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Client passed on Thursday. On Friday, he received in the mail his debit card for the California Middle Class Relief payment. My thinking is that the funds on the card are part of his estate, as he was alive when CA processed it, and his executor can activate and draw the funds from the card. Went online to look for a FAQ but did not find anything on the FTB website covering this. Is my logic sound? Tom Longview, TX

Speaking of IRS notices. A client who filed late and owed the princely sum of $147 which he sent in shortly after efiling got a penalty notice which is so convoluted it will take a me full two hours to prepare a letter to address it ! His penalty will likely be a big $30. I myself received a request from the Service requesting a form for my return to report $27 (twenty seven dollars) of income from a small holding I own. TWENTY SEVEN DOLLARS ! I shudder to think what is coming down the road with all these new hires.

It is only $200 on the card, and the estate does not need the money. The daughter (sole beneficiary who has had POA since her father started declining about 2 years ago) asked if she should keep or send back. I don't think she needs to send back for the reasons I stated above: it was processed by the state at the end of October and the mail just got to her. I think once the state determined he was eligible, which he was on the processing date, the funds belong to him, therefore part of his estate. @ILLMAS There is no issue with the family priorities. Daughter is the only living relative, and she was just trying to make sure she was doing what was right. Tom Longview, TX

You can make a good case for it being an asset of the estate. The mailman might have simply forgotten to drop it off on Wednesday (that sort of delay sure happens around here a lot), in which case it would have been estate asset. If there was a postmark on the envelope, or any letter coming with it that was dated, I'd be even more inclined to say asset. If the estate needs funds to pay a lawyer (or you!) or for death certificate copies, or upkeep on the residence, those are all appropriate uses of the funds.

Geez, I don’t know if I like this person family priorities, but good question.

To tell you the truth, I was working on extensions right up to the deadline. Also, I did try to sneak in a couple of weeks entirely alone in the Northwoods of Wisconsin. I am working on amendments now. That's what took me so long.

"DON'T DRINK THE WATER!"

I did some firing last year and have never looked back or felt better. RELIEF!!!! More new clients moved in to replace than the ones that I fired.

We are forming at least 10 entities a week here and I would say 90% are LLC's taxed as partnerships. This is for real estate and investment ventures. Some retail or wholesale businesses will go with an S corp. Yes they cost more to set up in NY but a year or two of paying us to prepare payroll taxes negates that.