Jump to content
ATX Community

Leaderboard

Popular Content

Showing content with the highest reputation since 06/18/2024 in all areas

  1. 8 points
  2. State's treasurer helped a Nigerian prince that turned out to be a real thing.
    8 points
  3. Stay Cool.................
    6 points
  4. I was wondering where I misplaced that $1.8 billion - been looking all over for it. Looks like it turned up just down the road a ways.
    5 points
  5. Real world, how would an AI bot handle this from a customer? "My witholding amounts are different when I run the month report to when I run a weekly payroll report." AI: ? (Me: What exactly are you referring to?) "When I add up the 3 months totals, it is different than the quarterly amount totaled." AI: ? (Me: Can you be specific? Which items? Without specific information, you are not giving me anything I can look into or discuss.) "Can you look at these and tell me why they don’t match the totals without being rude?" AI: ? (can it open a PDF and disseminate the contents as they relate to the perfectly vague inquiry?) (Me: If you are saying I was rude, I can say I was forced to be direct. I had to be because you were not giving anything useful to look at or consider. There are MANY items on reports, so stating "When I add up the 3 months totals, it is different than the quarterly amount totaled." is factually useless, after being asked to be specific in my first reply. Your examples do not even say which item or items you are concerned with / referring to, at least not that I can see. And your samples are for one month, looks like two payrolls, with nothing showing the "3 months" you referenced in your reply. If you do not reply with specific items to look at, I will have to go through them all, which will not be as fast of a reply. In other words, I would like to help, but I first have to know what you are referring to, specifically, not just something like "the numbers don't add up". Me: (After looking at the samples) The issue is checks were added or deleted, with a June date, after the two payroll reports were printed, but before the monthly report was printed. The old saying of "garbage in, garbage out" applies. Reprint the per payroll reports and compare, or better yet, print a payroll check listing for the month and verify no checks are missing, incorrect, or extra. The software has only the paycheck information at the time the report is prepared, top add together. --- AI would likely have been more drone like, with likely programmed in fluff, and at best, would have had to keep asking more questions to get to the needed information. Still would have likely received a complaint for not being helpful, since the customer was giving nothing to look at. Only someone who has heard this many times, and has an instinct of what to look at, (un)common sense, could have resolved this with the given information.
    4 points
  6. Copied from Forbes" "The State of South Carolina has issued a request for proposals for an independent accounting firm to perform a forensic accounting review of cash and investments held in the state treasury as well as a review of cash and investments found in the state’s historical annual comprehensive financial reports. The main target? Finding out where an extra $1.8 billion in mystery money came from." Unbelievable! My mind boggles
    4 points
  7. I never believed that the IRS keeps track of the 8606s anyway. What's in it for them? If you take a distribution and claim that some portion was post-tax, the onus will always be on you to prove it. You are the one who will have to produce 8606s from possibly decades ago, records that will long ago have disappeared from IRS systems. I even wonder how long gifts reported on 709s are retained by IRS.
    4 points
  8. I don't think you need the acknowledgement from the charity. I have always assumed that the trustee of the account is checking the validity of the charitable organization's 501 c 3 status before they set up the distribution. That may be wrong but that is how I always thought about it. The 1 client I have who set up a QCD at my suggestion has never sent me a donee acknowledgement and the amount is significant. I have just entered the info from the 1099R and went on. Tom Longview, TX
    4 points
  9. I haven't used a third party antivirus in years. The antivirus app included with Win 10 and Win 11 is good enough. Most malware incidents happen due to people clicking on the wrong links or other questionable decisions. According to several tech articles that I have read, even the very best antivirus programs can only stop about 80% of malware attacks.
