Field 0110 is the box 1 amount and Field 0120 is the box 2a amount. These are transmitted when the 1099-R information is transmitted to the IRS. As Bees notes, these are not part of the 1040 record (which would begin on page 19 of Publication1346, Part 2). However, they are part of the 1099-R record and are transmitted with the tax return.

[dtlee]

I would agree IF Box 2a was reported to IRS. It is not. There is no line on the 1040 for Box 2a. It suggests what might be reported on lines 15b or 16b, but there are several scenarios that can cause lines 15b or 16b to be different. If the taxpayer has a basis in the distribution and the issuer of the 1099-R does not know that, Box 2a will be different than the amount reported on lines 15b or 16b.

The point is, Box 2a does not get transmitted to IRS because there is no entry on the 1040 to reconcile Box 2a with lines 15b or 16b. If you look at an IRS transcript of a 1040, you will not find a data entry for Box 2a.

Box 2a is transmitted in the e-file record to the IRS. That has been true since the first returns were e-filed and is still true today.

[Bees Knees]

My point is that Box 2a is the starting point and line 15b or 16b is the result of a calculation or other activity. The IRS wants the starting point reported correctly.

I would agree IF Box 2a was reported to IRS. It is not. There is no line on the 1040 for Box 2a. It suggests what might be reported on lines 15b or 16b, but there are several scenarios that can cause lines 15b or 16b to be different. If the taxpayer has a basis in the distribution and the issuer of the 1099-R does not know that, Box 2a will be different than the amount reported on lines 15b or 16b.

The point is, Box 2a does not get transmitted to IRS because there is no entry on the 1040 to reconcile Box 2a with lines 15b or 16b. If you look at an IRS transcript of a 1040, you will not find a data entry for Box 2a.

[dtlee]

I disagree.

The issuer of a 1099-R cannot possibly know if the full amount in box 2a is going to be taxable or not. Box 2a is for information purposes only and does not dictate the taxable treatment of the distribution. If the taxpayer does a rollover or partial rollover, box 2a is irrelevant. As long as the word "rollover" appears next to line 15 or 16 of the 1040, IRS is going to ignore the amount in box 2a of the 1099-R.

I tend to agree that this becomes a moot point when reported correctly as a rollover. One thing Drake was doing was not putting "ROLLOVER" on the 1040 (except under poorly documented circumstances). A lot of their customers were reporting notices from the IRS questioning the rollovers they reported and it was unclear whether it was from the matching program or because the word "ROLLOVER" was missing.

My point is that Box 2a is the starting point and line 15b or 16b is the result of a calculation or other activity. The IRS wants the starting point reported correctly.

This is comparable to the concept of netting with Gambling winnings. The net amount of winnings may not be equal (actually would more likely not be equal) to the amount reported on any particular W-2G, but most of us are careful to report what was on the actual forms received.

[dtlee]

The question that always remains in my mind is "was it an error?" I've never found any documentation one way or the other from the IRS on whether or not you can modify 2a. Drake obviously changed their program - but was it due to an error they got around to fixing, or simply customer demand? Drake also puts a signature line on the 8867. Was that to correct an error?

I don't know, this whole line 2a thing. Wish the IRS would simply put something out that specifically stated yes, you can change the value or no, you can't change the value.

Since I was trained by the IRS when e-filing first came out, I have always been confused as to why people who would never change the taxable amount of a W-2 or a W-2g would think it is fine to change the taxable amount of a 1099-R since the IRS taught us to transmit these amounts as they appeared on the actual forms. However, I have learned a few things over the years and will share what I know.

There are situations when some software vendors do not transmit the 1099-R to the IRS. In those situations, it does not matter who the payer is or if any of the amounts match reality because the 1099-R becomes a worksheet. In these situations, it is not really an "error" to tamper with the amount in box 2a (or any other field on the form).

However, some software products always transmit the 1099-R and I believe that all software products transmit the 1099-R when there is withholding on the 1099-R. In these situations, the amounts must match the document received. Most of us do not know the intricacies of our software, so most of us are not aware if this form is transmitted with a particular return or not. Thus, I consider it an error when box 2a does not match what is on the actual form.

When I contacted the IRS about this, I was treated with very little respect because most of the representatives I spoke with did not believe anyone would ask if we could change the taxable amount of the 1099-R (any more than we would ask the same question about a W-2). They would respond with things like, "Why do you need it in writing?" "Look at publication 1346." (where it does not say that the amount must be the correct amount, just like it doesn't say that wages must be the correct amount on a W-2) "Why do you think we ask you to type it in?" "Why would you think we want an amount that isn't on the form?" and other wonderful responses. I turned to our IRS Liaison to ask and he at first did not understand the need asking why I did not need it for the other source documents. I had to explain that "Everyone knows we can't falsify a W-2, but some people believe we can put any amount we want on a 1099-R."

