Version v3, none of our changes applied yetStage Review
Actions are recorded as the role you choose. There is no sign-in in this demo, so pick the person whose view you want.
Story time 23 Jun 2026, 06:05 UTC
Viewing as Daniel Ortiz, reviewerReviewer: you note, verify, apply and sign off.

About this workspace

Demo

Taxmark is a web-native workpaper for one household's 2025 return: click any number to see the page and field it came from, the rule that built it, who checked it and what is still open.

74 documents3,012 values read from them3 computed versions627 lines on v329 events in the timeline

Try: open Checks as Daniel, click California estimates, then switch role in “Viewing as” to see what each person may see and do.

Every action is saved as an event in this workspace (/w/gwxn6k5xxe); open the root link again for a clean copy. Anything not in the packet is tagged Example.

Legends

  • Blockingstops filing
  • Check failedour check disagrees
  • Judgmentneeds a recorded decision
  • Engine warningfrom the engine only
  • Notea finding for information; nothing to act on
  • No open checksnothing open on this line
  • Adjustedchanged in this workspace
  • Proposedan adjustment waiting for a reviewer to apply it
  • Swingmoved past the firm’s variance rule from last year
  • New this yearno amount last year
  • Signeda sign-off covers this value
  • Stalethe value changed after it was signed
  • As filed, lockedaccepted by the agency; later work attaches on top
  • Examplenot in the packet: an illustration

Pills on Checks

  • Blockeran open item that stops partner approval: a problem our check found, or a line waiting for the engine to re-run
  • Opena blocker still open when the return was signed or filed
  • Checkour check disagrees; it does not stop approval
  • Judgmentour check needs a recorded decision
  • Infoour check notes it; nothing to act on
  • AIthe AI agent flagged this item; a person accepts or dismisses each suggestion
  • Needs reviewan AI suggestion no one has decided yet (Accepted once someone has)
  • Engine warningthe engine’s own warning names this item, quoted as it wrote it; not one of our checks
  • Confident mistakeflagged by our checks, though every value behind it was read at 0.95 or above. The checks were built from the mistakes our external investigation found.
  • Clearedclosed with a reason, or by an adjustment (Adjusted)
  • Signed offa sign-off covers this finding

Deadlines on the story clock

15 Apr 2026Federal Form 1040 and California 540NR - original due datePassed 70 days ago
15 Oct 2026Extended due date (federal and California)In 113 days
27 Mar 2026Internal: preparer hand-off to reviewPassed 89 days ago
08 Apr 2026Internal: review completePassed 77 days ago
15 Oct 2026FinCEN 114 (FBAR) automatic extended due date (outside engagement)In 113 days
02 Feb 2026Forms 1099-NEC for 2025 contractor payments (late; outside engagement)Passed 142 days ago

Firm standards

A starting point. Applicants may change, extend or replace these through the firm administrator role.
Rules (7)
“A person may not review or sign off on work they prepared.”Review: sign-off disabled on your own adjustment
“Any adjustment with a tax effect over 1,000 (federal or state) requires partner sign-off.”Review: partner items; approval waits for them
“Every judgment call records the authority relied on.”Drawer: decisions record their authority
“Due diligence must be documented for the child tax credit, credit for other dependents, American opportunity credit, earned income credit and head of household status.”Drawer: due diligence decisions
“Open review notes block filing.”Review: blocking notes stop approval
“Staff without sensitive-data clearance see SSNs, bank and account numbers and IP PINs masked; every unmasked view is logged.”Everywhere: last 4 only; reveals logged on Review, View log
“Records are retained 7 years after filing, then destroyed.”Filing: the as-filed record is locked, not deleted
The 12 required steps
  1. Engagement letter and consents signed
  2. Identity verified
  3. Prior-year return reviewed
  4. All documents accounted for
  5. Prior-year variances explained
  6. Carryovers agreed to prior year
  7. Estimated payments agreed to IRS and FTB records
  8. Due diligence completed
  9. Diagnostics resolved
  10. Reviewer sign-off
  11. Partner sign-off
  12. Client approval and e-file authorization
Verification types
  • Agreed to source document
  • Recalculated
  • Confirmed with client
  • Agreed to prior year
  • Agreed to third party record
Review levelsPreparer, Reviewer, Partner
Variance reviewCompare to Prior year; flag when the change is over 10% and over 1,000.

