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to all my ATX brothers and sisters. Every since the filing date got moved to July 15th, I have been in vacation mode. Nobody's bringing stuff in, or wanting stuff done, but I do have a ton of work still to do. But I'm so unmotivated. And now every body and their brother is asking about the CARE laws - nooooo - I haven't studied it yet. It's too early for CPE....... I just want to stay in bed with the rest of my lazy family.

And in that unlikely event, you tell the auditor that the former spouse skedaddled years ago and cannot be found. Hey, auditor - can YOU guys find him for the client; he oughta know that the client's great-aunt Millie died six years ago and left him her plastic rosary bead set.

A CPA friend of mine wrote this and I will be using it as a script to push my clients to see their banker for help: “Clients are asking us who they should contact in regards to a PPP Loan. Currently, all banks who are SBA 7(a) lenders are eligible lenders for PPP. The Department of Treasury will be in charge of authorizing new lenders, which could include non-bank lenders, to help fill any gaps. We would advise you to begin discussions with your existing bank to determine if they will be authorized to issue PPP loans. If your bank is not eligible, we would be more than happy to connect you with banks that would be a good fit.” Paul B. CPA

https://home.treasury.gov/news/press-releases/sm967 Today Treasury Secretary announced those without a filing obligation, receiving SS or VA benefits have no need to file in Ryder to get the stimulus payment.

I also have slowed down. When I complete a return but am waiting on information or even just signatures, I don't start the next return immediately. I'm still working late, because I get more done after hubby stops coming in my office as if I'm home from school or something! But, I'm sleeping a lot later in the morning. Partly by design, to take better care of myself (73 and type 2 diabetic with a husband 69 and type 2 diabetic and asthmatic) and partly because I've been hitting the alarm and going back to sleep. Of course, I'm reading everything about the new Acts and have attended about six webinars so far and have a couple on-demand that I haven't watched yet and am getting lots of phone calls and working with my church's finance committee about what program(s) would work for us. The calls have been for February 2019 through January 2020 income, payroll, rent, utilities, etc. Come on guys, it's only one month, please make the qualifying income and expenses 2019 calendar year! I have about a dozen complex returns here and some other clients I know will drop off and a few who always wait on K-1s or such that have already asked for extensions to 15 October. I also have some 1Q ES payments to recalculate for clients who've called with much lower 2020 income; a couple of those (CT-1065/CT-1120SI ES) are still due 15 April. I have all the work I could want. But, I'm not doing all the work at my usual speed.

AHHHHHHH AFFIRMATION.... I think I'll contribute in your honor!

Its been the opposite for me (grateful), but with many of my clients being home and now having time to put the paper work sooner, I notice my voice/throat has been horsed for the past three weeks.

In reading the material provided by WK on the stimulus rebates I am puzzled by this "The rebate amounts are advance refunds of credits against 2020 taxes" which means the rebate amounts will be shown as credits on the 2020 returns I guess ?

My guess is that it will be a one time search. If no 2019 on record then go to 2018 and issue ASAP per section 6428(f)(3)(A)

I have maybe 40 hours of work to do. 10 for what's in place (just waiting for a few forms) and 30 for what's yet to come into the office. I don't expect to see that 30 until July 1st.

What he said! (Except I'm using Drake now.)

Exactly, this is a one time event and the IRS will run the report and send the money. After the report is run and checks are sent, the IRS will say "Finito la musica.... if we made a mistake, it will be corrected when you file your 2020 return".

Here's a good place to start with a ton of info. (There are so much on the internet now, it can be quite overwhelming. https://www.sbc.senate.gov/public/_cache/files/2/9/29fc1ae7-879a-4de0-97d5-ab0a0cb558c8/1BC9E5AB74965E686FC6EBC019EC358F.the-small-business-owner-s-guide-to-the-cares-act-final-.pdf The Covid-19 forum has a lot of great info already!

So if you have not filed for 2019 or 2018, nor have you received a 2019 SSA RRB 1099 on the date determination, I am not sure if you will get a payment later if you file before Dec 31 2020, or if you have to wait until you file for 2020. It's past my bedtime.

In other words, the advanced payment is a one time event. They are not going to wait for a 2019 return. Per section 6428(f)(3)(5)(A) if a 2019 return has not been filed they will look back to 2018. And 6428(f)(3)(5)(B) says if a 2018 return has not been filed then "the Secretary may" use information from your 2019 SSA or RRB 1099 to make the determination.

I don't believe there is any review process of 2019 returns. As I read section 6428(f)(3)(A), the payments are to be issued ASAP; if your 2019 return has not been filed at the time the payment is calculated, then your payment will be based on your 2018 return.

Did son pay for equipment when purchased? (Cash, loan, credit card, anything) Does he have receipt? Did he deduct that payment when paid? Did your client(s) ask prior preparer why equipment is on father's return?

