Leaderboard

No, no; I'm not tryin' to proselytize you or hand out Witness phamplets; I saw a Help Wanted KFC sign yesterday which may appeal to those of us who are sick/tired/fed up (I'm in there somewhere) translating taxes for the terminally obtuse. It offers $15-20 an hour (possible manager training for those who can tell the difference between Original and Extra Crispy), 401-K, full health insurance + dental & vision, two weeks paid vacation, and fast-tracking for the skilled employee (if only I'd played basketball instead of majoring in business; accurate burger-flipping is probably a plus). Yes, yes, it's cheap pay, but think of the enticing attraction - soothing that wrung-out, worn-out brain of yours with a desperately needed island-class rest. The only thing you must really know is not PPP ins-and-outs, back-door Roths, or tracking CTC advances, but merely this (50% errors are tolerated): "Did that guy say with cheese or without?"

No one seems to have noticed that I specified taxPAYERS, not pros, being treated as suspects and not with respect. Yes, the IRS treats pros with respect - at this time. If given further, and largely unconstrained, power over our professional lives and careers, and we then take a stance disagreeing with them - how long will it last? Snowballs and hell, anyone?

That's great! The great-er news is that I sold my business and finally grew up to be an employee! So thankful to have the responsibility off my back, and excited to help the next one build her business. I'll work for a few more years, just because.

Tax organizers were just dropped in the forms update !!!

Clients are getting letters, I am reponding, clients receive more letters. I am calling, IRS can't answer, too many calls. Client got letter "notice of intent to sieze" We responded to the first letter months ago, received no reponse, now , notice to sieze. Several clients didn't get the amount of refund that they were entitled to, letters say could be one of 3 things, or 2, or 1. ID verification has been a problem. No one can be reached. What is everyone else doing?

Thanks for the quick service, jklcpa. You are way within error-tolerance limitations and have definitely got your cheese together!

"The Internal Revenue Service has awarded contracts to three private collection agencies for collection of overdue tax debts. The new contracts begin Thursday, Sept. 23, when old collection-agency contracts expire. The three agencies are: CBE Group Inc., PO Box 2217, Waterloo, Iowa, 50704; (800) 910-5837; Coast Professional Inc., PO Box 526, Albion, New York, 14411; (888) 928-0510; and, ConServe, PO Box 307, Fairport, New York, 14450; (844) 853-4875. The IRS stressed that it always notify a taxpayer before transferring their account to a collection agency. First, the service will send a letter to the taxpayer and their tax rep informing them that their account was assigned to a collection agency and giving the name and contact information for the agency."

All this time, the only way our clients would know it wasn't a scam was because the IRS never calls you. I think this might go sideways real quick. Then again, I have always told my clients to contact me first if they get any communication from ANY taxing source. So, it's also job security.

True, BUT - they are completely and 100% in control of stopping the computer-generated letters threatening people! They *know* they are behind in processing what has been mailed to them. They should *not* be threatening people when there are stacks of unopened mail a mile high and phone calls of which they are answering less than 10%. If they just stopped the letters and seizures until they catch up, 90+% of this nonsense would be resolved once the dust has settled. We'd still be sane, their phone lines would free up, and people would not be panicking and blaming us.

I did not catch that part, but not clear if OP is referring to the conversion of an account balance or recharacterize a contribution. Under TJCA you cannot unwind a conversion of a traditional IRA "account" to a Roth "account". The conversion is irrevocable per 408A(d)(6)(B)iii However, you can still recharacterize a traditional "contribution" to a Roth Contribution.

https://tenor.com/bcOpx.gif

If summer or short term work for a foreign employer in a foreign country AND paying foreign tax to that country, your client will have a foreign tax credit on his federal return. If it's a high tax rate country, that can be a valuable credit.

Isn't the W-2 in US$? If his tax document is in AU$, then use the conversion value. Isn't the 2555 form for excluding foreign income? You said he doesn't qualify for substantial presence test. Did he pay Australian taxes? Can you use Form 1116 to take a foreign tax credit? Or, take an itemized deduction?

I had experienced no problems for some six years apparently using an incorrect PTIN. Having been conditioned to believe that an incorrect filing would produce an error message advising me of any mistakes in entry and having received none I thought everything was just fine. My offhand guess is the error occurred when improvements were made in the PTIN system. I ask the agent for an ID which he provided and pointed out the Service did not call people further asking why I had not received a written notice. They apparently had just discovered the error and as we were in the midst of the filing season wanted the number changed as quickly as possible. He provided a number to call him at and after checking what he had said I changed the number and called him back to advise him the number was corrected. He assigned no blame to me and sometime afterwards I received a letter from them. I chalked it up to the wonderful working of our government and soldiered on.

