Terry D

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About Terry D

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    ATX Guru
  • Birthday 08/08/55

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  1. Well what do you do with a machine that has windows 7Pro that won't update due to Microsoft issues that they have not launched a fix for. I'm talking about the infamous checking for updates for an eternity and never completing any updates. I have research extensively trying to fix this problem which is one reason I went to a Windows 10 machine.
  2. Thanks Max for the clarification. I am working with a client who filed 2006 & 2007 very late, the IRS had already assessed. We amended and corrected the tax due for both years as a result of the IRS not having all of the information for the return. It is now 2017 and the IRS is still actively seeking collections. So, again, the idea the debt disappears in this case is incorrect. As you say, the statute clock begins with the assessment. I was unclear in my post as to the start dates. I would hope no one would think if you ignore the tax for ten years it vanishes. >>>>>>In the case where a particular year is ready to expire, there should be no reason pay on it, but other years can be paid<<<<<<<< I agree totally here.
  3. Pacun not sure I agree. Once the IRS has started the collection process I don't believe the debt ever just disappears. The IRS has 7 years from the date of the filing of the return or when the return should have been filed to collect on a debt. I too had a client that had 10 years of back debt and was in the collection process. The IRS also prepared returns for this guy and the clock began to run when they prepared the returns. The only way that I am aware of to make a tax debt go away, but not in its entirety, is to file an offer in compromise. What you might be saying is if the IRS has not started the collection process in 10 years then don't attempt to pay anything on it if the expiration is around the corner. Just wondering.
  4. My niece does not work there any longer so there is nothing for her to worry about. My thought were the same as everyone else's that this could indeed open an IRS investigation. I covered that with my niece and family. My niece was given a weekly schedule just as any normal employee would be given. Due to the filings taking place within the last month, I am going to wait a few more weeks before moving forward.
  5. Ok busted, the amount on the 1099 for 2015 is $1208.00 and the amount for 2016 is $610.00. Also, I will disagree that amounts in box 7 of the form 1099 MISC automatically constitute SE income based on the two items below. The correct way to do this from the onset was for the preparer to include the amounts on line 7 form 1040 and complete form 8919 which connects with line 58 of form 1040 for amounts of unreported SS and Medicare tax. This still would return an amount due which would only be the 6..25 and 1.45 percent and not the total 15.4. So I still say amend the return to get the excess paid back. Also, the IRS penalized for failure to file and late payment. The company failed to provide the 1099 MISC in a timely manner. Ok, I know that doesn't relieve the client from the responsibility of the tax but hopefully we can get some of this abated. This is my niece and I had no intentions of charging her. I do agree that sometimes it is better to leave it alone if correcting things cost more. However, we still cannot forget the taxpayer has a responsibility to file an accurate tax return. Box 7. Shows nonemployee compensation. If you are in the trade or business of catching fish, box 7 may show cash you received for the sale of fish. If the amount in this box is SE income, report it on Schedule C or F (Form 1040), and complete Schedule SE (Form 1040). You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax. If you believe you are an employee and cannot get the payer to correct this form, report the amount from box 7 on Form 1040, line 7 (or Form 1040NR, line 8). You must also complete Form 8919 and attach it to your return. If you are not an employee but the amount in this box is not SE income (for example, it is income from a sporadic activity or a hobby), report it on Form 1040, line 21 (or Form 1040NR, line 21). Question: I received a Form 1099-MISC instead of a Form W-2. I'm not self-employed and don't have a business. How do I report this income? Answer: If payment for services you provided is listed in box 7 of Form 1099-MISC, Miscellaneous Income, the payer is treating you as a self-employed worker, also referred to as an independent contractor. You don't necessarily have to have a business for payments for your services to be reported on Form 1099-MISC. You may simply perform services as a non-employee. The payer has determined that an employer-employee relationship doesn't exist in your case. If you weren't an employee of the payer, where you report the income depends on whether your activity is a trade or business. You're in a self-employed trade or business if your primary purpose is to make a profit and your activity is regular and continuous. If you're in a self-employed trade or business, you must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ (Form 1040), Net Profit From Business (Sole Proprietorship). If you're self-employed, you'll also need to complete Schedule SE (Form 1040), Self-Employment Tax, and pay self-employment tax on your net earnings from self-employment of $400 or more. There's no withholding of tax from self-employment income. As a self-employed individual, you may need to make estimated tax payments during the year to cover your tax liabilities. If you're not an employee of the payer, and you're not in a self-employed trade or business, you should report the income on line 21 of Form 1040, U.S. Individual Income Tax Return, and any expenses on Schedule A (Form 1040), Itemized Deductions
