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Max W

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About Max W

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    ATXaholics Anonymous

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    Boston Red Sox, Spanish Civil War History. Flamenco Music & Guitar

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  1. IRS Audit Letter

    Catherine is right. Once a return comes under audit, you can not submit an amended return. What you can do is submit the corrected forms with an explanation.
  2. look it up - 2014 audit closes when pls?

    Prior to an audit, the IRS notifies the taxpayer of pending audit, tells what is being audited and sets a date for the audit. The letter is sent to the taxpayer's last known address If the client moved and didn't notify th IRS, too bad. An audit reconsideration can be submitted, which is all done through correspondence.
  3. It doesn't seem to matter whether the SMLLC 568 is filed or not, just as long as the $800 is paid. I've had clients that came to me after not filing the 568 for several years. On checking their status with the SOS, it was always "Active". If it were a multi-member LLC, then if not filed, it would have been Suspended.
  4. Trust Distribution

    If they refuse to accept, what happens to the money? Does it get reapportioned to the other beneficiaries, or does it stay in the trust?
  5. The main thing with a CA SMLLC is that the $800 tax is paid. If the income is over $250K, add a $900 fee. There are more levels above this. As long as the income doesn't exceed the $250K, there is no need to fill in any other information. However, if you want to do the extra work, use worksheet W. The SMLLC 568 can not be Efiled.
  6. look it up - 2014 audit closes when pls?

    An audit closes 90 days after the final determination is issued. If you don't agree with the audit results, don't have your client sign off on accepting it. Did the client have any representation at the audit? If not, the audit can be reopened with an audit reconsideration after the 90 days have passed. The 90 days is to allow time to file a tax court petition.
  7. More Trust mishandling

    I have changed my thinking on this. That would be to make 2017 the Final Return, then next year, if the management company send a 1099 for the the months prior to changing the bank account, it will be easier to deal with.
  8. More Trust mishandling

    Trust assets were completely distributed in March 2017. This when the trust should have been closed. However, the executor failed to close the trust bank account until this year. The property management company continued to send payments to the trust bank account and issued a 1099 for the rental income. So, now if the 1041 were to indicate Mar 17, 2017 as the closing date of the trust, there is sure to be a CP2000. Would the IRS accept an explanation, if it can be shown that the balance of the income after March was reported on page 1 of the beneficiaries Sch E? TIA
  9. Trust Distribution

    Thanks, for your opinions. There more of a screwup than this which will post in another thread.
  10. Trust Distribution

    Decedent Irrevocable trust specified a 1/3rd distribution to the three beneficiaries. The Executor, one of the beneficiaries decided to distribute his share to one of the others. He had the consent, not written of the other two. Effectively he changed the terms of the trust. In some states, if not most, any change has to be approved by a probate judge. The state in this case is CA. I prepped the 1041 using the 1/3rd distribution, even though one got no money and another got 2/3rd's and they want the K-1's to reflect that. Since I have to go by what the trust dictates, I don't think I should change it. Am I right on this position? TIA
  11. .....until you get caught. http://www.theprogressiveaccountant.com/Tax/feds-sue-three-florida-liberty-operators
  12. Offsetting income Schedule D

    I think the only time I've used codes is for wash sales and for the homeowners exemption.
  13. Client cashed in SSAR's and RSU's which were reported in Box 1 w-2 and form the basis. Is it better to report these as a "Offset to W-2" or to use the adjustment Code B. I prefer to use the former because there was another transaction on the same 1099B for which no basis was reported. The Offset approach provides more detail, whereas using the Adjustment Code lumps everything together. TIA
  14. RSU's & SSAR's again

    Never mind. I got the basis from the Yearly reports the client provided.
  15. RSU's & SSAR's again

    Here is a spreadsheet of the transactions for 2017. At the bottom, there is a formula for calculating the basis of the RSU's, /RLT's. on lines 6-20. Can anyone decipher it? I would be very, very grateful. 2017--Transaction_Details_.xlsx