New Electronic Tax Return Delivery

System

As part of our effort to create a better client experience and streamline the e-signing and tax delivery process, DDK will now be using SafeSend Returns. SafeSend is a secure and easy program that allows our clients to receive, review, and e-sign their tax returns from their computer, tablet, and smartphone.

Easy 5-Step Electronic Tax Return Delivery Process

  1. You will receive an email from noreply@safesendreturns.com. The DDK logo will appear in this email. 
  2. Click on the secure access link contained in the e-mail.
  3. Verify your identity by entering the last four digits of your Social Security number.
  4. Check your email for a unique Access Code. If you don’t see it in your inbox, check your spam or junk folders.
  5. Congratulations! You now have access to your tax return. SafeSend Returns will walk you through the review and e-signature process with step-by-step instructions.

Video Walkthroughs of the Delivery Process:

Individual Client Tax Return Help

 

Entity Client Tax Return Help

  

Common Questions About our Tax Delivery System

Q: Is it safe to enter part of my Social Security Number?

A: Yes. SafeSend Returns offers a secure system to view and sign your e-file authorization form(s). Look for https:// at the beginning of the site URL and a locked padlock symbol in your browser’s URL bar to confirm you are on the secure site.

Q: What if I don’t receive an email with my access code?

A: Check your spam/junk email folder. You can also search your email for noreply@safesendreturns.com.      Some email clients hide items they’ve labeled spam or junk, making certain emails difficult to find. If you do not receive your code within the 10-minute time limit, please request another code.

Q: Will this work on any internet-connected device? Does SafeSend Returns offer an app for my smartphone?

A: There is currently no SafeSend Returns app available, but the signature process can be completed on any computer, smartphone or tablet via a web browser.

Q: I’d rather print and sign my e-file authorization form(s). Can I do that?

A: Yes - You can still print, sign and mail your e-file form(s) back to DDK if you’d prefer to do so.

Q: Will I have to print and mail anything to the government?

A: The only items you may need to print and mail out to government authorities is the tax and estimate payment vouchers. If forms need to be printed and mailed, you will receive clear instructions. You will also be provided options to make tax payments electronically if you prefer not to mail payments.

Q: My Spouse and I are filing our return jointly – How can we both sign the e-file authorization form(s)?

A: There are a couple of options:

If both spouses have an email address on file, both will receive an email with a link to view the return and sign the e-file authorization form(s). First, one spouse will receive the link with identity verification questions specific to him/her. He or she will sign the e-file authorization form(s), and an email link will be sent to the second spouse. The second spouse will answer identity verification questions specific to him/her, then sign the form(s).

If only one spouse has an email address on file, that spouse will first receive the link with identity verification questions specific to him/her. He or she will sign the e-file authorization form(s) and then enter an email address for the second spouse. The second spouse will then receive the email link with identity verification questions specific to him/her. Once the second spouse electronically signs the e-file authorization form(s), DDK will be notified that signing is complete.

If a couple shares an email address, the primary signer will first receive a link with identity verification questions specific to him/her. After the primary signer signs the e-file authorization form(s), he/she can then enter the shared email address again. A new link will be sent with identity verification questions specific to the second spouse.

Q: Where do the identity verification questions come from? What if I don’t remember the answers?

A: The questions SafeSend Returns asks are knowledge-based questions pulled from government and credit sources. You may be asked questions such as where you lived in a given year, or when you bought your car or home. In the event the questions do not apply to you, simply choose the answer that accurately reflects this. If you don’t remember the answers to the questions, or you answer incorrectly, you won't be able to electronically sign your e-file authorization form(s). You can instead print, sign and return your e-file authorization form(s) to DDK.

Q: How is this process different from e-filing?

A: SafeSend Returns allows you to electronically sign your e-file authorization form(s), but it won't submit your return to the IRS. Once signed, DDK is automatically notified, and we will then complete the filing process for you, including submission to the IRS.