RIGHT! Always seems like it is our fault and we have to fix. makes retirement look appealing. Do clients bug the franchise tax people like they do us?

Telling clients to keep calling, or to be patient, depending on the urgency of their issue with the IRS. That I will work on it after 15 October. Very frustrated with the client calls/emails/texts during these last 3 or so months when I'm trying to prepare returns before 15 October. Very time-consuming at my busiest time of year! The IRS is broken. Why does the buck stop in my lap?!

FYI - The IRS has not processed all of the 1099s for 2019 yet. I received a notice that they don’t have any records of my withholding and now I owe a ton One of my client is going through the same, one of their contractors had withholding and they received a notice, called with a POA on behalf of my client and their contractor, IRS has no record of 1099s on file for 2019 and 2020, they were backlogged etc…. So be ready for calls from clients

Have no fear Bart. The inscrutables at the Service will eventually right the ship. In 2020 in the middle of the pandemic my phone rings and an IRS agent informs me that my PTIN is incorrect and has been so since 2014 !! He was unable to provide any reason for this being so but said I needed to change it post haste which I did immediately.

Acutally, I'm in no rush to send them money, but I too like to get ready for tax season. Call me a pessimist but, as you know, we must have the PTIN to do taxes, so I like to get a jump on it if possible. Rarely (but sometimes), the IRS site has stated that my ID and/or password (known to me to be correct) is wrong, or that the computer's down, or for some reason they ae unable to process the application at this time. If their damn 1980 computer doesn't work, IRS is, of course, incommunicado. That leaves the paper option available by mail (probably as soon as the unprocessed 10 million return backlog is cleared) and doubtless, you would receive the OK by next July. P.S. I'm presently unable to process any critical responses to this hogwash. Check back later and let fly. _____________________________________ Just because I'm paranoid doesn't mean they're not after me!

If an S-Corp owns a C-Corp, and the C-corp pays dividends out of retained earnings, then the C-Corp would issue a 1099-Div to the S-Corp, which would in turn issue a K-1 to the S-corp shareholders reflecting those dividends. I think that is what you were saying.

If an S-Corp owns a C-Corp, the C-Corp would report dividends on a Form 1099-DIV that the C-Corp issues to the S-Corp. Then the S-Corp issues From K-1 to the shareholders. (This is a more complex transaction than my corporate clients have! I have only a few corporations.)

I find the question a little confusing. If I am following, the sub-s owns the LLC. The LLC has elected to be taxed as a corporation. I am assuming it is taxed as an s-corporation since a k1 was issued. In my experience, most owners of entities taxed as s-corps pay taxes on the amount reported on the k-1, and any amounts received are usually distributions rather than dividends. If they are dividends, they should be reported on a 1099-DIV and taxed as dividends. If they are distributions, they may not be taxable at all since tax on the profits earned was paid based on the k-1 at the time the profit was earned by the LLC.

Bill, Thank you for your service.

My prayer goes to Kevin B. and all those who have suffered such a shameful event that humans can bring upon there brethren. I cannot begin to imagine the pain so many folks are going through. The stories this last weekend, that my wife and I watched on television had brought many tears and heartache to us both. May the spirit of your comrades rest peacefully upon you Bill, and again, Thank You.

Thank you Elrod. This day is always sad, but this year seemed a bit more difficult. While being reminded of the continuing suffering of some members of the department one of my guys is in the hospital with covid among other 9/11 pulmonary issues. It’s been touch and go and we’re hoping he will turn the corner soon, please say a prayer for Kevin B. Thank you everyone for all the support for fire departments everywhere. I truly believe people are not forgetting the sacrifices made that awful day.

In addition there were also 281,000 unprocessed business tax returns according to the TIGTA Report

If I was preparing this return, the only place I would enter it is on Line 6 Schedule M-1.

Having passed the original test in 2012 I can attest to the fact it dealt with huge chunks of tax information to which my 40 year practice had no exposure. How I passed I will never fully understand. If it had dealt with more common everyday tax matters which folks like myself see every year it would to my thinking be pretty fair. The fall back position was "You have three or more shots at passing the test." I had to drive in excess of 150 miles to find a cramped testing facility in a non-descript hard to find tiny mall over in Richmond Virginia. I support their ability to remove PTINs from poor practitioners but not this scheme as originally created.