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I have asked every. single. client. Every. Single. One. So tired of this...

Form 2848 and a phone call to the practitioner line took care of it.

Just what I was coming in here to ask about! If no one's heard anything, we'll just wait...... Hopefully not as long as we have to wait for the UI fix, seems like the date should be a simpler fix.

My client did have 2 incidents of ID theft from his credit union recently. He finally got through and agent also didn’t have an answer as to why he got the letter. Agent asked 3 questions, how much SS did you get, how much estimated tax did you pay and where did your pension come from. After 3rd question agent said Bingo, you’re good to go. My guess was that someone tried to file for a refund in his name, but I filed this guy early and he owed. I hear IRS is getting good at stopping ID theft.

I would probably get a signed 2848 if I didn't already have that, get all the paperwork together to be able to fax it, and call the practitioner priority line and ask for their help. I don't know if that would work, but that is what I would do. Writing letters at this point doesn't seem to be working.

I wonder if you need to wait for a form undate. Maybe check the form number. Perhaps you may have to wait until the next update which includes the UI information. Or maybe check under the letter options. I just noticed that you can change the Federal return due date but that may be only for the letter. I don't have anyone now that owes to try this.

Not at all, that is a common misunderstanding. As Tax Guy Bill pointed out, 3115 is used to change from an impermissible accounting method to a permissible accounting method. Failure to claim any depreciation on an asset is an impermissible method, so form 3115 is filed to claim allowed or allowable depreciation under a permissible accounting method. Corrections due to calculations, posting or math errors are not accounting method changes and cannot be fixed on form 3115. So for example if an incorrect placed in service date was used, that mistake could not be fixed on 3115. I believe that rule has changed, but only applied to corrections made to change from an impermissible method to a permissible method as Bill pointed out. Previously, I think the impermissible method had to be used for two consecutive years in order to make the correction on 3115, otherwise the correction went on 1040X.

Will those penalties become less if you wait? I would file asap, and when the penalty letter comes I would write a letter asking for forgiveness and explaining why it was not done when it should have been. Were the W2s done on time? That might give you a shot at getting penalties forgiven, especially if this is their first offense.

If the numbers aren't changing, I wouldn't amend to add an indicator. Perhaps a call to the practitioner priority line would be the better option where the agent may be able to add the indicator or notate in the file so that the return can be continue through IRS processing.

And you are claiming on 3115 code 107.

1250 is sort of a hybrid, taxed at a maximum capital gain rate of 25%, thanks to the strong lobby arm of the real estate industry. The recapture should show up near the bottom of the tax worksheet for Schedule D.

I have seen a few.

The penalty is calculated on the date the liability is reported on 941 vs the date of the deposit. Since they are semi weekly, a Wednesday payroll liability is due the same day as a Friday payroll, which is the following Wednesday, so that won't make any difference. You need a copy of schedule B to figure out what is going on.

I think IRS is sending a lot of incorrect letters. But, it is very common that people don't know that the date of the liability is the date of the payroll checks.

Yes, by the 29th.

Even if the IRS automatically adjusts returns for UI, what about the states? Not all states will conform to federal. Even for those who will, after the IRS adjusts AGI are they going to notify states? Hardly likely. I think we will all be amending state returns this summer. We should send them all to congress and let them do the amendments. Maybe then they'll think twice about changing the rules in the middle of tax season. They could have made this change with the December stimulus bill but they were too busy making faces at one another.

I came across this article which seems to say that the 2019 NOL waiver to carry back has to be made by the due date of the return with 2019 only has accumulated losses carried forward from 2017 and 2018, there were none in 2019, but most of the loss is being carried forward to 2020 and on. The way I see it, those losses are treated as if they occurred in 2019, because the exemption has to be made in each year that losses are carried forward. It seems that they can still apply the applicable losses to 2019, but that the remaining losses can not be carried forward. However, they could be carried back. Yes, indeed. It is a jigsaw puzzle. https://www.wilsonelser.com/writable/files/Attorney_Articles_PDFs/168tnf2379-hosny_9.28.2020.pdf

Agree it's more complicated than it used to be. Here's another from JoA, starting at the 3rd paragraph, that explains the dates for electing to waive the carryback: https://www.journalofaccountancy.com/news/2020/apr/guidance-nol-carryback-tentative-adjustments-coronavirus-cares-act.html

One would hope this would be an easy question. Unfortunately, both the TCJA and the CARES Act both changed the NOL Rules and the intersection of the two gets complicated. Excellent article in the J of A:j journalofaccountancy.com/issues/2020/nov/deducting-losses-cares-act-coronavirus-relief.html

Not true. I have clients that didn't take the max APTC during 2020 and will have an additional credit on the return if the IRS determines that UI is excluded from MAGI for this purpose.

I would not answer this question, yes. i believe the context of this question is about forgiveness of loans which trigger Other Income that is taxable. As we have discussed in other threads, I would handle this as an M-1 adjustment.

For the APTC, the IRS should allow us to do the calculation and override the penalty to 0. No programing needed.

It is my understanding that if a life estate was created, and the mother retained all the incidences and responsibilities of ownership until she passed away, the daughter would still get the step up in basis when the life estate ended and she received the property.

Why can't people just use transfer on death deeds? I guess there are still some states that don't recognize them. It makes basis so much easier!

This is extremely strange, because I mailed an amended 2019 Form 1040 on the same day. My client received a refund check in late July about 4 months later. It's like playing a slot machine.

https://www.accountingtoday.com/articles/irs-to-automatically-process-refunds-on-jobless-benefit-payments

I question that. The tax attributes of deceased spouse do not carry over to surviving spouse. For example capital losses and NOL attributable to deceased spouse can not be claimed by surviving spouse after the final joint return for year of death has been filed. If business or rental property is solely owned by deceased spouse, then surviving spouse gets a full step up in basis. Furthermore, at the time of transfer, the property has zero adjustments for tax attributes, it does not retain it's character for recapture. If surviving spouse elects to file a joint return, then the only income and expenses reported by deceased spouse would be those incurred up to his date of death. Therefore the sale of the property after DOD is 100% attributable to surviving spouse (under the scenario above) and offset by her basis which does not retain the recapture attributed to the holding period of her husband.