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Copied from IRS e News: "Early reporting replaces Form W-2 Verification Code – IRS thanks all participants Because of new wage and income reporting requirements, the IRS announced it would discontinue the Form W-2 Verification Code pilot for the 2019 tax year. Federal law now requires employers to submit Forms W-2 by January 31 each year, which helps the IRS combat fraud and identity theft and superseded the need for a verification code. The IRS expresses its appreciation to the many stakeholders, especially the payroll service providers and industry software developers, who joined in the verification code project."

I think a parent can hire his/her child with FICA exemption and age restrictions, including a husband-wife only partnership. But, not an S- or C-corporation, even if parent is only shareholder.

no ss or med it is added to line 7 wages (or what used to be line 7) thus, if the student's income is below the standard deduction, then there is no taxable income This can be used to "free up" qualified tuition for the American Opportunity credit on the parent's return

Actually, I think its the state that I want to efile worse. NYS wants the kitchen sink attached. Paper up the wazoo!

Nope. It was published last year. Maybe the rep didn't read it. Wouldn't be a surprise!

Student was a paid intern in the legal department of a commercial properties firm in Greenwich, CT. Had to buy dress shoes, belt, pants; and no, I did not deduct those. Very definitely not a not-for-profit. But, hey, he's getting a Yale education and almost $5,000 per summer job for less than $730 in taxes. A great deal. But, he's a great kid of a hardworking single mom violin teacher/yoga teacher. And, he volunteered with VITA, so why he forgot to prepare his own tax return... I like his mom, but I'm charging for this kid's return.

More of a vent than a question, but discussion is always welcome. Many states are implementing PFML (paid family and medical leave). Some state PFML has language allowing the employer to pay some or all of the employee liability. This, I have an issue with. The state PFML departments are setting up employers and employees for problems, should employers choose to insulate employees from their liability. Why? Employers cannot "choose" to pay employee liabilities with no consequences. Such payments actually increase taxable wages for the employee (and increase all other tax liabilities as well). Think of situations where it is common for an employer to insulate an employee from SS/Medi (and the charts showing how much to increase taxable wages when this is done). I asked one state PFML director if they had considered this issue, and whether or not they had a ruling from their own state and from the IRS as to whether or not an employer paying an employee's PFML liability is exempt from taxation. The answer was that state's PFML folks do not get involved with other taxes, so no, they had not thought about the issue or sought rulings. For my customers, our PFML withholding calculations are done at the employee's full rate. When I get asked about handling a lesser rate, or no employee withholding at all, I have to explain the issue and if the employer insists on insulating their employees, suggest withholding the full employee amount, but consider increasing their wages by the PFML employee rate (plus some additional factor to have their net be about the same as before PFML). Likely though, no one will notice, yet I have to stick to what I believe is correct, and try to educate. --- Some of the interesting PFML setups are when those with less than 25 employees do not have to pay the employee share (which must then be made up by all employees, and by all employers with 25 or more employees). Those states must have smaller employers with a large political influence, or maybe just as likely, politicians who want to sound bite how they helped the small employers (leaving out how the money is made up by higher employee rates on all, and higher employer rates on the larger employers). Another is a state where tips are NOT considered wages for PFML. (Must be a good restaurant lobby.) Tipped employees are only taxed PFML on what is likely minimum wage, and can only get paid PFML based on their likely minimum wage. Perfect, those who would really need PFML cannot afford to use it. But then again, I know complication is what keeps us all in soda and candy... and never will things get easier now that payroll calculations have been fully politicized.

Agree with Max, and it could also be that he wouldn't get the best deal as a corporate customer, whether because of price or because of the interest rate on the loan. Aside from the tax implications, if your client is going to lease to the company, make sure that lease is formalized and includes a clause releasing him from personal responsibility in the event of accidents. He doesn't want to place his personal assets at risk because the vehicle is still titled in his personal name.

Sales people can be dishonest. It is not in their interest to prepare license and insurance papers for a corporate customer. Both of these would add to a higher price tag on the vehicle and could kill the sale. Many sales have died because of small things. With a nice commission hanging in the balance, the salesman doesn't want to see the customer walk.

"I learn something new every day." I try as well. I had not thought about household help, as it is not something I run across often. One of my umpire mentors always said it is better to be on the way up - the two choices were to be on the way up (learning), or on the way down (not learning)...

You can efile a 1120S amended return.

Thanks for the responses. I learn something new every day.