  6. A family member (teen age Niece) had her tax return prepared. The company the girl worked for issued a 1099 when they should have issued a W-2. The amount is very small. The preparer put this amount on line 21 subject to SE tax. I am of the opinion this is incorrect. My niece is not in the business of being self-employed at the age of 17. Also, she was given a work schedule which makes her an employee. The IRS has accepted her 2015 return and assessed penalties and interest. I have instructed her parents to pay the amount due and then we will amend the return based on what I stated earlier. Anyone agree or disagree?
  7. Gail, I am so sorry for your loss. Everyone else has already given the best advice and wise comments. Prayers for comfort to you and your family as you all go through this difficult time. Update, Again, thanks to everyone for the prayers and thoughts for my mother. She is in a nursing home now and is doing a bit better. However, she will not be able to go home unless of course some miracle takes place. This is bittersweet for me as I know there are folks looking after her daily. I just returned to NC so time for some much needed rest.,
  8. That seems to be the way with NC. You call them and they won't know either.
  9. I'm not sure I agree. The paragraph doesn't mention whether the spouse itemized deductions were for federal or NC. Just sayin. If you are entitled to and claim the standard deduction on your federal income tax return, you MUST claim the N.C. standard deduction on your State return. If you itemized your deductions on your federal return, you may claim either the N.C. itemized deductions OR the N.C. standard deduction on your State return unless you are not entitled to the N.C. standard deduction. The N.C. itemized deductions are not identical to federal itemized deductions and are subject to certain limitations. If you are (1) married filing a separate return for North Carolina income tax purposes and your spouse itemizes deductions, (2) a nonresident alien, or (3) filing a short-year return because of a change in your accounting period, you are not entitled to the standard deduction. . Note 1: A Nonresident alien who is a student or business apprentice and a resident of India is entitled to a standard deduction. Note 2: A short-year return does not relate to a taxpayer who files a return as a part-year resident. The N.C. itemized deductions are not identical to federal itemized deductions and are subject to certain limitations. Note 3: A short-year return does not relate to a taxpayer who files a return as a part-year resident.
  10. Thanks to everyone for the prayers and continued prayers. My mother is doing good for the condition she has. Unfortunately, she will continue to deteriorate. She will be given quite a bit of physical therapy. Right now they are controlling blood pressure as it keeps spiking and going back down. She is now in a nursing home which is bittersweet for me. I know there will be eyes on her everyday and most of the day. On the other hand, I hate it but there is no choice. Believe this, I have just finished filing two extensions and waiting on one client to say hit the button. A few others already on extension thought I could get theirs in at the last minute including an S-Corp. of course my response was NO!! My thoughts "Are You KIDDING ME?" An S-Corp??? Sorry but I'm not good enough to get it done in one evening. God and I aren't communicating on miracles of this sort. Geez!!
  11. It is a good feeling to know that I just filed my last extension and return. So, I am done and closing shop. I would like all of my friends here to pray for my mother. She is 86 and has just been put in the hospital which is why I 'm closing now. She has PSP (Progressive Supra Nuclear Palsy) and can no longer keep her balance. This mixed with a pretty bad UTI is taking its toll. Undoubtedly, she will be moving to a rest home. PSP is a debilitating disease that is very similar to Parkinson's without tremors. The limbs become almost rigor mortise like, she will loose her voice and her eye sight is affected by limited eye movement and more than moderate sensitivity to light. I hope each of you has had a very prosperous tax season. Take some time and rest up we all deserve it. Thanks,
  12. Well I have escaped this one. My win 7 machine, which is not my main machine, won't update due to the update problems windows has had for the last two years. It tries to update but just spins for ever and a day. If anyone know a quick fix for that problem I'd be interested in hearing about it.
  13. That's like writing off the lost rent when the property is vacant.
  14. Check out the pub below. The big question here is as FDNY pointed out. Was there any type of physical injury associated with the emotional injury? https://www.irs.gov/pub/irs-pdf/p4345.pdf
  15. Well I certainly wouldn't want to ignore it in this case. Total sales were 600K and 80K were from credit card sales. I did itemize the income sources on Sch C line 1. That way the detail is reported and if the IRS would question, then we have it and the docs to back it up.