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I agree with my esteemed peers since OP said it's a one time occurrence. I would add that if the 1009-Misc shows the compensation in box 7, IRS might expect to see a Sch C. You can keep them happy by entering the amount as income on Sch C, then zero it out by entering the expense on p. 2 of Sch C with an explanation: "Income not subject to self-employment tax and properly entered on Form 1040, line 21" or something real smart like that.

If the estate was large enough to have paid estate taxes, there may be a deduction for income in respect of a decedent. Here's a snippet that explains how it works: An overlooked deduction. Most taxpayers and even many tax advisers are unaware of the deduction for 'income in respect of a decedent. But many people who inherit a substantial IRA are eligible for this deduction, which essentially is a deduction for the estate taxes that were paid on the IRA. The deduction is best explained with an example. Suppose someone left a large estate with an IRA. The estate tax accountant computes that the IRA was responsible for 36.7% of the estate tax paid, and that the IRA's share of the estate tax was $175,000. When the beneficiary takes distributions from the IRA, a miscellaneous itemized deduction (not subject to the 2% floor) of 36.7% of each distribution is allowed. This continues until the beneficiary has deducted a total of $175,000 over the years. The estate tax accountant should determine the data for the deduction. Details can be found in the IRS Publication 559, Survivors, Executors, and Administrators available free on the IRS web site, www.irs.gov.

Maybe. If he is an attorney, then he is a legal professional and referral fees are subject to SE. If he is an employee in another capacity, office manger, administrator, etc. then the argument for Line 21 might carry some weight.

I agree with Catherine. Line 21 NOT subject to SE. See my later posts... Edited 1-10-15

I have found amended returns to be really speedy this year. Last year they took 12-16 weeks, so this year we told clients to not even look for their refunds before then. This year we had only one that took 12 weeks (to the day); the others have been 3-4 weeks. I'm still giving the 12-16 time frame though. Better to have the client be pleasantly surprised than to start calling me every week. By the way, to prove the IRS isn't speeding everything up, my clients who applied for the Offshore Voluntary Disclosure Program were finally accepted 4 months to the day after I faxed the request. My first sense of relief was over the fact that their fines will be 27.5% instead of 50%, saving them a huge chunk of dough. Then I realized the real relief is that they won't face criminal prosecution. They aren't criminals, just jerks, but the IRS and other countries are no longer messing around with this. All of my dealings have been with the tax attorney and IRS Criminal Investigation--not the usual phone and fax numbers we all have on speed dial and normal addresses we already have labels for. And today I started a new habit. I asked a client who brought in that last bit of info for his extension if he had any foreign accounts. He asked if that was something new. Most of us have software that automatically checks the "no" box if we don't do so manually. That's not good enough for me anymore after seeing what happens when clients don't report foreign accounts. Interestingly, the guy I asked said he was in Switzerland this summer and actually looked into opening an account just for the sake of having one. The bank said no. I guess the foreign banks are in even more trouble for shielding tax cheats than the tax cheats are themselves.

If he received the money in the last quarter of the year, have him make the 4th quarter estimate for the amount of tax. Then fill out the 2nd page of Form 2210 when you do his 2014 return showing the income being received at the end of the year. It may reduce his underpayment penalty.

From The Journal of Accountancy Under the safe harbor, local lodging expenses will be treated as an ordinary and necessary business expense if: The lodging is necessary for the employee to participate fully in or be available for a bona fide business expense if: The lodging is necessary for the employee to participate fully in or be available for a bona fide business meeting, conference, training activity, or other business function; The lodging does not exceed five calendar days and does not occur more than once each calendar quarter; The employer requires the employee to remain at the activity or function overnight; and The lodging is not extravagant or lavish and does not provide a significant element of personal pleasure. In response to a comment, the final regulations clarify that expenses that do not qualify for the Regs. Sec. 1.162-32(b ) safe harbor may nevertheless be deductible under the facts-and-circumstances test. Taxpayers may apply the new rules to any tax year that is still open

I agree with Jack. This is from Tax Topic 511: ----------------------------------------------------------------------- Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals, or lodging in Milwaukee because that is your tax home. Your travel on weekends to your family home in Chicago is not for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located. http://www.irs.gov/taxtopics/tc511.html ------------------------------------------------------------------------ There might be an exception carved out for a temporary work assignment (one year or less) in some situations, but nothing in the original post suggests this is the case.

Client and I spoke with IRS this morning and she received by fax a copy of her EIN letter. Client had provided me with an incorrect number. In looking at her IRS notice, CP3219A and almost certainly not her first notice, her options are to pay or petition tax court. There is also an option to consider additional information by mail but that does not extend the Dec. 8 deadline to file a petition. Tax Practitioner Hotline? Taxpayer Advocate Service? What is the best option? Do I prepare an amended return showing only the correct EIN on her Sch. C? She is contacting the filer of the 1099 that she did report to file a corrected 1099 but that likely will not be in the record by the deadline. She is also contacting the filer of the 1099 that had the correct EIN which was not hers to let her know the issue is on the client's end. What a mess! But she brought fresh pumpkin sweet potato pie made from fresh pumpkin.

Format that WD external drive. This will remove the trash program it installs. Then remove that program from your computer. Once you format it, you have a huge flash drive. Use Windows computer or server backup. I have formatted several of those when they are brand new. Their software is scat.