People and clearance

NameRoleCredentialSensitive dataActive fromNote
Priya RamanPreparerCleared01 Aug 2025
Daniel OrtizReviewerCPACleared04 Jan 2021
Helen StrandPartnerCPACleared01 May 2018
Marcus BellPreparerNo clearance24 Mar 2026Background check pending; no access to full SSNs or bank numbers.
Jo KimuraFirm administratorCleared10 Feb 2020
Sam AdeyemiQuality reviewerCPACleared04 Jan 2027 Later
Ngozi OkaforClientOwn items only
Erik LindqvistClientOwn items only

Assignment at the start: Preparer Priya Raman · Reviewer Daniel Ortiz · Partner Helen Strand

Time against budget

AreaBudget (h)Logged (h)Left (h)Status
Intake and engagement1.501.5None logged
Wages and stock compensation303None logged
Investments and digital assets404None logged
Business3.503.5None logged
Rentals and sale3.503.5None logged
Pass throughs and basis202None logged
Deductions and credits202None logged
California1.501.5None logged
Partner review101None logged
Total22022

Budget from the packet. Logged time is what people record in this workspace; the packet has no time records.

How AI was used

The mistakes our checks catch were found during an AI-assisted review of the packet and are now caught by deterministic checks.

An AI agent investigated the whole packet with the app’s own tools, identifiers masked, and suggested issues with quotes. Its suggestions appear only on the final computed version, after each quote is found on its page, and a person accepts or dismisses each one.

ChecksAs of 23 Jun 2026, 06:05 UTC 11 blockers 29 items open 1 later in the story

Checks inbox

Items (29)

BlockerCheckJudgmentInfoour rule checks;AIthe AI agent flagged this item, a person decides;Engine warningthe engine's own note names this item;Confident mistake flagged by our checks, though every value behind it was read at 0.95 or above. The checks were built from the mistakes our external investigation found.

StatusWhatAmountTax effect
Blocker
BlockerConfident mistake
Real estate taxes (home) includes the other party's share credited at closingSchA.5b

SchA.5b deducts the full bill (13,420). Buyer closing statement - 7709 Barton Ridge Dr (purchase 07/08/2025) shows a credit of 6,912 for the part of the year before the purchase; that share is the other party's tax. The value was read (ev-1027) but feeds no line. Deductible: 6,508. The total falls below the cap, so the federal deduction drops by the amount above the cap.

EvidenceSeller credit for 2025 taxes (D54, page 1)Box 10 real estate taxes (D57, page 1)2025 taxes paid (D58, page 1)Our check CHK-PRORATION-CREDIT-UNUSED · Two sources disagree
13,420Fed +1,462 · CA +332 estimate
BlockerAIConfident mistake
Gross receipts counts the Paywell Payments, Inc. card money twiceSchC.1 · 1 AI suggestion

SchC.1 is 163,700 = books total 151,300 plus the Form 1099-K amount 12,400. The books' deposit detail shows that same 12,400 arrived through Paywell Payments, Inc. and was deposited gross, so it is already inside the books total.

EvidenceTotal income (D14, page 1)Box 1a gross amount (D21, page 1)Atlas Outdoor Gear receipts via Paywell (D15, page 3)Our check CHK-DUP-1099K-BOOKS · Value counted twice
Needs review✦Gross receipts, 163,700: income counted twice

The Form 1099-K receipts were deposited gross and are already in books revenue, so adding them as unmatched double-counts gross receipts.

EvidenceLindqvist Studio - transaction detail for selected accounts, page 3
163,700Fed -4,402 · CA -384 estimate
BlockerAIConfident mistake
2025 California estimated tax payments: 14,000 on the return, 10,500 on the FTB account2025 California estimated tax payments includes a payment designated for another tax yearF540NR.72 · 1 AI suggestion
Blocker2025 California estimated tax payments: 14,000 on the return, 10,500 on the FTB account

F540NR.72 claims 14,000; the FTB account credits 10,500 of estimated payments to tax year 2025. The return overstates payments by 3,500.

EvidencePayment 3 amount (D68, page 1)Payment 3 date (D68, page 1)Payment 3 tax year (D68, page 1)Payment 4 amount (D68, page 1)Payment 4 date (D68, page 1)Payment 4 tax year (D68, page 1)Payment 5 amount (D68, page 1)Payment 5 date (D68, page 1)Payment 5 tax year (D68, page 1)Payment 6 amount (D68, page 1)Payment 6 date (D68, page 1)Payment 6 tax year (D68, page 1)Agency record: FTB account, Tax year 2025 paymentsOur check CHK-PAYMENTS-VS-AGENCY · Tie-out to agency record
Blocker2025 California estimated tax payments includes a payment designated for another tax year

F540NR.72 counts every payment by date. The 2025-09-15 payment of 3,500 is designated tax year 2024, as the pipeline read correctly, so it is not a 2025 payment. Payments are overstated by 3,500.

