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I agree with both answers. If the client inherited an installment agreement, no step up in basis. If client inherited a business, they get the step up in basis before the installment agreement goes into effect.

I have been gradually downsizing and raising my fees hasn't resulted in any clients leaving. Every year I send out letters telling selected clients that I won't be able to prepare their tax returns, or payroll or etc.

I was at my grandparent's farm (as a youth) and they had a rental home on the property. I'm sitting on the tailgate of the truck playing with a cat, their black lab is sleeping on the porch and another cat jumps up onto the porch with a dead mouse. The cat is playing with it, tossing it up into the air, rolling around with it, pouncing on it. Black lab gets up, walks over and eats the mouse. The cat is POed as the lab gives it a look as it lays back down. Lesson of the day is don't tick off a sleeping dog during his nap. Greatest days of my life were on that farm.

I can not improve on mcb39's comment one iota. Everything Marilyn stated is spot on. When downsizing, I started with the most time consuming clients (a.k.a - pain in butt), Ones who proved they couldn't / wouldn't get their 'stuff' together regardless the number of times I explained things. Clients seldom complained when I raised fees for same work as last year. They usually realized everything increased. If one questioned why - I explained, "many recent tax changes required added work" or reply on a more personally identifiable level "At least it's not as much as our utility company's monthly increase." Today, grocery prices are # 1 topic. Of course that worked for general type returns. Make a few lists, by category, of clients who take too much of your time for their fee ~ the ones you know they won't change. If they won't change ~ guess what, You gotta make the change ~ for your individual and / or family's health & wellbeing. I wish you well on your changes. So many of us have been there. REMEMBER: Your mental & physical wellbeing is more important than any tax return. Reread mcb39's comment. I've "known" her via ATX for decades & I trust what she says.

Optimistically by the end of 2023, realistically by the end of 2024.

Yeah....ummm....when exactly? Tom Longview, TX

For us the big benefit of the gridlocked divided government for the next two years will be, minimal tax law changes which will hopefully allow the IRS to finally get caught up

I feel that loyalty to longtime clients is more important than raising their fees. Turning them loose in a world where everyone is raising fees is just wrong. I have found, because many of my clients have been with me for 20 plus years; they understand when I give them a slight raise, but I also give them special consideration. Every year, I lose a few or more through death or no longer having to file. Every year I also gain new clients; almost always through referral; occasionally through the IRS website. These are the clients who get the raise because I am still less costly than the par. I already have new clients calling because their old preparers are cutting back or retiring. Since I am training a replacement, it doesn't worry me to take on new business. Absolutely, if circumstances change; they buy another rental or two; they open another LLC; whatever the reason; they are reasonable enough to know that they will have to pay more. If they are a huge annoyance to me, they get fired; and that has happened a time or two. Two years ago I had one come back after 9 years and ask kindly if she could come back and she has been a model client ever since. Just had a client come through the door. Have to run.

You don't say what kind of entity was involved, but if your client sold his uncle's business after the uncle passed away the assets of the business would get a step up in basis.

Heirs inheriting the contract have to continue to pay income taxes on the principal and interest payments as they receive them. Once property is sold under an installment contract, that property is not eligible for a step-up in basis at the date of death.

I would efile as soon as possible and pay from my pocket any penalty. It happened to me once and by paying the penalty from my pocket, I never forget to efile anymore. After that event, every April fools day, I click on each return on return manager to see if efile was accepted. If I don't see the efile transmission, I check my paperwork. I also make a note on return manager if client picked up her/his papers and didn't file with us. I also make a note such as "2021 by mail" if forms were sent by mail. As you know, checking 1000 returns on return manager might take you an hour but it is a good investment. I think I use the field named "client #" to make my notes. Since this field is rolled over each year, I make sure I use the year that was paper filed so that I don't get confused in subsequent years. "Paper filed" will not cut it for me.

Marilyn, You are a better person than I am. However from my point of view "loyalty is a two way street"!

Hi Margaret, Yes, the BBQ bash was fun. KC Jenkins created the idea & collected funds. I went to a great Memphis BBQ restaurant I knew would treat our order special since it was for special people. Good luck with your downsizing. I think it would be easier if we were abducted my aliens.

