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For tax season this year I want a summary page for all of the Sch E's. Thank you, Santa.

I gave a little speech this year right before we prayed. Since my youngest Grandson and his wife just bought their first home and the entire family that my husband and I are the heads of, were here. I pointed out how thankful we are and how proud we are of all of them. I said that we were very thankful for the life we have built together over 64 years of marriage and hope that they all take something away from our example. However, this Great-Grandma is getting tired and it may soon be time to pass the torch. Since I don't have a daughter, they will have to figure that out. When I heard my Grandson say "Nobody's dressing tastes like Grandma's", my heart swelled. I am certainly not giving up on life or the work that I do in this office. It was just time to contemplate! And, then we prayed!

I am recommending payments NOW (whether via coupon-and-check, or Direct Pay), and e-file later.

To all you great Americans

Please tell me I'm not the only accountant geeky enough to plan out the meal prep timing on Excel!

IRS has an audit technique guide on legal settlements. My reading of that guide leads me to conclude that settlements due to death are generally not taxable. if the settlement earns interest of course that will be taxable. I always read a copy of the settlement document.

If depreciation was never deducted then a Form 3115 needs to be filed correcting the depreciation which would allow the deduction of the combined years of depreciation in the current year. Then the sale of the house could be recorded using the correct accumulated depreciation. "Form 3115, Change in Accounting Method, is used to correct most other depreciation errors, including the omission of depreciation. If you forget to take depreciation on an asset, the IRS treats this as the adoption of an incorrect method of accounting, which may only be corrected by filing Form 3115."

(Oldy but goody, adjusted for clean speech - extrapolate on your own) Choose a new password: potato Sorry, password must contain at least 8 letters. boiled potato Sorry, password must contain at least one number. 1 boiled potato Sorry, password cannot contain spaces 50bleepingboiledpotatoes Sorry, password must contain capital letters. 50BLEEPINGboiledpotatoes Sorry, capital letters must not be consecutive. IwillShove50BleepingBoiledPotatoesUpYourPosterior,IfYouDoNotGiveMeAccessImmediately Sorry, password must not contain punctuation. NowIamSeriouslyGettingPissedOffIwillShove50BleepingBoiledPotatoesUpYourPosteriorIfYouDoNotGiveMeAccessImmediately Sorry, you can't change your password to a password that has already been used with this account. Choose a new password :

I only respond to surveys when I know my response is going to affect outcomes or future actions. You know, things like political surveys, Medicare Supplement signups, car warranty advisories, bank customer service follow-ups. All those things that really have an impact…

The day after is a REALLY great day for the cook!!!

The day after is a great day too!

I don't think I will be doing tax returns in 2923.... Tom Longview, TX

I have become a big fan of direct pay, after several cases of "missed " postings or "un-identified " deposits. I am not a fan procrastinting payment. And, I also agree with postponing filing awaiting e-file. E-file more positive than "human" . YMM

Two full days of Webinars attended via Iowa State University. I hope that I am at least a little smarter. A lot to absorb in a couple of long days. However, I am one step closer to Tax Prep Season 2024.

I get to tell stories about the part of our family who were here before the pilgrims.

I did the same thing this morning, took me nearly 2 hours to print, punch, and prepare a hard copy notebook. I will also be attending Auburn's seminar in Pelham, AL in December. I see people with notebook computers that don't have to print, but the batteries don't last and there are not enough power outlets. The Auburn school is the ages-old "Farm Seminar" developed by U of Illinois decades ago. The material is still well-written, plenty of demonstrative examples which speak to us in plain straightforward language, not some stilted ethereal cumbersome phraseology.

I don't do tons of representation, but the information I've gotten from these has been enormously helpful. I've staved off more in-depth audits, I've known exactly how to respond to some of the stranger letters that clients get, I've known more what and how to ask about oddities I see in paperwork. Further, I know exactly when something starts to look like more than I want to handle, and who to contact in that case.

My one useful reminder here. If you are waiting or looking to see if a certain tax form is available, check the tax agency's web site before asking the tax form software vendor. For the IRS: https://www.irs.gov/forms-instructions-and-publications I click on the posted date until it sorts to latest first, then scroll for the latest date (something I look at nearly every day). You can also use the search to look for a specific form. I have never seen any non public availability, so it is likely the case if not in this list, it cannot possibly be included in your tax software either. Over the years, the reports here are anything from a few days to a few weeks between form release and form including in your tax software. With fewer using paper forms, the delay is likely all programming and priority (meaning volume), not any sort of wait for IRS approval. For DRAFT IRS forms: https://www.irs.gov/draft-tax-forms Use the drafts to get an idea, but while not often, they sometimes change from raft to release. The one draft form I will usually include before release is 940a, as the form rarely changes other than the credit reduction % (which is known weeks before the form is released). And as always important this time of year, and never too often to reconsider, there is no such thing as an accounting emergency! which ties nicely to what our medical student offspring will say "this too shall pass", coupled with drink more water!.