EvidencePayment 5 date (D68, page 1)Payment 5 amount (D68, page 1)Payment 5 tax year (D68, page 1)Our check CHK-PAYMENT-TAX-YEAR · Field the rule ignores
Needs review✦2025 California estimated tax payments, 14,000: A payment or event that may sit in the wrong year

The September payment was applied to tax year 2024 and is absent from the FTB 2025 account, yet it is counted as a 2025 estimate.

EvidenceCalifornia FTB Web Pay confirmations, page 1
14,000CA +3,500 estimate
BlockerConfident mistake
Theo Lindqvist-Okafor: SSN in the organizer does not match the documentsF8812.4

The organizer number for Theo Lindqvist-Okafor ends 3309; 2024 Form 1040 as filed (prepared by Delta River Tax Services) and Social Security card - Theo Lindqvist-Okafor (photo) print a number ending 3390. A dependent or taxpayer number that does not match the IRS record rejects the e-file. Confirm against the Social Security card before filing.

EvidenceTheo Lindqvist-Okafor, DependentDependent 2 SSN (D06, page 1)Social Security number (D71, page 1)Our check CHK-IDENTITY-VS-DOCUMENTS · Identity vs documents and prior year
1
BlockerAIEngine warningConfident mistake
Alternative minimum tax (Schedule P): never computed, though its input carries an amountF540NR.61 · 1 AI suggestion

F540NR.61 shows 0, but its rule R-CA-AMT-NOT-COMPUTED says "The engine does not compute California AMT." Its input F6251.2i (Incentive stock options, 40,000) is not zero, so the figure is a placeholder, not a result; the engine's own warning on it stayed open in v1, v2, v3. Compute it outside the engine, or record why it is zero, before approval.

EvidenceBox 5 number of shares transferred (D12, page 1)Box 4 FMV per share on exercise date (D12, page 1)Box 3 exercise price per share (D12, page 1)Box 2 date of exercise (D12, page 1)Our check CHK-LINE-NOT-COMPUTED · Field the rule ignores
Needs review✦Alternative minimum tax (Schedule P), 0: income that may sit in the wrong state or period

The option was earned through California work, so the held ISO spread is likely a California-source AMT item, yet California AMT was left at zero.

EvidenceForm 3921 - exercise of incentive stock option (Corvane), page 1
The engine's own note on this itemwarningCA_AMT_NOT_COMPUTEDCalifornia AMT (Schedule P 540NR) not computed: review incentive stock option exercise for California-source allocation.
0
BlockerAIConfident mistake
Wages - California amount includes wages earned after the moveSchCA540NR.1.E · 1 AI suggestion

The household lived in California to 2025-07-14. SchCA540NR.1.E is 218,400, the full-year state wages. Corvane Systems, Inc.: box 16 107,100; Halvorsen Data LLC: 22,469 state wages through the move per the paystub (box 16 says 111,300). State-source wages are 129,569, so 88,831 is overstated.

EvidenceBox 16 state wages (CA) (D08, page 1)YTD California taxable wages through 07/15/2025 (D73, page 1)Box 16 state wages (CA) (D09, page 1)Box 12 code W (D08, page 1)Box 12 code W (D09, page 1)Questionnaire: Is there anything else we should know?Our check CHK-STATE-WAGES-RESIDENCY · Residency and sourcing
Needs review✦Wages - California amount, 218,400: income that may sit in the wrong state or period

California wages follow the W-2 box 16, which wrongly coded Texas-period work as California; wages earned after the July 15 move are not California source.

Evidence2025 Form W-2 - Halvorsen Data LLC (Ngozi Okafor), page 1
218,400CA -5,685 estimate
BlockerAIConfident mistake
Election available: Studio equipment (38,000): elect section 179 instead of 100% special depreciationF4562-C.12 · 1 AI suggestion

The engine computed this alternative ("equipment_section179"): federal no change, California -1,050. It costs nothing anywhere and lowers the total; the return keeps the default. Record the choice and why.

EvidenceEquipment - printer (D22, page 1)Equipment - camera (D22, page 1)Equipment - workstation (D22, page 1)Delivered and installed (D22, page 1)ca_section179_limitOur check CHK-CHEAPER-ELECTION · Cheaper election available
Needs review✦Section 179 expense deduction, 0: election opportunity

Electing section 179 instead of special depreciation leaves federal tax unchanged but lowers California tax, which allows section 179 but not bonus depreciation.

