On May 1, 12:04*pm, Harlan Lunsford <hnslunsf...[at]bellsouth.net> wrote:
- quote -


I think you may be correct Harlan, Both my return and my mother's had
a balance due with direct debit payments. Neither of us has our
prebate as of now, long past the time for direct deposit.

Donald Baaso
Arvada, Colorado

--
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D. Stussy wrote:

(snipped.....)
- quote -

payments.

Are more on the way? Time will tell.

ChEAr$,
Harlan

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote in message
news:dzDSj.26415$DY1.10241[at]bignews5.bellsouth.net...
- quote -

Of course not. However, I certainly would let (or advise) them to make a
2008 contribution during that period. I don't see a problem unless you're
saying that the stimulus DD is being declared as a 2007 contribution - but
how could it be? It can only be a 2008 contribution.

- quote -

Not just the IRS: For the past 2 years, the California FTB has been unable
to direct-deposit my personal refunds despite the fact that the numbers for
RTN and account are identical to the ones used by the IRS to successfully
deposit my personal federal refunds. The boneheads at FTB even wrote me a
letter saying it was my fault - clearly not considering the IRS' success
with no more or less information.

This year marks 20 years in the tax industry for me (IRS and private
practice times combined).

- quote -

Considering that the stimulus "checks" can only be issued during 2008
(May-December), I don't see how the DD version could be untimely as a 2008
contribution?

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Bill wrote:

(most snipped...)

- quote -

I remember something about that now, but was under impression that
procedure only applied to so called "stimulus" returns, wherein you
enter the social security amount and one dollar for processibility.

Now you're telling me that I could also have entered my direct deposit
information for direct deposit of my "stimululating" stimulus payment
even though I owed and mailed them a check?

Actually, it's not so much "my" stimulating stimulus payment since I
promised it all to wife for household discretionary spending
ifyouknowwhatImean!

ChEAr$,
Harlan

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"D. Stussy" <spam[at]bde-arc.ampr.org> wrote
- quote -



You're not going to let someone make a 2007 IRA contribution after April
15th, 2008. It's not permitted. That's the premiss of my position.


You've been in this business longer than me I suspect. How often does the
client not tell you of a possible offset - that they're not going to get
that overpayment refunded? How often do they say "Yeah, I made all the
estimated tax deposits you gave me" and that turn out to not be true? How
often does the IRS mess things up and mail a check instead of making a
direct deposit?





- quote -



And I have clients with the ability to make that contribution from their
funds, that they control.

The assurance that it gets done, and done correctly and timely, can only be
found by not depending on a third party to make a correct and timely deposit
for you.





I'm not against making a timely IRA deposit, I'm against being dependent
upon the IRS to do it for my client.






--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

hnslunsford[at]bellsouth.net (Harlan*Lunsford)
posted:

- quote -

Harlan: Taxwise issued an update (I believe it was "06" or "07") which
permitted entry of Direct Deposit information even when no taxes were
withheld and no refund was due.

There was an entry permitted under the code ESP on the "special
instructions" line of the Main Information form. This code was added to
the dropdown menu, which included military combat and other special
treatments -- actually adding it to the top of the list.

This code enabled entry of Routing and Account numbers on page 2 of Form
1040, even when there was no refund. Of course, it was always possible
to enter such numbers on the Main Info -- regardless of the eventual
disposition.

Of course, were an "automatic withdrawal" directed (often for April 15
payment), using the ACH form option, the same banking information would
be available -- and we were advised to encourage TPs to choose that
option in order to ensure earlier distribution of their "stimulus
rebate." Toward that end, the timetable from the IRS website -- showing
Direct Deposit dates vs. mailed check distribution targets -- was
provided to all preparers, and became a prime "selling tool" for ACH
payments by a great many people who traditionally had opted for Form
1040V, with the intention of mailing it on April 15. [Direct Depost
stimulus payments were to be distributed during the first 3 weeks of May
-- while mailed payments followed a much longer schedule, ending in
August.

It appears that the combination of the earlier receipt of the "stimulus"
with the savings of postage and removal of an additional action
requirement, all added up to an irresistible argument in favor of
auto-withdrawal, via ACH.
(At least it did, at our library site, with over 500 returns prepared.)

Bill

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote in message
news:llpSj.61892$rC6.46095[at]bignews4.bellsouth.net...
- quote -

I might not be Bill, but "huh?" Why should that not be allowed or advised?
Any taxpayer has the right to make his 2008 contribution from January 1,
2008 until the due date in mid-April 2009 from any source of funds in his
control.

Financial advisors that informed their clients to put in their 2007 IRA
contributions during January-April 2008 ONLY should be drawn and quartered.
They should have advised them to contribute during 2007 if at all possible.
However, note at how many financial institutions MISS informing their
clients of such. It's so much better to contribute for the year on January
1 of THAT year, and if needed, reverse the contribution later if the
taxpayer doesn't qualify than it is to WASTE a year's worth of earnings
potential by waiting until after the close of the year to contribute.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"Harlan Lunsford" <hnslunsford[at]bellsouth.net> wrote in message
news:wBnSj.19574$DY1.12137[at]bignews5.bellsouth.net...
- quote -

....And don't forget: Those who qualify for a rebate based on the 2008
return and not on the 2007 (or get more w/r to 2008 than 2007) have to wait
another 11 months. :-(

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

On May 1, 10:12�pm, "Paul Thomas" <paulthomas...[at]bellsouth.net> wrote:
- quote -

SEP for tax year 2007. A timely extension had been filed for filing
this return.