    4 points
  10. Copied from today's AICPA Town Hall: "Earlier this month, Maryland Attorney General (AG) issued an opinion on whether assistance by a CPA with BOIR would constitute the unauthorized practice of law (UPL). Determined that it’s fact specific and provides guidelines • What is NOT UPL: • Raising awareness • Guiding clients through FinCEN’s FAQs/Compliance Guide • Filling out the BOIR based on client information • Answering client questions where the question and answer “do not call for legal knowledge or skills” • CPA “generally should not answer a BOIR-related question for a client where there is uncertainty as to the answer and resolving that uncertainty would require legal knowledge, skill, and judgement”
    4 points
  11. If a 1099-C is issued, Marilyn is correct that if this was a qualified mortgage on a principal residence, Form 982 is used to exclude the income (or a portion of it). But in this case there was no income as only a 1099-A was issued and the FMV was less than the basis (presumably). So the home sale is just reported on Form 8949 - adjustment code L is used to eliminate the loss so that the reported gain (or loss) is zero. For recourse debt, the amount realized is actually the lesser of the fair market value – or – the debt balance minus any remaining amount owed after the discharge (usually none) – so the lesser of boxes 2 and 4 on Form 1099-A - in this case, the OP stated that the FMV was less than the principal balance, so FMV is correct.
    4 points
  12. " Georgia CPA Pleads Guilty to Promoting Syndicated Conservation Easement Tax Scheme Involving Fraudulent Charitable Deductions Friday, June 14, 2024 Share For Immediate Release Office of Public Affairs Defendant Helped Clients File Tax Returns Claiming $14M in False Deductions, Causing Nearly $5M in Loss to the IRS A Georgia man pleaded guilty today to conspiracy and filing a false personal tax return related to his participation in the promotion and sale of abusive syndicated conservation easement tax shelters. According to court documents and statements made in court, Herbert Lewis was a CPA and return preparer at an Atlanta-based accounting firm. Beginning at least in 2014 and through at least 2019, Lewis promoted and sold tax deductions to his wealthy clients in the form of units in illegal syndicated conservation easement tax shelters organized and created by co-defendants Jack Fisher, James Sinnott and others. For their involvement in the scheme, Fisher and Sinnott were sentenced in January to 25 and 23 years in prison respectively. According to the superseding indictment, the scheme entailed the creation of partnerships that would purchase land and land-owning companies and then donate conservation easements over that land or the land itself. Appraisers would allegedly generate fraudulent and inflated appraisals of the conservation easements that frequently valued the easements at amounts at least 10 times higher than the price actually paid by the partnership for the land or land-owning company – often just months prior to the appraisals. As the superseding indictment charged, the partnerships claimed a charitable contribution tax deduction based on the inflated value of the conservation easement, resulting in a fraudulent tax deduction flowing to the clients who purchased units in the partnership. According to court documents and statements made in court, Lewis knew that, contrary to law, the transactions related to these illegal tax shelters lacked economic substance; that his wealthy clients participated only to obtain a tax deduction and that his clients received only a tax benefit for their participation in the shelters. For example, a client who purchased units in a partnership had a “vote” ostensibly on what to do with the land the partnership owned. However, Lewis knew that the “vote” held by the partnership each year was just for optics and that the land invariably would be donated largely as a conservation easement. In some cases, to make it appear that his clients had joined the partnerships before the date of the conservation easement donation, which was necessary to claim the tax benefits, Lewis also instructed and caused his clients to falsely backdate documents – such as subscription agreements and checks – related to the partnerships. In 2019 alone, Lewis assisted 15 clients with claiming false deductions on their 2018 returns. In total, Lewis assisted in the preparation of tax returns that claimed nearly $14 million in false deductions based on backdated documents, causing a tax loss to the IRS of nearly $5 million. Lewis earned over $1 million in commissions for his role in promoting and selling the illegal tax shelters to clients. Lewis also concealed the amount of commissions he had earned from selling units in these shelters by not fully reporting the commissions on his personal returns and instead fraudulently reporting commission income he had earned as income on the tax returns of nominee entities in his children’s names. Lewis is scheduled to be sentenced on Oct. 16 and faces a maximum penalty of five years in prison for the conspiracy charge and three years in prison for the charge of filing false tax returns. Lewis also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. To date, in addition to the convictions of Fisher and Sinnott noted above, eight additional defendants have pleaded guilty to criminal conduct related to the syndicated conservation easement tax shelter scheme, including appraiser Walter Douglas “Terry” Roberts, CPAs Stein and Corey Agee, CPA Ralph Anderson, CPA James Benkoil, CPA Victor Smith, CPA William Tomasello and CPA and Attorney Randall Lenz. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia and IRS Criminal Investigation Chief Guy Ficco made the announcement. They thanked U.S. Attorney Dena J. King for the Western District of North Carolina for her office’s assistance. IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case. Trial Attorneys Richard M. Rolwing, Parker Tobin, Jessica Kraft, Grace Albinson and Nicholas J. Schilling Jr., of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section, for the Northern District of Georgia are prosecuting the case. Updated June 14, 2024 from https://www.justice.gov/opa/pr/georgia-cpa-pleads-guilty-promoting-syndicated-conservation-easement-tax-scheme-involving
    4 points
  13. This is reported as the sale of the home, so it is capital not ordinary income. With a recourse loan, the amount realized is the FMV of the home as reported on the 1099A. Basis is the usual: purchase price plus improvements. There may be a capital gain, but a loss will be personal and disallowed. Ordinary income will come into play when a 1099C is issued.
