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I would think that since the business closed in 2016 and your client retained the assets, they are now his or her personal assets. Sch D. No losses allowed, but gains will be taxed (of course).

Withholding calculations versus liability are at their worst (that I can remember) based on the manipulation by the current administration (to say they boosted take home pay). Even though I do not directly deal with employees, I suggest my customers give employees notices about checking their withholding early in the year, and again at the end of Q3. From the perspective of my customer, the idea is to reduce the number of employees who blame their employer for under withholding. The IRS has provides documents employers can post/hand out, including the recent "whoops, we screwed up and will not charge interest on certain under withholding situations". --- Yes indeedy thank you, I have lost customers this year based on this very issue. The complaint is the calculations I built in to my payroll software did not withhold enough. Of course, I use the official IRS instructions, but they still think it must be my fault their employees owe money. Self responsibility, like what used to be common sense, is no longer the norm.

That is bizarre. I assume they each have two functioning legs and a finger, or two, to walk up to your door and ring the bell!?!?! I guess you don't have a neon sign in the window - "OPEN".

I have seen this exact problem multiple time over the years, especially when spouse 1 earns significantly more than spouse 2. The only solution is for spouse 1 to claim married "withholding at the higher single rate." either S -1 or even S - 0 in a few cases.

Don't the outgoing member report 12K as capital gain distributions & the member who contributed has his capital account up by 18K & holding goes up to 2/3rd

Because the QBL carries forward to the next tax year to reduce future QBI.

She was so mad I had to do something, anything, to lighten the mood. I wasn't sure how she'd take it, but the Lord was with me.

Please don't attach in 8275. It is used for other reasons, not for a missing SSN/ITIN of a non-resident spouse, nor would it be appropriate for a missing SSN of a dependent. Follow the 1040 instructions - under MARRIED FILING SEPARATELY (page 15 of PDF instructions). "If your spouse doesn’t have and isn’t required to have an SSN or ITIN, enter “NRA.” The way to get ATX to put NRA in the box is shown in my original post.

It is my understanding from someone who spoke to the office of the counsel about the technical corrections that their position is that Section 162 has been around a long time, and there are plenty of court cases clarifying the law, so there was no need for clarification from the IRS. HA!

I would say that both documents should be reviewed for their wording and intent. First look at the separation agreement to determine if that alimony was open-ended or if it says that it will be redetermined when the final divorce decree is signed. Then also look at the final divorce decree to see if it references continuation of the earlier agreement without change, if indicates that that earlier agreement will remain in effect, or if there is some sort of modification that will use the new provisions of the TCJA. Quoting from a topic ~ 2 mos ago: