Lion EA

Here's Joe's letter to us in the NY/CT-ATP: Dear Tom and Rita, Due to significant staffing reductions at the IRS in general and in Stakeholder Liaison in particular, I have decided to leave the IRS under a deferred resignation program. You might have heard this program referred to in the press as “the fork in the road”. This means that while I will still technically be an IRS employee until the end of September I will soon be placed on administrative leave and be unable to perform any of my official job duties. Before I leave the IRS, I just wanted to let you know that it has been my absolute pleasure to work with you over the years. As I always say … working with tax practitioners is (and always has been) the very best part of my job! I am looking forward to the next phase of my life and I wish you all the best in the future. Also, due to the significant staffing reductions, I am not sure who if anyone will be taking my place. If you wish to contact Stakeholder Liaison in the future I suggest you use the contact information in the following link: https://www.irs.gov/businesses/small-businesses-self-employed/stakeholder-liaison-local-contacts Feel free to share this information with your members. Most sincerely, Joe McCarthy CPA IRS Senior Stakeholder Liaison 150 Court Street, 5th Floor New Haven, CT 06510 203.415.1015

It was Joe McCarthy. He was indeed great. I think he said his wife took the deferred resignation, also, but I'm not sure I remember. She prosecuted the Son of Boss or one of those schemes. They're both wicked smart and probably saved well for retirement or have already found consulting jobs. I hope they go into tax teaching.

On 16 April I heard from our CT Stakeholder Liaison that he'd accepted Deferred Resignation and expected to be put on administrative leave shortly while being paid through September. By 9 May I heard from new Stakeholder Liaisons in NY (2) and NJ who are covering the northeast. I think CT's Liaison (who was great, by the way!!) was gone by 30 April. Probably the same end-date for the former NY and NJ Liaison's.

Is the Trust the ONLY member in the LLC, so it's a SMLLC? Or, does the Trust AND the husband AND the wife own the LLC, so it's a MMLLC?

Send him to IRS DirectPay so he can get a payment confirmation: https://www.irs.gov/payments

Thank you, Abby, for the great reminder. The IRS must RECEIVE the amendment by 10/13/2025. I've been forgetting that lately with e-filing. If you have to paper file, between the USPS and the IRS brokenness, who knows when the IRS will receive any given piece of mail !!!

He can file an amended return at any time. He can receive a refund if he files within 3 years, by 10/13/2025.

It used to be the an individual could get an FEIN. That way, no LLC needs to be formed with whatever state fees are due at formation &/or annually to SoS &/or DRS.

Discuss with your clients WHY they formed a MMLLC. And, if they should dissolve it to save the cost of preparing Form 1065 in the future. Did they watch a TikTok that told them they could write off anything in an MMLLC?!!

Sch 1 Line 8 j

That only works in a community property state. Otherwise, an MMLLC files Form 1065, unless they elect to be taxed as a corporation. If not entered into with a profit motive, follow the Hobby Loss Rules. How could $200,000+ ever be usual & necessary for revenue of $900, especially with NO profit motive?! Did they actually run their hobby income and expenses through the LLC bank account or LLC charge card? If they paid their hobby expenses personally and deposited their hobby income into their personal account, then you report their hobby income on Sch 1 line 8. Hobby expenses are NOT currently deductible until the sunset of the TCJA. (After the TCJA sunsets, if Congress doesn't change the law, hobby expenses will be deductible -- up to the amount of hobby income -- in the 2% miscellaneous section of Sch A.)

Room & Board does NOT qualify for the AOC, but it does qualify to make 529 Plan distributions non-taxable. Way too many details in all the different education benefits!!

Where did you hear that? Who said that? Did it have to do with a declared disaster area? Please give details if you're asking a question!

What Randall said. Make sure you have the bursar's statement, so you can see what was paid and when, along with the tuition and the scholarship(s). I've seen a couple schools include their statements right on the back or bottom of Form 1098-T, which is so very helpful. But most of the time, you need the student to login to their account and print out the CALENDAR year bursar's statement.

The amount exceeding tuition is ordinary income on the student's return.