@Christian ,there are a couple of other good posts with ongoing discussions on this same topic over in the COVID-19 subforum that you might want to read also. I'll be moving your topic there in a little while.

The 2020 returns will have a credit for the appropriate amount based on 2020 taxpayer(s) and dependent(s). There'll be a subtraction of the amount of the advance check, but not below zero. Any positive result will be a refundable credit on the 2020 return.

The governor of Georgia just said he didn't know asymptomatic people could spread the virus. Now I know what ignorance is bliss means. This is why we are where we are, God help us from this type of ignorance.

I've only had K-1s from 1041 returns with foreign tax credits from dividends and I always claim them on the 1040. You effectively paid the tax, why wouldn't you get the credit?

But wait, wasn't it his to begin with? If I am following this correctly, how can son receive a gift of property he already owns? How can dad establish a basis in property he never owned? On son's side of this, I believe a 3115 is in order.

This was a solid read regarding the various options for small business assistance from the U.S. Senate Committee on Small Business and Entrepreneurship. It answered a lot of questions I keep seeing people ask. Hope this helps others. The Small Business Owner’s Guide to the CARES Act In addition, I subscribed to Live Oak Bank emails and they have been great about getting specific and changing information out really quickly. Here's an example of what they sent out yesterday. Live Oak Bank Wed, April 1 Email (link was removed, contents posted by JKL in a post below) All the best ya'll. Last year's tax season was brutal with all the tax reform changes, and I thought this year would be much, much easier. HA! Enter, the Coronavirus & CARES Act. BAM! I'm a hot mess again. Be well!

I've over-ridden the first two due dates in the 1040-ES Record and the resulting PDF looks fine. Also, I don't use instruction "letter" but, rather, the whitespace-rich, larger font "Client Instr" -- and over-ride its "Post return by" date to "quarterly".)

Correct as it is stated, assuming other requirements (son's age, marital status, full time student etc) are met.

The IRS first said yes, but just announced that if you are getting SS or Railroad Retirement, you don't need to to file anything - they will use that direct deposit information for the stimulus payments. https://home.treasury.gov/news/press-releases/sm967

So, you REALLY think that the IRS will be checking and comparing for the rest of 2020? In December, most systems are down for testing and maintenance. According to the information posted here, if I don't file for 2019, but in 2018 I reported $175K, I will get a check for 600. A week later (let's say) I file for 2019 and I made only $140K, I will get a second check for $600. Let's say that this emergency last ONLY 2 months and the economy goes back to normal, why will the IRS have to bother sending a check in December... six months after the emergency? If I am not mistaken, that's the interpretation of the instructors but reality might be a bit different. I do believe the IRS will run a report this month. If 2019 has been filed, they will get a check based on the income reported on that return (or not get a check). If 2019 was not reported, then they system will check 2018 and will send a check accordingly. If someone has not filed for both years, they will get their check when they file their 2020 return.

Thanks for the heads up. I fixed the link in Lynn's post to go to the proper page, now found at "sm967".

Thanks, Gail, that does make sense in a way. I'm going to drop my suggestion and see if some family member will be able to help these few folks when the "portal" becomes available.

Not considering straight loans, only looking at items with reimbursement/forgiveness. Straight loans are fairly straight forward, with the understand forgiveness may not be part of the process. It is complicated, especially since there could be several options for a particular business. The "credit" items, such as via Form 7200, are likely the easiest. The PPP SBA loan, and potential forgiveness, may be the more lucrative. Taking the retention credit on the 7200 means you are not eligible for forgiveness on a PPP loan. Forther complicating is 7200 is also used for partial compensation for fronting the emergency PTO. (I did see something that excluded WC costs from this compensation, which makes the ePTO very expensive for high WC premium businesses, and the business owner may not realize the ramifications until their WC bill comes biting.) The retention credit maxes at $5k per employee. If the business can get through the crisis and can hire most, all, or more FTE equivalent employees by the end of June, PPP loans with possible forgiveness are likely the most lucrative. Forgiveness covers 8 weeks of "payroll costs" and some other allowable expenses including group health care costs, up to the loan amount. Personally, I am advising some friends, but have too many customers who advise individually. Thus my post in the other forum offering to refer to those who are seeking possible referrals for such advice, which would work into tax gigs. I am hoping most people can get advice from their tax preparer, as that is the person who likely already has the needed numbers, assuming the business owner does not want to handle on their own. Of past note, Lay offs were a very viable option for certain businesses, as it limited exposure to ePTO costs (unreimbursed such as increased WC, and time spent processing), and provided something for their employees (UI, plus the extra 600 weekly UI add on, and the ability to apply for free medical). If those who were forced to or choose to lay off can rehire in time, then the PPP loan remains viable. The one caveat on the PPP loan is if there are employees earning over 100k, as the amount over 100k must be excluded. I have seen at least one firm (online) which is offering to handle the PPP process front and back end, for a fee. This may be a viable option for some to use. The bank handling the PPP loan gets a percentage of the loan as a fee. "Agents" who help with the loan process can also receive a fee. I am not really digging any deeper, since I found the best course for my situation already...

