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9/23/2020 3:47:02 PM
Posted: 4/13/2006 2:58:16 PM EDT
Today I got a nice bill from the IRS for about $4000.  Seems a Schedule D was not filed with my 2004 return and the IRS had a 1099-B from a mutual fund company that should have been reported on said Schedule. The 1099-B was correct; I have not yet ascertained whether or not TurboTax simply didn't file it (the Sch. D) or if I forgot it. The latter seems unlikely as I keep records like you wouldn't believe. On the other hand, I lose my car keys alot...

Anyway, I presently have TT 2005 on my computer and I thought, "No problem, I'll just pop open my 2004 return." Bzzzt.  You can't just open the preceding year's tax return, you have to tranfer it into a new return. That's not a big problem at all; however, I was surprised and as I drilled down into the TT documentation it would seem to indicate that you can transfer-in the previous year's return AND THAT'S IT. There would appear to be no way to access returns other than the current Tax Year and the previous TY.  So, for instance, if I had wanted to open my 2003 file, I would be outta luck.

This little episode shows a couple of important things that TT users should remember.
1) Save the TT installation CD with a printout of your return.
2) Print-out EVERYTHING including the supporting statements that don't get filed with your return. It may take a ream of paper, but the tree is worth it.

In the event that you didn't have the old TT software, an EXHAUSTIVE printout might really save the day for you.
========================
If others have had real-life episodes with TT that conflict with what I've said above, please report your findings. I've stated some of my conclusions about backwards compatibility based on my readings of TT documentation and actually trying to open both 2003 and 2004 files.
========================

How it turned out:
Since I'm a "records freak", within half an hour of getting the IRS bill, I was able to show that the IRS actually owned me about $5. Guess we'll see what happens..
Link Posted: 4/13/2006 3:01:57 PM EDT
I always save the ENTIRE return (including worksheets and such) as a PDF. I also save the filed version.

I have the data files for all my old returns, but yeah, I knew I couldn't access them. Makes me wonder if I should delete them.
Link Posted: 4/13/2006 3:02:43 PM EDT
I saved copies of my returns to disc, as well as printed copies.
Link Posted: 4/13/2006 4:22:11 PM EDT
We always make copies of everything.My dad the tax accountant drilled that into me at a young age.
Link Posted: 4/13/2006 4:39:43 PM EDT

Originally Posted By Zaphod:
I always save the ENTIRE return (including worksheets and such) as a PDF. I also save the filed version.




BINGO!!!
Link Posted: 4/13/2006 4:46:24 PM EDT
I still have every TT program on my computer back to 1998. PDF of all the returns and data on a ZIP.
I find that the more anal you are the less likely shit is prone to happen. I generally don't use the word "shit" in public, but since we are talking about the IRS...............
Link Posted: 4/13/2006 4:49:22 PM EDT
I always print copies of my TurboTax returns.  I used to think 7 years was the limit IRS could go back, but heard recently it is less?  Anyone know?
Link Posted: 4/13/2006 4:53:53 PM EDT
I used TurboTax for the first time this year.  I couldn't believe those scammers made me buy the program then wanted $45 to E-file my taxes!  Fuck TurboTax... there's got to be a cheaper way.
Link Posted: 4/13/2006 4:54:55 PM EDT
All I know is that I still have a lot of scanning to do. I only have PDF's back a few years, and last year I had to go to H&R Block.

No biggie. Something to do, and it's cheap!
Link Posted: 4/13/2006 4:58:55 PM EDT

Originally Posted By XM777:

Originally Posted By Zaphod:
I always save the ENTIRE return (including worksheets and such) as a PDF. I also save the filed version.




BINGO!!!



Exactly right.  I've been using hr block on-line and can save the entire return and worksheets - including Schedule D - with a button click or two.

Spudgunner:  did you file electronically?  Or, did the Schedule D not print in the package?  If electronic, I'm surprised the IRS accepted it.  One would think that any capital gains figures entered on the 1040 would make the IRS "accepting" computer program look for a Schedule D in the transmitted blocks and reject the return if they were missing.

Turbo tax has always been somewhat awkward to me.  I used to use "Tax Cut" and found it better.  I've not used either in the last three years so I don't know if this still is the case, but Turbo Tax used to be very limited in the types of returns it would import: a previous return on another company's software was not possible.  Tax Cut would accept many different types, including Turbo Tax.
Link Posted: 4/13/2006 4:59:42 PM EDT

Originally Posted By MlTCHELL:
I used TurboTax for the first time this year.  I couldn't believe those scammers made me buy the program then wanted $45 to E-file my taxes!  Fuck TurboTax... there's got to be a cheaper way.



Print the forms and mail them in, thats what I did.  Of course I paid in as I have done for the last few years, so big deal for me about E-File.
Link Posted: 4/13/2006 5:03:26 PM EDT

Originally Posted By Spudgunner:
2) Print-out EVERYTHING including the supporting statements that don't get filed with your return. It may take a ream of paper, but the tree is worth it.



Duh.    I would never trust electronic submission of anything without a paper trail.  I care enough to do it for online orders, why wouldn't I do it for taxes???
Link Posted: 4/13/2006 5:06:11 PM EDT
if you have the 2004 program, you can access the 2004 return - if you deleted it, you can't -
Link Posted: 4/13/2006 5:09:31 PM EDT

Originally Posted By 1shott:
Print the forms and mail them in, thats what I did.



