Filing With Third Party Professional

[ZeroBadCooks]

Hi,

I would like to use TurboTax to fill out my federal and state taxes, which very simple as I take the standard deduction. I am working with a non-Turbo-Tax professional who will complete my foreign business filings. What is the best way to share my completed filings with him so he can file the entire package successfully, and what TurboTax product do I need to buy, or will the free version work?

[Opus 17]

I'm confused as to how you can prepare a correct tax return without your foreign business income?

If you use Turbotax online, you can get two types of output.  You can download your tax data file containing a partial or completed tax return without paying.  Whether this will be useful to your professional is something you have to ask them.  Professionals who use Intuit's professional software might be able to import the consumer software datafile, but I don't use the pro series so I don't know.  I suspect that if they use another company's software, they won't be able to use the data file.  But you have to ask them. 

You can also print your tax return on paper, or save it as a PDF.  Since a PDF return could be printed and filed, you have to pay any Turbotax preparation fees before you are allowed to print, unless your tax return qualifies for free filing.  I can't tell you if you qualify for free filing because I don't know your situation.  A tax professional might be able to import from the PDF, but again, you have to ask them. 

[pk]

@ZeroBadCooks ,  Assuming that you are a US person and that your "foreign " business  is not a dis-regarded entity , registered under foreign country's laws,  pays you  dividend etc. you should able to use  TurboTax On-Line  / download complete your US tax filing easily .

If however, your "foreign"  business  is sole ownership ownership and is not a corporation ( like an llc ) and whether does business  domestically or otherwise , you still will have to file  a Schedule-C.  Therefore it would be unwise to use TurboTax and another  person to d the return -- should be done as ONE return.

I hope I am understanding your situation correctly  -- please correct me ( if need be ).

[ZeroBadCooks]

@Opus 17 Yeah, that's what I am trying to get at, and I agree I need to ask what the tax preparer he can do. 

The preparer charges per form, so he is charging about $600-$700 for just federal and state income taxes, which is the 1040 plus whatever state forms needed. This is basically just my U.S. employment. 

I am trying to figure out if I can do the basics, save the $600-$700, and have him combine it with his work and file the package. 

I really don't mind paying whatever for TurboTax if I can figure out an easy way to share my work and save the money. So, I think I have the data file, a PDF, and it's also been suggested that I create a unique tax account and share the login info with him if that works. 

[ZeroBadCooks]

@pk I am not worried about what forms are being filed, as they are all correct as the situation has been analyzed exhaustively by several CPAs at this point. 

I am really trying to figure out how to best share the 1040/state forms for IL with him so he can complete it. So far I have the PDF, the data file, and perhaps sharing a login for a one-time TT account. I will give him all of the options and see if any work, as I'd like to save the $600-$700 he is charging for federal + state filings.

[Opus 17]

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@ZeroBadCooks wrote:

@Opus 17 Yeah, that's what I am trying to get at, and I agree I need to ask what the tax preparer he can do. 

The preparer charges per form, so he is charging about $600-$700 for just federal and state income taxes, which is the 1040 plus whatever state forms needed. This is basically just my U.S. employment. 

I am trying to figure out if I can do the basics, save the $600-$700, and have him combine it with his work and file the package. 

I really don't mind paying whatever for TurboTax if I can figure out an easy way to share my work and save the money. So, I think I have the data file, a PDF, and it's also been suggested that I create a unique tax account and share the login info with him if that works. 

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Talk to your pro, but if you have other forms that change the 1040 you prepare yourself, I expect the preparer will charge you something to revise the 1040.  They also probably aren't going to put their name to something that they didn't work on, so if you insist on preparing some forms yourself, they probably at a minimum would refuse to guarantee their work.

If you make a Turbotax online account with your tax info that you share with the preparer, that will be no different than what I outlined above.  They would be able to download your data file (assuming it can be imported into their system) or they can save the return as a PDF (but only after paying the fee). 

[VolvoGirl]

I don't know if you can do anything.  Can he give you the info and you add it to Turbo Tax and you file it?  Turbo Tax is not licensed to be used by paid preparers.

You are not licensed or permitted to use the Software, or to allow the Software to be used, to prepare tax returns, schedules or worksheets on a professional or commercial basis (i.e., for a preparer's or other fee or consideration). Additionally, if you violate these terms, you agree you must indemnify and defend Intuit against any claims or lawsuits, including (without limitation) attorneys’ fees, that arise from or result from the unlicensed use of the Software on a professional or commercial basis.

