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Finished a 990EZ, didn't realize I was using the wrong form, Income was over $200K.

I would ask to see "sister's tax guy's" computations. If for no other reason, the reporting, if reasonably accurate, should be consistent. Or at least you would be able to justify the difference to your client. Beyond that comment, I have nothing to add to Judy's sage advice. She is spot on.

I don't let anyone use short forms in my office just for this sort of thing.

Sympathy! Here in Mass. we have the other side of that woe. Tiny little groups that qualify for the 990-N (postcard) can't use it: Mass. public charities report (required) *demands* a 990-EZ accompany it.

For gifts, if the basis is determined using the donor's basis, the holding period includes the donor's holding period also. That sale for $1 is used a lot so that there is transfer for consideration, but this is really a gift from mom to the daughter and probably no gift tax returns were filed. That $1 could have easily been replaced by something like "transferred for love and affection". Daughter starting basis is from mom's basis in the home plus whatever she's added to it since then, and then daughter gifted a % of that to her brother, so brother would pick up that % share of the basis from daughter (his sister), probably 50% since she probably just tacked his name on that the sale was 50-50. You didn't mention what the mom's basis in the home was.

Roberts, do read them. When a new scam is unearthed, I get messages from IRS, my professional associations, and sometimes the software provider and state, so it does seem like overload. However it serves to drive the point home and keep you alert to the latest tricks. Last week I read one (not sure if from IRS) that scared the .... out of me. Crooks are dropping into accounting/tax offices and leaving thumb drives behind, sometimes on the floor, near the door, a desk or counter. Our clients drop off these drives all the time, and if the recept is busy at the moment it might not get put with the appropriate file. If you were to find a stray one, what is the first thing you'd do? And guess what? Your computer and likely server get loaded with malware. My boss, who is kind of like you getting sick of the warnings, immediately decided that we will get a supply of little Ziploc baggies and label every thumb drive that comes in the door. Anything not identified will get loaded into an old server that isn't connected to anything. Some old scams continue. Just today I had yet another message on my home phone that the IRS is suing me. There was no number on the caller id, and the recorded voice left an unintelligible call back number, but the answering machine memory showed a number that filled in the blanks of what "she" said. I have never before reported these calls to the FTC because the scammers keep changing their numbers, but this time I think I will. I don't think it is the same crooks calling my number repeatedly. I think they are selling their phone lists and those are getting sold again and again. How many people will believe 15 calls stating "this is your final notice before we file a lawsuit against you"? Final should be final. I guess it doesn't cost them anything but the price of the temporary phone number, and if only one person out of a million falls for it they get some cash.

I would think that its a no brainer for many reasons. I would also have him try and get it to be a non-single member even if his wife gets 1% just to keep it off of his 1040. Even with Trump ending Operation Choke Point, gun stores still have a stigma to many people and I can envision a bank turning down the guy for a personal loan because of the schedule C on it. Of course I am in NY where guns is a 4 letter word. I would also have the LLC name being very innocent with a dba for the publics use. I had a relative who owned a medical marijuana dispensary and couldn't refi his personal residence. He changed the name and did as above and then he had no problem getting approved.

There is an LLC entity you can form that I believe is called a step LLC. Each LLC is it's own LLC and has liability protection from the other LLC's but all LLC's are under one umbrella (maybe it is just one LLC but however you do the "step" part separates the liabilities.) Since it is the same umbrella you could file only one Schedule C. I know you can do this with a Delaware LLC. I think you can now do this with a Missouri LLC. You might be able to do it in other states.

7% of the people that get these calls respond and send money. It is very lucrative.

This is just a rant about California FTB Client is a non-filer for several years. FTB has been zapping their bank account based on SFR's for the non-filed years. So we get the bookkeeping done and prepare the tax returns for the 5 years in question. 4 returns show a balance due and one shows a refund because the FTB levies were applied to that year (we took this off the FTB transcript). FTB has accepted all of the returns that show a balance due, but sent a notice concerning the refund year. The notice says that to prevent identity theft, they cannot process the return unless the taxpayer provides all W2's, 1099's, year to date paystubs, social security cards and driver's licenses. All five returns were sent at the same time, but only the one with a refund was selected for Identity Theft additional screenings? Bull$hipt! It is not an Identity Theft issue. It is the state dragging their feet on paying a refund (which is not going to be paid anyway - it will just be applied to the balance due). Rant over. Tom Newark, CA (Soon to be Modesto, CA)

Feels good getting it off your chest doesn't it? Wish I had a dollar for everything that comes up and I can't do diddly about it. Maybe tax problems will be more modest in Modesto.