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Your client DOES have a profit motive for working. He accepted the checks. It's not a hobby. You said eight hours per day. And, he is in the business of HVAC services. (The business of being an employee would not be QBI.) Didn't he deposit his checks, so he can confirm his annual amount on his bank statements? Lay it all out for him, including whether you are willing to prepare his return under which conditions. Let him decide. He might be ready to blow it all up. Although, I'd recommend he find another job first and THEN file his returns. He can always extend and pay something with his extension. In my software, I have to chose "Qualified" or "Specified Service" or the income is not counted as QBI.

I don't contact anyone until week of the 15th asking if they want a extension filed. Some I don't at all if I think they could have done their own or fairly new client.

I spun off all my businesses a few years ago when my part-time CPA and friend retired. I didn't want to pick up the bookkeeping and payrolls or returns. And one of my bigger folks emailed me about 10 minutes ago. They have moved over the years to 3 different states and stuck with me. She's a pretty well paid doctor with a musician husband who was stay at home dad. I'm very happy to hear from her!

I zip an email and say something like, "If you have not already filed your tax return and still want me to prepare it, please let me know." Many times, they are gone. But if they are coming back, that usually gets a response.

Life is full of trade-offs. Yes, they have to pay both halves of the SS and Medicare, and they are probably not covered for unemployment. On the other hand, they are probably paid a higher rate per hour than they would be if the employer had to provide benefits. If everybody is happy with the arrangement, who am I to rock the boat? I am bothered when whoever hired them doesn't explain this from the beginning but as long as everyone understands the rules of the game, I think it is reasonable even if not technically correct.

I have had a few of these - the program actually works well and they avoid trying to make the itemized deduction level. It's a great idea.

I'm gonna start debiting it from your account, too. Nice feature!

I am having the same issue with a few people. With all of the medical issues in my family, and new ones that have cropped up, I did not get out all of my normal annual letters. I did get the organizers out late, but I haven't heard from a few people. They are mostly easy ones, so they may have prepared their own. I have been trying to decide if I should call them to let them know that I am still around. I think that asking if they want an extension is a good idea. Thanks!

I wait until after biz returns, usually end of March, to email them if they want me to e-file extensions.

Thanks for replies. This is the first time I can recall that there isn't a fairly steady stream. I will be patient for at least another week. I know I have a few appointments to finish up next week but nothing in the pipeline after that except a major client who has already sent in the engagement letter but will be in FL until early April and waiting on K-1's for 2 clients. I decided to go for natural attrition but renewed my license for 3 more years. Guess I'm just a little nervous about too much attrition too soon!

I thought people on SocSec disability got medicare. I've seen SSA-1099s with medicare premiums deducted.

We enter totals by Casino. Hopefully there isn't a new red efile error on the W2Gs this year, but if there is, I'll just skip the W2G screen and override the other income line. Edit: You're good to enter totals. I just tested one and the W2G only requires name, addr and EIN of casino. You can leave the rest blank, except for withholdings.

I also enter them one by one BUT I don't put in all the information. I don't do the transaction number and have never heard back on one. I have received an letter when they were missing a W-2G being reported. At that time I just totaled and put in gambling winnings entered no W-2G. my total didn't match all the W-2G's the letter was a long one listing every W-2g they had and saying we didn't claim any of them. Took awhile to get it fixed. We were just off one W-2G not all of them. They smacked on a big under reporting penalty too, but was able to fix it all and just claim the small missing amount

It might not be what was supposed to happen, but it is what happened. We report the past and help our clients plan for the future. It is the client's decision to accept what's reported or not. And, you can decide to keep him as a client, or not. By the way, would an IRA help him -- paying himself for his own retirement to pay the government less?

I have a similar client. A national replacement window manufacturer subcontracts the installation and the my client "works" for the sub. The sub tells him when and where to show up, provides all the materials and tools, and supervises the job. The sub told the client that since he (client) gets paid by the job (not hourly) and he does not have a regular schedule (sub will call a couple of days before the job and client can decline to work) he (client) is not an employee. Client does not have expenses to offset the income. Client enjoys the work and flexible schedule so he does not want to rock the boat . I file the Sch C and doesn't mind paying the SE tax. I explain to him every year that this sounds like this could be an employer/employee relationship, what his options are, and document the discussion. I believe I have done my due diligence in explaining it to the client and it's then up to the IRS and/or client to determine the relationship.

At least in this case the TP can prove they followed the rules vs cashing the check, then issuing a check to the charity.

It may not be right, but I would put it on the Sch C and take any documented, legitimate deductions he has. The only tax he's paying that his "employer" isn't is 7.65%. It is painful because all the tax is due all at once. If he and the boss knew from the start that this was how it would shake out, and he was collecting 100% of his hourly rate, he probably knew he was being paid as a contractor. If you "call out" the employer on this by filing these forms, your friend might suffer some consequences at work. If he were already separated from that gig, do it, no issue. But not if he's still wanting to work for this company. It's the whole family you are concerned with, too. Not just this client. That's another reason I say Sch C, legit expenses, explain that it's not so bad, and be done. Even if there are no expenses, Sch C and be done. He will know it's done right and he will somehow pay it off. It is what it is. That's what I'd do, right, wrong, good, bad, or ugly. https://www.irs.gov/compliance/criminal-investigation/employer-and-employee-responsibilities-employment-tax-enforcement

Please take a moment and read what the CDC recommends for business and employers: https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html

I have had this situation several times. I simply paper file the parent's return claiming the dependent and at the same time mail in the amended return for the child. The parents receive their income in the same time frame as any paper filed return. This very thing is the reason that I prepare a child's return for free when I do the parent's return.

Was there a distribution made to the beneficiary during 2019 or with in 65 days after the year end (per the 65 day rule)?

If the apartment house was titled into the trust, the trust reports income, expenses, depreciation, etc. Make changes with the mortgage company, insurance company, etc.

personally I would amend son return now and paper file parent now with claiming the son. I have done that in the past with no problem. Amended returns turns take so much time to process. I would not file without son then amend with son. I won't file a return I know is wrong.

My understanding from reading the IRS instructions is that as long as the check is payable to the charity, it can be sent to the client for delivery to the charity. But I agree with what has been said.

Yes Lion, that's the way I understand it. 1099R will show full distribution so as to become part of client's RMD. Then on the return, back it out of taxable with the QCD code. Keep receipts from charity. Client should also have monthly statement from broker showing distribution directly to charity. Distributions must be sent directly to charity, not passing thru the hands of client.

The broker is not verifying that the charities are qualified per the IRS. "Taxable amount not determined" is correct. The tax preparer with the client determine and report as your software allows for QCD to print. (In my software, I have a tab where I put the amount of the Qualified charitable distribution.) On 2018's 1040, line 4a was $100,000; b was QCD; 4b was $95,000, for example. I keep the acknowledgements from my church and charities with my tax return; plus Morgan Stanley did provide a detailed list. I've been doing this and talking to my clients about doing it.

Have you donated to this forum lately? It is never too late for a token of appreciation for the upkeep of this site.

In Elections, Form 1040, click on the one (near the top) that says "elects to not file form 1116'. After doing that then the foreign tax should flow to sch 3 part 1 line 1

It depends on the size of the returns. I can open 3 small returns at a time. I can open one large and one small, but I can't open two large returns at the same time.