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I would treat it like a 1040-V payment. I would not change the return.

We give them candy.

This type person offends me to no end. We have made it easier not to work than to work for years, but now we're full blown, "Hold my beer..." And if Jesus was in my lobby healing people, ISTG some of my clients would say, "Don't touch me, I'm on disability."

Yes, and that's the way you get him to straighten up. The other thing you might try is making him tell you a fixed markup, and you back into what you need using sales. Which is not possible if he's rehabbing, I realize. So this guy sounds like a catch and release if he can't provide you with an ending inventory.

If you go to Staples the back of the receipt normally has a $10 off coupon on your next in store visit. Go get 1 case of paper, get the receipt, put the paper in your car, come back into the store and buy another case for $10 less. I won't say how I know this, but I know this works.... Tom Modesto, CA

HE'S ALL DONE IN MY OFFICE. Just got a call back telling me that if we "need more income, I can give you at least $15k more because if I use Friends and Family on paypal, they don't report it to the IRS..." Click... buzzzz..... access/denied

I hope I'm wrong, but I think you're going to have to call with a 2848 and permission to move the payment. I've had numerous examples of clients getting dunning notices while there's a payment 'out there' hanging in the incorrect spot. I've tried moving them before with simply the preparer authorization on the return - total no go. I'd be interested to know if anyone has had better luck than I have in this arena. I was encouraged by the thread indicating that many of you had been able to move estimated payments erroneously made to the correct year. This is from the IRS website (payment option choices): The purple bit is what makes me think they'll leave it hanging out there waiting and dun your client for the balance due. Eager to hear other thoughts. ********************************************* Proposed tax assessment (e.g. CP 2000 or a Notice of Deficiency) 1040, 1040A, 1040EZ Health care (Form 1040) Current calendar year or prior years going back up to 20 years Make a full or initial payment for a proposed amount. Payments of this type may post in advance of the actual tax assessment. If you have an installment agreement, select Installment Agreement as the reason for payment.

Many, many more where she came from. But, that's another topic...

Charge her a bundle for the IL return each year!

CT does that too. If a taxpayer is on CT unemployment when they move, they have to continue filing a CT return while they're on CT unemployment. It's CT-sourced income.

IL will tax the full amount, because it's issued by IL. However, they go along with the federal exclusion of $10,200, taxing only what appears on the federal return. The unemployment benefits continue to be IL-sourced income if they are from the IL Dept. of Employment Security or if they qualified for benefits due to employment in IL. Only if TN also taxed unemployment would you need to be concerned with which state was the resident state for how long. No 75% of anything unemployment related. IL doesn't care where you live re IL unemployment benefits; it's all IL-sourced income.

Hahahaha if they only knew what we've been thru.

Just finished watching Compass Tax Educators Webinar - American Rescue Plan Act of 2021. It was an EXCELLENT breakdown of the many complicated changes and tax strategies we can employ for 2020 & 2021 tax planning. I HIGHLY recommend it. In particular the MFJ vs MFS details in the webinar go against so many staples in tax prep thought but, it is what it is in today's wild times. I find their FB group quite valuable too. Just thought I'd review it for those looking for a good overview of many of the changes. If there are other webinars or newsletters you frequent for great info on today's tax discussions, I'd love to know.

That's not a payroll service, that's a . . . . . . . . .

TOO LATE TO EDIT; You must use code 99 in box 2B of the 760ADJ.

Interesting. I have never had that either - I am more likely to have them come to do next year's return without having paid the year before. I would handle it the way you propose. Either way, it should come out the same since the year paid is the same as the year filed. I just don't see a line on the return for paid prior to filing.

I have already done a ton of these, and not the way they advised! Instead of using fixed date of conformity, I have adjusted the VA tax returns to add back the federal reduction in MAGI. I'll call Richmond today and see if they will all be adjusted. Because I have time. not

Facepalm Sunday

It's interest.

If they were going to pay with an efile debit, efile the return and initiate the payment using Direct Pay.

I just called Richmond for this: Go to VA form 760 line 2 (Additions from ADJ Line 3) Use Line 2B of the VA ADJ to report the amount of unemployment that will be added back to the VA AGI. There will NOT be a "code" in the box, but that's ok, they will know what it is. This is to clarify the way of implementing this last tax bulletin: 3/25/21 - Virginia does not yet conform to the American Rescue Plan Act because our date of conformity is December 31, 2020. For Virginia tax returns, tax preparation software should utilize the Virginia Fixed Date Conformity (FDC) addition for the amount of unemployment excluded for federal purposes and then allow taxpayers to claim the Virginia subtraction (Code 37) for the full amount of unemployment that is excluded for federal purposes (which would be equal to or greater than the amount excluded for federal purposes, depending on the amount of unemployment received by the individual).

Client moved here from Illinois and 75% of her 17,000+ in unemployment was received while she lived in IL. Would I subtract 75% of 10,200, or the entire 10,200? I'm searching, but I gotta tell you, I couldn't find my @$$ with a flashlight and both hands today.

I didn't ask about putting 75% of the income on the IL return. I was just wrong about that one. Thank you, I understand what you meant now. This woman is milking the unemployment benefits and we are wide open here. If she wanted to work she'd be working. This is too stupid to be real. Best of all, I'll get to do this again next year.

If you're using 75% in the Illinois column of form NR for the unemployment income, I think it makes sense to use 75% of the subtraction as well, but I only do 1 IL return a year. I wish all the states would get together and have conformity for part year returns. I've seen people get really screwed moving between states.

