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I've been preparing tax returns for over 20 years. I grew up in the family business and watched my father do tax returns since 1979. I've been working in the office in some capacity since 1987. I know how tax season goes. Yes, I'm always vaguely aware of possible legislation but don't pay much attention until it become valid law. This though, is almost too much. Mid season retroactive changing tax legislation, during a pandemic year, with a later than ever e-file start date? I've already filed over 300 returns, probably well over a third of those with unemployment. I do 700-750 returns each year so I'm not even halfway through. I've never posted, and I'm just venting to actual tax preparers who understand (aka not my husband). I'm sure I will get through the tax season as usual. Kaiidth (Vulcan for "What is, is".)

My stay at home mom worked one week in the church nursery for a little over $200. Two hundred dollars. She got over fifteen thousand dollars in unemployment. I do a lot of tax returns. I see this over and over. I too, was hoping the IRS would fix this and just send refunds, but then I woke up. They do not care about software or the very tax professionals guarding their gates, following their mandates, crossing T's and dotting I's with threats of penalties looming. We are the "good guys" and we are the ones getting kicked around... again. I'm sorry, but I have way too many clients to postpone filing tax returns based on "what ifs," and I'm sure many of us are in the same boat. This isn't the end of the world for me, it's just "another day in paradise." I have a job, and for that I'm thankful.

Does anyone in congress have any idea of what they just did to tax pros and taxpayers alike? Many, many people have already filed, and a lot of them owe because they had no withholding from their UI. The states each have to decide what they will do about adopting the federal and issuing refunds. A lot of tax pros are either going call it a day tonight or quit tomorrow morning. Yes, the law helps some people but caused untold amounts of havoc. My hope is that IRS can do this without the need for amendments by reprogramming their systems. After all, there is a dedicated line on the tax return for UI, and IRS certainly doesn't want to deal with a billion amendments. Clients who owe and don't plan to pay until April 15 may need us to do some calcs for them so they have to come up with less cash. We can't do that until we find out what IRS and the states are going to do. And we won't have time because Monday morning the phones will start ringing with questions about will I get $1400 and when? ARRRRRRRRRRRGGGGGGGGHHHHHHH!!!!!!!!!!

Thanks.... or as soon as they get their hair done.

Why I don't already have one of these on my desk is almost incomprehensible. Would use it a lot when clients ask a question.

My crystal ball almost always flashes “4868” when there are any questions or potential issues.

Per the deal reached yesterday in the Senate, "the deal will extend a jobless benefit supplement at the current $300 per week through Sept. 6, according to NBC News. It will make the first $10,200 in unemployment aid non-taxable to prevent surprise bills. The provision will apply to households with incomes under $150,00" This is not official yet, but its something to keep in mind, as there will be the need to amend many tax returns. As if tax season was not full of enough headaches.

6 is nothing. Imagine how many some of those tax shops have done already.

Imaginary conversation next week. CL: (Monday) "When do you think I'll get my $1,400?" ME: "Maybe Friday" CL: (Friday) "Hey, it's Friday and I didn't get my check!" ME: "Oh, sorry. Did you think I meant THIS Friday? I did't say WHICH Friday - we still have 40 of them to go in this year alone."

No. Do they care? No. Tom Modesto, CA

Line 7 on 1120-S says "compensation of officers", not "wages of officers". Line 7 instructions state: Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation. Enter on line 7 the total compensation of all officers paid or incurred in the trade or business activities of the corporation. The corporation determines who is an officer under the laws of the state where it is incorporated.

That’s Switzerland, land of banking, watches, and your favorite, some of the best chocolates in the world. Netherlands happens to be the home office of ATX/CCH where they wear wooden shoes and have the most beautiful windmills.

I give them their papers back and wish them well. It happens rarely, and I do not take the client back. No judging... It's just how I roll.

I just tried and it comes up Oman, but I just realized if you type Var it does come up Various. Just V or Va is still Vanuatu. But when I have more than a few I've used Netherlands because it sounds like Far Away Lands.

Give them a bill. But if they don't pay it, don't fret. Give them back the documents they gave you and wish them well. You don't want clients who are shopping for the best outcome without planning with you before the year ends to improve their own outcome.

