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Discussion:Form 8283

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Discussion Forum Index --> Tax Questions --> Form 8283


Mcpa (talk|edits) said:

29 January 2007
In order to e-file this year, we are required to put in a date for when the non-cash items were acquired as well as when they were given. In the past, Lacerte allowed us to put in "various". But that is not allowed for 2006 if the return is to be e-filed. I'm wondering how other tax preparers are planning to handle this new requirement.

Taxea (talk|edits) said:

29 January 2007
Making the client fill out a worksheet with dates, amts, charities

Mcpa (talk|edits) said:

29 January 2007
Yes, that makes sense. But to be realistic, if a client gave bedding, kitchen appliances, clothes, etc in a single contribution made up of (for example) 50 items, they will not want to list such minutia for all such items. And you would need to list each item separately on the 8283 since it is unlikely that any were purchased at the same time. And that is assuming that they know when they purchased a particular pair of shoes, slacks, etc. I plan to tell them that they will need to paper file unless they want to provide all that detail.

CATAXES (talk|edits) said:

29 January 2007
TAXEA a worksheet would be fine if the information was available, but this has to be a mistake. I can see asking for dates of contributions (you're supposed to have a receipt), but I can't imagine where you would get acquisition dates for a lot of the non-cash contributions. Imagine having to know when you bought a lamp or when you bought articles of clothing that you are donating to charity. The "various" option seems to cover EXACTLY when I acquired most of my clothes.

CATAXES (talk|edits) said:

29 January 2007
I should amend that to say "various starting in the 60's"

Mcpa (talk|edits) said:

29 January 2007
CATAXES I confirmed this with the IRS. That is, I called the efile support section and they stated that the form 8283 now requires a date (month/year) under column d on form 8283 if you want to efile. I wish it were a mistake.

JR1 (talk|edits) said:

January 29, 2007
Well then, let's all agree on the date, shall we. I suggest, June 8, 1987, for no good reason.

Deback (talk|edits) said:

January 29, 2007
I'll know for sure about this after the 8283 client I prepared today picks up, probably tomorrow. I know you (Mcpa) said the IRS told you about the requirement, but I'm in denial about it right now. It just can't be true! It would qualify as O'Reilly's most ridiculous item of the day.

Mcpa (talk|edits) said:

30 January 2007
I hope I've been misinformed. Please let me know how it goes for you Deback.

Deback (talk|edits) said:

January 30, 2007
I will. If they pick up tomorrow, I'll know by Wed around 11 am. I know that ProSeries did not tell me I couldn't efile due to using "various" in the acquired date field. But I've learned that (especially this year) this doesn't mean I'm not going to be able to efile the return.

Death&Taxes (talk|edits) said:

30 January 2007
I wrote this in on January 26th in another discussion: 'I am using my return for a guinea pig. I efiled last year and just filled in the worksheet, putting a street address but omitting a city. I also did not fill in any how acquired information below 'various' for date acquired and purchase for how acquired. The return passes efile checks." Of course, that does not mean IRS would accept it, but you would think Proseries would warn us.

Mcpa (talk|edits) said:

30 January 2007
Thanks for the info, D&T.

Rdscalise (talk|edits) said:

5 February 2007
So, what's the consensus? Lacerte is telling me we can't email without dates, which is really a pain. In the case of donations for clothing & small household items I only see two choices 1) make something up (unless your client really remembers when they bought each item of clothing & you want to list each $3 item separately) or 2)file paper. Which way are you handling it?

I honestly think this is going to backfire on the IRS, because they are going to end up with a lot more paper returns this year.

Deback (talk|edits) said:

February 5, 2007
I'm not having this problem with ProSeries Pro. I've entered Various in the date field for when acquired a few times so far this year and all have been efiled and accepted. This is not an IRS problem.

Rdscalise (talk|edits) said:

5 February 2007
Does anyone know if Lacerte will let you efile like that? I am guessing not since it is a critical efile diagnostic...

Mcpa (talk|edits) said:

5 February 2007
I noticed (for the first time, I'm embarrassed to say), that form 8283 states in a note midway down the form that if the amount claimed as a deduction is $500 or less, you don't need to fill out columns d-f. That means, that although the IRS still wants a concrete contribution date in column c, you can leave the date acquired (col d), how acquired (col e) and donors cost or basis (col f) fields blank. When I did this, it appears I will be able to efile. I also tried leaving the date contributed blank and that also appears not to be a problem when efiling.

PVVCPA (talk|edits) said:

February 15, 2007
My bad clients come in with no receipts for Goodwill. But they tell me that they did drop stuff off, and they say to just give them them "maximum allowable." So, I explain the rules, and then they all magically end up between $400-$500.

My good clients come in with 8 Goodwill receipts totalling $850. Inside my head (or maybe out loud?) I say, "Argh!". Now I have to input each receipt with their own contribution date. Last year, I would enter it as one donation with the date contributed as various.

What is the downside to accidentally including the non-cash contributions in with the cash contributions?

Death&Taxes (talk|edits) said:

15 February 2007
From what I have ever seen, no downside if the contribution is legit. I've had audits like this when clients hand me lists. Took me years to realize that the Whosoever Gospel Mission is a Church consignment shop. Auditor, usually office auditor, says 'oh, these aren't cash, they go on the other line' but when they see the lists etc produced for audit, they don't feel like moving numbers about.

PVVCPA (talk|edits) said:

February 15, 2007
Wait a minute! The IRS audits charitable contributions! Shut up!

I have a fellow in my office that has memorized Circular 230. He said the IRS "could" disallow the deduction and issue preparer penalties.

Ztom (talk|edits) said:

15 February 2007
the new lacerte allows various dates and i have sent them in with no problem.

Death&Taxes (talk|edits) said:

15 February 2007
I once had an auditor, office type, who kept yawning in my face, belched once, and would not allow any auto expense when client's car had been stolen in November, along with appointment book diary. Theft was validated with police report, which included all her items in the car. She was an account executive [a gopher in other words] for a radio station; employer gave letter listing her accounts. She estimated how often she visited each account, and showed in subsequent periods the pattern of auto use. Then he would not allow gifts to customers because she gave them on their birthdays. So after another yawn, I said, "Why don't you work a little harder?"

This made him reach in a drawer, pull out a piece of paper and asking me if I knew what it was. "It's a directive from the District Director that all your clients are going to be audited." I replied, "Oh, good, I'll make a lot of money on audit fees. Now let's stop the audit and either let me talk to your manager or let me send this to Appeals."

He hemmed and hawed, and then said "We have one more item, charity. Let me finish that. Do you have it?" Pulled out receipts and started to put them on his desk with a summary. He did not even look at them, but said, "They look fine." In other words, he realized he had put himself in a bad spot. Then he said he could accept 2/3rds business use of auto, not 80%, pointing out she should have been reimbursed for one trip out of area every month according to the employer, and that he would accept the gifts. I did some math in my head and accepted his proffer. Then he said my clients were not being audited; he had me confused with someone else and he apologized, then NAMED THE OTHER PREPARER, a man I knew.

I said nothing, but hearly dropped over when he told me this was one of his last office audits; he was being transferred to the field. So when people start throwing 230 at me, I think back to Agent F. Sorry for the long digression, but tax audits are not the Inquisition as long as all recognize that each side has a job to do.

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