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I think that is politician.

Reminds me of the old CPA who said the size of the fee determined the reasonableness of the tax position. For the right fee, any position can be taken on a tax return. This is why the IRS commissioner keeps going after professionals, because we whore out our credentials to high paying clients to give them what they want instead of recording the facts on the tax return. Sorry, I just couldn't keep quite. It has been a tough day and I am just not willing to hear this crap. Some day justice will catch up to clients and their preparers who pull this $h1t. Unfortunately we are rarely ever to witness it. Judy, if that term is offensive you can edit the post to change it to whatever is the politically correct term for a person who sells their body and respect for money. I don't know what that word is, so I will just use the one I know. Tom Modesto, CA

I also always report. Better safe than sorry later.

He probably filled out the PY return/schedule the year he moved, which was correct for that year; then, he continued that method every year since. I've seen taxpayers go to a pro when something changes, and then keep copying what the pro did on their own until the next time something changes!

Shouldn't he have been doing payroll all along? Reasonable compensation?

The most troubling thing is your reference to a "long-time client"!

And maybe we are just paranoid. Hard to tell anymore.

Hey, Everybody, we're all good. Lots of hail but the tornadoes missed us! Thanks for checking!

Tom, no problem here and agree completely with your sentiment. I've made similar statements over the years about some in our profession by saying "prostituting themselves". Same thing.

As is see it, the lesson this client will learn is that he can call it whatever he wants in order to get the best tax position from the transaction. So now 63 days after the year end, it is no longer a social security saving distribution; but a QBID producing reasonable salary, paid on the last day of the year! You are right, a reclassification is in order, but sounds like this client will only go with whatever gives him the net benefit.

Because it takes a minute to fill out the reporting form, and far longer to answer the CP2000 letter a year and a half from now.

Thanks to all. Likely I have simply lucked out as I have never been informed any of those who sold homes ever received any followup from the Service but then again I do not process many returns with home sales either.

Many times, they don't realize they have been given a 1099S. It is just in with the huge packet of papers they received at closing and which they never looked at except to sign where the attorney pointed.

go to schedule D and their is tab for sale of residence. If no 1099-S issued and under the reporting amount you can skip it BUT I always report it to be on the safe side. Clients don't always bring in the 1099-s

It should have been treated as wages, but since it wasn't I'd put it on Sch C. Others will disagree. That's how we are.

Let's not look a gift horse in the mouth. I'm not sure why there hasn't been an update recently. Maybe the program is running as expected and there is only a need to update forms.

Hard to blame us. Seminars tend to scare the crap of out us lately.

When you sell a home, as we recently did, the attorney gives you a form to sign and check off whether you've lived there for 2 of the past 5 years. If so, and the sales price is not above the Sect 121 limits of $250k or $500k, no 1099S is issued. Therefore no reporting is required. Why make work for yourself?

There is a grace period per 199A(b)(4)(C).

The payroll W2's must have been timely filed to SSA (i.e. 1/31/2020) for it to qualify for QBI.

We've gone totally off-topic here, and hope that the OP will have resolved his error. I have a question on the above combo for grabbing a partial window snip. I still have the old snipping tool and that does work that I use occasionally. When I launch that it also has a popup that mentions the Win+Shift+S shortcut. At your mention I tried this shortcut today and had a free form cutout, but my window was greyed out and no tools or new window appeared that would allow me to save, modify, or paste it into another document. Instead, it totally disabled all functions on my machine. I couldn't exit my browser with the red "X", couldn't close any windows by right-clicking on the task bar's icons, clicking on the Win logo was disabled. I tried to open the task manager with Alt-Ctrl-Del and it was hidden behind the greyed out browser window and couldn't access that either. The only way to get out of this mess was Alt-Ctrl-Del and at the blue screen before launching task manager again, I used the power "button" to do a complete restart. Any ideas why this happened? I'm running v 1909 without any other issues so far. I was hoping this would be an easy and quick snip, but was a total fail here. I don't think I'll be trying it any time soon again. I find screenshots much easier on my tablet, much easier than anything I have through Win10.

Programming for unexpected data entry is a huge chunk of time... and sometimes gets overlooked. Then again, one can program for expected input, then find the wonks who make the rules allow something other than what the forms shows on its face! 2020 W4, step 3 for example...

Thank you, I believe it's turning out to be much worse than we thought at daylight. A town 35 miles away lost at least 19. I was awakened at 2:30 by hail, and wondered if two baby calves would be ok. The entire herd came out of the woods at daylight. We are very fortunate and thankful.

Life insurance DEATH PROCEEDS are not taxable to an estate on Form 1041 (which calculates income tax) except for certain interest earned from date of death to the date benefits are paid. A form 1099-INT will be issued for that. As others have said, it is an entry on Form 706 but we probably don't have any clients now which exceed the threshold. (In the olden days, yes, it came into play when the threshold was $650K.) Perhaps Max was thinking about the proceeds of a policy which is CASH SURRENDERED, and it exceeded basis. For that situation, a 1099-R would be issued for the taxable income portion and it would be reported on Line 8, Other Income. This might be a situation that could occur in certain trusts where the trustee cashed in the policy. You have to differentiate between the two types of payouts.

NO. For the distribution to be considered a QCD, the trustee must pay it directly to the charity.