Q: Can I sign my dependent's individual return electronically?

A: DDK will deliver your dependent’s return using SafeSend Returns. However, some dependents may not have sufficient government and financial data available to successfully complete the electronic signature process. If there is not enough data available, your dependent will be given the option to download and sign their forms.

Q: Can I set up reminders for my quarterly estimated payment?

A: If estimated payments are included in your review copy, you will automatically receive an email reminder seven days before your payment is due.

Q: Will I receive a notification when my individual return is ready to sign?

A: Yes. Email notifications will be sent from DDK at noreply@safesendreturns.com. We recommend adding this email address to your safe list to prevent the email from getting filtered to spam/junk.

Q: After signing my individual e-file authorization form(s), will I receive confirmation that it was successfully submitted?

A: Yes, once you sign your e-file authorization form(s), you will receive an email stating it was successful. The email will also include a link to download a copy of your tax return for your records.

 Client Portal Login           Secure File Exchange
   SafeSend Returns
Blog

Tax Court- Loss Deductions By Real Estate Professionals

A recent tax court decision demonstrates the importance of a taxpayer keeping a log to prove the 750 hours threshold for real estate professional status. 

On October 15, 2015, the Tax Court issued an opinion in case, DORIS SIMMONS-BROWN AND JOE BROWN, Petitioners v. COMMISSIONER (Docket No. 21636-13S).

The case involves taxpayers Joe Brown and Doris Simmons-Brown. Joe Brown, had a construction business in which he worked approximately 15 hours per week (780 hours annually). Joe’s wife, Dorris Simmons-Brown owned a four family rental property.  Joe and his wife lived in the first two units of the property while the top two units were rented out.  Joe did not own any rental property in his own name.

According to the court decision, Joe spent more than 500 hours per year repairing and maintaining the two rental units.

The key point from the case is that the taxpayer kept a detailed, contemporaneous log proving the more 500 hours he spent working on the rental property units and 780 hours he spent in his construction business.  

On their joint tax return for 2010 and 2011, Joe and his wife claimed more than $30,000 of annual non-passive losses from the rental units as real estate professionals. The IRS claimed that the losses related to a passive activity and disallowed the losses, and also assessed a deficiency penalties and interest.

The Tax Court ruled in favor of the taxpayer and allowed the losses based on the grounds that the taxpayer materially participated in the real estate trade or businesses as a real estate professional.

Rental activity is generally treated as a passive activity regardless of whether the taxpayer materially participates. However, there is an exception to this rule if the taxpayer is considered to be a real estate professional.

A taxpayer meets the requirements to be treated as a real estate professional if:

  1. More than one-half of the personal services performed in trades or businesses by the taxpayer during such taxable year are performed in real property trades or businesses in which the taxpayer materially participates, and
  1. Such taxpayer performs more than 750 hours of services during the taxable year in real property trades or businesses in which the taxpayer materially participates.

In the case of a joint return, these requirements are met if either spouse separately satisfies them.

Doris Brown kept a contemporaneous activity log in the form of a spreadsheet, which detailed the amount of time that Joe Brown spent working on the rental property. In addition, it was determined that Joe Brown spent an average of 15 hours per week working at a small construction contracting business that he owned.

The Tax Court reviewed Doris Brown’s spreadsheet and determined that it indeed qualified as a contemporaneous activity log.

Mr. Brown spent an average of 780 hours per year performing services for his construction contracting business for both 2010 and 2011. All of his activities for both years were spent in real property trades or business. The activities for the rental property and the construction contracting business are considered to be real property trades or businesses. Therefore, the Browns were treated as real estate professionals for both years at issue.

This case is one more example where the IRS continues to challenge deductions taken under Section 469’s real estate professional rules and how important it is that the taxpayer have a contemporaneous log to support the 500-hour and 750-hour thresholds.

TC Summary Opinion 10 15 2015  Click Here for Docket

 

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