Something doesn't add up here. Take a close look at the IRS notice. It seems to have information that there was a $145k withdrawal, not $99k. And they seem to think $45k was repaid--does that match the return you filed? The notice should list where their info came from. Was there another 1099R you haven't seen? Your client paid tax on $33k in 2020, check. In 2021, $33k was repaid so no tax due for 2021, check. If the client repays $66k in 2022, no tax will be due and 2020 can be amended. Did the client elect for the 3-year-plan? Another thing to check.

at 11:59 pm eastern time Tuesday 11/22/2022.

If her travel was done while carrying out her duties of executor, then I see no reason why she would not be reimbursed by the estate, and expense deducted on form 1041. I don't see an issue if she is also a beneficiary, otherwise she is donating toward the benefit of other heirs. The expense is allowable under 20.2053-3(d)(3) which overlaps with Sect 20.2053-1(b) as referred to by Sara.

Depends on the the purchase price vs fmv of assets purchased. For example, if the purchase price was $640,000 and fmv of equipment, trucks, etc was $200,000 then Goodwill was properly valued $440,000.

"The IRS reported in the latest update this week on the status of its mission-critical operations during COVID-19 that of those 4.4 million unprocessed returns, 1.9 million require error correction or other special handling, while 2.5 million are paper returns still waiting to be reviewed and processed. The work typically doesn't require the IRS to correspond with taxpayers, but does require special handling by an IRS employee so, in those cases, it's taking the IRS more than 21 days to issue any related tax refund." "In total, it has over 6.3 million returns in suspense, with about 2 million in unpostable status, 1.1 million processing rejects, a half-million in error resolution, and nearly 3 million still waiting to be worked for potential identity theft. Most math errors involved reconciliation of the Recovery Rebate Credit or the Child Tax Credit, and through Oct. 10, the IRS had sent nearly 14 million notices mostly concerning those issues."

Hi Jim, Gosh, it's good to be remembered & pls. know I remember our conversations too. Some "talks" surely seemed to be crazy to an "eaves-reader." However, each officially started w/ a tax question / situation. The path it took from there depended on the time & how many ATXers were still awake. I recall late night legit tax conversations ~ complimented w/ silliness to keep our sanity. ♦I haven't posted for a hand full of years. I often check the site ~ seeking already asked tax opinions + browsing familiar names. ♦I hope life's been good for You & others during my / our "quiet years." ♦My life has been okay. Things less than likable must be classified as acceptable, as I am not the one with ultimate control. ♦To clarify my philosophical stmt. I was widowed 11/23/15. Not a surprise. I provided in-home hospice. We talked / laughed until the last second. I knew. I was more prepared than most. I'd provided in-home hospice for Mom, an uncle, & helped w/another uncle (mom's brothers) + my hubby's oldest brother & would have helped w/another Bro-in-law, but Covid prevented travel. ♦I post my personal info as support for anyone currently going thru situation & for those who "turn around" & find themselves facing a loved one needing such care. Is it fun?¿ ~ not really. But, it's Overwhelming Heart Rewarding because You're helping someone You Love, Who is in Need of Your Love. ♦I'm currently helping some older clients w/ a variety of situations. They know I'm available to listen. I want to retire ~ but, I'm still here for my older clients (my peoples) whose partner's have dementia & don't have family who give a damn. The same wonderful people helped us after a devastating flood & helped me when hubby declined & moved on. ♦ Jim, see what you started when you "hoped life had been good to me." A 7 word answer: "Sure as heck, my life's been good" Your "hope for me" triggered me to share my hope for you & others.

I have had ATX for over 20 years - many times I swear I am going to switch - but their service has been incredible the last couple years - and the issues we have had - were mostly related to single glitches with a client, not overall. It has all the forms I need - I do about 70 S corps and about 800 total returns. I have tried a few others but do not like the format nor the price. This is easy to teach - even to remote preparers. and it does have the interview available. It has "lost" some features I dearly loved - calculator in the line, cannot open more than 1 return in the current year, - can in prior years! Compared to another program I had, I wish it had a timer on!! I have even stepped down a version as I did not need all the extras. I think! D

Thank you! They have three products, ATX, Taxwise and Prosystem, and they are so different. Compare the three created by them, ATX is most user friendly. Wish everyone had a good thanksgiving and Merry Christmas to all.

I agree with Yardley. I gave Drake a try twice as I did ProSeries and did like the newness like I had a new toy to play with. But in the end I just feel comfortable with ATX, and for all it's problems and complaints we can all be like martyrs in the tax preparation world. There's so much to be upset about, but it brings us closer together as we don't have to suffer in silence or isolation.