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Why does this continue to happen? Is there comingling of personal and business expenses for one or both of them being paid from the s corp? If so, advise that stop immediately. If it is really just unequal cash distributions, suggest a bookkeeping analysis shortly before year-end and settle up between the two before the year closes. Is the owner receiving the lesser amount aware to the extent he or she is being shorted? It may not be intentional to the size of the amount, but sometimes seemingly smallish differences do add up over time.

Thanks @Abby Normal. Year after year, I have reminded them of this, and the potential fallout should they not follow these rules. You can lead a horse to water .....

I agree completely. I have some clients - US citizens - who were living abroad when their kids were born and did not get SSNs for the kids right away when they returned. Missed some dependent credits and child tax credits; they were not very happy that no one, when they were planning their return, warned them.

https://www.revenue.alabama.gov/faqs/are-any-employees-exempt-from-withholding-tax/ Are any employees exempt from withholding tax? Yes, the chief classes of exempt employment are domestic services in private homes, merchant seamen, duly ordained ministers performing duties of their ministry, and agricultural employees. Although these wages are exempt from withholding tax requirements, the wages do represent taxable income and should be reported by the employee on their individual income tax return. Employers should provide both the employee and the Department with a copy of Form W2 reflecting the wages earned by the employee for that year. For more information on these classes of exemption, please see page 2 of the Withholding Tax Tables and Instructions for Employers.

Yup, but an ATIN is only good for ODC and CDCC, not CTC or EIC. And it was good for the Recovery Rebate Credit, which I forgot about. But the RRC also required that the SSN or ATIN be issued (or at least applied for) by the due date, so amending won't get you that either.

The adoptive parents should have filed a Form W 7A with the IRS and obtained an ATIN which would have allowed them to claim the child as a dependent along with any related tax credits. To be honest until I did some reading, I didn't know ATINs even existed.

Just wanted to point out that S corp distributions need to be proportional to the shareholders' ownership percentages. That's why ATX allocated the distributions the way it did. When this happens with one of my clients, I have them make a corrective distribution as soon as possible.

Well that's nuts. And totally unfair.

Note that the PATH act of 2015 changed the law so that one cannot use an SSN or ITIN obtained after the filing deadline to claim credits such as EITC, CTC or ODC, so there may not be any benefit to filing an amended return. From Schedule 8812 instructions and Form 1040 instructions (for EIC)

Amend; it affects each partner's basis. State that correction is to allocation of distribs only and total distributions are unchanged. You don't want rhis to be a case of inconsistent treatment by partners vs partnership.

I found a mistake on the K-1s for a corporate return I filed. The distribution amount listed in box 16, code D is wrong for each shareholder is incorrect. The sum of the two numbers is correct and matches page 3's amount on the 1120S, but the actual amount of each shareholder's individual distribution is incorrect. Would you amend only to correct the amounts in Part III, Box 16D amount? Or just give the shareholder's the corrected K-1 amounts so they can file their personal returns with accurate information?

And that's just for those who filed before 5/17/21. If you filed later, even without an extension, you have 3 years from the filing date.

The IRS made quite a few announcements that May 17, 2024 was the date.

schirallicpa, as Abby explained, you would have until the date in June 2024 to get it to the IRS. A moot point now, but IRS extended the due date of the 2020 returns for everyone to May 17, 2021, so wouldn't the 3 year portion of the rule take that to May 17, 2024 or was there additional guidance that said to use the earlier date of April? As I said, a moot point now for this case, but I'd like to know either way.

When to file an amended return Generally, you must file an amended return within 3 years after the date you filed your original return or 2 years after the date you paid the tax, whichever is later. If you filed early, count from the April tax deadline. But remember that it must be RECEIVED by the 3 year deadline. Of course, efiling makes this easier.

Client was not able to obtain a birth certificate or SS# for child they adopted in late 2020. The only recently recieved it. Can I still go back? They filed 2020 in June 2021 on extension. I keep finding that the deadline would have been April 15, 2024. But thought if they filed extension they could file amended up until the extension date. TYIA

I agree, Veteran's Day is to honor all those that have served in the military. I am a veteran, but happy. My honor to all who lost a loved one.

Memorial Day is to honor those that have died while serving. It should be a solemn day of remembrance, and it was once called Decoration Day for the activity of laying wreaths and flowers on the graves of those fallen soldiers. For some of us that have lost family and friends in war, this isn't a happy day. Veteran's Day is to honor all those that have served in the military.

HAPPY MEMORIAL DAY

My NY license #s roll forward, but not CT. NY requires a DL, no matter what state the DL is from, for a NY resident or NR return. CT does NOT require a DL, but claims they DO use it for ID purposes if it's included. IIRC, CO doesn't require a DL but strongly warns that refunds will be delayed or language to that effect. At least TN and FL don't have state returns. It's too late at night to remember the other states 8 I file.

The ones I have entered have all come forward. IIRC, this is one of the items you select to either roll forward or not when first creating the file for the year.

When the reporting went from paper forms to fill in and mail, to online only, they also instituted sky-high penalties for preparers who fill out forms, from client documents, in good faith, and completely true so far as they have any knowledge. At that point, I started telling clients - you do it. Not me. Nope. Nuh-uh. Not ever. Someone gives me wrong info and I have to pay? No way, no how, not ever. So yeah, I won't touch them because of possible vicious penalties.

Love it - in a horrified "this is SO true" sort of way.

Drake does not populate the DR License from the previous year. You have to re-enter it every year.

My information (from limited sources) tell me most CPAs and EAs won't touch this because of the penalties, and their E&O insurance won't cover them. Again, I'm not sure my sources are as numerous as to conclude anything...