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I'm one of those. Every couple of years (and with every new client) I get a POA that goes back all open years and forward one from the current year. It's really helped on several occasions (pulling transcripts using TaxHelpSoftware, or Canopy, calling on a letter received without having to scramble for a POA on short notice). Actual representation work does not occur until a separate representation engagement letter is signed, though.

Only if you want to spend hours answering all the questions that will arise. Most of which, you will not have answers for. Simple answer: NO.

I've met preparers who have all clients sign the POA when they sign the engagement letter every year. And, some that use prior and future years on each form, so a new copy is not needed every year. I have a client sign a POA when needed, but I put prior/future years on the same form. Once in a great while, if a client alerts me to a potential issue, I have them sign a POA while they're here, prophylactically.

Form 8821 might be more appropriate - the tax pro would receive copies of any notices issued but not be responsible for responding. IMO, form 2848 carries with it representation rights and duties to respond.

"He had to pay broker's fees to rent an apartment. Would this be deductible?" Is his office in his home? If yes, then a portion of the broker fee may be deductible.

Big or small, they go after everyone. I get phishing emails at least once a day trying to get me to click links or open attachments. The schemers are getting more and more advanced.

The overall combination of hardware and software that makes the internet function is very complex and convoluted. There are so many access points that hackers can attack that's it's not a question of if, but a question when. All we can do is follow good security practices and limit our risk. Actually, our best defense is we are individually small potatoes.

No.

This is my major issue and I devote a lot of time to it. I have a ton of clients who routinely give me bad information on their estimated tax payments and then blame me when the IRS sends them a letter or refund check later. My current issue is with a client who owes $25k to the IRS with penalties and interest - she didn't tell me the $25k refund in 2017 that was applied to 2018 was paid to her my mistake. She had a meltdown in my office. Writing a $25k check for her is nothing but getting the bill was huge!

I was just thinking today, how nice it would be if I got copied on these notices. Sometimes the client gets with me right away, but many times, they bring it with the tax papers 10 months later. But, I'm not willing to get those forms for every client. Too many, too much.

We won't be told, if at all, whether or not our clients' data was compromised until after the 5/31 deadline to renew with discounts !!!

Agree, client should get asset detail. Sounds like preparer mistake, maybe put in wrong date asset was placed in service.

I merged the two topics and corrected the date in the title.

No need to be sorry. I just wanted you to have more info on this. And speaking of 'metal acuity', I just noticed that I typed 5/5 instead of 5/15 in the title, and left out a word in my last sentence above!

Maybe, I didn't express this fully. He can certainly deduct the moving of his business office furniture and equipment to the new location. The personal stuff, no. Some of his equipment had to be transported in his vehicle, which is also used for business, so the mileage/gas, lodging can also be deducted.

I already posted about this: But I only two all year that even used the Sch D tax worksheet. You have to have 1250 gain for it to apply.

According to the following article in Tax Pro Today, the IRS has announced corrections to Schedule D Worksheet Instructions as of May 16th: https://www.taxprotoday.com/news/irs-fixes-schedule-d-worksheet-that-miscalculated-capital-gains-taxes?feed=00000158-3f5d-dcbd-abf8-ff7f12270000 If your Tax Software followed the prior incorrect worksheet instructions, clients with certain Capital Gain scenarios may have paid more capt\ital gains tax than they really owed! The IRS says they will review the tax returns affected and make corrections ??? The only way I can see using out tax software to analyze the potential changes would be to make a copy of the return and recalculate once our software has updated the corrected Schedule D worksheet calculations ? Just when I was relaxing into my offseason routine

Why not have the client ask the prior preparer where the amount came from? On what basis was it put into the tax return? What other schedules in the return does that calculation effect? SE Tax? Pension Deduction? AMT? QBI (or hasn't 2018 return been done yet)?

https://www.irs.gov/forms-pubs/error-in-tax-calculation-in-schedule-d-tax-worksheet-form-1040 Error in Tax Calculation in Schedule D Tax Worksheet (Form 1040) The 2018 Schedule D Tax Worksheet in the Instructions for Schedule D (Form 1040) contained an error. The tax calculation did not work correctly with the new TCJA regular tax rates and brackets for certain Schedule D filers who had 28% rate gain (taxed at a maximum rate of 28%) reported on line 18 of Schedule D or unrecaptured section 1250 gain (taxed at a maximum rate of 25%) reported on line 19 of Schedule D. The corrected worksheet is at the end of the updated instructions at the link above. If you downloaded those instructions before May 16, 2019, you should download them again. All returns filed after May 15 should reflect the new calculation; the IRS will update any returns filed after May 15 to reflect the correct tax using the new calculation. Because the IRS has already provided the corrected worksheet to its tax software partners, anyone filing a 2018 return, including those with extensions, after May 15, 2019, are not affected by the error. Those taxpayers reporting these types of transactions typically file more complex returns and frequently obtain tax-filing extensions from the IRS. For that reason, the IRS believes that many potentially-affected taxpayers are yet to file. The correction results in a lower regular tax for most affected taxpayers, and a higher regular tax for a small number of the impacted taxpayers, depending on the taxpayer’s individual return. Note that most taxpayers filing Schedule D do not have amounts on lines 18 and 19, check Yes on line 20, and do not use the Schedule D Tax Worksheet to figure their regular tax, and are unaffected. Affected taxpayers need not file an amended return with the IRS or call the IRS. The IRS is reviewing returns submitted prior to May 16; more information will be provided about this review later. We corrected the Schedule D Tax Worksheet in the Instructions for Schedule D (Form 1040) by renumbering line 18 as line 18a, adding new lines 18b and 18c, and updating the text on line 19 to reflect those changes. A Form 1040 taxpayer’s regular tax calculation using the worksheet is potentially impacted if: Form 1040, Schedule D, lines 15 and 16 are both more than zero; Schedule D, line 18 or line 19 is more than zero (or both are more than zero); The taxpayer’s taxable income is more than $38,600 if single or married filing separately, $51,700 if head of household, or $77,200 if married filing jointly or a qualifying widow(er); Line 15 of the Schedule D Tax Worksheet is not more than line 14 of the Schedule D Tax Worksheet (those lines were not impacted); and Line 18 of the original Schedule D Tax Worksheet (line 18 a of the corrected Schedule D Tax Worksheet) is not more than $157,500 ($315,000 if married filing jointly or a qualifying widow(er)). Potentially impacted taxpayers may recalculate their regular tax using the new worksheet to see if it changes. However, the IRS is reviewing all potentially impacted filed returns; more information will be provided later.

Exactly. plus when it's a positive adjustment you get a four year forward spread.

Isn't that what Form 3115 does, makes a 481a adjustment in the current year as a positive or negative amount?

I think you're referring to the line 11a tax worksheet, but the one that changed is the Sch D tax worksheet, which you can jump to from line 2 of the line 11a worksheet. And here's a link to the Sch D instructions which include the tax worksheet when 1250 is involved, Edsel: https://taxmap.irs.gov/taxmap/ts0/scheduledtaxworksh_o_3bd946a9.htm The normal worksheet is part of the 1040 instructions: https://taxmap.irs.gov/taxmap/ts0/capitalgainsworksh_o_2dddbbf0.htm

Sounds to me like you have an ordinary and necessary business expense that will be paid after the business discontinues operations. Deductible in year paid by cash basis taxpayer regardless of raising eyebrows.

If it was an unknown strain, which was undetectable, how would they even know whether any data was lost ? It's not like someone stole the crown jewels. The data doesn't disappear, the hacker just leaves with a copy of the data.

Somehow I knew Abby would cover my ineptitude.