Overview › Area
Household & identity
Who is on the return, who they are, and that we may file for them.
Preparer Priya Raman · due 2026-03-27
Reviewer Daniel Ortiz · due 2026-04-08
Partner Helen Strand
Time 0 of 1.5 h budget
Ngozi Okafor (taxpayer, software engineer) and Erik Lindqvist (spouse, self-employed designer) file jointly.
They lived in Sacramento until 07/14/2025 and in Austin from 07/15 — so California taxes everything to 7/14 and only California-source income after.
Two dependents: Ada (19, full-time at UC Davis, files her own return as a dependent) and Theo (8).
Last year's return was prepared by Delta River Tax Services; we inherit their open items.
Household as the client entered it (organizer 2026-01-20)
| Person | Role | SSN | Born | Notes |
|---|---|---|---|---|
| Ngozi Okafor | taxpayer | •••-••-2287 | 1986-03-14 | IP PIN •••••• (D03) |
| Erik Lindqvist | spouse | •••-••-9134 | 1984-11-02 | |
| Ada Lindqvist-Okafor | dependent (daughter) | •••-••-1106 | 2006-05-21 | At UC Davis during the school year; home for summer.Summer job W-2 4,100 (files her own return) |
| Theo Lindqvist-Okafor | dependent (son) | •••-••-3309 | 2017-02-09 |
Where they lived
CA resident 2025-01-01 → 2025-07-14
TX resident 2025-07-15 → 2025-12-31
2814 Alder Glen Way, Sacramento, CA 95818 (rented home, 2019-06-01 → 2025-07-14)
7709 Barton Ridge Dr, Austin, TX 78746 (owned home (purchased 2025-07-08), 2025-07-15 → now)
Refund / payment account: Austin Community Credit Union ••••••9276
Related returns (not in this packet)
Ada Lindqvist-Okafor — 2025 Form 1040 (her own; summer job W-2 4,100; checked 'someone can claim you as a dependent') (Ada, using consumer software; in packet: False)
Lindqvist Family Woodworks, Inc. — 2025 Form 1120-S and Oregon composite return (Willamette CPA Group (not this firm); in packet: K-1s only (D39, D40))
Ridgeline Real Estate Fund III LP — 2025 Form 1065 and Arizona composite return (fund administrator; in packet: K-1 and state supplement only (D37, D38))
What the prior preparer left us (D07)
MFJ, CA residents. Sole prop (design studio) - simplified home office, standard mileage. Two rentals, both passive, losses suspended except to the extent of passive income (Woodworks K-1, Ridgeline K-1). Capital loss carryover. Backdoor Roth started (2024 contribution made 02/2025).
open item Obtain 2023 Woodworks K-1 to roll basis forward.
open item Confirm 2024 Form 5498 for IRA basis.
open item Client to confirm home office square footage.
open item 2023 Form 3520 (foreign inheritance over 100,000) - discussed? (no note of resolution)
What the prior preparer did vs what we changed
| Home office | 300 sq ft (simplified) - '2 rooms combined?' | Measured room is 220 sq ft (D24); 2025 uses monthly average 240. | D07 D24 SchC.30 |
| Woodworks S corp basis | 2023 K-1 never obtained; 'assumed basis sufficient' for 2024. | 2023 K-1 (D40) obtained; basis rolled 21,300 -> 15,400 -> 2,300; 2025 distributions exceed basis by 21,215 (capital gain). | D07 D40 F7203.1 |
| IRA basis (8606) | 7,000 per client; 5498 not obtained. | 2024 Form 5498 (D42) confirms the 7,000 made 02/12/2025. | D42 F8606.2 |
| Form 3520 (2023 inheritance) | 'discussed?' - no resolution recorded. | Raised as an outside filing needing a decision and client letter. | D07 D36 |
| Ridgeline outside basis | Never computed (capital account only). | Capital account rolled to 63,660 (D37); outside basis still to be built for future distributions. | D37 |
| Mileage rate | 7,400 miles x 0.67 (2024 rate). | 2025 rate 0.70 on 8,100 miles (duplicate page removed). | SchC.9 D23 |
| Self-employed health insurance | None - Erik on Ngozi's plan in 2024. | Engine deducted 14,400 in 2025; still eligible for employer plan (qa-25) -> not deductible. | Sch1.17 qa-25 |
Checks that don't trust the engine (3)
DEPENDENT-TIN · Household & identity
Dependents' SSNs agree to prior return / cards
Fails
Organizer shows •••-••-3309; 2024 return as filed (D06) shows •••-••-3390. Confirm with the Social Security card before filing. This is exactly what the e-file rejection R0000-504-02 will say on 2026-07-13 if not fixed.
