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I have a better idea, I rent a bus, take them to the casino and I stay with them writing down their winnings and losses.

My clients dropped off/uploaded/mailed/FedExed/UPSed/faxed in mass about the MLK weekend/week, so I now have a huge backlog. And, I'll be working on entities through 15 March. So, that gives me only a month to prepare all the personal returns that dropped off last week. I really want an extension, don't want to stop to prepare extensions during my only month to prepare returns. I loved last year where I kept preparing returns until July and then had many fewer extensions to prepare. Tom: give your clients deadlines to get their info to you. Or, have progressive prices, and let your clients know, to encourage them to come earlier. Or, close/slow down your business when you want, such as 15 April, and not start up again until you want, say 1 September, to prepare those extended or just plain late. Let your clients know how your business runs, so they can schedule accordingly. Don't let your clients run your business.

Excerpt from IRS Topic 513: "To be deductible, your expenses must be for education that (1) maintains or improves skills needed in your present work or (2) a law requires to keep your present salary, status or job. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your present trade or business."

We would love it, too. When the COVID b/s is over, we will gather again, I'm sure. I'll keep you well informed about our antics! LOL

I used to have a long time client with multiple businesses that always brought his tax info late and always expected me to have everything done quickly. For years I put up with that behavior although I did raise his fees well above my normal fee. Finally last year now that I am semi retired I told him 3 different times that I would have his return or project done a week later than he wanted. Thankfully he has moved on to inflict himself on another accountant. It just got to the point where the money didn't matter any more.

I put negative adjustments in all the time and not a single one of them was a refund of prior year amounts. This is another typical bullshit move on the programmers part.

As long as totals for LY are correct, print to pdf and use the typewriter function to add the details where you want them. Adobe Acrobat has that capability, and other pdf programs may have something similar. Many times I want use the comparison form to review the return results with the client, and I'll use the pdf typewriter to add some brief notes next to figures I want to highlight in my discussion.

All I heard after Technically was blah blah blah! Like the teacher on Charlie Brown!

I agree - I hate it!! but in most cells - if you go to itemized list, you can usually do a negative

The excess distribution will be closed out to retained earnings that will create a negative balance. That will happen when the shareholder has used up stock basis. Some others here may also suggest creating a shareholder loan, but I'd caution that this should be fully documented and make sure that is the shareholder's INTENT, including paying it back with interest that at least meets the current AFR. Also talk to your client about not using the S corp as his or her personal checkbook.

This article appeared in Account Today this past week: https://www.accountingtoday.com/news/lawmakers-ask-irs-to-extend-tax-season-until-july-15-due-to-covid

When you do the worksheet for the primary exclusion on the 8949 - it would also calculate D/WI

The sale is supposed to be on Form 4797, just like any other rental. The amount of Unrecaptured Section 1250 Gain is shown on page 2 of Schedule D, and is actually calculated on one of the capital gain worksheets. The exclusion should also be entered on Form 4797. https://www.irs.gov/instructions/i4797#idm139902460554688

Unless the state Revenue department decides to automatically adjust them. My state is infamous for doing the conforming to federal late - like April or May, some years. So the Revenue dept, if it's something simple - like this would be - frequently tells us not to bother amending, they'll issue all the extra refunds after tax season.

I am jealous. Would love to be in TN with the two of you. Tom Modesto, CA

I tell my clients that my "on time" deadline is March 15th every year. They ALL know me, and know full well that after June, I'm on a boat fishin' or in TN visiting @RitaB !

I see both sides (I am a programmer). In my case, I came to find out a few of my customers were creating negative amount paychecks. Problem is, there is no such thing. I know what they were doing and why, but they failed to realize the consequences. The reason for the error (and it is an error in their processing) is they never figures out the consequences were never having correct payroll records, and not accounting for the tax consequences of essentially providing a gift to the employee (in their payroll records). Indeed, they were handling the "issue" by collecting money from the employees, but it was not accounted for in their payroll records. I do spent a large amount of time trying to anticipate "moves" which a human might make, versus the "old days" when all computer users were experts in their own right. Whether or not allowing something makes sense has nothing to do with it, if a field is not supposed to be a certain thing, I cannot let it be entered incorrectly, as it will certainly come back to cost me in some way since modern computer users believe and expect their hardware and software makes them an expert, and will prevent them from making ANY mistakes. (The "I just paid to use your software, not teach me how to process payroll" syndrome.) Having come from a write software for my own use, to write canned software, it is a constant battle to remember canned software must try to handle even the most unexpected human actions (some say 90% of code is to prevent loose nut at the keyboard issues).

Exactly. My clients come in when they've been coming in for years, early for the big refund people and late for those who owe, typically. An extended deadline just saves me preparing a bunch of extensions.

Basic bookkeeping: Prior year net income (loss) always closes to retained earnings. QuickBooks and other accounting software does this automatically. I close total prior year distributions as of 1/1 each year to retained earnings so the books match the tax return retained earnings, and I can see that the books match the tax return beginning balance sheet without entering both numbers into a calculator. This also makes distributions start at zero for the new year. I know some accountants who don't close S corp distributions each year and they do a comparative balance sheet to see current year distributions but I'd rather see that beginning RE is correct at a glance. For partnerships, I also close partner capital contributions the same way I close distributions, except to each partner's separate capital account.

I can see this as a new revenue stream for Pacon: bookkeeping and tax preparation for casual gamblers. Flat fee plus % of winnings plus all the food and drink you want. Go for it !!

You should hire an accountant or a really good bookkeeper. Your questions indicate that you're in over your head.

Who has an AAA account on their books? I've never heard of nor seen such a thing.

No.

Well it seems people are taking it upon themselves to extend the filing season because they are coming in very slowly, and no I don’t want an extension.

Oh LAWD, let it be!

Only form 982 is needed if all the debt is excluded. Ten or 12 years ago when the housing market crashed, we filed a lot of COD's in the several hundred thousand $ range and there was never any issue with the IRS. I think the highest amount was over $800K.

https://www.irs.gov/pub/irs-utl/am2008011.pdf https://www.irs.gov/pub/irs-utl/am2008011.pdf https://www.cpajournal.com/2019/12/24/taxation-of-gambling-income/ If all your clients go to the casinos at least once a year, you might want to give them a gift of the Lady Luck Gambling Diary: www.LadyLuckDiary.com

Yes.

Alright. I sent three returns for clients who didn't want to take advantage of reporting the early distribution over three years. I used Form 5329 only. They were accepted. THEN I happen to read on the ATX Form 5329, under Part I, that we don't use this Form for coronavirus related distribution. I noticed just now that the IRS pdf for 2020 Form 5329 does not have that instruction against using the form for coronavirus distribution. Just throwing this out there. No idea if we that used 5329 should amend to include 8715-E or not. I have three others that I will hold onto and use 8715-E. And yes, I have tried to dissuade folks from shooting themselves in the foot by not spreading the income over three years. They have already shot themselves in the foot by taking distributions they didn't need while the market was down. There's no helping these folks: "Oh, your hours were cut causing your income to be 4,000 less. It makes perfect sense to take out 90,000 from your 401k. Ok."