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Shorebird's Posts

Thank you for your prompt response. I remember reading somewhere that a 1041 is required for as long as the estate remains open (but I have not been able to find it again).  That is why I think a re... See more...
Thank you for your prompt response. I remember reading somewhere that a 1041 is required for as long as the estate remains open (but I have not been able to find it again).  That is why I think a return would be needed for 2021, especially as to also have no problem when requesting the termination letter from the IRS. My hesitation is for having to charge my client for something, if it is not needed.  
Decedent's assets were liquidated and reported on 2019 tax return. There was no will and the Court hearing to set up amounts for relatives is April 27, 2021. Income for 2020 is Bank interest below ... See more...
Decedent's assets were liquidated and reported on 2019 tax return. There was no will and the Court hearing to set up amounts for relatives is April 27, 2021. Income for 2020 is Bank interest below 600 so normally no need to file, except it may cause a problem as no FINAL return would be filed until 2022.  What should I do?
Thank you so much for the link. That's exactly what I needed.
I was wondering if, after an audit with a finding of more taxes and penalties owed would the Representative be solely responsible.  This was a 'messy' situation and all the siblings fighting with ea... See more...
I was wondering if, after an audit with a finding of more taxes and penalties owed would the Representative be solely responsible.  This was a 'messy' situation and all the siblings fighting with each other, etc.  No returns had been filed since the decedent's death in 2013. Where did you see the IRS can get money from the beneficiaries? Thanks for your help.
I heard that was for the Closing Agreement letter from the IRS - the fee, I mean
The Final return is filed and the Administrator of the Estate pays the beneficiaries. The IRS decides to audit the return afterwards.  What happens?  Are there any  steps that can be taken to prote... See more...
The Final return is filed and the Administrator of the Estate pays the beneficiaries. The IRS decides to audit the return afterwards.  What happens?  Are there any  steps that can be taken to protect the Administrator if more taxes are assessed? So they don't get stuck with the expense.   Are there any steps that can be taken to protect him/her?   I have not been able to find anything in the 1041 Instructions or the Publications and would appreciate some help.
That's what I thought!  Thank you for confirming!
Decedent's estate had no income expect for Bank interest of less than $10 for 2016 - 2018, but ongoing legal expenses.  In 2019 the house was sold for a gain.  Is there any way the legal expenses of ... See more...
Decedent's estate had no income expect for Bank interest of less than $10 for 2016 - 2018, but ongoing legal expenses.  In 2019 the house was sold for a gain.  Is there any way the legal expenses of 29,000  can be deducted?  Are they lost?
If I find it again.   I didn't think to save it.  I only kept a copy of the Form which needs to be completed in duplicate and submitted to both the IRS and the Greek Social Security (IKA) Department.... See more...
If I find it again.   I didn't think to save it.  I only kept a copy of the Form which needs to be completed in duplicate and submitted to both the IRS and the Greek Social Security (IKA) Department. (In 2017 I had enquired in person during my summer vacation, and was told that by submitting the IRS signed document at the beginning of each year, the amount of the Greek Social Security would not be shown on the E1 Tax Filing Document).
Thank you, again. I spent all day reading about this again.  In Greek.  The Greek version of the Treaty definitely states Excluded.  There have been numerous Court decisions, etc. over the years, bu... See more...
Thank you, again. I spent all day reading about this again.  In Greek.  The Greek version of the Treaty definitely states Excluded.  There have been numerous Court decisions, etc. over the years, but I am none the wiser about this after my research.  There was an agreement some years ago that a dual citizen living in the U.S. can take certain steps to have the Greek Government not tax the Social Security at all and remove from the Tax Form (the form always has the social security amount received and the taxes withheld pre-entered on the Tax Form of each individual).   However,  that is very complicated involving residence documents and the exact amounts received the previous year, which after signature by the IRS need to be apostilled and submitted personally in Athens up to the end of February every year.   This has to be done annually, which is very difficult if you live in the U.S.  For the first client, the dilemma was 2,000 difference so I wanted to be sure.  It did not seem right or fair for such a difference in taxes, but then the taxation law is not always fair. I am very grateful to you for taking the time and effort to give me the answers.   Especially for the explanations.    
Thank you for your response.  I very much appreciate your help. Not sure you have seen my second post yesterday or whether your reply is for both. I do think and know that the social security earne... See more...