Amen.
Link Posted: 4/13/2006 5:41:18 PM EDT
depending on the type of capital gains a schedule d isn't needed (obviously the amount of income still has to be filled in on the line on the main form)
I had to do one last year but not this year
but I still do my taxes the old fashioned way with a pen and calculator. I just take the standard deduction and just have my W2 and some 1099s to worry about though
Link Posted: 4/13/2006 5:42:29 PM EDT
[Last Edit: 4/13/2006 5:42:53 PM EDT by bastiat]
This is why I have an accountant (pay for it all buh buh buh...)
Link Posted: 4/13/2006 5:56:58 PM EDT
saved copies as well as PDF's
Link Posted: 4/13/2006 6:00:00 PM EDT
Link Posted: 4/13/2006 6:02:59 PM EDT
Keep in mind a 1099B only shows the proceeds you recieved, it does not take into account what your basis was on those mutual funds.  Filing a schedule D is not hard.  Get a 1040X (amended return) and file it with a schedule D showing exactly what you paid and recieved from the mutual fund sale that is represented in the 1099B.  All you need is what you paid into those mutual funds, when you bought them, when you sold them, and what the total proceeds were from the sale(listed on 1099B).  I wouldn't fret it until you fill out the sch D and see what the real end result is.  I highly doubt u owe the entire $4,000.  If the sale was a loss you may get more money back.  H&R
Link Posted: 4/13/2006 6:15:40 PM EDT
[Last Edit: 4/13/2006 6:18:59 PM EDT by macman37]
Turbotax raped me as well.

Edit: TT had a big part in it but the fact my wife and I can very comfortably afford our house and we live well within our means figures prominently in our screwage.
Link Posted: 4/13/2006 6:17:54 PM EDT

Originally Posted By Zaphod:

Originally Posted By 1shott:
Print the forms and mail them in, thats what I did.



Amen.



Holy crap, yes.  It's the only way to be sure.

Link Posted: 4/13/2006 6:27:01 PM EDT
I use web fill in forms, old fashioned but I dont get $4000 tax bills
Link Posted: 4/13/2006 6:34:33 PM EDT
Taxes are illegal.  
Link Posted: 4/14/2006 5:42:36 AM EDT

Originally Posted By Colt636:
Keep in mind a 1099B only shows the proceeds you recieved, it does not take into account what your basis was on those mutual funds.  Filing a schedule D is not hard.  Get a 1040X (amended return) and file it with a schedule D showing exactly what you paid and recieved from the mutual fund sale that is represented in the 1099B.  All you need is what you paid into those mutual funds, when you bought them, when you sold them, and what the total proceeds were from the sale(listed on 1099B).  I wouldn't fret it until you fill out the sch D and see what the real end result is.  I highly doubt u owe the entire $4,000.  If the sale was a loss you may get more money back.    

I do taxes for H&R Block so don't hesistate to ask any questions.  Goodluck!  




Thank you for the info. And yes, the tax bill issue arose because offsetting basis was not provided for the 1099B on our return.   How the basis info was missed, I'm not sure. Could be my screwup or TT's.  After (re)establishing the basis info yesterday, the IRS owes us a few bucks (ie it was crappy investment).  I'll be sending the basis info in today and that should bring the whole thing to closure.

Since I keep good records, the problem was immediately apparent. However, TurboTax's feature set that only allows opening of the present and prior years' returns may be a nasty surprise to some who, for instance, might want to open a 2003 (or earlier) return. Saving a complete PDF is a great idea that some have suggested. An EXHAUSIVE printout (not TT's default) is also a good idea. I store my TT installation CD's in with my printout as well.
Link Posted: 4/14/2006 7:33:55 AM EDT
[Last Edit: 4/14/2006 10:21:12 AM EDT by Spudgunner]

Originally Posted By 7:
Taxes are illegal.  



"The illegal we do immediately. The unconstitutional takes a little longer." -Attributed to Henry Kissinger.
Link Posted: 4/15/2006 6:24:10 AM EDT
Did mine last night with Turbotax. Had done a scratch estimate copy of the 1040 a month or two back to get a guess as to what my refund/ amount owed would be because we got such a shocker last year  when we did the return   ( owed a grand last year). The scratch copy this year showed me roughly breaking even on Federal. By the time Turbotax was done, we were getting a $2900 refund. all those trips to the Salvation Army and actually getting receipts for donations, tithes, etc this year REALLY paid off.  we were kicking ourselves last night about not being more thorough in those efforts at record-keeping in past years.
Link Posted: 4/15/2006 6:47:03 AM EDT
Link Posted: 4/15/2006 7:39:01 AM EDT

Originally Posted By MlTCHELL:
I used TurboTax for the first time this year.  I couldn't believe those scammers made me buy the program then wanted $45 to E-file my taxes!  Fuck TurboTax... there's got to be a cheaper way.



20 cent envelope, 39 cent stamp.....
Link Posted: 4/15/2006 10:33:35 AM EDT
TurboTax tried to put one of my capital gains as "short term" when it in fact was long term.  I had to manually adjust it.

I will not be using it next year.  Am open to other suggestions.

Oh, and I printed out EVERYTHING for my records as well as making a PDF of everything.
Link Posted: 4/15/2006 10:56:47 AM EDT

Originally Posted By Zaphod:
I always save the ENTIRE return (including worksheets and such) as a PDF. I also save the filed version.

I have the data files for all my old returns, but yeah, I knew I couldn't access them. Makes me wonder if I should delete them.



+1
Link Posted: 4/15/2006 4:54:40 PM EDT

Originally Posted By 7:
Taxes are illegal.  



No kidding I think it was in 1976 that the last Tax booklet said it was a volentary contribution!!!

Bob
Link Posted: 4/15/2006 4:58:02 PM EDT

Originally Posted By KA3B:

Originally Posted By MlTCHELL:
I used TurboTax for the first time this year.  I couldn't believe those scammers made me buy the program then wanted $45 to E-file my taxes!  Fuck TurboTax... there's got to be a cheaper way.



20 cent envelope, 39 cent stamp.....



At least they let military members use their program and efile for free.
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