Jump to content
ATX Community

Max W

  • Content count

  • Joined

  • Last visited

  • Days Won


About Max W

  • Rank
    Advanced Member

Contact Methods

  • Yahoo

Profile Information

  • State
  • Gender
  • Interests
    Boston Red Sox, Spanish Civil War History. Flamenco Music & Guitar

Recent Profile Visitors

3,025 profile views
  1. should be payroll but got a 1099

    Well, it is only about $2800 when you take the Adjustment. That's a little over $230/m, so a lot of people might not want to risk losing the job for that.
  2. should be payroll but got a 1099

    The first thing that struck me was that this looks more like baby sitting. or senior sitting, than health care. It doesn't look as if there is any health care, or health assistance involved and the people are not health professionals. I do have a client that pays for a person to provide for health care and other non-health tasks. He only deducts 50% of what is paid as medical. So, this could be insurance fraud unless the insurance provides for providing company and performing odd jobs. I don't know what would happen in NY, but in California you can claim that you should be treated as an employee and if the EDD decides in your favor, they will come down like a ton of bricks on the employer, with a lot of penalties. If the IRS gets involved, and they too determine that these people are employees, they can go back to each quarter and assess late payment penalties.
  3. brother buys sibling share of home

    There is an exception in California. The property has to be titled as 'Joint Tenancy with Right of Survivorship" (JTWROS), to get the full step-up basis. A revocable living trust will do the same thing, at least in CA. Don't know about other states.
  4. brother buys sibling share of home

    Could be a huge problem here, because basis is that of the donor. What was the mother's basis in the house? My family sold a large, 3 story home , near Boston, in 1951, for $6000. If the basis were something like that, basis would be $2000/child. Since it is unlikely that any records still exist, the basis could be Zero.
  5. Concealed Social Security Numbers

    The 1040 is only a preliminary document when applying for a loan. Returns are verified from the IRS transcript. That is why form 4506-T is submitted with the loan application.
  6. Thoughts Scorp Never filed 1120S

    Not a problem!
  7. Thoughts Scorp Never filed 1120S

    Reread my post. I said I would prepare ALL the missing returns.
  8. Thoughts Scorp Never filed 1120S

    Hopefully, S-corp election form 2553 was filed the first year. Otherwise, the IRS will convert them to a C-Corp. Will the IRS even process corporate returns going back 10 years? There is a lookback period of 6 years and the IRS does not require older returns to be filed. I don't know of any states that do this. So, do you inform the client of the look back period and tell him he is only morally obligated to file the older returns? What if you don't tell him and he finds out later that you did not apprise him of the situation? It could become ugly. I always prepare all the missing returns, charge them for it, and leave it to the client if they want to file the old ones or not. Most people do want to file.

    I have tried to avoid any discussion of the new tax law, but I have a client that has to start making plans for a substantial purchase of business assets. He is contemplating buying large metal ship type containers and renting them out for storage. They will be 7 year personal property as they will not be permanent structures. The new law, allow $1M Sec 179 and 100% of Bonus Depreciation. The purchase is contemplated to be $2.5 Million. It seems the 100% B.D. is unlimited. Does anyone know if this is correct? TIA
  10. 1040NR

    J-1 visas holders have a lot of issues that have to be resolved. One thing is certain, he cannot claim the wife or child. He would have to become a US Citizen, or LPR (Lawful Permanent Resident), then apply to ahve the child and wife admitted as immigrants to the US. After you read this, you may want to pass on the return. https://tax.thomsonreuters.com/wp-content/pdf/nra-tax/US_Taxation_of_J-1_Exchange_WP.pdf
  11. W-7 for dependent

    Also, for the dependents SSN on the 1040, type in "Applied for". Send both return, W-7, and documentation together to Austin.
  12. Has anyone had any problems in renewing their Eservices password? I have made several attempts and have contacted that office three times. The first time, I was gien totally misleading directions. The second time I was given a temporary password and a access code was mailed to me. After receiving the code, I attempted to log in with the temporary password, but IT DID NOT WORK. Another call and was told that the PW they gave me was correct as was all the other info supplied. Now my case gets passed up to a higher level and am told someone will call me back with one of two identifier codes, depending on who it comes from. This is to prevent phishing. The IRS couldn't give me a time frame for a response. It's been about a week now and nothing yet. Meanwhile, I can't access transcripts either from the IRS or through Canopy.
  13. POA's disappearing from IRS database.

    I have called for several clients in the last few weeks without any problem.only forwards for Tom, haven't you moved a few times in the last few years? If your address wasn't updated on the 2848, it is possible that you were sent IRS correspondence that was returned to them and your POA was removed. Some of their notices are not allowed to be forwarded. Also, USPS limits forwarding to 12 months.
  14. Help with hyphenated name

    The identifiers, beside the SSN, for individual returns consist of the first letter of the first name and the first 4 letters of the last name, so the last name can be truncated as cbslee says.
  15. S Corp Officer 401K Profit Sharing

    I don't see how the corp can contribute to a Roth. The amount should be additional salary to the wife. She can then contribute the additional amount to the Roth.