If your invoice reflects what you feel is a fair and reasonable price for their return, let them walk. It's difficult to see clients leave but at this point in my tax "career" I'm not looking to give my services away. I think my rates are below market in some instances, but I'm okay with that. I'm not looking to decrease them more, if anything they will continue to go up in the future.

I really hope this is one of those times. One, I don't want to be amending returns in the middle of the season, but those are folks who won't want to wait for much needed extra refunds. And two, I hate to have to charge people who are hurting for amended returns that aren't their fault. Seems like the IRS would be able to flag and recalculate those returns pretty easily, albeit maybe not until summer.

I remember the IRS recalculating and issuing refunds, I think it was about 12 or 13 years ago, don't remember the details.

So many returns to amend..... because of course, many of these folks are the same ones due refunds, and so come in early. Anyone think there's a chance the IRS will say they can figure this for returns already filed, and automatically issue refunds? Our state does that some years, when the Legislature doesn't conform to federal tax law until May. But Don't know if i can recall the IRS ever having to do it. Either way, I'm sure they'll issue guidance in the next couple weeks. Kind of feel sorry for them, having to do another round of stim checks right in the middle of tax season.

Wow, where to start with this one! Yes, the partnership depreciation should continue on using the same method and remaining life that the contributing partner used. It doesn't start over, so you would be entering cost and accumulated depreciation. If the contribution wasn't on the first day of the tax year, be sure that the partial year depreciation expenses on the (former) Sch E and on the partnership return are calculated correctly. Sec 721 overall says that, in general, partner receives nonrecognition of gain/loss on contribution to a partnership. Sec 721(b) deals with contributions to investment companies, not intangibles, but still doesn't apply here. Contributing partner MAY have gain recognition if he is relieved of debt to the extent that the debt exceeds his basis in the property contributed. Any debt relief to the contributing partner is considered a deemed distribution that will reduce his basis in the partnership, and if that deemed distribution exceeds his partnership basis, that then creates a gain that the contributing partner will recognize. If that happens, iirc, then the partnership gets a step-up in basis. So, yes, sometimes a partnership can have a step-up when no one died, and yes, "step-up" is the correct term. You will have special allocations in the partnership that are meant to keep the contributing partner from shifting tax attributes (the built-in gain from contributing appreciated property) to the other partners. Maybe someone else can explain this more clearly. Below are a couple of links that describe some of these problems are their handling more fully, including examples and code references. (Give me a few minutes to get to my desktop - can't post the links from my tablet right now for some reason.)

Oh, the tangled web we weave.

I have only had one return with unemployment so far and she lost her appeal. She now has to pay it back, because the state didn't think that having to leave the dorms and move 40 miles away was a good reason to quit her fast food job. Nobody was hiring here when she came home. I feel for her, because she is just a kid and they should not have given it to her in the first place if that was not a good enough reason. The state gave millions of fraudulent $ to unknown and random people that they will never get back. Rant over.

Bad programming, just like all the other forms that are added for no reason.

In your case, $25K will be taxed and penalized. $100K will be divided in three years, so if no money was returned, 1/3 of $100K will be added to the $25K to be taxed but no penalty.

Payroll is in the work for 2021 for both.

Don’t worry. As soon as they read the news or talk to their friends they will be calling YOU.

Knowing that this is coming, I will encourage those still coming to wait to file, but I have already done so many it will be difficult to pick them out right now. I need to, but it will be challenging.

I don't think the states will reissue. Probably the states that stay coupled with the IRS for most/all items will do the same with UI benefits. The states that decouple are anyone's guess. The states that currently do NOT tax UI benefits probably will continue to do the same. I have two so far that I'm holding. They're both under the $150,000 threshold, so agree with me to hold. I want to know the definition of "household." If the dependent who has $12,300 in UI benefits lives with her parents who make well in excess of $150,000, then does that mean the dependent's household income is also over $150,000 and she cannot exclude $10,200 from tax? And, for Kiddie Tax, after excluding $10,200, is the next $1,100 also not taxable, following $1,100 taxed at child's rate, and excess over $2,200 + $10,200 taxed at parents' rate? Or, does the exclusion of $10,200 include the first $1,100 and the 2nd $1,100 and go straight to parents' rate for the excess over $10,200?

