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Hi friends, I efiled W2C by following the second method: input the total of both W2s (the wrong one which covered Jan 2021 and Feb 2021 and the correct one which covered the entire 1st 2021) as original, and input the second one (covered entire quarter) as corrected amount on Monday, and by Friday, the affected individual's personal social security account showed the total income earning is corrected. so, I think it is resolved. IRS did not ask me to file 941X though. The agent just removed the "wrong" one and kept the "good" one while on the phone with me. Thank you all. Kate

I'm mostly in agreement with everything Gail said and more information is needed. It may be possible that TP A doesn't need to be a licensed contractor if the partnership could hire one in that capacity. Maybe that's what this arrangement is all about. I can see why Sara said that TP A could be a limited partner, but I am with cbslee and would want to see some sort of documentation on that especially because being a limited partner means that the partner's liability is limited to his investment. Without something in writing and in the event of a lawsuit, would partner B stand by that verbal agreement, and would partner A also be comfortable with that? People do stupid things all the time without thinking about the risks, but I'd still want to ask the question to see if this was discussed and documented.

You can delete all of your physical printers (not your PDF and other nonphysical printers) and windows will just re-add the one that is attached. I'd disconnect the printer cable, then when you reconnect, windows will detect and install.

Patience. It will work out. Other than the additional time you will spend, as long as deposits were timely received, there should be no problem. Returning the check makes sense, to reduce the chance or underpayment dunning. My customers get notices, usually referring to deposits, where something was applied incorrectly (by the employer or the IRS). Same for forms which were never received, even though there is proof of filing/mailing/receipt. This is one of the reasons I encourage all employers to make deposits every payroll, even if they are not required to. If an employer needs to "use" the trust funds for operation, they need to resolve that issue anyway, or they are already on the verge of ceasing to exist. Also, to never ask for funds to be applied, always wait for a refund. How over payments get applied can be as random as how payments get applied... Waiting for a refund check takes zero effort.

Here is my calculation, for what its worth... Debit....Inventory..$7,100.00 Debit....Furniture & Equipment..$2,900.00 Credit....Capital......................................$10,000.00 25k is 71% of 35k 10k is 29% of 35k Thus my above calculation. Hope this might help, Illmas

Purchaser doesn't. His concern is only that he paid $10K and how to allocate that for the assets acquired. Does the bill of sale break down the sales price between the inventory and F&F? Was a form 8594 prepared? That allocation is what you need to know. Seller also needs to know that allocation for reporting his side of the transaction too.

What type of entity got the PPP forgiven?

I can see this either way. But I don't think that whether or not Partner A can serve as general contractor would mean that he would be limited in terms of the partnership. He seems to have exercised management responsibility by choosing the site since he bought the lot. And he could be providing oversight of the financials, especially since he seems to be providing the money. I am not sure how that is determined/proven after the fact.

The agent I spoke to said she was able to pull the "amended Q2" return and sent it for reprocessing as the Q3 original. Hopefully they will. She did not ask for a refiling. She said it was a common error and they know how to fix it. As soon as they reprocess that return as an original, timely filed return, and then match the payments up, it will be correct. I may be dealing with this for a while, and since it WAS my fault, I won't bitch about it. Nice to know I am not the only one to make that mistake. Thank you @jklcpa for making me feel like I am in good company. Tom Longview, TX

Might be a sign of identity theft?

This became a necessity in recent years, so I'm very glad to see it.

IRS just cancelled an assessment against me that also when to collection - From 2014! 8 years of letters. You can just tell the collection agency in writing that you want to deal directly with the IRS on the issue and they are required to send it back to them and cancel their contact with you.

Sounds like a business

How I listed in the scenario is exactly as it appears on the bill of sale, the widgets just has that note. I am representing the buyer and the prior preparer did not prepare the form, I am redoing the books for the prior tax year since the client records needs major cleanup.

Is partner A taking QBI?

Tom, in theory it would be possible, but for me it would require detailed contemporaneous notes.

Whose name is the real estate held in? Also, if TP A is doing this regularly, does it rise to the level of a business (Sch C) for them?

The efile was rejected because the Marketplace reported to the IRS that his SSN (or the SSN of someone he is claiming as a dependent) was included on a Marketplace policy and received APTC. It doesn't matter who purchased or paid for the policy - he must reconcile it on his return. If your taxpayer does not believe any such policy exists, you can include a statement of explanation. Your software may allow you to e-file with a canned explanation. See https://www.irs.gov/newsroom/how-to-correct-an-electronically-filed-return-rejected-for-a-missing-form-8962

I will inquire further as just what was their intentions where. Without a contractors A license TP A cannot build house.

