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Long ago, clerking for a local tractor sales repair outfit, I composed a collection letter which mentioned some of the above lines plus others I created. Hot into writing at the time (no best-sellers emerged), I considered mine a friendly-browbeating masterpiece. A fellow colleague from our nearby competitor later called; praising it highly and asking permission to use it. Quite pleased, I agreed. Next month he called back: "We got a better letter than yours." (Their customers didn't pay well, but neither did they.) A rough, camo-collar guy who sold scrap iron but was also known to pack an iron, had penciled on his notebook-paper statement: I WANT MY MONEY Paid the same day received. BB

With phone or any other non written information, how to you handle they said/I heard issues? While we are in different industries, the issue is very relevant to both. In the current environment, many (including me) insist on having a trail for nearly everything, to reduce miscommunication, to provide backing, etc.

I encourage calls from clients. I want them to ask me questions and I know the questions that I want to ask them. To many of you, this may seem foolish and a waste of time; but to me nothing is worse than having to do an amendment because something was missed. I, personally, interview every client and give them as much time as they need. I don't prepare returns while they are sitting here. If it's going to be too much for me, I will refer them to a practitioner that I trust. They are paying for my time and service. I want to give them what they are paying for and I tell them that I am here all year if something comes up that they have a question about. I don't like surprises at tax time. My husband and I reflected on our 63 years together on Christmas Eve after all of the "kids" had gone. We have been so blessed. We started out with a lot of Nothing. Neither of us even had a job at the time. We have both worked hard both as employees and finally as self-employed. We reflected on what we had then and what we have now. We have been so blessed. I have spent a lot of time learning and I don't mind sharing some of that time with individuals who need help. When I go to bed at night, I sleep really well.

I have no insider knowledge. However, Adam bought a programming tool several years back, and as of at least mid 2022, was still occasionally participating in an online programmers forum (at least with a handle looking like his name). Unlikely this could have been done for anything other than self protection, to maintain a tool they used in house. Now, no idea after the sale/purchase, and a quick search did not find anything relevant in the programmer's forum.

I have no insider knowledge. What I do know is Drake bought a now dead programming tool which many used to use. IIRC, it was because they depended on it for their own software. Likely, whatever happens next (if it has not already), the odds are good they are or have been working furiously on rewriting their code to use whatever programming tools the buyer is comfortable with.

Very clever! I couldn’t read some of the descriptions though because of the title getting in the way

Excellent, but based on hash difficulty, it will be hard to find someone doing it as a hobby who has mined any bitcoin in 2022.

Yeah, everyone is trying to maximize profit and stock market price by CRM, Data Mining and converting the Data into advertising and marketing $. It been very interesting watching Intuit do exactly that over the last several years.

Pretty obvious. I recently got a client whose taxman left our community some 30 or so years ago relocating into the Richmond area. He came down with covid-19 and she needed help likely for 2022 only. She advised he did not efile which occurred to me as quite odd. That is until I saw the prior year return with no signature or any indication it had been professionally prepared only the two word notation in the preparer field denoting it was prepared by the taxpayer. He has likely been getting away with this for years with no none ever turning him in.

The IRS now explicitly agrees that personal gains are reported on Form 8949 and personal losses from Form 1099-K are reported and backed out on Schedule 1. See https://www.irs.gov/businesses/understanding-your-form-1099-k (the section on personal income). The same applies to an incorrect Form 1099-K. The Form 1040 instructions have also been updated. See the instructions for Schedule 1, lines 8z and 24z. Briefly:

Way I heard it, the "confusing" aspect was going to be computer letters and taxpayer calls and responses in advance and after those - when they still have millions of unprocessed returns in stacks on tables.

The delay means we have time to educate our clients on the required record keeping. Dates of purchase and sale, original and sales prices, etc. We may stick a brief paragraph in our client letter. The purpose of this provision was to narrow the tax gap--a laudable goal. The law was passed months ago so I don't understand why it's suddenly too confusing to implement on time. The IRS is usually pretty good about publicizing changes, but I did not see much info released on the 1099K. Congress did not change the law, so IRS used its own authority to delay implementation. Maybe because they're now in the hot seat for failing to audit a certain person's returns that they were required to audit? Now they've given people who make plenty of money selling used goods they bought at yard sales and flea markets time to switch from accepting electronic payments to cash only.

https://www.kiplinger.com/taxes/irs-delays-new-form-1099-k-rules You are correct!!

"WASHINGTON — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021. As part of this, the IRS released guidance today outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) including Venmo, PayPal and CashApp that would have generated Form 1099-Ks for taxpayers. “The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan,” said Acting IRS Commissioner Doug O’Donnell. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes. The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements." It would have been a real struggle for the IRS to deal with the big increase in 1099 K filings, which would have made it harder for the IRS to deal with all of the other various processing difficulties, Wise Decision!

Uncommon sense prevails?

Proof again of guaranteed lifetime employment in any accounting or tax field for anyone so inclined. Similar to the wayfair ruling, as it is a game changer. I read it as budgeting law. A way to show something is getting paid for. Like how the final Q of ERC was clawed back, after the fact, to pay for other grants, some of which were to private firms.

