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Problem resolved today successfully. Response was excellent. In the Client Communication Manager you select the federal client letter and the federal estimated letter and restore each, then delete all the letter options originally selected, including state letter options. Save. Then restore your original letter choices. The problem should be corrected. I was attempting this yesterday unsuccessfully. The difference seems to be that you need to delete all letter options after you have restored the one(s) where the problem was evident. I was deleting only the federal letter and the estimate letter. Today, with the assistance of support, I deleted all letter options, and then attached all letter options. That resolved the problem. Apparently the client module letter is "sensitive" to changes so restoring the letters that were showing a problem, then deleting all letters and then adding them back resolves the issue. Not sure why this problem surfaced with this particular return. I do remember there was a last minute change to the estimates just before filing. Also, the voucher amounts were correct. It was only the letter that had the incorrect amounts. I had difficulty determining what had actually been processed by the IRS as I couldn't find a verification in the ATX program to reassure me that the amounts on the vouchers were what was transmitted to the IRS. A satisfactory conclusion thanks to the support staff.

You just put your personal name on line 1 and your trade or business name on line 2,then on line 10 check . . . . "Banking purpose. Check this box if you're requesting an EIN for banking purposes only, and enter the banking purpose (for example, a bowling league for depositing dues or an investment club for dividend and interest reporting."

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.

I am finding people who do these dumb things on their own with no understanding of what they are getting in to. Example: A couple who intends to paint houses; not married; has maybe painted one or two houses so far. I refused to prepare the return because SHE already has an IRS debt and I cannot see any prospect of getting paid to prepare a 1065 and two 1040 returns. Where do people get these ideas? I believe it makes them feel important, but they have no clue what they are doing and seem to forget that, often, less is more.

I do my own calculations for Estimated Payments and in most cases have them directly withdrawn. However, this year I am having discrepancies with what we calculate and what the IRS says was actually paid. In fact, we just settled on Tuesday over a case that went back to 2022 where our numbers and theirs did not agree. I am beginning to be afraid to authorize Direct Withdrawals, even though I have my clients bring in their bank statements to prove the amounts that were taken from their bank accounts. I am finding this to be a lose/lose situation as there is no live person on the other end to argue the matter with. I had one client receive a letter stating that "we cannot apply your refund to your 2025 estimates, as requested". They gave no reason and no refund. This one is still up in the air. Something strange is going on between the IRS and clients who make payments; even payments made through pay.gov. My two cents worth. I am finding that tax season is never over until it's over and you cannot argue with a recording.

There's more than one variable for estimate amounts. I was hoping you would tell us which one EXACTLY you are using.

I don't edit letters, but i checked the variable and it links to the voucher payment, which would be 1900 in my example, All the calculations show $1900, the scheduled withdrawals are for $1900, but the estimate letter is stuck on the erroneous $2,000. I think something got corrupted somewhere.

I assume they did this so they could have an EIN and not have to give out their Social Security numbers to all of these contests. In my state, you don't say how many members are in the LLC you're forming, but when they applied for the EIN, I'm guessing they did tell the IRS that they had multiple members, and the EIN letter says the IRS is expecting a 1065. Cheapest solution is to dissolve the LLC, form a new LLC and get a new EIN for a SMLLC that will be disregarded for tax purposes.

Do you know how to edit letters? If so, which variable is used in the estimate letter section?

Yeah, I sympathize I use Drake and I do my own manual calculations and override the system calculations.

I have a client who wants to cancel his june 16 scheduled estimated tax payments. He couldn't do it when he called the IRS as my letter to him specifying the scheduled payments differ from the actual calculation in the 1040es worksheet. For example, my letter says you have 4 payments of $2,000 and the calculations shows that the payments calculated on the 1040-es planner, are for a $1900. The $1900 was deducted from his bank account on April 15. This is strange. Has anyone else encountered this? I am now worried about any other clients that may have this issue. I have tried deleting the Federal Estimate Template, and then adding it back but, it persists in showing an amount different from the 1040-es calculation

Thank you!!

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?!!

Thank you once again for your assistance!!

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!!

The parents advise the funds were paid for fees, books, and supplies so it's a moot point although I see Kiplinger a tax publication I subscribe to advises room and board do not qualify.

I did some further reading and with what was provided by members here am pretty well satisfied I understand the matter. However, on one of my queries room and board was treated as an expense which qualify as a tax free use of scholarship funds.

You can't which is why it's advised to never scan one out in public.

Two Schedule C returns filed as a Qualified Joint Venture LLC.

On that theme, a favorite of mine is "THE IRS" without the space, is "THEIRS" and that's how they see it!

GOOD question and one reason I detest those %^&Y* things.

But not the Mark of the Beast, as that is both voluntary and includes some level of worship.

Strange that no part of North Carolina is on those releases. I just returned from Asheville, NC and the flooding there was the absolute worst on either side of the state line...