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I would be concerned that if he/she has income of $5000 from Canada, the underlying asset might be worth more than $10,000 at some point during the year and trigger a FBAR filing. Or even worth $100,000 and trigger the need for an 8938 with the tax return.

After lots of pressure from many different sources: WASHINGTON — The IRS said Monday it will suspend the use of facial recognition technology to authenticate people who create online accounts after the practice was criticized by privacy advocates and lawmakers. The agency said it would no longer use a third-party service, called ID.me, for facial recognition. Critics of the software said the database could become a target for cyberthreats. They also expressed concern about how the information could be used by other government agencies, among other concerns.

But it may not be a foreign account. I have all kinds of brokerage 1099s with foreign income but the income is all held in a domestic account so there are no FBAR issues. And none of my clients with actual foreign financial accounts have ever received a 1099.

What is so stupid is that the GSA manages a high quality site called Login.gov which is used by many other federal agencies. However the IRS decided that they needed their own!

No. An estate can have an NOL only if it is conducting a business and has business deductions in excess of business income. Your estate's expenses in excess of income will carry over until the final year of the estate, then pass through to the beneficiaries not as an NOL but as excess deductions on termination (which are now an above the line deduction instead of the old itemized deduction subject to 2%.)

It depends on her income. If it's less than 40K, no payback. If between 40 and 80K, partial payback. Over 80K all needs to be paid back.

Open a case with ATX support. They'll need to fix this. It's probably a very rare situation.

That's what I've always done. It's been reported to the IRS, just like any other 1099MISC.

Is a K-1 expected? What does your client (or his broker) say that income is from? Did the account balance at any time during the year trigger any foreign income/assets filing?

"The Internal Revenue Service is temporarily re-assigning 1,200 employees to the frontlines of a challenging 2022 tax season to deal with a daunting backlog of last year’s paper returns and mail from taxpayers. People who have worked as customer-service representatives, tax examiners and clerks in the IRS’s “accounts management” operations during the last two fiscal years are some of the existing staffers that the tax collection agency is gathering for its “Inventory Surge Team,” IRS Commissioner Charles Rettig explained in a message to staffers on Wednesday evening. “This is an all-hands-on-deck situation to help people as quickly as possible, and reduce the stress on employees who have been and continue to face unprecedented levels of inventory to be worked,” Rettig’s message said. The IRS is looking at various ways to help taxpayers and the temporary reassignment of 1,200 employees is one way to do it, a spokesman said. The employees will remain in their re-assigned roles through September, he said."

Just to clarify, they don't pay tax on the proceeds, but on any gain, and yes, report the sale on Form 8949. Correct, you can't reduce the gain by the other property he bought. They all think that; find an article or two that addresses that and print for him.

At least it's long-term capital gain. Is their income low enough that they could be in the 0% CG bracket? Otherwise, any chance for an unforeseen circumstance? An expensive lesson to call you BEFORE making any large financial moves.

Interesting. In prior years, the 8962 instructions said to enter 401 for any value above 400 (even fractionally). This year, they say enter 401 for any value above 401. Values between 400 and 401 get rounded down. It appears that ATX is doing it correctly (according to the new instructions), but perhaps the IRS has not updated the e-file rules to match the new instructions?

Very true, but that is the reason I would want to know what it is because it is not being reported as simple dividends.

It would have to be repaid unless your client qualifies for repayment protection. From IRS FAQ: "A5. You qualify for full repayment protection and won’t need to repay any excess amount of your advance Child Tax Credit payments if your main home was in the United States for more than half of 2021 and your modified adjusted gross income (AGI) for 2021 is at or below the following amount based on the filing status on your 2021 tax return: $60,000 if you are married and filing a joint return or if filing as a qualifying widow or widower; $50,000 if you are filing as head of household; and $40,000 if you are a single filer or are married and filing a separate return. Your repayment protection may be limited if your modified AGI exceeds these amounts or your main home was not in the United States for more than half of 2021."

And you can turn off those blue triangles in Preferences.

Thank you. I thought so but my old mine did not want to comprehend this.

Seriously? That seems par for the course w/ ATX.

Spoke to ATX this morning the estimated approval time for the above form is February 23rd. Spoke to FTB. they said that the form is being used by other preparers using other software. This is an extremely important form in CA as it records all adjustments for CA from the Federal return esp. Schedule A. And is necessary for those receiving Social Security and/or unemployment. ATX has put us behind and I am getting phone calls saying when will their returns be available.

Thanks, Sara, for these words. Yes, we have enough. Enough to be comfortable with a paid off house and no debt. We have always lived pretty far below our means which, at times, annoyed our son. But, at 41 now, he is the same way. He maxes out his 401k and Roth every year. We still have fun (my dive trips, husband's golf) and share with church and many organizations because we live with older clothes, furniture, cars, etc. that still serve us fine. Funny, I don't even know what you mean by 'earn 80% in the market' so guess I don't! The best thing is that all our final arrangements are paid for and we believe that our son will have to provide nothing for our care. Unless we happen to live to about 125 or so. We tease him that he might have to choose the home but not pay for it. Actually we are hoping to move to a single level home within a year or two so as to make it the last one. Time will tell!

Margaret, it sounds like you have what few do: Enough. You don't need to make the big bucks, or hustle for more and more clients, or earn 80% in the market each year. You have what you need and are comfortable with, which is enough. Good for you. This concept came from Warren Buffet before he was richer than God. He was at a party with many zillionaires and someone asked him if he wasn't a bit envious. He replied no, because he had what none of them would ever have, Enough.

Beginning next Saturday, some IRS offices will be open for in person assistance: https://www.irs.gov/newsroom/irs-taxpayer-assistance-centers-open-on-special-saturdays-for-face-to-face-help

Does anyone have a link that summarizes which of the changes are for 2021 only?

From the top of my head: Day care credit EIC Credit Advanced and child tax credit Using 2019 income to calculate EIC and Child Tax Credit and others less common.

You can only use it if 2019 income is higher than 2021.

No, you have to own them.

Technically, you are not allowed even to admit the person is your client without a signed/dated Section 7216 Disclosure Authorization. You also have to be careful *who* you talk to for other reasons. One of my elderly clients has 3 kids; 1 close, 1 relatively nearby, and 1 several states away. The one who's close also has a history of verbal abuse! It's the one several states away who is my contact (with S7216 etc). The relatively nearby one just has no head for numbers, but at least is not verbally abusive. Did I know any of this before the S7216? Nope. Just names/addresses that were needed for a gift return some years earlier.

Brokerages are now required to ask for a "trusted contact" when an account is opened. (It is not mandatory that the client provide one.) https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-30

And of course, it could all blow up in your face if the person you confide in repeats what you said to your client. Some people with dementia get frustrated easily and are quick to get angry.

You don't have to disclose any financial info to let someone know. If you have a relationship with children or someone else close to them, it can be as simple as saying something like "I noticed your Mom isn't as organized with her information as she used to be."

Maybe "Do you have a fiduciary, family member, or other person you would like to get copies of any documents"? Some will already have their affairs in order and a plan in place, some may not and you might even trigger them to consider their final affairs.

This is great information, thanks.