We all tossed this around last season and if you were like me, I processed returns for rental clients claiming the sec 199A because they met all of the conditions and it was unclear as to whether this activity would qualify as a trade or business. I relied on a lot of discussion and other codes sections to support my position should one of my client's get questioned. Now, the IRS has released revenue procedure 2019-38 clarifying that rental activities do qualify as a trade or business for the purposes of section 199A. Attached is the pdf of the procedure. I know some folks don't like opening attachments. I can post the entire document if anyone needs me to. Rev 2019-38.pdf

For the most part, all this does is make the previously proposed regs permanent. So I don't think it provides much more clarity. I did notice one change that will very useful to some clients. The proposed safe harbor did not allow commercial and residential rentals to be combined when a client tried to meet the 250 hour safe harbor threshold. This has been changed to allow clients to combine commercial and residential rentals together.

Internship income could be exempt from SE depending on F&C. https://www.irs.gov/charities-non-profits/student-exception-to-fica-tax

If the suggestions provided don't help, buy a better computer with 16G or 32G of RAM.

This won't answer your specific question, and presupposes the client will both listen to you and act in time. You can have people take out the excess for the two years from the later year's contribution, and then re-characterize (letter to the custodian should do it) the excess from the earlier year to be a regular, non-excess contribution for the later year. Example: $50 overcontib for 2017 and $75 overcontrib for 2018. Take $125 out of 2018, letter to custodian saying $50 of contrib for 2017 was really for 2018. Poof! It's done.

1. Reboot your computer to clear your printer cache. 2. Hold down your ctrl key and press F5 to clear your browser history. 3. If you have a security suite turn it off, it uses a lot of RAM. 4, Run CCleaner or a similar program to clear out any garbage 5. Use your task manager to minimize any programs running in the background Cross your fingers and try again

It takes real dedication to read the CC reports we get (Elavon via Costco). Same with our prior provider. Generally, if the overall cost for the year is 3% or less, I am good. Shopping for processors is no fun, since you have to weigh many factors, which are hard to pull from most processors. There are things I have learned which I would never post in a public forum... Anyway, this thread caused me to revisit our reports. I pay the per item rate for refunds, so a refund costs me the two per item rates, plus the discount on the charge (1.99% to 3.25%, depending on the card used). While the statement is not very clear, I can find the the original charge with discount and transaction fee, and the refund with only the transaction fee.

Can he spell "CAT"?

Thanks, I will likely amend HIS filed return to include her unfiled information as Lion mentioned. I just have to get all of his documents now. For the college son and 529 distributions, it is a real challenge getting actual documents for 8867 proving dependency. He has lived in an apartment year round so gets no mail at parent's address. School info does not come to parent, privacy stuff you know. I will have to rely solely on a phrase from the divorce decree that she gets to claim one son for tax purposes, ex claims the other. I HATE 8867!

The only way I think this could be resolved is through the tax court. Sections 1311, -1314 of the tax code allows for mitigation of closed returns under certain circumstances. However, it is pretty murky and the courts rarely grant refunds. If there are good records of emails, phone calls and notes to back it up, the previous accountant could be sued, but without this documentation it is his word against the new guy's. The IRS records showing no contact after 2016, would have to be obtained through FOIA and the IRS could tag their feet to the point where a subpeona would have to be issued. Here are two cases related to mitigation of closed returns. https://www.parkertaxpublishing.com/public/mitigation-rules-closed-tax-year.html https://federaltaxprocedure.blogspot.com/2014/04/the-mitigation-provisions-of-code.html

Nah. No war. Everything's copacetic. And you are right ("to thine ownself be true" - who was it said that? Howdy Doody? Hamlet?). As you said; it's important to keep on keepin' the kids straight. Mine are gone now--only IRS left to confuse. I'll mention the SE (and the warner) but it's like trying to sell overcoats at a July rummage sale - SE is "later", this is "now". Anyway I'm keepin' my fingers crossed -- don't want to break a winning streak. Friend, Bart

I would not take on the duty of being superwoman/man and let them obtain all the necessary information unless you have a retainer and you can deduct your fees as you go along.

GGRNY: Lots of preparers do not have a clue how to prepare a return above the most basic returns. The rules changed in the past two years and now we are required to provide a basis worksheet with every K-1. Not that the IRS is going to do anything with that info.... IF this is your only S-Corp, then I congratulate you on paying attention. Rich