    4 points
  14. If your friend just rents it to the square dance club, the situation would be much less complex. Who knows 5 or 10 years from now how relationships might change, In addition, your friend could rent the space to anyone. Why make it so complicated?
    4 points
  15. I placed the order in May and paid the price. I know that I want the program, I will use the program and there is no room for negotiation. I got it over with and moved on. I did look at other options in the meantime, but, honestly, I really like the Max program and it has treated me well. Too many other things to worry about.
    4 points
  16. From Jody Blazek Tax Planning and Compliance for Tax-Exempt Organizations, Fifth Edition: The type of indebted property subject to the debt-financed rules is best defined by listing those that are not included in the term. Exempt-Use Property. When substantially al of the actual use of the real, tangible, or intangible property is substantially related to the performance of the organization's charitable, educational, or other exempt functions, the property is not subject to the debt-financed rules. IRC Sec513(b)(1)(A)(i)The exempt purpose usage must occur at least 85 percent or more of the time. Such use must be actually devoted to exempt activity purposes and used directly in the organization's exempt or related activities to be exempt. I could go on but it's a book. From my church's experience, we rent only to non-profits, 501(c)(3) organizations. And with that, keep in mind that you may be subject to real estate tax. We discovered that not all states or municipalities waive real estate tax on churches or non-profits. Now we are subject to re tax on all the space for which we collect rent. Your state may differ. Your organization may want to restrict rental to exempt organizations. We thought that our doing so would be all that was needed. As a church, all the Space Sharers (as we call them), do support all of our mission and ministry in their respective missions so we do not have to file a 990T for UBIT and we never rent to for-profit organizations. Let us know the outcome.
    4 points
  17. Are you talking about loan fees, which are amortized over the life of the loan, or actual closing cost? If we are talking about actual closing cost, I am not aware of any that would be allowed on E but not A (if that is what you are saying). Nondeductible closing cost are capitalized and become part of basis to the property. IRS seems to agree per https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/rental-expenses/rental-expenses : "Question I purchased a rental property last year. What closing costs can I deduct? Answer Generally, deductible closing costs are those for interest, certain mortgage points and deductible real estate taxes. Many other settlement fees and closing costs for buying the property become additions to your basis in the property and part of your depreciation deduction, including: Abstract fees Charges for installing utility services Legal fees Recording fees Surveys Transfer taxes Title insurance Any amounts the seller owes that you agree to pay (such as back taxes or interest, recording or mortgage fees, sales commissions and charges for improvements or repairs)."