Here is IRS's Guidance on the treatement of stimulus payment that were
directly deposited in a tax favored account.
http://www.irs.gov/newsroom/article/...182058,00.html

Cheers,

WDK

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In article <hLuSj.68398$vr3.53213[at]bignews2.bellsouth.net> ,
"Paul Thomas" <paulthomascpa[at]bellsouth.net> wrote:

- quote -

I think I am following this thread and you are talking by each other. I
think the facts of the OP are:

Taxpayer had a 2007 refund due and elected a direct deposit to his IRA
account which occurred before April 17 2008, making it a 2007
contribution.

Unknown to taxpayer the IRS will sometime during May-July 2008 make a
stimulus payment to the same account because that is the account number
they have on record. The taxpayer will now have an unintended 2008
contribution to his IRA which may or may not be wanted or could even put
him over the contribution limit for 2008.

The IRS is allowing the taxpayer to withdraw that contribution that the
IRS made without penalty.

The only problem I have with this is some taxpayers (who are far from
retirement) just let ride what is in their IRA and don't monitor it
often. If this happens to them, they might not even be aware that the
stimulus is in their IRA.

--
-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. > << ------------------------------------------------------- >

<KEBSCHULLW[at]aol.com> wrote
- quote -




And tell me, how many IRA contributions do you allow after April 15th?

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

On May 1, 4:03�pm, "Paul Thomas, CPA" <paulthomascp...[at]bellsouth.netwrote:
- quote -


We are now in the extention period for filing 2007 tax returns. My
comment refers to October 15, 2009, which is the end extended filing
period for 2008 tax returns. Go read what is available on www.IRS.gov
on this issue.

Cheers,

WDK

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

Harlan Lunsford wrote:
- quote -

And to clarify, my tax software is Taxwise (tm), which is used
nationwide by IRS sponsored AARP and VITA volunteers.

C$,
H

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

Arthur Kamlet wrote:
- quote -

Seems that every week there's more guidance put out by IRS on what will
happen or not happen. My comment was based on what they first said.
So hard to keep up these days.
Especially since my tax software didn't allow for such bank account
information input.

ChEAr$,
Harlan

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In article <M%oSj.3888$lc6.2504[at]trnddc04> ,
Phil Marti <prm20871[at]verizon.net> wrote:
- quote -

Mead, perhaps? Or some of Harlan's single malt Scotch?


Harlan, See http://www.irs.gov/pub/irs-pdf/k1040a3.pdf which is designed
for someone not receiving any income tax refund. It clearly states that
if the bank information is present, the stimulus rebate goes there even
if no tax refund. Mr. Moderator gets points for this one.

In a subsequent Q&A the IRS said if you used form 8888 to specify
more than one direct deposit account, then a paper check would be
mailed.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

<KEBSCHULLW[at]aol.com> wrote
- quote -






Bill. Don't you think that we, the tax preparer community, won't allow any
more IRA contributions to be direct deposited on the extended returns we may
file between now and October?




--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"Phil Marti" <prm20871[at]verizon.net> wrote
- quote -





Before lunch instead of after dinner?



None of my clients made a DD into a tax deferred account. They paid any
contributions to IRA's, etc by separate check.


But you're right, most won't know what they got. I suppose on those we'll
just trust the default amount and hopefully the IRS will add any extra on
their end.







--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

On Apr 30, 8:47�pm, nws_rea...[at]yahoo.com wrote:
- quote -

had their refunds sent to their IRA accounts not realizing that the
stimulus payment would also go to the IRA account. IRS has now
advised that the stimulus payments can be withdrawn from the IRA
account without penalty until April 15, 2009, or October 15, 2009, if
an extension for the 2008 tax return was filed.

Cheers,

WDK

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"Harlan Lunsford" wrote:

- quote -

Are you sure? IRS has said that if you authorized direct debit of your 2007
bal due you'd get direct deposit of the prebate, and they specifically said
that people filing the "stimulus only" returns would get direct deposit of
the prebate if they filled in the blanks.

OP didn't indicate how the 2007 balance was being paid, but even if he had,
I haven't been able to find anything from IRS saying how prebates will be
issued to people who filled in the bank account spaces on the 1040 but paid
by check or through EFTPS.

Meanwhile, on the "Let's all look forward to next filing season" front, in
addition to the blank stares when we ask people whether they got their
prebate, we'll also have the one-year-only special penalty and tax-free
"oops" withdrawals from IRAs where the prebate was inadvertently sent there.

I may take up drinking earlier next year.
--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"Harlan Lunsford" <hnslunsford[at]bellsouth.net> wrote
- quote -








The really neat thing is, all those who did RAL's, have to wait on a paper
check to be mailed.







--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >