Leaderboard

I definitely would be forced to retire. I hope that everyone remembers Eric before you spend all of your profits. Also, a special Thank You to Judy for her pristine Moderation and all of the rest of you who reach out so generously to help those of us in need. I couldn't do this without all of you.

Twitter was abuzz about that yesterday. Some guy was going on why if he won 400K but lost 500K why he now has to pay tax on the 40K. He didn't like my answer that it's a stupidity tax on people that throw away money gambling.

No, the losses in year of death are handled like any other year. Any capital losses that are unused (those that would carryfwd if the person lived) are lost. They die with the decedent.

And just think of how many of us have clients whose tax returns from prior to 2000 are lying around with our social security numbers on them. (or tossed in the garbage when they did house cleaning or by their heirs)

Yes; us - the good tax preparers. Not the fraudsters (taxpayers, cheats, or 'preparers' in it to cheat). They make it harder & harder for us to help taxpayers (which helps t/p's and the IRS - with the IRS probably coming out ahead in that one), then wonder why we get testy.

I am just philosophically opposed to giving my face to a for profit company to add to their data base so I can continue to work in my chosen profession. I don't know what has gotten into the IRS that they think we are the problem. They know us. And the ones who are running Turdo out of the garage are not going to do this anyways? What in the world? Conspiracy theory Warning ****** The government promised to put as many people into ID.me when they signed the contract so ID.me would have a larger data base. End of theory***** How about requiring everyone to takes a tax credit to have an ID.me account and give their face to that company in order to get a tax break? I am so pissed I am not thinking straight. The IRS keeps shooting at the wrong targets. Tom Longview, TX

Once again, JOA has done a wonderful job of taking legislative text and turning it into real language. https://www.journalofaccountancy.com/news/2025/jun/tax-changes-in-senate-budget-reconciliation-bill/

You are misinformed on so many levels. In 2004 I paid 2,740 for individual coverage for myself and teenage kid. By 2013 that had basically doubled to 5,335 for just myself. This is actual data for what SLCSP was for me. No annual 20% increases. Want to talk subsidies? How about subsidies for tax free employer coverage estimated at 300-350B a year. Medicare Part B is funded 25% from premiums and 75% from general funds. 6,660 per person times 66M people and you are talking about 435B annual. The only people not being subsidized were those of us with individual policies. According to KFF increase in spending is lower since ACA was enacted.

Why didn't they just raise the $32K ($25K) used to determine if any of SS was taxable, and the $12K ($9K), used to determine how much was taxable? I have been preparing taxes for over 20 years and don't remember them ever being raised. Adjust these amounts for past inflation now, and then adjust yearly to avoid this issue in future years instead of using this band-aid approach.

I still have, in deep files under lock & key, a set of tax forms sent to me in the mail - with the little sticker with my name, address, and ssn on it. Remember those? (That year I had moved so I did not use the sticker.)

until ID dot me gets breached.

Just saw that I can renew by mail. I think about 1 million people ought to renew by mail. That'll teach 'em. Then we can have all our clients opt out of efile and mail in returns with staples and staple checks to the returns and then send letters asking when the return will be processed and then send more letters asking for interest on the late refunds and swamp their whole system with mail. Not like I am being childish about this or anything.... Tom Longview, TX

Exactly. If hackers can get into the Iranian equivalent of coinbase and make 90 million in digital assets fly into the ether, you think they can't get into ID.me? Tom Longview, TX

I just got it. Sent an email to my Congressman telling him if the rule goes into effect on July 1, I will not vote for him again. Tom Longview, TX

Honestly for the last several years, my experience once I have reached an IRS employee has been satisfactory. Does it take too long to get someone on the phone ? Yes it does. Does it take too long for them to find an answer or to change something in one of their programs? Yes it does. However given the old systems they are still working with that don't share information, I think they are doing the best that they can under difficult circumstances.

Try this: https://www.hklaw.com/en/insights/publications/2025/07/the-one-big-beautiful-bill-act-a-comprehensive-analysis Skimmed the link for "read the full summary" and it looks to be fact based rather than politically slanted.

Includes: "The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned." Bad enough that we need to dispel the "somebody said" and FB garbage, now it's coming direct from federal agency. Shameful.

