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In case anyone was thinking they could file a late 941 after tax season where all taxes due have been paid and the deposits made timely... I have just confirmed this is not exempt from penalties. All of the guidance indicated that penalties were assessed where taxes were due. On a call with the practitioner line, the agent said she had talked to a taxpayer two calls before me where they had a penalty for failure to file... even though there was no tax due on the 941. The three agents I've asked before this didn't say this. They were either clueless or said my hunch was right (turns out not). Also, if you need to call on a client and the account has an amount due and in collections, then the new department's number is 1 800-829-0922. If you guys don't hear from me again, it's because I started this industry in 2013 during the repair regs, then we had the oboma-care reporting, then the trump changes and now the covid laws. With the PPP loans, ERC credits, countless calls just to ask if Stimulus payments were received, and the gymnastics involved with our tax strategies... I'm over it. I think I've had it. Industry is looking peachy to me. I'm just waiting for clients to start calling asking why they're getting advance deposits for child credits this summer, and then the angry conversations next year when they ask why their child credits are smaller than normal (and thus why they owe tax + penalties + interest). Thanks all for your feedback and willingness to share and assist. I will likely be hanging my spurs up with those that "couldn't hack it", but I just wanted to say thank you.

"I ’m so glad for your sake that your deadline isn’t as tight as usual this year." I so wish this were true. Trying to muster the strength for 17 more days (16.5 but who's counting). I have to finish 10 returns/day to make it, and the returns I have left are stinky :(. They're actually mostly all stinky; why don't I get clients with 2 W2s and a 1098? Pity Party, right here at my desk. I'm drinking a latte and a soda at the same time!!!

I love how the IRS tells us to round to the nearest dollar, but the IRS doesn't round, it truncates. And, sometimes computes the pennies instead of either rounding or truncating. Then, our clients think we did something wrong!

Universities... I literally just got off the phone with one of our kids, as he just received news he was accepted into his undergrad school's medical school! There is hope - since this proves a "normal" person can, through hard work, do something which exceeds GPA competition or legacy $.

You have to look at the underlying reason why the expense was incurred. The legal fee is directly related to the financing and not for protecting, preserving, or maintaining the asset itself, and not for production or collection of related income. It was incurred to save on the outlay of interest expense, but is that enough to be considered ordinary and necessary in the operation of this rental activity? Unless it is a nominal amount such as would be charged for the attorney to write a letter to the other party, I would probably capitalize. Caveat - my opinion, not researched.

Interesting point. I wonder if you could look at the general requirement for expenses to be in the same period that the income they are related to occurs, and argue that in this case the legal fees should be amortized over the period of time that the interest expense would have been taken had they not paid the loan early based on the court decision? I think, unless it is large amount for legal fees, that I would just expense it but I certainly see your point.

One of the reasons I love Drake. In the 9 years I have been with them I can't remember when I ever waited more than 5 rings before my call was answered. Only twice was the support person unable to answer my question and both times I received a call back within 24 hours with an answer.

I would expense it. Legal costs are a "ordinary and necessary" cost of rental property. The expense has nothing to do with acquiring or improving the property so no need to capitalize. No different from deducting the legal costs of evicting a tenet.

That sounds about right. In this case it’s no big deal. It’s my grandson’s return. Refund is about $400. Along with his Christmas present, I gave him the $400 in December and told him he can pay me back when the refund arrives. So technically it’s my refund being held up. Plus, whenever it arrives I’ll probably tell him to keep it (as long as he puts it in savings).

Thank you, Eric and Judy!

My one and only PPP client's loan was 100% forgiven!!. I can't believe this happened without any documentation at all. I was all geared up with all the forms, spreadsheet of all the calculations showing where the funds were spent. We went through two weeks of status pending and we'll let you know what docs to send and today came the great news. I'm sorry but this PPP thing just blows my mind. It defies all logic that you can borrow 100,000.00 and not have to pay a dime of it back. I've been waiting on the invisible hook to appear at any moment. But it appears it doesn't exist. I hope others here will have the same outcome. I know I only dealt with one. but it was stressful enough. It's a shame I don't drink

Yes, but some of us are holdovers who used to use ATX, now use something different, but still love the community at this board.