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After that, download all of the free poker games and wallpaper apps you can find.

Before spending a great deal of time with that, call the Department of Revenue to ascertain just exactly what they are looking for. It is no secret that that department is way, way out of control. This week alone (and this week is only one day old) I have had two clients get notices like that. I will be calling the State tomorrow and tell them them to look harder. And I am certain they will find the “missing” returns.

I never understand why people switch tax prep packages??? ATX has been flawless for years!! <cough>

Adding to Abby Normal's solution above, in addition to removing the vehicle and related expenses from the corporation, you will also have to account for the corporate assets (funds) that were disbursed in 2011 to purchase the personal vehicle. Hopefully there wasn't a former corp vehicle used as a trade-in that would complicate this further. At this point, I'd say that any corp assets used to fund the purchase of that now-wrecked Jeep would be a 2011 dividend distribution to the shareholder-dad that opens that can of worms for the parent's personal return too. I don't think you'd be able to justify calling it anything else, such as a stockholder loan, because that wasn't the intent, and then you'd also have the interest charges to factor into it.

From ATX KB: How do I display the full Social Security Number on Form 109x in ATX™/TaxWise® W2/1099-Payroll Compliance? Do the following: Click the Payers Info tab. Unselect Check (X) to truncate EIN/SSN on Recipient copies check box.

This is why you should ask for a copy of the title and invoice on all vehicle purchases. AND get business/personal mileage on all vehicles every year. To make it right, you need to amend 2011-2016 to remove the vehicle and all related expenses from the corporation. They lied to to you and need to pay for their sins... plus tax and penalties.

First of all, stay away from giving any advice in regards to corporation vs LLC, that is legal advice for lawyers to handle. LLC'S are a creature of state law and have nothing to do with tax law. It looks to me like he should file as sole proprietor, Schedule C. The income would then be taxed at 24% vs 22% at the corporate level according the information in your post. Even if he goes with C. corp, he will need to pay a reasonable salary which will come back to him at 24%. A reasonable salary would probable eat up most of the $30,000 profit anyway. Also, as a sole proprietor, he should be eligible for the new section 199A deduction. As I read the code, a sole proprietor is not required to reduce Qualified Business Income by a reasonable salary. Also, per 199A (d)(3), he should fall below the threshold amount for service income.

The submission ID, that is how states should be able to find the return in their system (like the old DCN's) You can check the e-file manager for the number

Maybe this post is better suited for the Drake section of this site?

Due to changes signed into law on December 22, 2017, the availability of the Tax Planner will be delayed and will not be active in the second shipment of Drake17 (January 2018). An update to Drake17 will enable the Tax Planner and allow for tax planning scenarios for tax year 2018. To assist with tax planning for 2018, a new Tax Act Impact page will populate for each return. This page will be based on the tax law changes, however, it is only an estimate of how the changes will affect the taxpayer based on their 2017 return. Pricing for this page is available under Setup > Pricing.

I had heard this was coming this year. Guess who has one on their W2? Me! Our company uses Paychecks and they have included the verification code on our W2's. Looks like the long computer generated passwords that you get on some sites. I missed seeing it, but my spouse picked up on it. @Medlin Software Are you putting these on your W2's? Tom Modesto, CA

So I switched in to Drake in 2013 due to the 2012 debacle, but I have continued using ATX payroll program because that is a good program. I renewed my payroll software today with ATX but I was unable to log onto the website to download the software. I called ATX support and had to wait 15 minutes to talk to someone. This never happens with Drake. I call them and they answer the phone after one ring. The best thing about the program is the support. Also, I asked the ATX customer service rep a very simple question about the payroll program and she says that she has to create a case and have someone call me back. Are you serious atx? I have called Drake with some pretty complicated questions and they have always taken care of it during the phone call. Everytime that I have to deal with ATX support they remind me why the best thing that I could have ever done is switch to Drake, not to mention the numerous software benefits that I am not mentioning. Just so the post is not entirely negative I will admit that the payroll program is far superior to anything out there and that is why I continue to use it.

Need to put emphasis on "should be" or change to "might be". 199A (c)(4) specifically refers to " reasonable compensation paid to the taxpayer by any qualified trade or business of the taxpayer for services rendered with respect to the trade or business" and guaranteed payments. However, it is possible reg's or technical correction could extend that to include draws by sole proprietor in amount considered reasonable compensation.

Received mine today!

IMO at the income level he is expected to earn via the LLC he should leave well enough alone. Gifting the spouse 6% stock renders the default partnership, with the need for filing a 1065. If he elects corporate status the tax rate on net income is 21%, not 15%, with the need for payroll and its accompanying reports, and filing an 1120, complexity which he would more than likely not appreciate. If he leaves it as a SMLLC then the default filing is a schedule C as part of his 1040 package. If his other earned income is near the FICA limit then his medicare liability will not be much (under $900). Just my $0.02, whatever that is worth. Lynn

Just guessing the code is created using some of the data on the form (similar to how one can verify a CC number is not invalid). This way, the SSA/IRS can decode it. The code will be useless once the algorithm leaks, which it eventually will. Unless there is some sort of method where the software vendor has to provide the code to the IRS, and the code can be created in many ways. It will be interesting to see if this "group: ever makes the code process available to all, or whether this is yet another attempt to block out those not "in the know", so they can pretend their software is "better" because it generates the code. Or, "he he", it needs to be used by the software companies who put employee data online, and have been hacked

IIRC, it was something which a group, including the IRS/SSA and certain stakeholders (big software vendors) came up with. It is not required for all, but those who get on on their form, can use it on their returns. I suspect it will not be required of all, since they likely do not want to let us "common" folk in on the algorithm. https://www.irs.gov/individuals/w-2-verification-code "The IRS has partnered with certain payroll service providers"

Eric Greene is terrific.

Lisa Ihm. Was $20 when I bought it. Brass Tax: http://brasstax.com/3115 Booklet.htm

If the 1099 is part nominee, just back out the nominee part as an expense to avoid matching errors.

You may have mixed use on the ones with buildings on them. Depends on what the buildings are used for.

Shoot, my clients are all over the place whether the law changes or not. It's terrifying. "Hey, Rita, how do I fill out this W-2 thingy again? I'm up to about eight and a half here on this worksheet blah, blah, blah..." Me: Drive over here and I'll have a thingy ready for you. Don't trouble yourself [for the love of God don't].

in 2011 the daughter received from the corporation a jeep. however, the corporation did not tell us the jeep was a gift for the daughter, and let us put the jeep on the corp books and take depreciation. in 2017 the jeep was in an accident. I am informed via sticky note. "We no longer have the 2011 Jeep." Ok - so I ask the usual questions - was it traded, sold, wrecked, etc. I am informed that the daughter always held it personally, and used it for business, and that it was titled and registered in her name and that she had always paid the insurance. So in April 2017 when it was totaled, the daughter received the insurance and bought herself another car. Ugh. So wrestling with how to treat this. Was the shareholder dad supposed to file a gift tax return for this back in 2011? (I think so) But do I back peddle and do that now? But then I have to deal with the depr that the corp has taken over the past 6 years. Maybe the proceeds are shown as income now on 4797, and I ......this is draining my brain......and yes, yes, then income would be essentially the amount of depreciation taken over the years. This would make me feel better. But the insurance check went directly to her and the books show no record of the insurance money. Why? why do people do this to me...... whine whine whine. This is my first return for the year too.