I use PayPal or GPay for most things and they let you cancel payments more easily, sometimes right on their site. Also, if you get a new credit card number, you can change it in one place and it takes care of all recurring payments. When out, I always pay with my phone because it creates a one time credit card number that's only good for that transaction. Walmart wouldn't let me pay with my phone at the self-checkout unless I installed their app. No thanks! I've hated Walmart for a very long time.

It's like an amoral three dimensional crossword puzzle where the rules keep changing

Sara, I have always enjoyed your thoughtful posts and wish you a well desired retirement. I understand how you feel. If most of my time was spent on taxes I would retire too. Fortunately for me, the majority of my time is spent on monthly write up work and payroll for my business clients, which I still enjoy ,so I will keep working.

If only that were the case. It goes much further both disqualifying some completely, making it harder and more burdensome to enroll and making it much more expensive. If this doesn't lead to universal healthcare, then there's no hope for us.

So they have 6 months to reflect upon their bad choices and change their behavior before the new rules take effect?

Yeah, in general people don't like truth that makes them question their poor choices.

I'm well aware of the fact that the tax on SS benefits goes from general fund to trust funds. I'm just saying I can't find anything as to how they actually calculate the amount. The extra 6K doesn't affect how much is thrown into the taxable column since it's an after AGI adjustment. So, if they just use that amount times a rate nothing will change. I highly doubt they have the computers look at each return and say xx% of the actual tax on return was a result of SS benefits and then use that amount for reimbursement. Personally I've never understood why someone should have a higher standard deduction simply because of being 65. Most of us at that age should not have a mortgage or rent, yet we are allowed to pay less FIT than a young person trying to get a start making the same income. I was just livid about the email SSA sent out. Waaayyyy too political of a statement and extremely misleading coming directly from an agency that's supposed to be apolitical.

Posting in case anyone here hasn't read the email saying that ID.me will be required to log in to the PTIN and other IRS services.

But are we solving a problem that doesn't exist? Have fraudsters been logging into PTIN accounts? Especially to renew them and pay the fee?

Which sums up why this is the last place you want to have your photo. Imagine how much more your valuable your data is to advertisers when they know, say, your skin tone or whether you wear glasses, a tie, have freckles, bad teeth, or whatever AI determines about you from your laugh lines or nose hairs.

I would also be lost without this board. Thank you to Eric for keeping us going, & to Judy for moderating. You can make your donation automatic - annual, quarterly, monthly. Check the Donate link!

i have QB Pro 2019 on Win 11 with no problems. I use it only for my personal business accounting so cannot speak to any potential issues with payroll or other updates. In fact, I don't think it even updates any longer but it serves my purpose.

Maybe the emails are being sent in batches. Here it is for anyone that hasn't seen it yet.

G2R Thanks for sharing this disaster with us. It certainly puts a different perspective on whether or not to use IP Pins

Treat these as distributions to shareholders, unless you can convince them to repay the business.

But not unexpected or surprising.

That's correct. What this means is that the final 1040 can show up to a $3,000 loss (just like usual) and any remaining loss carryover is lost. The planning opportunity mentioned is where a surviving spouse can sell capital assets having a gain in that year of death so that the otherwise unused losses would offset those gains. Example: your client is allowed $3K of losses allowed in the current year and $25K losses unused that are going to be lost. The taxpayer (prior to death) or surviving spouse any time during that year, if filing MFJ, could have sold other capital assets having GAINS up to that $25K with no additional tax effect. If single, that client could have done that in prior years or in the final year prior to death to use up the losses so that they aren't lost. For a single taxpayer where someone has a POA and is aware of the situation, that person could so initiate such a sale of capital asset prior to the taxpayer's death.

No matter how many people they hire, it won't improve significantly until they invest in new infrastructure. I had to be transferred three times, over two hours, to reach the person who could access the platform needed to fix the issue. Once I got to the right person, it took 10 minutes to resolve the issue.