Online Terms of Service

https://turbotax.intuit.com/corp/license/online.jsp

See Section B Additional Terms

1.3 No Professional Use. You may not use the Services to prepare tax returns, schedules or worksheets on a professional or commercial basis (i.e., for a preparer's or other fee or consideration).

[Opus 17]

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@ZeroBadCooks wrote:

@pk I am not worried about what forms are being filed, as they are all correct as the situation has been analyzed exhaustively by several CPAs at this point. 

I am really trying to figure out how to best share the 1040/state forms for IL with him so he can complete it. So far I have the PDF, the data file, and perhaps sharing a login for a one-time TT account. I will give him all of the options and see if any work, as I'd like to save the $600-$700 he is charging for federal + state filings.

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The other route would be for you to pay for the preparation of the foreign forms and then finish your tax return yourself.  You may need to make manual entries to include the foreign income without using the Interview.  Manual entries require using the desktop version installed on your own computer from a CD or download that you pay for in advance.  Depending on the entries you need to make, manual entries may block you from e-filing and may void the Turbotax accuracy guarantee.  You would be giving up a lot of protection to save a few dollars. 

[pk]

@ZeroBadCooks , having gone through all the above posts including from @Opus 17 ,  I am still at a loss as to why you would not do the whole thing by yourself.

(a) there is no connection between TurboTax business -- except for the K-1 or similar items issued to you by your foreign entity or  domestic entity doing foreign business.  That is  for any business other than Sole Proprietor / dis-regarded entity, there is nothing from your filing that goes to the business return -- in the case of sole proprietor, it is the other way around

(b)  TurboTax is perfectly able to do  this .

What am I missing here ?

[ZeroBadCooks]

@pk In addition to the basic federal & state forms, we are filing 5471s (multiple years), 8938s (multiple years), and FBARs, as well as probably at least one 1065.

I may come back to TT next year and file it all myself, but I'd like the first time to be done by a pro so I have some good examples to use.

[ZeroBadCooks]

"Talk to your pro, but if you have other forms that change the 1040 you prepare yourself, I expect the preparer will charge you something to revise the 1040.  They also probably aren't going to put their name to something that they didn't work on, so if you insist on preparing some forms yourself, they probably at a minimum would refuse to guarantee their work."

@Opus 17  Yeah, that's a good question. I will have to see what he says.

[ZeroBadCooks]

"The other route would be for you to pay for the preparation of the foreign forms and then finish your tax return yourself.  You may need to make manual entries to include the foreign income without using the Interview.  Manual entries require using the desktop version installed on your own computer from a CD or download that you pay for in advance.  Depending on the entries you need to make, manual entries may block you from e-filing and may void the Turbotax accuracy guarantee.  You would be giving up a lot of protection to save a few dollars. "

@Opus 17 This could be an option too.

This kind of brings up a related question, but one service I found will only work on providing a 1065 form, but nothing else. Somehow, folks must be combining this 1065 with the rest of the forms even if they are using a pro or filing them yourself, and something like 98% of users use the service as it is an add-on.

[ZeroBadCooks]

@VolvoGirl My interpretation of that language is that I am not a professional preparer, so I am not making money off TT, so I don't see it as violating the TOS.

[ZeroBadCooks]

Well, I appreciate the feedback, as I think I have a lot of good questions/options to discuss and to see if any will work. He has suggested splitting the work as I don't think he is super-comfortable handling the U.S. forms versus international forms.

I fully recognize the situation is hideously complicated. It has taken me several weeks to even find a pro that will handle the situation and I have to amend 2021 taxes after my prior pro messed everything up despite claiming expertise. The tax prep bill alone is close to $3,500, so while 2023 taxes will still be a mess, I am simplifying now to make 2024 easier.

[ZeroBadCooks]

@pk @Opus 17 Or maybe I should be somewhat insane and attempt to do all this myself using TurboTax Business + TurboTax Deluxe with some kind of live support/pro review? I don't know what that would be, so maybe $1000 for all of the TT programs + support?

Like I said above, I have to amend 2021, file 5471s, FBARs, 8938s for both 2021 and 2022, plus likely a 1065 for 2022 plus standard federal + state forms. I feel like that's a big ask for TT, but maybe I am in the right place to ask if it is reasonable.