EvidenceInvoice - Vantage Imaging Supply (equipment), page 1
0CA -1,050 estimate
BlockerAIConfident mistake
Sales at zero basis while Corvane stock plan supplemental tax statement 2025 gives the basisF8949.B.N1 · 1 AI suggestion

3 sale lot(s) carry a blank broker basis read as 0.00, so the whole proceeds are taxed as gain. Corvane stock plan supplemental tax statement 2025 lists the adjusted basis for the same shares (same acquisition dates), and the lines do not cite it. B.N1: basis read blank (0.00), 19,100.00 on the supplement; B.N3: basis read blank (0.00), 19,100.00 on the supplement; E.N4: basis read blank (0.00), 9,420.00 on the supplement. Income already taxed as wages would be taxed again.

EvidenceLot N1 cost basis (D28, page 3)RSU-2502 adjusted cost basis (D11, page 2)RSU-2502 date acquired (D11, page 2)Lot N3 cost basis (D28, page 3)RSU-2505 adjusted cost basis (D11, page 2)RSU-2505 date acquired (D11, page 2)Lot N4 cost basis (D28, page 3)RSU-2308 adjusted cost basis (D11, page 2)RSU-2308 date acquired (D11, page 2)Our check CHK-LOT-SUPPLEMENT-BASIS · Blank read used as zero
Needs review✦Corvane Systems Inc (RSU) (acquired 2025-02-15, sold 2025-02-18; proceeds 19,240.00, basis 0.00), 19,240: something in a document the return does not reflect

RSU lots use the broker's zero basis although the supplemental statement gives adjusted basis already taxed as wages, which double-taxes the vest income.

EvidenceCorvane stock plan supplemental tax statement 2025, page 2
19,240Fed -15,536 · CA -2,445 estimate
BlockerAIConfident mistake
Repairs - property A: the 11,000 invoice reads as a replacement, possibly an improvement to depreciateSchE.14A · 1 AI suggestion

Invoice - Delta Breeze Heating & Air (1450 Fremont Way) reads "Installed new" (11,000). Replacing a whole building system is usually a betterment or restoration to capitalize and depreciate, not a repair. Decide and record the authority. The engine's own what-if "hvac_improvement" computes the improvement treatment.

EvidenceRepairs - HVAC (Delta Breeze) (D46, page 1)Invoice total (D47, page 1)Questionnaire: Rental: any big repairs or improvements?Call notes 2026-03-26Our check CHK-REPAIR-VS-IMPROVEMENT · Judgment needed
Needs review✦Repairs - property A, 13,300: A repair that may be an improvement

Replacing the whole HVAC system is a restoration of a building system, so it must be capitalised and depreciated rather than expensed as a repair.

EvidenceInvoice - Delta Breeze Heating & Air (1450 Fremont Way), page 1Capitol Keys Property Management - 2025 owner statement (1450 Fremont Way), page 1
13,300Fed +3,633 · CA +896 estimate
BlockerAIConfident mistake
Self-employed health insurance deduction taken although the client says employer coverage was availableSch1.17 · 1 AI suggestion

Sch1.17 deducts 14,400. The deduction is not allowed for a month the person could join a subsidized employer plan, including a spouse's. The questionnaire says: "Yes - both of Ngozi's employers offer family coverage, but Erik kept his own individual plan because he likes his doctors." Last year's preparer denied it: "No self-employed health insurance deduction: Erik was covered on Ngozi's employer plan in 2024." The engine rule applies only the income limit.

EvidenceQuestionnaire: Was Erik eligible for health coverage through Ngozi's employer in 2025?Total premiums paid 2025 (D25, page 1)Prior year: Return 2024, Notes, Sch1.17Our check CHK-ANSWER-GATES-DEDUCTION · Client answer vs line
Needs review✦Self-employed health insurance deduction, 14,400: A deduction or credit that may exceed a limit

No deduction is allowed for any month he was eligible for a spouse's subsidized employer plan, and the client confirms both employers offered family coverage.

EvidenceHealth insurance premium statement 2025 - Erik Lindqvist (individual plan), page 12025 Form W-2 - Halvorsen Data LLC (Ngozi Okafor), page 1
14,400Fed +4,464 · CA +605 estimate
Check
CheckConfident mistake
Provider tax ID misread on Little Sprouts Learning Center - 2025 statement (Theo)F2441.1b

The page prints 74-3829156; the pipeline read 74-3829516 at confidence 0.97. The digits are transposed, and F2441.1b carries the wrong number.

EvidenceProvider tax ID (D62, page 1)Our check CHK-PRINTED-VS-READ · Two sources disagree
4,200
CheckConfident mistake
F2441.1a names "Bright Oak Preschool"; the document says "Bright Oak Kids Club"F2441.1a

The line's party name "Bright Oak Preschool" appears nowhere on Bright Oak Kids Club - 2025 statement (Theo), which is issued by Bright Oak Kids Club under tax ID 68-0412257. The tax ID is right; the name on the form should match the document.

