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We've been using Verifyle for signatures and secure email. I get that free as an NAEA member. People generally find it easy to use, too, although getting sig's for married couples isn't nearly as easy as it was using Signature Flow (from CPAperless, now discontinued, doggone it).

Wow, that's sounds AWFUL. During questionably the worst tax season EVER, I can only imagine your stress level.

Had an ACH delayed 9 days after date requested, but it did happen. Agent on the EFW hotline said delays are up to 2 weeks.

Years ago at Block, I had several families with three or four kids with investment income (usually from grandma/grandpa). I'd wait until everyone went home and open the parents' return on one computer and turn on enough computers for each of the kids' returns in that family. I'd complete each return up to Form 8615. Then I'd go around from office to office (I was in a premium office) inputting kid1's 8615 and adding kid1 info to kid2 and kid3, and start the circle again a couple more times until all four returns were complete. Yes, a real pain. When I went out on my own, software that could handle kiddie tax was a priority. The first time I prepared returns for one of those families with ProSystem fx, even though kiddie tax was one of the reasons I chose it, I couldn't believe how easy it was to point to the parents' return and the siblings returns and press a key and all the returns were complete! I actually woke up my husband at 2 am to tell him what happened (he was a school teacher on spring break, so I didn't feel guilty and had to tell someone how happy I was). Of course, he didn't understand anything I told him, except that my software had just paid for itself. Something that took me 45 minutes at Block took me no more than 4.5 seconds now! Remember when we'd have kids that would "age out" of kiddie tax and make us happy, but then the law changed and they were subject to kiddie tax until 24 if full-time students and we were sad again?! Most of my kid-clients are aging out, because most of my referrals are similarly aged families. I do have one set of kids but am hired by grandpa who is an investment banker and runs the kids accounts. However, the parents are in another state and DIY, so each year I tell them what information/what line #s I need from them. They're in an area that had tornadoes and other natural disasters along with the pandemic, so parents don't have their returns prepared yet. Make sure you charge enough for kiddie tax to cover your time and your talent/education.

Received a few calls that automatic state estimated tax withdrawals occurred on the 15th but no federal. I tell them to wait, it will happen. Just found out that an amended return filed in March 2020 was processed, just thought I would pass that little tidbit along.

Me, too, but an amazing number have NOT. We got a lot of panicked calls and email on the 15th wanting to know what needed to be done for extensions...

One client called in a panic that her payment didn't go through (1040 pmt) and I had her call. They told her there were delays (no specifics got back to me, at least) but that they'd get them all eventually.

There is zero doubt that this is ordinary income. It is not rental income, so box 1 is correct. The two related questions are is this passive or active (definitely passive) and does SE tax apply. I've successfully argued with the IRS that a passive LLC member taxed as a partnership did not have to pay SE tax, but I've never done it with a regular partnership. This is mostly due to the fact that I've had zero regular partnerships since the mid-90s when LLCs came into existence.

My understanding is that Guaranteed payments do not qualify for the 199A deduction.

I had a similar situation where the child filed on their own, claiming themselves. I filed the 1040X for the child. It had been accepted when I checked an hour later and the next morning I filed the parents return claiming the child and it was accepted.

I have a new client that I may fire. She makes very little and has 2 sons that live with her and cannot wrap her brains around why I am questioning why one may not be her dependent. Is in college, but made 22k while her taxable (and nontaxable) income is about 30k. second son made 12k. Then yesterday she said she gave up on getting together the expenses because: (wait for it) It was April 15 and she hadn't filed an extension so was screwed. I sent an email explaining that the tax deadline had been moved to May 17. I thought everyone had heard that at least. Now I know why she was referred to me.

Just wanted to do a follow up to this. I've now been using TaxDome for nearly two months and it becomes more and more apparent how valuable it is. I love the internal messaging I have with clients, signature features, document approval, email sync. Clients seem to find it VERY easy to use. They have a cell phone app too so getting client documents scanned and sent to me has been a MUCH, MUCH faster turnover. I only had two clients that had issues and it's because they are business and personal clients and they didn't know how to toggle between accounts. Other than that, it's been VERY smooth sailing. In addition, I abandoned my DocuSign subscription in place of TaxDome's signature option. I like that I can decide which forms I need KBA and which I don't. I've probably only used 20% of a capability and I'm still this happy. I find I'm not scrabbling around nearly as much trying to find documents from client's in the 20 different communication vehicles I was using before. Instead, I put a link to the client portal on my website and point everyone there for document transfers. And clients are abiding by that most of the time. When they send me sensitive stuff via email (like their SS# ) I kindly remind them to please use the portal. I haven't had one client object. They constantly do updates based on user feedback. All in all, I am very happy with it and for $600 for the year, I really think it's a steal. I do recommend learning to use it when you actually have a little down time to do it. It was a bit overwhelming to navigate at first while knee deep in tax season. Hope the review helps!