Thank you for your response.  I very much appreciate your help. Not sure you have seen my second post yesterday or whether your reply is for both. I do think and know that the social security earned in Greece is taxed correctly by the Greek Government and in accordance with the Social Security Administration's agreement with Greece.   Both are reported under Social Security on the 1040.   According to Article XI of the Treaty and paragraph 1 it states that it is EXEMPT from taxation by the other country (not that credit is given)  by the other country.  Somewhere in the front part of the Treaty is says that the treatment is reciptrocal.   I know that you are very familiar with foreign taxation but my confusion was why residing in Greece if you are a U.S. person you would exempt the soc. sec. income and if you live in the U.S. you could not and would need to use Form 1116 for a tax credit. Additionally, you mentioned Article XIV which deals with the Tax Credit.  This means all other income taxes posed.   And in my humble opinion (and after one week of research) I would think this corresponds to Article 2477 mentioned in the U.S. Master Tax Guide under Creditable Foreign Taxes. The second paragraph dealing with this says "no credit or deduction is allowed for social security taxes paid or accrued to a foreign country with which the United States has a social security agreement" (which Greece has). All this has got me mystified and baffled. Have a good day!    
Have been working on the return for the U.S. citizen who is a resident of Greece. It was not as simple as what I had asked about how to report.  Due to the program calculation of taxable social secu... See more...
Have been working on the return for the U.S. citizen who is a resident of Greece. It was not as simple as what I had asked about how to report.  Due to the program calculation of taxable social security, the adjustment on line 21 was not the amount of the Greek Social Security. It was the difference of the taxable social security with the Greek one deleted and the taxable amount for both the U.S. and Greek Social Security. Another verification for the correctness of this adjustment was to work from the WHAT-IFS and take the Taxable income difference from each calculation (with both, and with only U.S. Social Security taxed).. I think I have it right. The other client who is living in the States is my next problem because I was told that both retirements should be taxed and a Tax Credit taken by Form 1116.  That does not seem right to me because of the Treaty.  It should also be an exclusion for someone living in the U.S. and not be taxed in both the U.S. and Greece and then the taxes paid to Greece attempted to be allowed as a tax credit by filing 1116 (which hardly ever works for the correct amount and leaves foreign tax carryovers). It would be wonderful if someone could help me with this.
Both instances are for Greece, with which the U.S. has a Tax Treaty and a Social Security Agreement.
How do you exclude Social Security from a foreign country (under a Tax Treaty) on the Form 1040?  Do you include on line 5b and then deduct on line 7a for a U.S. Citizen living in that foreign countr... See more...
How do you exclude Social Security from a foreign country (under a Tax Treaty) on the Form 1040?  Do you include on line 5b and then deduct on line 7a for a U.S. Citizen living in that foreign country? Does the same treatment apply for the above scenario but the U.S. Citizen is getting Social Security and living in the U.S.?   In both instances the Social Security is for work performed.    
This file does not show up in the data base. There is no option for a 1041 transfer.   What do I have to do?  Never had problem before from 2017.
You are right. Thank you so much for confirming my thoughts.  
No, that is not correct.   His filing status is on the date of his death, not at the end of the tax year, as in other instances. And also, we do not know if Divorce was finalized by December 31. B... See more...
No, that is not correct.   His filing status is on the date of his death, not at the end of the tax year, as in other instances. And also, we do not know if Divorce was finalized by December 31. But, thank you for responding.
I filed 2010 for this client as MFS since he was estranged and not living with his spouse. In 2011, 2012, and 2013 he filed as Single I was contacted by a lawyer and asked if I could file his Estat... See more...
I filed 2010 for this client as MFS since he was estranged and not living with his spouse. In 2011, 2012, and 2013 he filed as Single I was contacted by a lawyer and asked if I could file his Estate tax returns as he had passed away in September 2014.  Was handed 50 pages of accounting and conservator documents to work with. His Death Certificate lists him as Single.  However, in the documents I was given it shows that the Divorce request was only filed 2 weeks prior to his death in September 2014. How do I file the final 1040?  The rules say to use the status at the time of his death, which would be MFS.  However, the Death Certificate is a legal documents (even if wrong). Has anyone had to deal with something similar and advise me?  
Thank you