EvidenceProvider tax ID (D61, page 1)Total paid (D61, page 1)Our check CHK-LABEL-VS-DOCUMENT · Two sources disagree
5,400
CheckAIConfident mistake
Lone Star Kids Auto Donation - 2012 Subaru Outback (VIN 4S4BRBCC2C3209921): 6,000 from the client's estimate, 2,900 on the 1098-CF8283.A1.vehicle · 1 AI suggestion

F8283.A1.vehicle takes 6,000 from the client's answer ("Donated stock to our donor-advised fund in December, and donated our old Subaru in August - Kelley Blue Book said about 6,000."). 2025 Form 1098-C - Lone Star Kids Auto Donation (2012 Subaru Outback) reports box 4c gross proceeds from sale 2,900. When the third-party form fixes the amount, the return uses it.

EvidenceQuestionnaire: Charitable: non-cash giftsBox 4c gross proceeds from sale (D66, page 1)Our check CHK-CLIENT-VALUE-VS-DOCUMENT · Two sources disagree
Needs review✦Lone Star Kids Auto Donation - 2012 Subaru Outback (VIN 4S4BRBCC2C3209921), 6,000: A deduction or credit that may exceed a limit

A donated vehicle the charity sold is limited to the gross proceeds on Form 1098-C, not the Kelley Blue Book value the client gave.

Evidence2025 Form 1098-C - Lone Star Kids Auto Donation (2012 Subaru Outback), page 1
6,000Fed +806 · CA +149 estimate
CheckAIConfident mistake
Interest - Northlake Bank, N.A. repeats Interest - Northlake Securities - bank sweep (composite 1099-INT)SchB.1.2 · 1 AI suggestion

Two lines report 1,840 each, from two documents that print the same account (ending 7731). One payment shown on two forms is one line of income; SchB.1.2 counts it again.

Evidence1099-INT box 1 interest (Northlake Bank sweep) (D28, page 1)Box 1 interest income (D29, page 1)Our check CHK-DUP-PAYER · Value counted twice
Needs review✦Interest - Northlake Bank, N.A., 1,840: double counted interest

The standalone Form 1099-INT reports the same sweep interest already on the composite statement, so the interest is counted twice.

Evidence2025 Form 1099-INT - Northlake Bank, page 1Northlake Securities 2025 consolidated Form 1099 (Ngozi Okafor), page 1
1,840Fed -640 · CA -127 estimate
CheckAIConfident mistake
Vehicle mileage log 2025 (scanned, 4 pages): page 3 repeats page 2SchC.44a · 1 AI suggestion

Every value read from page 3 (89 values) matches page 2, so it is the same sheet twice. SchC.44a adds both pages, counting 3,700 twice, which flows into SchC.9.

EvidenceVehicle mileage log 2025 (scanned, 4 pages), page 2Page total miles (D23, page 3)Our check CHK-DUP-PAGE · Value counted twice
Needs review✦Business miles (Part IV), 11,800: duplicate page counted

Business miles add the page total from a second scan of the same May-August sheet, overstating miles and the standard mileage deduction.

EvidenceVehicle mileage log 2025 (scanned, 4 pages), page 3
11,800Fed +919 · CA +80 estimate
CheckAIConfident mistake
Home mortgage interest and points reported on Form 1098: the payoff statement is added on top of the Form 1098 that includes itSchA.8a · 1 AI suggestion

SchA.8a includes 2,150 from the payoff statement as a separate amount, but that statement says it is reported on the Form 1098. The same 2,150 is counted twice.

EvidenceInterest to payoff (D56, page 1)Box 1 mortgage interest (D55, page 1)Box 6 points paid on purchase (D55, page 1)Our check CHK-DUP-LENDER-STATEMENT · Value counted twice
Needs review✦Home mortgage interest and points reported on Form 1098, 21,847: double counted interest

Payoff interest is already in the Form 1098 box 1 total, so adding the payoff statement interest counts it twice.

Evidence2025 Form 1098 - Lonestar Mortgage (home, July-November), page 1Lonestar Mortgage payoff statement (11/20/2025), page 1
21,847Fed +559 · CA +103 estimate
CheckAIConfident mistake
2025 estimated tax payments: 13,000 on the return, 12,000 on the IRS account transcriptF1040.26 · 1 AI suggestion

F1040.26 claims 13,000; the IRS account transcript credits 12,000 of estimated payments to tax year 2025. Part of the line rests only on a client answer (qa-41), never reconciled to the agency. The return overstates payments by 1,000.