I agree but most of my clients are from the restaurant industry and most of them collected unemployment. Some of them are using last year EI for EIC and additional child tax credit. Those people need their refund. If I see that someone will owe, maybe I will ask them to wait. In the past our industry has dealt with numbers and facts. Now we need to get a crystal ball and have it next to our calculator.

I doubt states will reissue 1099Gs. Why would they need to do that? I see this as being similar to someone that received a 1099G for a state refund that is only partially taxable under the tax benefit rule. Perhaps we'll have a worksheet or a built-in calculate for the federal, and then each state has its own rules and handling. Some don't tax it already, some more already made it n/t for 2020 alone, and for those that piggyback federal under normal circumstances, I guess they'll have decisions to make. As far as holding returns, I posted this in the other similar topic we have going:

True, the retroactive changes aren't your fault, but I think at a minimum you now have a responsibility to inform clients of the potential change to their returns and give them the choice to file or wait. I only have a handful that came in recently and they chose to wait a week or so rather than amend and then have to wait for a refund that may take months to receive, or pay a balance due that will end up a refund once the change is signed into law and is incorporated into the program. After all, they do hire me to work on their behalf to achieve the best possible result.

YES, this.

I am filing as laws have been written regardless of what will happen. It is not my fault that Congress will change them retroactively. I guess Congress gave me a chance to create demand for my services and file those with unemployment benefits as soon as they hit my desk. lol. For sure we will have to amend a lot of returns but I don't have a crystal ball to see what will happen and I am filing as clients are coming in.

Amendments will have to happen after tax season. I've already done a ton.

For others who have not figured it out. Correct, enter the 1099-R and when finish, scroll down and check "check box ONLY for Cornoavirus (CARES Act)...." that will trigger form 8915-E. On form 8915-E, enter the date of the earliest 2020 distribution to the left of the amount from 1099-R. If it is not from IRA, you click the box on page 1, and pay all taxes now. If you don't click the box, then 1/3 will be taxable. If client has returned money to the plan before filing (including extension), you enter that amount on line 10 FOR OTHER THAN IRA. IRAS have section III with the same choices but as long as you enter the 1099-R correctly the amount will flow to the correct section. Remember that you have to attach form 8915-E after signed for efiling.

Households with income less than $150,000. I was just talking to a dependent/college student with over $12,300 in unemployment benefits; that's her entire income. (She usually earned $4,000 from Macy's in her local mall.) However, she's a dependent and lives with her parents while attending college. Her parents earn well over $150,000. Does the daughter's household include her parents when determining the taxability of her unemployment benefits?

One of the amendments agreed to was to make this $10,200 apply to 2020. Below is the link to the actual pdf containing H.R. 1319, and the amendment is Sec 9042(c) wtihin that document. https://fm.cnbc.com/applications/cnbc.com/resources/editorialfiles/2021/03/05/Amendment_UI.pdf

Per this article: https://www.cnbc.com/2021/03/05/unemployment-benefits-deal-to-waive-taxes-on-first-10200-dollars-of-ui.html As part of that compromise, Democrats added language to the bill that would provide a tax waiver on up to $10,200 of unemployment insurance benefits for 2020, staff for Sen. Ron Wyden, D-Ore., confirmed Friday to CNBC Make It.

When I tried Various I get Vanuatu, where I want to be

Use Various. Tom Modesto, CA

I think you have to know what type of well interest you have. So I'm in western NY and there are small producers all over this area. (Scrappers) They get a straight 15% depletion deduction (their interest or amount to be reported as income * 15%). If it's on a royalty, it is on Sch E. If they are working the lease, it's on Sch C. However, in the bigger oil world, there is a whole different set of rules.

Schirallicpa - the client does not have to pay back the extra EIP received. While the IRS might say to return those extra funds, there's no payback requirement in that stimulus package.

Would be nice to include the charitable deduction on 1040 in the Form 1040 checks or as a reminder on the Check Return function.

This is pathetic! I saw a post somewhere of a wife who got a part-time job just as the (hold my tongue) pandemic hit. She made a couple thousand dollars, then collected close to 20K unemployment.