New Form 8453

[Lion]

I'm using ProSystem fx and have a client with donations between $100 and $2,500. The program is printing out the new Form 8453 for me to mail in. None of the donations are artwork or otherwise require appraisals. All are well under $5,000; the total deduction is even under $5,000. (One of the costs is over $5,000 but the FMV and deductions are much smaller.)

This has always worked without mailing in the Form 8283 before. Any ideas? Of course, this happens after 9 p.m. at night. We're leaving at the crack of dawn tomorrow morning for UConn's parents' weekend (don't have time for all three days, but going up for a while on Saturday to watch the band perform). By the time we return home to my computer on Saturday night, Profx will be closed until Monday! I can call from my cell, but won't have the program with me. So, any clues will be gratefully appreciated.

They keep long lists of their donations with each trip to Goodwill. Most of the amounts are a few hundred dollars, but they did give away their living room and electronics and dining room furniture at one time (they were redecorating to celebrate her new job) and valued it at $2,104.

Maybe, no client has ever given away more than $500 at a time before, so I didn't know what might happen. Help.

[JohnH]

I misunderstood the question - deleted my reply (sorry)

[David1980]

I've noticed this year that my software generates an audit if I have non-cash contributions over $500 that "8453 may be necessary." (but it doesn't print it unless I check a box on it.)

When I asked support about that the response was that they do it for vehicle donations. I don't know why they don't simply add a checkbox on the 8283 worksheet for "vehicle" or something... but at any rate perhaps you have a similar situation in your software? At any rate 8453 does not get efiled so if it's printing and not required you could just toss it (and then call support when they're open to ask why you need to waste paper.)

[taxea]

New Form 8453

The 8453 prints because although you efile the return you need to send the vehicle contribution documents (or any other documents listed on the 8453) to the IRS within 3 days of filing the return.taxea

[Lion]

Thanks

Well, that all makes sense. I've had too many late nights (and a few more coming up). Just couldn't figure it out. You're all right. It is letting me e-file. No car, just furniture. So, I'll just finish it up. And, when I'm awake, I'll pour over it more closely to see if I need to stick something in the mail or not. Within three days. Thank you very much.

[taxea]

New Form 8453

It has been a few years since we have been required to send the 8453. If you don't efile via "pin" they the 8453 has to be signed by yourself and your client and kept in your offfice..not sent to the IRS. The new rule lists what documents need to be sent with the 8453. If you have nothing that applies why even use the 8453 option? Efiling via pin is so much easier and quicker. I use the last 5 digits of the clients SSN as the pin number and have the client sign the 8879 when I deliver the return and get paid. Then I efile the return.taxea

[Lion]

It was...

It was more than five donations on Form 8283 creating a statement which apparently doesn't e-file and must be mailed in with the new Form 8453. They had six Goodwill receipts. I combined two of them, and the issue went away. I was struggling over her new K-1 from a partnership in the Cayman Islands with foreign investments and required disclosure forms, and it was the simple donations that stumped me!

And, TaxEA, I was still electronically filing with the Form 8879, but the new Form 8453 was printing out to mail in with the statement generated by Form 8283.

I really need some sleep. Getting up in four hours to drive up to UConn's parents' weekend, just for the day. Thanks everyone for pitching in to help me.

[DonPriebe]

Alternate solution

It was more than five donations on Form 8283 creating a statement which apparently doesn't e-file and must be mailed in with the new Form 8453. They had six Goodwill receipts. I combined two of them, and the issue went away.

E-file allows two copies of the 8283 per return, so you can have up to ten line items before you get to the "see statement" problem.

[Snaggletooth]

8453 Function Changed

From what I've seen, the entire function of the old 8453 has changed. The 8879 replaces what the 8453 used to do. But they've kept 8453 around for selected items.

Apparently, the 8453 is now a requirement to submit when a taxpayer encounters certain items that the IRS has not been successful in educating the public (including preparers). My first encounter was for a preacher to assure that he was pro-rating his expenses, and instead of the preparer just keeping records like W-2's, 1040s and the like, the IRS wants the 8453 mailed in with the documents showing the expenses were prorated.

The minister's proration is only one of 13 situations that the IRS has identified as being so rampant that they are willing to put up with receiving documentation. I don't know what they do with it after they get it. They might even throw it away, but require it so as to create the perception that they are scrutinizing returns that have the "gall" to claim certain tax advantages.

The "13 trespasses" as I am wont to call them, would seem to go down in the hall of turpitude with the Bible's "Seven Deadly Sins" from the perspective of the IRS.

[David1980]

Yes, exactly as Snaggletooth said. 8453 is no longer a signature document at all, there is no line for a signature. You *have* to use 8879 regardless of whether 8453 is required.

I'm surprised it's a statement causing the need for it. Decided to see what my software would do (I can actually look at the EF image to see how they're putting it together -- they just put it in a temp dir before sending it.)

IRS allows up to 4 copies of 8283 on a EF return. First tried 6 donations, it created 2 8283 no problem. Then tried 11, and I got 3. Then tried 21 to see what it does when there's more entries than there can be 8283's for EF.

It created an error that I cannot efile with more than 4 copies of 8283, wouldn't let me do it at all. If I print it I get 5 copies.

I'm surprised that you can't have an E-file statement like they do for dependents when you have more than 4 that gets sent electronically. Not that I've ever had someone with close to 20 donations, at least not yet.

[Lion]

Multiple Copies

That's interesting about multiple copies being allowed. Don't know why the software took all six and put on a statement instead of opening a new form. I press an icon requesting a new sheet, so you'd thing that would be a new Form 8283. I'll ask them Monday. I hope to find a minute to look at other returns I've done this year since switching to this software, because I do have lots of clients who give to Goodwill so must've had more than five receipts before. Again, thank you everyone for all your thoughts.

[taxea]

My program does not print the 8453 no matter how many contribution items I generate, however, I see no reason not to combine like donations made several times a year to one charity and use "various" for date. works for me. Client has receipts to document the donations. taxea

[Lion]

Agree

I agree with TaxEA and often combined donations to the same organization as long as the client had good documentation when I worked at Block who charged for every line and statement and everything on the return. I now discover that if I click new Sheet, my program adds lines up to five and then creates a statement -- that caused my original concern. If I click new Entity when I get to six items, it adds a new Form 8283 without causing the Form 8354. I really need to get training in this software; I purchased too late last year to get any organized training or even much practice as tax season was beginning. Thank goodness they have the most amazing support I could ever hope for. It's ProSystem fx, and I really love it. It's worth every penny I pay. I was just frustrated that in a very complex return with some foreign investment issues I'd never encountered before, that it was the very mundance donations that created an issue I wasn't expecting!