I am researchingand taking classes about the loans and am happy to tell them what I think the tax ramifications will be. I also prepare payroll and am happy to help them out with payroll numbers. I unfortunately am afraid that some of my small clients won't survive even with the help and it truly sucks.

I seem to remember in some of the early information that I heard somewhere, that they would not use banking information that was used to pay taxes but only information for depositing refunds. That may have been an unreliable source, early in the game before any official information came out. Right now I am an unreliable source myself.

This is a rural area with not a lot of financial support. I don't intend to advise on what they should do,; I may in some cases direct them to websites that they can read to get up to speed themselves. I would like to know at least enough to warn them of any tax pitfalls since they do rely on me for that. Since I do the payroll for some of my clients, I will probably wind up more involved than I want to be.

The tax rate for S and MFS is the same up to $306,175. So, if it is less than that and there are no credits denied for filing MFS, then I would file S. The SD vs Itemized you don't know either way. I have never seen this be an issue with the IRS and it doesn't appear to be tracked. It could possibly come up in an audit, but the way audits are conducted, it seems highly unlikely.

Thanks Catherine!

I don't want to have to go into my tax program to see things that can quickly be seen in a PDF. And what happens if the return file is corrupted or changed in some way, or I switch to another tax program? No thanks. I want a "carved in stone" PDF of every return I produce with ALL the useful worksheets and statements included. We have TBs of drive space these days on drives that will wear out before they ever get full.

Good point about the date, Max. Probably 15 July, because everything that starts with "1040" moves. But, I'd probably aim to get it in 15 April unless I found something official moving the deadline. Lloyd has time. I got a couple things off my desk that I couldn't verify postponed deadlines.

client/friend called crying (hysterically) today about I am not really sure - just scared! But she is still working fixing lunches at school kitchen 4 hours in am and babysitting grandkids (shes about 50) - i Not at all worried about her hubby who is a truck driver, packs his own lunch, use paper towels while fueling and rest stops, - I said he should also change his shirt! One office staff person came in - asked her to leave her coat in plastic bag - so warm when she went to car and take shoes off and wash her hands in warm soapy water at door - my she was offended - snapped at hubby - cried later as she was scared - She is not coming back for a couple months? Rest are remote .. but some stuff I needed but as of today in North Central WI we are closed to the public. And hubby says if someone is in the office I am upstairs! and they must wipe down and disinfect before I can go down and that I must wear shoes in the office and take off at stair door! I am always barefoot!! but everyone wants to come in, wants their taxes down now!! - they are not taking this seriously!! D

I relied on Section 6428(e)(1). Tony Nitti of RubinBrown taught a two-hour webinar to 5,000 tax preparers this afternoon and stated the following:  Basic Structure: Adds new Section 6428 to the Code  Section 6428(a): Individuals are entitled to a refundable credit on their 2020 tax return. (See Section 6428(b) for refundable status).  But in many cases, the taxpayer will receive an “advance payment” against the credit in the coming months. This advance payment is NOT taxable.  When the taxpayer files their 2020 tax return, the advance payment will be “trued up” with the credit; but only in a taxpayer friendly direction.  If the advance payment is LESS than the “actual credit” the taxpayer is entitled to the full credit on the 2020 return, less the advance payment; i.e., the taxpayer will receive the extra benefit.  If the advance payment is MORE than the “actual credit” the taxpayer is entitled to on the 2020 tax return, however, there is no mechanism for the taxpayer to either:  Report the excess advance payment as income, or  Repay the excess advance payment as is required with the premium tax credit.  What happens in 2020?  When a taxpayer files their 2020 return, a refundable credit will be computed using the same metrics and thresholds as the advance payment.  Section 6428(e)(1): the credit is reduced –but not below zero –by the advance payments received by the taxpayer.  Section 6428(e)(2): If an advance payment was made to a joint return and in 2020 they are no longer joint, half of the advance payment is treated as having been made to each spouse.

This is from stimulus Q and A from various websites: What if my income is higher in 2020? You do not have to pay the government back. Technically a person’s 2020 income is what qualifies them for the payment. Since no one knows their total 2020 income yet, the government is using tax returns from 2019 and 2018 to figure out who qualifies for a check. If you get a payment and then your 2020 income is higher and thus merits a reduced payment or no payment, the money does not have to be paid back.

It's all three of those. We'll be reconciling these checks on next year's tax returns. The Tax Preparer Full Employment Law.

I have a grandniece in NYC. She and her husband live in Queens, work in Manhattan. Not going to work at this time. They have a little 2 year old girl. So far, they're ok.