As a general rule, when they talk about deficits they are talking about total over a 10 year period. As the reduced rates from 2017 were to sunset in 2026, extending them is adding to deficit as to what they would have been in 2026 rather than the add'l over 2025 reduced rates. The combo of 6K for seniors, OT, tips and vehicle interest amounts to 90B or so a year. Since the law has them sunset at the end of 2028 only 4 years of the increased deficit is included in total. We all know that once a group is given a tax break, it won't be taken back. So, add another 500B for that. They also use what they call "dynamic scoring" meaning since more borrowed money is forced into economy, the economy will grow. No one knows what the debt will be in 10 years. There will be changes of add'l spending, more tax cuts, potential recession and any number of other unknowns. 2024FY tax revenues outside of trust funds was 3.2T. Gross interest was 1.2T broken down between .9T to public debt and .3T to money borrowed from trust funds. 1.2T is 40% of 3.2T going to pay interest on past debt. Estimates that this bill will add 900B more interest over 10 years. For comparison 10 years ago in 2015FY non trust fund revenue was 2.2T and gross interest was .4T, or 18%. The path we are on is not sustainable. If we continue to add an additional 10% of revenue to pay interest on debt, in 50 years or so all tax collected will go to interest. GDP is pumped by by gov't borrowing and trying to get to a balanced budget all at once would mean close to 10% reduction of GDP meaning a recession. A balanced budget is not going to happen by taxing alone or reduced spending alone. It needs to be a combination over several years. Not one of the idiots in charge have the guts to do that. All they care about is their next election.

After 40 plus years in the business, I have seen it all. Remember the headaches when efile went live ? Remember the stimulus bull crap ? Too many questions will drive you nuts. I just wait for the IRS regulations. And we all know software vendors will not have the crap ironed out till mid season (if then). So just relax. Stress kills.

I think a lot of people feel that way. I can't see how it could be any worse than after the 2017 bill. It wasn't so much the changes to law, but the mandated changes to forms without any purpose than a photo op to hold up the "postcard". It took me a good two years to get back up to speed of not having to look as to where they moved a line item.

At least they got it passed in mid-year. Regardless of the pros and cons. The IRS and software companies will have plenty of time to get it all done before next tax season. I get Parker subscription so they should be sending a summary soon. I usually just rely on the software doing it's thing. I'll take some continuing ed on it of course and get ready.

I don't judge my clients or their choices. I only recommend, advise and explain the law. They aren't going to stop gambling just because we tell them it is a bad choice. IMO

I think that horse is a jackass.

If son qualifies as dependent, client may also qualify for HOH. No problem to amend back three years, just make sure you have done your due diligence for qualification.

Copied from the Tax Advocate's Mid Year Report to Congress: "One longstanding filing season challenge that remains unresolved is lengthy delays in resolving identity theft cases. There are two categories of identity theft cases. One involves returns that IRS return processing filters flag as potential identity theft; the IRS flagged about 2.1 million such returns. In these cases, the IRS sent a letter to taxpayers notifying them they had to authenticate their identities before receiving their refunds. The IRS typically takes several months to resolve these cases. In the second category of identity theft cases, a thief has stolen a taxpayer’s identity and filed a tax return using the taxpayer’s name and Social Security number. These taxpayers are victims and may also be experiencing the effects of identity theft beyond the context of their tax returns. Their cases are referred to the IRS’s Identity Theft Victim Assistance (IDTVA) unit for resolution. As of the end of the filing season, the IRS had about: 387,000 IDTVA cases in inventory, and the cases were taking an average of about 20 months to resolve. “These delays disproportionately affect vulnerable populations dependent on their refunds to meet basic living expenses,” the report says. In fiscal year (FY) 2023, 69% of affected taxpayers had adjusted gross incomes at or below 250% of the Federal Poverty Level." Sometimes my mind really struggles to understand this stuff

Umm, I thought the purpose of all this was to eliminate waste. Isn't paying people not to work somewhat wasteful? Just a short time ago we were elated that IRS finally got funding to increase staff so phone wait and processing times would decrease and audits would increase in areas we knew needed auditing. TAS was the place we went to when all else failed. Taxpayers are really going to feel this. They won't be able to get questions answered or problems solved, all the while knowing that others are cheating and getting away with it.

If the investment account was joint and originally funded jointly, half of the carryover losses belong to the surviving spouse and can be used on his or her future returns. The deceased spouse's half is lost forever after the final return. Many of us still have clients who lost a fortune in the 2008 market crash, pulled out of the market altogether, and will have to live to be 200 to use up the losses at $3k per year. That $3k limit has been around since 1978 and never adjusted for inflation.

You don't need a computer to send or receive funds electronically, you just need a bank account. With DOGE endangering all of our personal information, I recommend setting up a small balance account at a different bank to receive or pay fund electronically. Then you transfer money to or from that account as needed. That way your real bank info is not out there.

Why do you think you can't have multiple LLCs in one 1040. I've had two Sch C LLCs and even multiple Sch E LLCs? Is it because you're trying to use 1099 input forms? Or are you talking about some state level problem?

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