If it's a limited partner, se tax would not apply.

Wow, this is really not good!

I need to make better use of this. You should do a webinar after the season!

And 8283 isn't bad if you customize it extensively.

You can deduct 3000 loses on capital losses. That has nothing to do with passive.

Is this partnership not planning on being profitable? Are the losses due to lots of 100% bonus depreciation? He can only deduct passive losses against passive income. So he has to wait until the partnership has a profitable year or until he sells his share.

First, he has to have basis and have at-risk, which you say he has. I have no idea how to remove that check mark in ATX, so someone else will have to answer that. What type of business is it? Is it trade or business loss, or does it have something to do with rental real estate? His lack of participation or no other passive income is why the loss isn't currently deductible. PALs can only offset other passive income. If he doesn't have passive income and this is rental real estate, then the only way the loss would be allowed is if he has active participation, or material participation as a real estate professional) in this activity and under $100K of modified AGI, and that is phased out once the MAGI reaches $150K.

I am soo far behind, but I am trying to cut myself some slack. It has just been hitting me the past couple of days that my mom is really gone and I find myself crying at very little notice. I was very bad, but busted my butt to get out all of my estimates done by Tuesday and my husband and I flew with our son on Wednesday morning. It was very exciting, he announced that this was a special flight, because his parents were on the plane. Everyone clapped for us and we had a genuinely happy time. We came back this morning and I feel better prepared to work harder again.

Her college tuition is from an accredited school here in the US.

Yes, the amount of time explaining that I'll never get paid for. As Catherine, I spend more time explaining than preparing. Maybe because I'm still remote, so trying to explain before they even download their return to review/sign (frantic phone call), explain at a distance (go to page X line Y that's included in total Z that's transferred to Sch...), then explain it again to the spouse, etc. I don't think it'd be much different face-to-face, except that I could highlight and point and see when their eyes glaze over. "But it wasn't that way last year." "But my co-worker got free unemployment." "Why can't my high school kid get her own stimulus; all her friends do?" "Why is my NY tax higher this year?" [Note: it wasn't; you didn't have any withholding from your unemployment so your balance due is higher, not your total tax liability -- as if the spouse that's calling for her hubby will be able to explain that to him.]

Having a FAFSA number is the key. Though, sounds in this case that it was reported on the 1098T. Often you pay your own school for the study abroad semester.

I will be selling my business at the end of tax season. I would like to un-incorporate (S-Corp) and stop payroll by the end of June. Is that wise? I mean, is there any reason I should NOT do that? (I'll continue as a Sole Prop until I find a buyer, then I'll be employed by that business until I retire. That's the plan in my head.)

I would not cancel payroll so fast. 1st if the buyer doesn't have payroll then he will pay you as a 1099 and you might want that to go to your S corp for liability and pension purposes. [among others] Also after the purchase, if he renegs on payments then you get the practice back and are back in business till you find a new buyer.

As long as she paid a school in the USA, yes. If she paid a foreign school, then it depends on whether or not they're - I forget the term, registered, qualified, something - with the US Dept of Ed.

Used to be at least 90% of them. But so many new people last year and this who I couldn't meet with, so at best I've seen them from a distance with a mask. I'm really hoping to be able to meet more of them next year! I'm lucky, by and large I adore my tax clients. Most have been here for years, I've seen their kids grow up, etc. Many of them don't come in after the first year or two, but the ones who do I enjoy chatting with. I had an accounting client who closed down last year. Lives about... 75 miles or so away. Referred by a mutual friend. Worked with this couple for 20+ years, never met them. Had another similar client, but there I had met the husband several times years earlier, by the time the wife came on board we were doing everything by mail, so never met her.

To carry on this conversation, my client received scholarships exceeding tuition paid by about $4000. HOWEVER, most of that was for a class abroad. I have the bursar report clearly showing her own money paying for tuition and fees exceeding $4000. This is her 4th year of AOC. As long as I have documentation, I can still take the full AOC, correct?

No equipment or building involved. Just the client list. I put it on my local EA group and had several calls. I'll address other groups after tax season is over. I want to be picky and try to find a good match so my clients will be happy about it. I've been working out of my home for over 20 years and have TOO MANY returns to be doing this anymore. I did talk to a woman who has a family run business, full office and family staff, and it might be a good fit. We will have a meeting after the season.

Yes, it's an installment sale.

If you are a few years away and you want to get a decent price for your practice then you should consider raising your fees over the next few years.

So, will it be considered an installment sale? I'm walking into this blind.

Most places sell for 90-110% of one year's gross receipts, frequently paid as 1/3 of receipts from transferred clients per year for three years (plus additional if you work for the new firm, hourly or whatever). The idea being that clients are more likely to stay with the new firm if you are seen to still be involved, and you get paid more for clients that stay.

I just threw up in my mouth a little bit.