I have clients for whom Form 8938 is required, and that is a tax issue. I wanted it very clear in the engagement letter that the requirements are different, and that they are on their own for the FBAR. I don't want a case of someone not filing, then blaming me for not being clear enough. If it's in the eng ltr, they were told clearly *and* accepted it.

In the same boat, but some owe. I'm giving clients a choice between mailing now or waiting until January to e-file. HOWEVER, I'm telling them to PAY NOW via IRS's DirectPay and the state's versions, so they have immediate confirmations of their payments. I'm open to better suggestions...

The e-signature for a 2848 also has to be approved by the taxpayer through their own online account. Forget that! Not sure I have even one client whom I would trust to do that correctly. I have uploaded wet-signed-and-scanned 2848s to the online submission portal and had them accepted. Faster than faxing them! As far as I've ever been able to tell, Memphis CAF uses the faxed pages as paper airplanes. They don't seem ever to get them entered. I always faxed to Ogden - those at least get entered.

I think you have a good grasp on this. They need to do a couple things: #1 DON'T MESS UP THE CURRENT PAYMENT AGREEMENT. Stay on schedule at all costs. #2 manage the withholding so that he pays more and she pays little or none. Then you don't have to worry about innocent spouse #3 make sure the property that has a lien on it stays out of the marital property. Those liens can be vague and apply to "all bank accounts" so a joint account might bring her assets in a joint account under the lien. Make sure you client knows what the lien covers. Tom Longview, TX

With both of your questions, I had a 2553 denied for improper signature from Verifyle who is approved by the IRS. They required a wet signature. I had this looked into by an upper level person from the IRS whom I met in a tax update class and the response was "wet signature" For the 2848 I have had them accept a digital signature and reject a digital signature. I've not ever been successful using the online method or the account method to obtain a 2848. so again, to save headaches, I just get a wet signature and be done with it.

Our now-retired dentist, when he wanted to keep an eye on something, would say "One of three things will happen. It will get worse, it will get better, or it will stay the same." With the first, you act. With the second, you give thanks. With the third, keep watching!

That is correct, assuming he was the original sole owner of the stock and did not aquire through purchase, inheritance or gift. That is correct. Since the C-corp is a separate taxable entity, retained earnings do not change basis and are subject to double taxation. His basis equals his investment; internal transactions do not change it with a C corp.

Had one last year. Client received a W-2 for the part of settlement that was for back wages and a 1099 for the rest of the settlement. I also asked for a copy of the final judgement that showed the break down between pain and suffering, emotional distress, medical payments , and punitive damages.

My mother-in-law had a SEVEN-DAY to-the-minute pre-Thanksgiving schedule. Starting from cleaning the refrigerator to make room for it all, grocery lists for serving by number of people, then when to take the turkey out of the freezer to thaw in the fridge, to when pie crusts were prepared, then pie fillings, side dishes, stuffing, and more. She even had charts, on grid paper, comparing roasting times by weight for stuffed versus unstuffed turkeys, plus suggestions for coping with the chaos and dealing with leftovers. It was truly astounding. But this also pre-dated Excel, so it was all on 5x8 index cards, plain paper, and grid paper. 31-page pdf from her paper records. Does that still count?

"Between Nov 27, 2023, and Jan 19, 2024, tax pros may be randomly selected to participate in a voluntary phone survey. This is not a scam. Please don’t hang up. Responses will help the IRS improve services to the tax pro community and the taxpayers they serve. The survey will be conducted by ICF, an independent research firm hired by the IRS. It will take about 20 minutes to complete, and covers topics including e-filing, due diligence requirements, data security, and electronic document submission. All responses are anonymous and confidential. Tax pros will not be asked to provide any personal info about themselves or their clients If tax pros are contacted, it will be Monday through Friday between 8:30AM - 6:30PM local time and they’ll see a Kansas City (816) area code on their caller ID." Hopefully this result in some useful changes.

It is well worth 20 minutes of my day to provide input to the IRS. I'm a big believer in data acquisition, and I still hang onto what little hope I have left, because being hopeless is not an option.

Since they're not on my known caller list, they will reach my voice email. They're free to speak to it as long as they wish.

I agree, I am comfortable with 5 minutes, 10 minutes max.

The AICPA has published some very useful guidelines: https://www.cpai.com/Education-Resources/my-firm/Tax-Services/What-accounting-firms-need-to-know-about-CTA?refID= Two key points: "To help reduce the likelihood of claims asserting a failure to advise a client of CTA, consider sending a newsletter or other general client notification letter to all clients informing them of CTA and its reporting requirements. Retain a copy of the newsletter as well as the distribution list. " "Unless specifically engaged to provide CTA assistance under a separate engagement letter, include a provision in all engagement letters, regardless of service, disclaiming a responsibility to do so. A sample provision is provided in this Risk Alert." After reading this, I am going to draft a separate letter notifying my clients of the CTA and the reporting requirements declining to provide any services or advice related to the CTA and it's reporting requirements which I will require my clients to sign in addition to my annual tax authorization/engagement letter.