EvidenceEstimated payment 2025-04-15 (D67, page 1)Payment date 1 (D67, page 1)Estimated payment 2025-06-16 (D67, page 1)Payment date 2 (D67, page 1)Estimated payment 2025-09-15 (D67, page 1)Payment date 3 (D67, page 1)Questionnaire: Federal estimated payment for the 4th quarter: date and amountAgency record: IRS account transcript 2025, #1Our check CHK-PAYMENTS-VS-AGENCY · Tie-out to agency record
Needs review✦2025 estimated tax payments, 13,000: something in a document the return does not reflect

Fourth-quarter payment taken from the client's guess of 4,000; the IRS transcript shows 3,000 on 2026-01-15, so estimated payments are overstated.

EvidenceEFTPS payment confirmations (2025 estimated tax), page 1
13,000Fed +1,000 estimate
CheckAIConfident mistake
Interest - Sparbanken Norrland (SEK 18,450.00 at 10.56 SEK/USD): converted at the 2024 average rate, not the 2025 averageSchB.1.6 · 1 AI suggestion

SEK 18,450 of 2025 income was converted at 10.56 (2024_average). Income uses the tax year's average rate, 9.86 (2025_average), which gives 1,871, a change of 124.

EvidenceInterest credited (SEK) (D36, page 1)fx.SEK.2024_averagefx.SEK.2025_averageOur check CHK-FX-RATE-YEAR · Field the rule ignores
Needs review✦Interest - Sparbanken Norrland (SEK 18,450.00 at 10.56 SEK/USD), 1,747: A payment or event that may sit in the wrong year

2025 Swedish interest was converted at the 2024 average rate; at the 2025 average rate it is about 1,871 dollars, not 1,747.

EvidenceSparbanken Norrland - 2025 year-end statement (Swedish, SEK), page 1
1,747Fed +43 · CA +9 estimate
CheckConfident mistake
Penalty (regular method) leaves out excess social security tax as withholdingF2210.19

The penalty treats 25,400 as withholding. Excess social security tax (Sch3.11, 3,342) counts as withholding too. Recomputing the regular method (installments of 10,328, 7.000000000000001% to 2026-04-15) reproduces the engine's 164 with 25,400, and gives 17 with 28,742.

EvidenceBox 4 social security tax withheld (D08, page 1)Box 4 social security tax withheld (D09, page 1)Employer name (D08, page 1)Employer name (D09, page 1)fed_underpayment_rateOur check CHK-PENALTY-WITHHOLDING · Field the rule ignores
164Fed -147 estimate
CheckConfident mistake
Credit for net income tax paid to Oregon (composite, resident-period share) is not limited to California's tax on that incomeScheduleS.credit

ScheduleS.credit = 1,580 other-state tax x 195/365 = 844. The credit is limited to California's own tax on the double-taxed income: 9,830 / California AGI 305,349 x regular tax 19,718 = about 635. Credit overstated by about 209; attach the statement for the composite return.

EvidenceOregon composite tax paid for shareholder (D39, page 2)Box 1 ordinary business income (D39, page 1)ca_resident_daysyear_daysOur check CHK-OTHER-STATE-CREDIT-LIMIT · Limit or cap
844CA +209 estimate
Check
Prior preparer's open item never resolved: 2023 Form 3520 (foreign inheritance over 100,000)D07

The prior preparer left "2023 Form 3520 (foreign inheritance over 100,000) - discussed? (no note of resolution)". No document, answer or diagnostic in this engagement resolves it, though D36, qa-07 mention the same fact. Carry it as a tracked item with an owner and a resolution.

EvidencePrior year: Prior preparer workpaper, Open items left by prior preparer, #42024 workpaper file from prior preparer (export)Sparbanken Norrland - 2025 year-end statement (Swedish, SEK)Questionnaire: Did you have any foreign bank accounts or assets?Our check CHK-PRIOR-OPEN-ITEM · Open item never closed
CheckEngine warningConfident mistake
Meridian Brokerage 2025 consolidated Form 1099 - CORRECTED (joint): page 32 never read, yet the return uses it as completeD31

The extraction is partial (Page 32 ('Additional transactions') was not read by the pipeline.). The unread page prints 1 more sale(s) with proceeds 250.00 that no return line carries. Summary proceeds less the extracted lots leave a gap of 250, exactly the unread sales.

EvidenceMeridian Brokerage 2025 consolidated Form 1099 - CORRECTED (joint), page 321099-B summary total proceeds (D31, page 1)Our check CHK-UNREAD-PAGE · Blank read used as zero
The engine's own note on this itemwarningBROKER_SUMMARY_DETAIL_MISMATCHMeridian 1099-B summary proceeds 71,965.00 differ from the sum of extracted lots 71,715.00.
Fed -21 estimate
CheckAIConfident mistake
Mixed-use expenses deducted at 100% although the client gave a business shareSchC.25 · 2 AI suggestions

The call notes give the business share: Telephone 2,160: 70% business; Internet 1,320: 50% business; Software and subscriptions 216: personal. SchC.25 and SchC.27a.1 still deduct the full amounts. Personal part: 1,524.

