Leaderboard

According to Tax Pro Today, the IRS on April 11th quietly expanded their Section 199 A FAQ from 12 to 33 questions and answers: https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs There are a few surprises related to S Corps and Partnerships. Putting out additional guidance on April 11th ??? I am truly at a loss for words.

Four score and seven years ago our fathers brought forth on this continent, a new nation, conceived in Liberty, and dedicated to the proposition that all men are created equal. Now we are engaged in a great civil war, testing whether that nation, or any nation so conceived and so dedicated, can long endure. We are met on a great battle-field of that war. We have come to dedicate a portion of that field, as a final resting place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this. But, in a larger sense, we can not dedicate -- we can not consecrate -- we can not hallow -- this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember what we say here, but it can never forget what they did here. It is for us the living, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us -- that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion -- that we here highly resolve that these dead shall not have died in vain -- that this nation, under God, shall have a new birth of freedom -- and that government of the people, by the people, for the people, shall not perish from the earth. Abraham Lincoln November 19, 1863

I don't need to go - we do taxes for a hairdresser in the building and she gave me this hot tip two months ago: HD: Hey; you haven't been giving me my car expenses! BB: Huh? HD: Angie over at Kut 'N' Kurl says her tax guy fixes hers so she doesn't owe much at all; he says all businesses can take off 10,000 miles. BB: No kidding. Who's her tax guy? HD: Actually he's not a tax guy - he works at the transmission factory, but Angie says he's real smart and balances his own checkbook. BB: Well, that nails down his credentials. HD: What? BB: Never mind; how much driving do you do? HD: Well, I drive back and forth from the house every day; and then we go to Memphis for beauty supplies once a year. BB: About the commuting...say, by the way, how far away is home? HD: About a mile that way. BB: Uh-huh. And you go to Memphis to buy supplies? HD: Well, not exactly, but sort of. Once a year me and her and two other girls go to Wolf Chase Mall and the restaurants - can you believe a Margarita is ten dollars at Red Lobster? - and make a day of it. Then we stop at the beauty supply store on the way out of town. BB: And how far is it? HD: A little over 140 miles round trip. BB: So you drive 140 miles every year for that? HD: Not every year. We take turns and that way everybody only has to drive her car every fourth year. BB: Any other driving? HD: Two or three times a year I drive across town for older ladies who can't make it to the shop. Oh, and I did one at the funeral home. BB: Well, you've certainly built a compelling case for car expenses and we'll be sure to take off something for them next time! HD: Thanks so much!

Why, certainly not, John. You're too hard on your clients. I sent out several messages, calls/voicemails, a letter, etc. for a client for 1&1/2 months and she finally graced us with a call yesterday (almost didn't answer-thought it was another damned Google telemarketer). Said she'd have called earlier, but "you wouldn't believe" how much trouble they had endured since somebody stole their debit card info, plus Block gouged them horribly last year, plus this, that, and yak-yak-yak. Yes I would because (1) I've had a credit card stolen (2) when they (late-season price shoppers) first came in, hubby said "All I've got is a W-2." Then she drove us crazy for two weeks calling and adding entities/businesses. Then; they vanished for 45 days. I've got more bad news for them; their Block experience is getting a rerun. What a business! I should have (after ruling out brain surgeon) gone to barber school.

I would be remiss if I didn't relate this to all of you. I did get a call from my rep yesterday. While over the last few weeks I was seriously considering going to Drake after a road test because I had a few issues this year, although not so terrible to impact my business. I related those issues to my rep who quite aptly wrote everything down and said all the other reps are referring these concerns to management to improve their product. Yes, I know, what else would he say as a good salesman, but it gave me some comfort that maybe I was helping in some way. I have been with ATX since '96, and can remember joking about the weather in Caribou, so as I could easily move to Drake, it would break my heart....knowing I would miss the easy interface I have become so accustomed to. I even did a Beta test one year that I considered an honor to be included. As John H said, you have to be ready to book.....I was, as I thought their price increase to be out of line, considering what has happened this year. Other than the program problems, the breach could have happened to anyone, their communication with customers was unacceptable and totally inconsiderate. I would never ever do that to my clients. So, with that being said, I told my rep I didn't think the price increase was fair. I said I would not pay more than last year. He then started to negotiate and we agreed on a $48 dollar increase if management would agree. He asked me to hold.....went for a quick smoke and came back and said he got the OK. All in all, being with the company this long, I think it is important that we still support them, there is much of the product we like, and some things we dislike, so we should try to help them bring it back to its original prominence among its peers. I don't want to see them fail, none of us should. They need help, and they are crying out for us to be there for them, they just don't know how to ask or say it.

FAQ # 28, 32, & 33 related to Partnerships and S Corps are both worth reading and confusing.

Bart: If you'd gone to barber school you'd have become an instant tax expert without having to learn all those pesky details of actual return preparation.

This is not totally wrong. It does apply to partnerships under the Centalized Partnership Audit Regime. see top of page 4 https://www.irs.gov/pub/irs-pdf/i2848.pdf

And don't forget the vet bills & food for the "security cat" that guards the Salon. That's a deduction I was told one time by a multi-level marketer that is often overlooked.

I've been sending them in, requesting multiple years, and those have been honored. Just a couple months ago I sent one in for 2013 - 2018 (long time non-filer), and was able to pull transcripts a couple weeks later for ALL the years involved. Well, except 2018, because there is nothing posted aside from the "appointed representative" notation.

Sometimes, it's hard to create an incorrect return. I go for easy. If the original return is not in my software: Create the return as it should be, as if it's the original return and not an amendment. When I have the return the way it should be, I call up the X forms (I've done this at Block, with ATX, and with ProSystem fx, but ATX was a long time ago). When your software asks you if you want to transfer the data to "Column C," say NO or check/uncheck the box or however your software works to keep your data as amended now. Then you just have to type into "Column A" the amounts from the client's original return and add the explanation. This is often a whole lot easier than trying to recreate your client's original return in your software, especially if he had errors. And, it's easier for me to proofread the return I'm creating as if it's an original return, then turn it into an amendment. I can follow the flow better.