I finally got this response from an IRS representative in the electronic filing section of the IRS:

Return preparers are required to enter information return data from Forms 1099, W-2, W-2G, and 1098C exactly as they were reported to the taxpayer – this is so we have a mirror image of exactly what is reported to the taxpayer.

Pub 1346 page 194 of Part 2 (1371 page document divided into 3 parts) states the entry for field 0120 is the taxable amount listed on Form1099-R Box 2a – the form reference number. The publication is found at: http://www.irs.gov/pub/irs-pdf/p1346.pdf

The entry on Form 1040 line 15b reflects the taxable amount of an IRA distribution but is NOT necessarily the amount listed in 1099-R Box 2a . Pub 1346 pages 25-26 (Part 2) show 5 additional field entries to identify specific scenarios regarding IRA distributions and the line 15b entries, such as;

Field Number and identification:

Field 0475 – Total IRA distributions received (for Form 1040 line 15a)

Field 0477 – IRA distribution literal; enter “ROLLOVER” or leave blank if no rollover

Field 0479 – IRA Distributions; Form 8606 / Recharacterizations / explanations

Field 0480 – Taxable IRA amount

Field 0482 – Qualified Charitable Distributions (QCD)

Field 0483 – Qualified HAS Funding Distributions



The scenario your practitioner references would require the following entries:

Field 0475 – Amount from 1099-R box 1

Field 0110 – Gross distribution listed on 1099-R Box 1

Field 0120 – Taxable amount of distribution listed on 1099-R Box 2a (exactly as shown on the 1099-R),

Field 0477 – “ROLLOVER”

Field 0480 – The taxable amount of the IRA distribution to be listed on 1040 line 15b



This would be in addition to the other entries for the 1099R, 1040, etc.

Thank you,


[NAME DELETED}
IRS SB/SE CLD

I have deleted the name of the representative, but I think the message is very clear. Please note that the respondent went further to explain that the 1040 line b amount does not need to match the 1099-R box 2a amount.

Sorry, but this is all I have.

[Bees Knees]

This is incorrect since we as EROs are required to enter significant dollar fields exactly as shown on the document we receive from the issuer and they are to be transmitted to the IRS the same way.

I disagree.

The issuer of a 1099-R cannot possibly know if the full amount in box 2a is going to be taxable or not. Box 2a is for information purposes only and does not dictate the taxable treatment of the distribution. If the taxpayer does a rollover or partial rollover, box 2a is irrelevant. As long as the word "rollover" appears next to line 15 or 16 of the 1040, IRS is going to ignore the amount in box 2a of the 1099-R.

[Snaggletooth]

My Experience

My experience with TaxSlayer was positive. I left them 4 years ago for Drake.
Incredible technical support - very fast and responsive.

I do many states. Their software knows Georgia and South Carolina very well, but gets very weak for some of the more remote states in the west and northeast. Especially on "entity" type returns. But it is not expensive software, and you have to measure the cost versus what you need.

Crowning blow came when they wanted to charge an extra $100 to accept a paper check and produce a paid invoice with a CD. Ridiculous. They called and apologized for this stupidity but by that time I had already switched to Drake and was happy.

[David1980]

I am not saying that TaxSlayer Pro does not, but both Drake and TaxSlayer Pro did not for the 2009 tax year (and perhaps 25-30 years prior) though Drake has since corrected this error.

The question that always remains in my mind is "was it an error?" I've never found any documentation one way or the other from the IRS on whether or not you can modify 2a. Drake obviously changed their program - but was it due to an error they got around to fixing, or simply customer demand? Drake also puts a signature line on the 8867. Was that to correct an error?

I don't know, this whole line 2a thing. Wish the IRS would simply put something out that specifically stated yes, you can change the value or no, you can't change the value.

[dtlee]

Gotta defend Tax Slayer as I love the Software. Have used it for 6 years now from the beginning of my home business. It was recommended by a friend who was using it. I have had some issues over the course of the 6 years, but when I call support, they are quick to fix any problem I have ever had. Most of those issues have been with states as I do multiple states for military personel. I do a 990-T which I'm sure there is not a huge market for and when I first started they did not offer this form in the software. I asked for a few years and was told there just wasn't much demand so they had never created this software. I had resigned myself to always doing this return by hand. To my surprise last year, they had added this to the business package. I was much impressed. Felt they did this just for me. I'm sure others may have needed it to, but it impressed me. Support is great, quick to answer when I call which isn't often and always a help to any issue I have. As for the 1099-R issue there is a question that pops up when you are entering info in the 1099-R that asks was any of this rolled over. I would never just change the amount that is on the 1099-R that was issued. I would answer the question and then enter correct amount that was rolled over.

They may have fixed it this year, but when I tested it, answering that question would cause the software to change box 2a. Support confirmed that this was not merely superficial, but carried through to the e-file record as well.