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The IRS letter specifically mentioned situations where the employee/contractor is performing different roles for the company. That makes sense. For example an individual might work as a employee during regular business hours and also have a part time janitorial business which contracts out to the same company after hours. On the other hand, Edsel stated that the individual would be performing the same duties as an employee and as a contractor. In my opinion, the answer is clearly no, he is either one or the other. Besides that, I believe your proposal is crossing the line of legal vs. tax advice. When the federal agency smells a rat guess who the client is going to point his finger at.

This is a commercial loan and it's very typical for banks to renew the loan every 3 or 5 years, rerun credit, ask for commercial lease, income verification etc...

http://www.hrmorning.com/workers-can-be-both-employees-and-ics-irs-rules/

ILLmas I laughed so hard I started worrying about male incontinence !

@Catherine Does that include Chaos Theory?

Hey, why not?! What two concepts occur (and are used mathematically) everywhere in science and engineering, but do not exist in our universe? True randomness. Infinity.

@JohnH's sig line, "In theory, practice and theory are identical. In practice, they are not," leads to this response: I want to live in theory - EVERYTHING works in theory!

Balloon was my thought, too.

Wait until this happens: https://goo.gl/images/hrNADB

You're right! Thanks for the reminder.

Under the TCJA, I don't believe any theft losses will be deductible. Also, Casualty Losses will only be deductible if they occurred due to a Federally declared disaster.

Yep, get a police report.

I am an aging "dotard" . Does the IMPROVED 1040 look like an increase in forms rather than the reverse or is there something I have missed?

I simply could not help adding to everyone's amazement. A married couple for whom I have worked some 35 years or so received a letter from the Service informing them that their return would be delayed due to some problem or other with the dependent listed on their return. They are both in their eighties and living in an assisted living home ! In the years I have filed for them they have NEVER had a dependent. Another couple for whom I work came in after a little filing hiatus of some FIVE years even though both are and were gainfully employed the entire time. They simply began filing again the year they came in and has never heard a peep from the IRS !!

If TP sustained a loss that can be documented, if there was criminal intent, and if it can be determined to be illegal under state law, then the TP may be able to deduct this as a theft loss under sec 165(c)(3) and would flow from the 4684 to itemized deductions. Was a police report filed? If this is a 2018 event, with the higher standardy deduction the TP may not have any tax benefit regardless of the facts.

Maybe his father-in-law needs to explain how it's deductible since he brought it up. (Generally, father-in-law tax advice isn't quite as reliable as other types, such as hairstylist or mechanic tax guidance. )

Doesn't an ARM automatically reset? Only one I had did but maybe they don't on commercial. Balloon makes sense.

A Hydrogen ion walks into a bar. He orders an entire quart of Scotch. The bar tender asks: "Are you sure that is what you want?" The ion answers in an aggravated voice: "YES, I'm positive."

No, quite attractive.

Probably a balloon payment or an ARM reset on a commercial property or rental property. Maybe LLMAS will clarify. I had a very similar situation earlier this year. Had to take the banker to the mat, but they eventually found a way to accommodate the client.

So a positive thought about an electron is repulsive?

You could have just ended the sentence here, and it would apply to *many* situations!

Great comments, all - but the electron's charge is negative... sorry, my inner nerd had to point it out.

I don't even know what you mean that a mortgage expired. How much work is required on your behalf to meet what the banker is asking? If it's a valuable client, I go out of my way to help them regardless of who's fault it is. Just because the banker screwed up doesn't mean the client isn't any less in harms way and your help would be greatly appreciated. You can send them a bill if it's a significant amount of work on your behalf.

Chances are the bank will grant a reasonable extension of the loan (60-90 days would be good). But there are no guarantees, and they probably won't offer it unless the TP puts some pressure on them. The reason is, someone at the bank is going to have to explain the reason for the extension request and their higher-ups aren't likely to take kindly to their subordinates' lack of preparation. So it's easier for them to put the borrower under pressure, hopefully keeping the bank employees under the radar. It it's a long-time, profitable, cooperative client, I might suggest a telephone conference call with the banker & client both on the line. That's the only condition under which I'd speak with the banker. The purpose would be to point out to the banker why an extension/modification of the loan is necessary, and that I've seen other banks do it many times. It might also be an opportunity to point out that this would be a good time for the client to shop the loan around if their bank won't work with them. If it's a marginal client, I might just tell them when I can have the info ready and suggest that they take the timing up with the banker.

Your relationship is with your client, not the banker. The banker should not even be contacting you. It is the client’s responsibility to take care of the client’s mortgage stuff. The fact that he was not contacted until a week before expiration is utter nonsense. He would have been informed of the timelines before that. The fact that he failed to keep track of that is neither your fault nor the banker’s. So what I would do with the banker is tell him you have no responsibility to him and he should contact your client.

As long as we keep the conversation positive.

Just trying to spark some interesting conversation about current developments.

You guys are electrifying funny

So, now you're amping up the humor.

The IRS can't be bothered to look in the 941 bucket to apply payments from the 944 bucket.

I positively get a charge out of electrons.

Add the NOL Worksheet form and enter prior period NOLs on the NOL Summary Tab. Do the same for AMT NOL Summary.