    4 points
  18. I could be blinded by age, but I see much of "AI" as a compilation (sometimes stolen, meaning without authorization) of the work of others. A good example is asking an AI bot to create program code. The "answer" likely comes from the work of others as mined from web sites, not from the work of the AI bot creator. This is somewhat an extension of the wayback machine by (IIRC) Internet Archive. Decades ago, I blocked that sort of mining from my site as they did not ask my permission to post my creations (my web sites). I now also block known AI mining bots, so my work does not end up generating profit for others without compensation. A recent article opined AI code snips are maybe 60-90% accurate and should not be relied on. Imagine if an AI data seller had successfully scanned in all books from the Library of Congress and a few large libraries instead of mining websites. IIRC there was at least one author who brought this up (found their work in an AI dataset) and blocked the use of their copyrighted material. The initial AI grabbing of websites is likely because the majority of site managers were or are not aware of how to protect their work and have a tough time paying for and/or proving infringement. Even this very site is public, and our answers to each other can be mined for AI purposes, unless Eric has implemented blocking the known AI search bots. A good use of AI is what Tesla is doing for their driving assist, as they can (paraphrasing) use the camera feed and drive track from all their vehicles to provide very updated nav and driving assist without having to hard code things like a wonky 5 way intersection near me (which will soon be replaced by two roundabouts with different numbers of entry/exits which my wife claims she will never use), or the couple of intersections I travel through with a signal in a strange place because of the blind curves. I remember when a new path to my house was made, I submitted it to google maps and the other backend nav companies, and it took months for the maps to be updated. Same for telling them there was a locked fire access/exit gate through a mobile home park which UPS drivers kept thinking was a clear path to us. Like what Tesla is doing, some sort of self created or learned bot to catch things like tax data entry errors could be handy but will never replace a veteran tax processor. Sounds like 1800 likely higher paid "makers" will be replaced by more marketing and support (low cost) workers, and the remaining makers will have no choice but to use AI (the work of others) to perform their newly increased workload.
    3 points
  19. Not commenting on the truth, but the reality is many do not trust items from certain countries. If an AV from Russie has been banned, and drones from China are or are soon to be also, it makes sense these could be trade related only (bans bought by US competitors), based on fact/fear, or a little of both (likely). I thought about buying a certain computer brand but skipped it because of the origin. I happen to use a local hardware firewall and can ban and monitor all outgoing items. While I am fine with a global economy, it is an eye opener how many things we usually trust try to connect to places most would prefer not to. As a for instance, a game my spouse plays has to connect to a country I block (for ads) to function, so IU had to setup a safe path for her game to work!
    3 points
  20. State treasurer bought a ticket for one of those European sweepstakes things? Good for them for wanting to figure out what on God's green earth is going on.
    3 points
  21. A state that is making money? That sounds good to me. It's far better than missing $1.8B.
    3 points
  22. I personally do 5 QCDs every year and I have always received a donee acknowledgement from each of them (all over $250). I also have a client who makes 3 sizable QCDs every year who also receives donee acknowledgements. The account fiduciary is following your instructions. They are not verifying the validity of your donation. If you ask, the fiduciary will provide you with a copy of the cancelled check. "Get a receipt QCDs are not deductible as charitable contributions on Schedule A. But, as with deductible contributions, the donor must get a written acknowledgement of their contribution from the charitable organization before filing their return. In general, the acknowledgement must state the date and amount of the contribution and indicate whether the donor received anything of value in return. For details, see the Acknowledgement section in Publication 526, Charitable Contributions. For more information about IRA distributions and QCDs, see Publication 590-B, Distributions from Individual Retirement Arrangements (IRA).
    3 points
  23. I don't recognize ATX errors any longer, and most new posters here with Ttx icons visible are not tax professionals. Thanks.
    3 points
  24. Following up on Lee's reasoning, if he has an HSA insurance plan, it becomes tax free if he uses HSA funds to pay for the medical costs not covered by his insurance. It isn't a business deduction, but tax free is still a good result. Tom Longview, TX
    3 points
  25. While Kaspersky tends to get good technical reviews, it is Russian-based and the Commerce Department just banned it in the U.S: https://www.bis.gov/press-release/commerce-department-prohibits-russian-kaspersky-software-us-customers
    3 points
  26. Skill and judgment take real skill and judgement to determine. Along with some good old fashioned (now un)common sense.
    3 points
  27. Well, that's all sorted then.
    3 points
  28. This is a professional-only forum and does not support ANY TurboTax (I see the icon on the screen) problems of any kind. Contact TurboTax for help.
    3 points
  29. Like the Extended Security Program from Microsoft, 0patch is not a free service. However, it promises much longer support and additional benefits, such as faster and less disrupting patching (the DogWalk vulnerability was fixed two months before Microsoft), fixes for vulnerabilities that were left untouched by manufacturers, and patches for non-Microsoft products. 0patch is a yearly subscription that costs 24.95 EUR (~$27) per computer for individuals and small businesses. https://www.neowin.net/amp/windows-10-will-get-five-years-of-additional-support-thanks-to-0patch/
    3 points
  30. I used 0patch with my Win 7 system for years. It worked well and I had zero problems.
    3 points
  31. The 1099-C is not always issued in the same year. There's a worksheet in Pub 4681, be sure and use the one for recourse loans.