How: Compared every SSN the client typed into the organizer with the 2024 return as filed and any Social Security card in file.
Authority: IRC 24(h)(7); Pub. 1345 (e-file name control)
household:theo.ssn
•••-••-3309 → •••-••-3390 — Organizer shows •••-••-3309; 2024 return as filed (D06) shows •••-••-3390. Confirm with the Social Security card before filing.
no tax effect
no tax effect
Explain / dismiss instead
DUE-DILIGENCE · Household & identity
Form 8867 due diligence for CTC / ODC
judgmentNeeds judgment
Paid-preparer due diligence must be documented: residency (12 months each), relationship, age (Theo 8, Ada 19 full-time student - D59/D60), Ada files her own return claiming 'can be claimed'.
How: Credits claimed: child tax credit (Theo) and credit for other dependents (Ada).
Authority: IRC 6695(g); Treas. Reg. 1.6695-2
Explain / dismiss instead
CLIENT-ANSWERS · Household & identity
Client answers that the documents contradict
Info
qa-14 'no investments sold' vs 282 brokerage sales; qa-15 'didn't really sell' vs 12 Coinhaven dispositions (D34); qa-31 'no prior IRA basis' vs 2024 Form 8606 basis 7,000; qa-41 Q4 '4,000 I think' vs IRS 3,000. Documents govern; discuss with the client so next year's organizer is right.
How: Compared questionnaire answers with what the documents show.
Documents (8)
| D01 | Engagement letter, tax year 2025 (signed)
received 2026-01-12 · firm · extracted |
reference only Supports identity / engagement; no return line. |
||
| D02 | Consent to use and disclose tax return information
received 2026-01-12 · firm · extracted |
reference only Supports identity / engagement; no return line. |
||
| D03 | IRS notice CP01A - Identity Protection PIN (Ngozi Okafor)
received 2026-01-21 · client · extracted |
reference only Supports identity / engagement; no return line. |
||
| D04 | Driver license - Ngozi Okafor
received 2026-01-21 · client · extracted |
reference only Supports identity / engagement; no return line. |
||
| D05 | Driver license - Erik Lindqvist
received 2026-01-21 · client · extracted |
reference only Supports identity / engagement; no return line. |
||
| D06 | 2024 Form 1040 as filed (prepared by Delta River Tax Services)
received 2026-01-21 · client · extracted |
evidence for a check Not cited by the engine; used as evidence by PASSIVE-CARRY, IRA-BASIS, DEPENDENT-TIN, DUE-DILIGENCE, CAPLOSS-CARRY |
||
| D07 | 2024 workpaper file from prior preparer (export)
received 2026-01-21 · client · not_extracted |
reference only Narrative workpaper export; its content is reproduced as structured data in prior_years.prior_preparer_workpaper. |
||
| D70 | IRS CP2000 for tax year 2023 and resolution letter
received 2026-01-21 · client · not_extracted |
reference only Resolved prior-year notice; summarized in tax_agency_records.notices. |
Every line in this area (1)
Show all 1 lines
| F8867.status | Paid preparer due diligence checklist (CTC/ODC claimed) | Not completed |
Sign-off
preparer
not signed
reviewer
not signed
partner
not signed
A sign-off fingerprints every value and document in the area. If anything it covered changes, it reopens on its own and tells the signer what moved.
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