If PTS documents had been drawn up and signed spelling out that A was a limited partner and B was a General Partner then I would agree, but those documents apparently don't exist.

TP A is a limited partner and is subject to SE tax only for services he provides to the partnership. He doesn't provide any services, just money. Hey, if hedge fund managers pay cap gains tax on their enormous earnings (really derived from services), TP A should get the same treatment.

I think it's clear that taxpayer B has SE Income. For me saying that Taxpayer B has SE Income and taxpayer A has investment property and Capital Gains would be a difficult position to support.

It is not unusual to have one physical printer, and many "printers" to select from in Windows. For instance, one preset for normal printing, one preset for draft, one preset for double sided, etc. The biggest issue with printing in Windows are "remnants" in the Windows Registry (see above). Windows can and will "substitute" whatever selections and settings it thinks match what you are "asking", even if not exactly what you intended.

"The IRS is aware that some payments made for 2021 tax returns have not been correctly applied to joint taxpayer accounts, and these taxpayers are receiving erroneous balance due notices (CP-14 notices) or notices showing the incorrect amount. Who is affected: Generally, these are payments made by the spouse (second taxpayer listed) on a married filing jointly return submitted through their Online Account. Some other taxpayers may also be affected outside of this group. No immediate action or phone call needed: Taxpayers who receive a notice but paid the tax they owed in full and on time, electronically or by check, should not respond to the notice at this time. The IRS is researching the matter and will provide an update as soon as possible. Taxpayers who paid only part of the tax reported due on their 2021 joint return, should pay the remaining balance or follow instructions on the notice to enter into an installment agreement or request additional collection alternatives. Taxpayers can ensure that their payment is on their account by checking Online Account under the SSN that made the payment. Note that any assessed penalties and interest will be automatically adjusted when the payment(s) are applied correctly. Additional information for tax professionals: In general, when certain payments are processed, programming does not move the payment to the married filing jointly account when the payment is: - not electronic and is made by the secondary spouse. - electronic, is made by the secondary spouse, and posts before the joint return indicator is present to identify the primary taxpayer. - made by the secondary spouse using the Online Account (OLA) Make a Payment functionality"

Burying the IRS in more mail is counterproductive. Mail is always my last resort when communicating with the IRS. Fax is preferred. Times like this is when I miss the old EAR program (Electronic Account Resolution). We used to be able to handle IRS notices in as little as one day, and at most 3 days.

Then have him establish an account or call or pay you to call or paper file so he can wait while the IRS verifies his identity.

I've heard he can find it online, but I have no experience with that. Worth researching if it can avoid phoning. https://www.irs.gov/identity-theft-fraud-scams/retrieve-your-ip-pin

"The IP PIN should be entered onto the electronic tax return when prompted by the software product or onto a paper return next to the signature line." You will not be able to file a paper return without the IP Pin. Does this mean your client applied for an IP Pin?

You Youngins be nice........

Yeah, I should've used the sarcasm font...

Welcome back to reality!

Back in May an IRS third-party debt collector contacted me for a debt owed by a former client. Well, I got another letter from them. They ignored the response I'd sent back in May, telling them it wasn't me and not to contact me again. They did have it on record that I'd sent them "something" - but the notation was from about a week ago. So right now we know that this particular company certainly got the contract based on criteria other than competence. You may imagine to your own heart's content what that might be. Finally got through to someone vaguely competent on the phone. This was for a partnership return, and the IRS told me over a year ago that my POA on file was no longer valid because the TMP who signed it had died. However, that same IRS told the debt collectors that my POA was valid, and they are required to contact the POA instead of the deadbeat if there is a POA on file. So I had to dredge up the signed POA and fax that in to Memphis with "WITHDRAWN" on it, and hope that Memphis CAF actually processes that withdrawal instead of discarding it as applying to a POA that is invalid. I swear if these people were competent they'd be dangerous. They sure cause enough trouble with their incompetence. But that's where it stands - I have to get the IRS to withdraw my POA that they told me was invalid but told their debt collectors was active. All of this may hinge on someone at the Memphis CAF Unit having a clue. God help me. Hi. I was away for a week and had a lovely time and came back to this *&^$%$ mess. Welcome home?