EvidenceCall notes 2026-03-26Telephone (D14, page 1)Internet (D14, page 1)Software and subscriptions (D14, page 1)Spotify Family (D15, page 1)Our check CHK-BUSINESS-SHARE-FROM-NOTES · Client answer vs line
Needs review✦Utilities (telephone and internet), 3,480: A business-use share that differs from what the client said

The family phone plan and shared home internet are deducted in full; the client estimates business use at about 70% and 50%.

EvidenceLindqvist Studio - transaction detail for selected accounts, page 2
Needs review✦Other expenses - software and subscriptions, 6,850: personal expense deducted

The family music subscription is personal and was booked to software by mistake, so it should come out of business expenses.

EvidenceLindqvist Studio - transaction detail for selected accounts, page 1
3,480Fed +541 · CA +47 estimate
CheckEngine warningConfident mistake
2024 return claimed 300 sq ft for the Sacramento office; the client measured 220D06

The 2024 SchC.30 used 300 sq ft (Home office (simplified, 300 sq ft) Simplified method, 300 sq ft.). The same room measures 220 sq ft (Home office measurements (client note)). The prior year looks wrong, not this year; about 400 of 2024 deduction was overstated. Record it and tell the client; too small to amend alone.

EvidencePrior year: Return 2024, Lines, SchC.302024 Home office (simplified, 300 sq ft) (D06, page 5)Sacramento office square feet (D24, page 1)Our check CHK-PRIOR-YEAR-FIGURE · Prior year vs documents
The engine's own note on this iteminfoHOME_OFFICE_AREA_CHANGEHome office area (average 240 sq ft) differs from 2024 (300 sq ft).
Judgment
JudgmentAIConfident mistake
SEP deduction: 2,786 contributed above the limit, never flaggedSch1.16 · 1 AI suggestion

The contribution was 18,000; Sch1.16 deducts 15,214, the computed limit. The excess of 2,786 is carried out as "sep_contribution_not_deductible_for_2025" with no diagnostic. A nondeductible contribution can draw an excise tax unless withdrawn (the rate is not in the packet, so no amount is estimated). Decide whether to withdraw the excess or keep it and file for the excise, and tell the client. The limit falls if Schedule C profit changes.

EvidenceSEP contribution for 2025 (D26, page 1)Our check CHK-SEP-LIMIT · Limit or cap
Needs review✦Total other taxes, 19,160: A deduction or credit that may exceed a limit

The SEP deposit exceeds the computed deduction limit; the excess needs timely withdrawal or a 6% excise tax, and neither is addressed.

EvidenceSEP-IRA contribution confirmation (Erik Lindqvist), page 1
15,214
JudgmentEngine warningConfident mistake
Home office (simplified method, average 240 sq ft x $5): one simplified figure for two homesSchC.30

The office moved between 2 homes this year (Sacramento office square feet 220; Austin office square feet 260). The simplified method may be used for one home only in a year; the other needs the regular method. Choose per home and record why. The estimate shown uses the later home alone, by the simplified method.

EvidenceSacramento office square feet (D24, page 1)Austin office square feet (D24, page 1)Austin office first used (D24, page 1)Our check CHK-HOME-OFFICE-ONE-HOME · Judgment needed
The engine's own note on this iteminfoHOME_OFFICE_AREA_CHANGEHome office area (average 240 sq ft) differs from 2024 (300 sq ft).
1,200Fed +195 · CA +17 estimate
Info
InfoConfident mistake
4 sum lines whose listed inputs do not add upSchCA540NR.1.D

SchCA540NR.1.D = 218,400 lists SchCA540NR.1.A; inputs omit SchCA540NR.1.C. SchCA540NR.2.D = 6,040 lists SchCA540NR.2.A; inputs omit SchCA540NR.2.B. SchCA540NR.12.D = 112,254 lists SchCA540NR.12.A; inputs omit SchCA540NR.12.C. SchCA540NR.17.D = -12,314 lists SchCA540NR.17.A; inputs omit SchCA540NR.17.B. The value may be right, but the trace a reviewer follows does not reach it.