Hmmm, no wonder things didn't smell right.

Ok, yes, I have seen that, my flashlight battery is not completely gone, but all bets are off for 2020 and the BS legislation that somehow passed. According to Donna's Taxslayer Link : "3/23/21 - If you have not filed – You may file your Illinois return once you have filed your federal return. Taxpayers will not be required to add back any of the nontaxed unemployment benefits in computing their Illinois base income."

Since, he is not conducting like a business then it's a hobby

Is this still the proper way to show S Corp shareholder health insurance? Not an expense on corp. Added to W2 for income tax purposes, not FICA tax purposes. Deduction on 1120S as Salary. Individual shareholder shows higher W2 income, then takes the SE Health insurance deduction on his 1040. This has been my understanding. I know some things changed with Obama care. But even with a 'group' plan, I thought the shareholders still had to report it this way. It makes no sense since the net effect is the same.

I used to hit Staple's back-to-school sales for my tax folders at $0.05 each. We'd go after Sunday brunch when both kids were with us, each grab the maximum (25ish) in my color of the year, and check-out in four different lines. I'd add some fatter vinyl folders in my stack, and be set for the next tax season. I think hubby got a teachers' discount by showing his union card, also.

I let my clients choose between 15 April direct debit or use IRS's DirectPay at their convenience through 15 May. (I give them a payment voucher as a reminder, but write the link on it with a note to pay via DirectPay by 15 May and NOT mail a check.)

Thank you! I have a whole stack of these waiting for this info!

Enter as interest on 1099-int worksheet

Hey, there's no reason not to use their own rules to your advantage.

I have not - but then I only have experience with very small firms. My problem is the other way - trying to revoke POAs for former clients. I've sent in I don't know how many revocations yet I still get letters for these folks.

I found this site and it's updating as the states decide: https://support.taxslayerpro.com/hc/en-us/articles/1500004451042-State-Conformity-to-the-2020-Federal-Unemployment-Compensation-Exclusion

Just saw a Staples ad for Hammermill 10 reams $29.99

Yes but the other party probably wouldn't paper file because of the time. They need to get in there fast and first.

Once in a while things work in our favor in this crazy tax system. Good news for her to not have tax on any of it. Thank you everyone for this terrific forum

20 boxes of paper would last me about 10 years.

I've gone paperless with 75% of my clients. I upload everything to the portal and have them sign electronically. I then provide them with a completed copy of the approved eFiled return for their records. I hope to increase this number overtime but there will always be some clients who prefer paper copies.

I was very fortunate to buy 20 boxes on a damaged pallet this past summer from a client that was purchasing pallets for resale. Most of the boxes are slightly damaged. The paper was fine. Worked out to be 20 bucks a box. Can't beat that!

It's not that new. You've been able to e-file with dependent IP PINs for quite a while. There is no place for the dependent pin on a paper return, so the other party could still paper file. I don't know if the IRS holds such paper returns or not.

I use Quill (owned by Staples now). Delivered, 10 reams a case, 92 bright, last case $29, March 10. It's their 'Quill' brand and I pay an annual fee to be in their 'club'. I'm not sure if that's a bargain or not. Supposedly special prices. Ha.

I thought the May 17 was official for paying as well as filing. Can't your clients wait until May 17 and mail a check. I think the original post was for the automatic debit to be taken out beyond April 15.

I looked on irs.gov. It seems you can get a pin for a dependent. I didn't try myself. I think it might be new. ATX has a place for a pin on the dependents worksheet. I wouldn't count on IRS sorting it out for future years. Another client, grandparents with two grandsons (son died, mother is out there in drugville). Every year their return is rejected, mail the paper returns. They get their refunds and acceptance of the dependents. But there's no hold on the mother doing it again and again year after year. This was my initial question, why can't IRS put a stop on the person claiming the dependent. But if the dependent can get a pin, that may work for future years.

So I checked ATX and there it is. Great!

In my opinion, since this was a new purchase and had to have significant 'things' done to prepare to place into service, the expenses should be capitalized. I look to the Tangible Property Regulations Reg. section 1.263(a)-3. The AICPA put out a Quick Summary of Final Tangible Property Regulations a few years ago and RSM Consulting has some nice decision trees to help. https://rsmus.com/what-we-do/services/tax/new-flowcharts-provide-clarity-on-the-final-tangible-property-re.html When I look at both of these given the OP's description, I come down on capitalization. YMMV. I did not look at the definition of Leasehold Improvements because the description did not say the property was leased, rather a purchase.

I don't tell them what to put in an operating agreement. I tell them to work with a lawyer so they can have an operating agreement that meets CT state law. I don't think anyone mentioned an LLC except for your mention of an attorney and an LLC. Lawyers have a strong lobby in CT, so I suggest a legal advisor to every biz who isn't a sole proprietorship. I also suggest a biz develop a good relationship with a friendly, local banker. And, a broker or someone who can administer a retirement plan. And, an insurance agent(s) for health, liability, etc. And, a professional organization in their industry. But most importantly, to keep me in the loop!

But for a semi weekly depositor, the Wednesday and Friday liability would both be on the following Wednesday, so I don't see an issue here.

Thank you for asking. Our prayers have been successful!! She has recovered quite well. Her closet friend also got sick and they have been holed up together. They both have lost their sense of taste and smell. But thank the Lord above they are both okay. It's quite frightful. She's had Type 1 since she was 7. Then Celiac. Then eating disorder. Then Graves disease. So every little thing that comes along keeps me worried. Thank you again for your prayers.