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About BHoffman

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  1. W-2 Verification Code Expands

    https://www.irs.gov/individuals/w-2-verification-code More info in the above link. I'm hoping if/when it becomes mandatory, payroll software like QB will be able to include the code.
  2. Multi entity confusion

    Update: I got the ownership info for this new client from the AZ Corp Commission website. NOW they are telling me that they intend to change the AZ LLC to a multi member, so it will a 1065 after all. I'm so glad I gave them a high estimate of fees with a retainer up front.
  3. Multi entity confusion

    I have an AZ LLC with its single member being a DE LLC. The single member of the DE LLC is a DE Corporation. The AZ LLC is a construction contractor. The DE LLC does nothing except hold the interest in the AZ LLC. The DE Corp does nothing except hold the interest in the DE LLC. Since the AZ LLC is a single member disregarded entity, what form is used? I'm thinking the operations are reported on the DE Corp 1120 and there are no tax returns filed at all for the LLCs but that seems strange....any advice?
  4. S corp stock sale - do new owners file new 2553

    Sue and Sally will show zero ending ownership percentages on their K1s. IRS does not match K1 forms like they do 1099s. I think there is a statement that shows ownership changes.
  5. S Election Revocation

    See if this helps. http://smallbusiness.chron.com/terminate-s-corp-election-revert-llc-23511.html
  6. Unreimbursed Partner Expenses

    The UPE is deducted on his Schedule E page 2 on his form 1040 and appears nowhere on the partnership tax return or his K1 from the partnership. The UPE must be shown as a separate line item on the Schedule E page 2. I'm not sure what limits the amount of UPE other than perhaps the usual issues: partner's basis, amount at risk, etc. in the event that the whole transaction (K1 income - UPE expenses) results in a loss.
  7. Sec 751 accounts receivable

    The sale is supposed to take place this year 2017, but I don't think that's going to happen. The company provides medical care and exclusively bills Medicare. The correct estimate of collectible AR is hard to determine, and they still have open AR from a year ago. I can give an educated guess that around 20% of open AR will not be collectible. I think that is going to equate to around $600k in bad debt. A material amount either way Should the company start booking an allowance for bad debt? The broker isn't going to like that. I'm going to press on the client how important it is to have the collectible amount on the books, and not just what has been billed. Judy, I did read that article and it is printed and kept in a special folder that I will refer to for this transaction.
  8. for profit organization - what form file please?

    It also might be considered an exempt social club via Sec. 501(c)7. This is sticky. Does it really rise to the level of a Sch C business? Are they in it for making profits? Is the group specifically paid for performing?
  9. penalty for late filing - not paying

    So when they get the penalty letter for $195 per month, per partner, who gets to deal with that? It takes time to prepare the penalty abatement letter. Who is going to prepare that? Who is going to pay for it? The other partners should be made aware that a big penalty is coming and they should have the opportunity to pay your fee so the return is filed on time. Let Mr. Cheapskate owe them instead of you, and sidestep the involvement of the IRS.
  10. Partnership Installment Sale of Single Asset

    Distributing the property and liquidating the partnership would be a thought. The sale agreement would need to be modified so that the sellers are the TP and Spouse, and the title should be transferred - all before the sale is completed. That can be simple or complicated, depending on many things - hot assets, outside vs. inside basis, cash distributed along with the property, debt relief, etc. I like this article regarding partnership distributions, and it gives lots of examples concerning liquidating distributions: https://www.forbes.com/sites/anthonynitti/2015/01/20/tax-geek-tuesday-understanding-partnership-distributions-part-1/#621811aa2c11
  11. 1120s sale

    You might like this article http://www.skodaminotti.com/blog/asset-deals-vs-stock-deals-for-pass-through-entities/
  12. 1120s sale

    If they sold all assets, including the name, could this be a stock sale and not an asset sale?
  13. Sec 751 accounts receivable

    I'm going to be dealing with the sale of a partnership soon. The only "hot asset" is accounts receivable. How do I determine the amount that is likely to be collectible? Historically, they have about 20% that has been uncollectible, but has not been recorded as an allowance for doubtful accounts on the books. They have been reporting taxes on the cash basis. What if, after the fact, the actual amount of collected AR is more or is less?
  14. Chronically late filers

    I like the scripts! Is 09/07 very late to find another accountant? You can't swing a cat in Phoenix without hitting one. I feel pretty good about getting off the hook here. I'm also ashamed to say that I feel sort of good that now she's the one on the hook. A little guilty, but overall pretty good.