Too bad they don't let us use emojis in the password. I think I'd use (unless the various hand emojis were permitted).

"In some of our reports, we called IRS customer service numbers and made tax payments. These techniques help us understand the experience you have interacting with the IRS ─ and opportunities to improve it. Here’s a snapshot of what we've found. We called 102 IRS customer service telephone numbers during this year’s tax filing season. We found that 21 of the lines placed us on hold for more than 30 minutes before we ended the call. We made tax payments with cash at retail stores that partner with the IRS. We described the process as convenient (especially for taxpayers without bank accounts) and determined our payments were applied timely and accurately to our tax accounts. We created 5 fictitious organizations and applied for tax-exempt status using a simplified application form (Form 1023-EZ) to test its effectiveness. The IRS approved 4 of our applications ─ and included them on a list of organizations that can receive tax deductible." The approval of 4 fictitious non profits is troubling.

I'd expand a bit on Tom's advice. This is an instance where I'd advise thinking long and hard about putting any assets into joint names. The operating checking account (for the electric bill and groceries and the like) should be fine, but I'd keep everything else separate. Further, if the financially stable person has any health issues or is in a risky profession, the couple should talk to a trust attorney and consider if that person's assets be placed in a trust whose secondary beneficiary is the spouse-to-be, for their benefit but not for their ownership. This gets into legal areas and I'm not giving legal advice - just advice to talk to someone able to give legal advice! Trustee who is not the liened spouse would have to be chosen, perhaps a trigger for wrapping up the trust once the IRS issues are resolved (or not, if the spouse-to-be is still bad with money). It would not be simple or cheap, but possibly less expensive (and peace-of-mind-bringing) than the idea of leaving substantial assets in the hands of one with a track record of making poor choices and bad decisions.

Generally retiree health insurance benefits are not taxable. But in this case the reimbursements are not part of a group plan so the reimbursements are probably taxable income. Second SEHI is limited to Schedule C Taxable Income. The OP doesn't mention whether the clients Schedule C makes a profit. Also, how old is his wife is she still working and does she have access to group health benefits?

Another clue is since the IRS csv is limited to 100 forms, but is not restricted to only 100 forms per EIN, multiple submissions is not an issue. On another note, I would add a late fee of some sort for those who bring in data after saying it is all there. Something someone here long ago suggested to me (along with firing at least one customer every year).

The start of the calm, before the storm. To all of us here, I wish some rest and clear minds in the next few weeks. (My storm is all Dec and Jan, and partial Feb.) And the will to remember the storm is what feeds us and ours, and that there is no such thing as an accounting emergency, not ever! so stick to your personal time at work ability, not a minute more.

I am so glad I am not in a community property state

"Drake Software is looking for experienced tax professionals to work part-time assisting other tax pros with Drake Software. For tax season 2024, we are launching a pilot program to work with seasoned professionals who have Drake Software experience to work part-time in Customer Support. Interested?" This is one way to cut Human Resource Costs.

20 minutes is just too long for a survey.

By royal fiat? Anyway, doing what Congress should have, IRS has announced for 2023, filing requirements of 3rd party payers will be the same as 2022. And 2024 will have a $5,000 threshold for issuing a 1099-K (as reported in NY Times)

I have a new favorite emoji. I found it on my phone but I don't see it here. It is an angry face like JohnH posted, but it explodes into about 20 little heads. I wish I knew how to get it from my phone to here. Best emoji ever. Tom Longview, TX

The University of Illinois Tax School still exists: University of Illinois Tax School - IRS-Approved Continuing Federal Tax Education

Yes, the return must be filed and payment made by March 1. They are multiple IRS sources to confirm. In those cases, I politely terminate the call. Then call back and talk to someone else with more knowledge. When I make the initial call, I have a copy of the POA ready to fax the rep on a separate phone line.

Yes, fiscal year returns and extensions are on the prior year form because 2023 forms are not ready yet. Just make sure you have the fiscal year dates correct in the return before efiling the extension.

Isn't it 2022 software for returns beginning in 2022? (My brain's fried right now, but giving you something to research.) And, I don't use ATX, but I e-filed Form 7004 in ProSystem fx.

Step transaction doctrine. He sells land to contractor then buy it back? I see an issue of substance over form.

Do you handle much representation? I'm currently doing my securities CE via FINRA due next October. Tax CE is done before vacation after tax season.

I've done a bunch online and will be at the NE IRS Representation Conference Nov 30-Dec 1. I think they still have online "seats" available. It's always fabulous. https://irsrepconference.com/