News reports are saying this amendment did not get in the final bill.

Thank you, my friends here at the ATX Forum, for being such a wonderful group and such a wonderful resource for yet another year. May you all have a wonderful holiday season with family and friends, and a terrific year in 2023.

Merry Xmas to all. With the weather today I've stayed home and am reading a pdf copy of The Logic of Subchapter K I found online. We'll see how this goes.

Trying to apply common sense to what the IRS does, just creates stress and frustration. Neither do I, but the instructions either require the letter or file the K-2 & K-3 and yes the 1065 instructions are different from the 1120 S instructions. The question is which approach is more efficient and takes less time. If I can avoid sending out letters that's way better for me!

I heard this at an update seminar last week. It may be good advice. Tom Longview, TX

Final Instructions have been issued for S Corporations: https://www.currentfederaltaxdevelopments.com/blog/2022/12/21/final-s-corporation-schedules-k-2-and-k-3-instructions-issued-for-2022-returns "Consider the Option to Just Prepare the Forms Advisers may wish to consider the other alternative to qualifying the S corporation to meet either the Domestic Filing Exception or the Form 1116 Exemption Exception—just preparing the Schedules K-2 and K-3 for an S corporation with only domestic activities. *Several professional tax software publishers have added the option to check a box that tells the software that the entity has only United States operations. When the box is checked the software uses the information entered on the forms to complete the rest of the Form 1120-S to populate Parts II and III of Schedules K-2 and K-3 based on the normal allocation information for profits and losses for the return, as well as the average book value for assets reported on the corporation’s depreciation schedule. For many simple S corporations, this procedure will produce either a correct Schedule K-2 and K-3, or a starting point for quickly creating proper Schedules K-2 and K-3 for the corporation. In that case, taking the additional steps to meet the requirements to meet either exceptions may consume far more professional time than simply preparing these forms for filing with the Form 1120-S and providing the appropriate Schedule K-3 to each shareholder.:

I, too, really appreciate the information that I can get from the people on this board. Bur even more i appreciate the camaraderie I find here. I hope that everyone has a Merry Christmas, a Joyous New Year, and that this tax season will be smooth sailing for all of us!

The same to you also, young lady..

If I recall correctly, my method of reporting 1099-K transactions that do not affect taxes and are solely to prevent CP2000 letters (or state equivalents), came as a suggestion from either an IRS or state tax agency employee, when 1099-Ks were new. Their interest is "is there taxable income here?" only. If the answer is no, they don't want to be bothered with someone selling off their personal used work shoe collection.

I think you are misunderstanding me. This method obviously does not apply to gamblers, or hobbyists, or an asset sale not reported on a 1099-B. Think of the person cleaning out their closet after quitting a corporate job. Never going to wear the "sensible pumps" to an office again, or the fancy suit either. Sells them on eBay, over the course of a year, one at a time as she gets around to it. None of the items are recent enough that she recalls where she bought them or what she paid for them, except to know she's selling for way less than they were purchased for. Gets a 1099-K for $610. None of that belongs on Sch D - they're extraneous possessions, not assets. Basis? Not recoverable. the only reason to report is to avoid any chance of an IRS nastygram two years from now when no one remembers anything about the transactions. I think that in such cases reporting on one line "1099-K from eBay, $610" and on the next line "personal items sold at a loss, -$609" represents what really happened, in a way that does not ask for a CP2000 letter, and without affecting taxes or adding forms and complications that just really don't belong and do not in any way affect the correct tax liability of the taxpayer.

Been through this as well and there is no easy answer. One suggestion, maybe contact an attorney regarding the ability to sign a POA competently. I would only do this after your discussion with both Mr. & Mrs. I would definitely try to find out if there were any other family members who could get involved. For you, I think you have to know the person who you are preparing a tax return for understands. Kinda similar to working with someone who speaks another language where an interpreter is needed. Maybe things will work out with Mr.

Dementia is very difficult for other people to deal with for exactly that reason. At this stage, I suspect you will just have to deal with it as best that you can.

Some good ideas here. The biggest problem is that she is not aware that anything is wrong. She is aware that she has contacted me often. She apologizes for bothering me and begs me not to drop her as a client. As if I would! They have a semi-complicated return with several 1099s and SS. It has got to be correct. Generally, they get a nice refund.

A delicate situation for sure. Easier said than done, but I believe all clients should have a backup plan in the event they are no longer able to handle their financial affairs. In your situation, I would arrange a meeting with both Mr. and Mrs. Longtime Client. Send a letter addressed to both, so he is likely to see it. Then when you meet and Mrs. brings up the refund question for the umpteenth time, you can gentle say something to the effect “as we have previously discussed your refund was received last May (or whenever).” Maybe Mr. will pick up on the repetitive cycle you are going through. The goal of your meeting is to find out who you should contact if both become incapacitated and bring husband on board. Hopefully he is not on the same medication; and you can persuade them to obtain a durable power of attorney.