    3 points
  32. The ownership changes section of the K1 works fine. It's been awhile since I've had one, but I don't remember having any trouble getting it right. I'm surprised the seller doesn't want to close the books. If the new owners increase income substantially, the seller will be paying tax on income he'll never receive. He'll get an offsetting basis increase on his capital gain or loss on the stock sale, in this example.
    3 points
  33. I know this is waaaay late ... but I just saw this thread. I purchased via Sigma the past two years. Drake told me they provide support, regardless where you purchase it. I've had no issue getting support directly from Drake.
    2 points
  34. Donor advised fund. Put's large chunk in at one time and takes the Sch A deduction. Then can have fund pay out over time to charities of choosing.
    2 points
  35. the installment sale was a great way to save on taxes. Trying for further savings beyond Schedule A sounds like a bridge too far to me. Make sure they understand the limits based on AGI (with a five-year carryover period).
    2 points
  36. Copied from Current Federal Tax Developements: https://www.currentfederaltaxdevelopments.com/blog/2024/7/12/new-jersey-committee-on-unauthorized-practice-of-law-issues-guidance-applicable-to-cpas-and-eas-who-prepare-and-file-fincen-beneficial-ownership-information-reports This ruling has some similarities to the Maryland AG ruling with some differences. For example this ruling only discusses the question of whether CPAs and EAs can assist their clients with BOI reporting. It will obviously take some more time for these questions to be resolved.
    2 points
  37. Fix the worksheet, or make a note for next year to correct the carried-forward total, and leave it be.
    2 points
  38. Well, we all know how well that works out.
    2 points
  39. It's ironic because if he was an employee, this kind of injury might be covered and surgery paid for by Workers Comp Insurance. For example, when I worked as a Controller for a Food and Beverage Wholesaler, two of my office employee's had Carpal Tunnel and the surgery and time loss was covered by our Worker's Compensation Insurance. Obviously they used their hands for many personal activities
    2 points
  40. I get this randomly after some Windows updates also. Normally, I end up calling customer support, and they send me to a tech, and they resolve it.
    2 points
  41. My server errors yesterday were resolved by turning off my virus protection. I was unable to open the ATX programs. My first ever experience with support was excellent.
    2 points
  42. Back before there was the Security Summit, there was one year when ID theft soared. We had 12 cases in our office alone, compared to one or two in prior years. It took a lot less time to resolve then, and people got their refunds within a few months. I guess the IRS had more staff then. It takes a human and time to determine who the real taxpayer is. My most memorable case was a physician who made hefty estimates. Before he even filed he got a letter informing him that his refund was increasing by $46k! Apparently the thief filed the usual fake return claiming a refund of $3k or so, not knowing that estimates had been paid. I immediately called the IRS to alert them not to pay out the refund, but I don't know if they ever did. I hope they realized that I was representing the real taxpayer because the thief wouldn't call and tell them to send less money.
    2 points
  43. Really? The TAS just warned against relying on AI for tax advice: https://www.taxpayeradvocate.irs.gov/news/tax-tips/is-ai-generated-tax-advice-making-the-grade/2024/06/
    2 points
  44. 2 points
  45. I totally agree, if the current owner is your client, wouldn't you have to advise him to close the books on the date of sale. In fact, if the seller was my client I would write a CYA letter. The other big issue is "conflict of interest." There is no way you can advise both the seller and the buyers. The differences between an "asset sale" and a "stock" sale how the seller and the buyers will be effected could be quite dramatic!
    2 points
  46. You're right DANRVAN - added to basis and not amortized.
    2 points
  47. That's for Sch A. On Sch E, everything is either currently deductible or amortized. These cost may have to be set op to be amortized in 2023 then written off completely when the loan is refinanced in 2024.
    2 points
  48. The problem lies in trying to calm myself down. The client paid electronic estimates. The client thinks that I have a magic want. The one and only time I finally did reach a person; they wouldn't talk to me.
    2 points
×
×
  • Create New...