EvidenceBox 16 state wages (CA) (D08, page 1)Box 16 state wages (CA) (D09, page 1)Box 12 code W (D08, page 1)Box 12 code W (D09, page 1)1099-INT 3 U.S. Treasury interest (D31, page 1)Studio equipment - printerStudio equipment - cameraStudio equipment - workstation1450 Fremont Way - appliancesCA share of box 2 (D38, page 1)Our check CHK-INPUTS-DO-NOT-SUM · Trace gap
218,400
Flagged by the AI only
Needs reviewAIEngine warning
✦BTC 0.05 units (acquired 2025-06-01, sold 2025-06-18; proceeds 5,325.00, basis 0.00), 5,325: A client answer that conflicts with the returnF8949.H.C6
Needs review✦AI suggestion

The client says this bitcoin was bought in March 2021 with bank proof of cost, so zero basis and a short-term holding period are likely wrong.

EvidenceCoinhaven transaction history export (CSV), page 1
The engine's own note on this itemwarningDIGITAL_ASSET_BASIS_MISSINGCoinhaven lot C6 has no cost basis (transfer in from external wallet). Engine used zero basis and the transfer-in date.
5,325medium confidence
Needs reviewAI
✦Box B totals (proceeds 37,720.00; basis 0.00; adjustments 0.00), 37,720: something in a document the return does not reflectF8949.B.total
Needs review✦AI suggestion

The unread supplemental page holds a sale missing from Form 8949, which explains the gap between the broker summary and the extracted lots.

EvidenceMeridian Brokerage 2025 consolidated Form 1099 - CORRECTED (joint), page 32
37,720high confidence

19 AI suggestions on 18 items (some items carry more than one); open a row to see each one.

An AI agent investigated the whole packet with the app’s own tools, identifiers masked, and suggested issues with quotes. Its suggestions appear only on the final computed version, after each quote is found on its page, and a person accepts or dismisses each one. The mistakes our checks catch were found during an AI-assisted review of the packet and are now caught by deterministic checks.

From the engine (11, v3)

The engine’s own diagnostics, shown as it reported them. They are not our checks and are not counted as findings.

warningDIGITAL_ASSET_BASIS_MISSINGCoinhaven lot C6 has no cost basis (transfer in from external wallet). Engine used zero basis and the transfer-in date.EvidenceC6 digital asset (D34, page 1)C6 date sold (D34, page 1)C6 gross proceeds (D34, page 1)C6 date acquired (D35, page 1)C6 cost basis (D35, page 1)Named by an AI suggestion (not one of our checks): BTC 0.05 units (acquired 2025-06-01, sold 2025-06-18; proceeds 5,325.00, basis 0.00), 5,325: A client answer that conflicts with the return
infoAMT_CREDIT_CARRYFORWARDAMT arises from the incentive stock option exercise (a deferral item); a minimum tax credit carryforward to 2026 is expected (Form 8801 next year).EvidenceAlternative minimum tax (F6251.11)Not covered by our checks
infoAOTC_PHASED_OUTAmerican opportunity credit fully phased out by modified AGI.EvidenceAOTC after phase-out (F8863.7)Not covered by our checks
infoFBAR_OUTSIDE_RETURNForeign account maximum exceeds 10,000 USD: FinCEN Form 114 (FBAR) is due separately (not part of this return; not in engagement scope).EvidenceForeign deposit account - maximum value (USD at 12/31 Treasury rate) (F8938.1.max)Not covered by our checks
warningFORM_1099_FILINGSchedule C: client paid two contractors 600 or more and has not filed Forms 1099-NEC.EvidenceMade payments requiring Forms 1099 (SchC.I)Filed or will file required Forms 1099 (SchC.J)Not covered by our checks
warningDUE_DILIGENCE_REQUIREDForm 8867 must be completed by the preparer for the child tax credit and credit for other dependents.EvidencePaid preparer due diligence checklist (CTC/ODC claimed) (F8867.status)Not covered by our checks
warningCA_AMT_NOT_COMPUTEDCalifornia AMT (Schedule P 540NR) not computed: review incentive stock option exercise for California-source allocation.EvidenceIncentive stock options (F6251.2i)Covered by our check: Alternative minimum tax (Schedule P): never computed, though its input carries an amount
warningQUESTIONNAIRE_SALES_CONFLICTQuestionnaire answer: no investments sold. Documents show 282 brokerage sales and 12 digital asset dispositions.EvidenceQuestionnaire: Did you sell any stocks, bonds, mutual funds or other investments in 2025?Not covered by our checks
warningLOW_CONFIDENCE_READHandwritten receipt amount read with low confidence (0.41).EvidenceCash gift amount (D64, page 1)Not covered by our checks
warningBROKER_SUMMARY_DETAIL_MISMATCHMeridian 1099-B summary proceeds 71,965.00 differ from the sum of extracted lots 71,715.00.Evidence1099-B summary total proceeds (D31, page 1)Covered by our check: Meridian Brokerage 2025 consolidated Form 1099 - CORRECTED (joint): page 32 never read, yet the return uses it as complete