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Bring up the Pages & Worksheets list and choose Sch B (1116) - Credit Carryback / Carryforward

Of course it's not illegal to merge personal and business accounts, but it sure creates an accounting and tax audit nightmare. Was that gas fill up for the business van or the wife's car? The trip to Staples for back-to-school supplies or office copy paper? We have clients whose monthly bank statements are four single spaced pages of everything from morning coffee to bars to the occasional business website bill. Their reconciliations cost a lot because they take so much time. Also makes it impossible to tell how much money you're making or spending--should you raise prices, buy that new piece of equipment?

GOT AN EIN, SO i WILL USE THAT

I have not seen any authoritative cite to confirm that. Reg 1.104-1 (c) states: “Section 104(a)(2) also excludes damages not in excess of the amount paid for medical care (described in section 213(d)(1)(A) or (B)) for emotional distress”. As referred to, sect 213 allows a deduction for medical expenses paid by the taxpayer for his family. Where does it say affected members of his family must be included in the suit?

“If you don't know where you are going, you'll end up someplace else.” ― Yogi Berra

John, By your original post and the reference Lion gave "KPMG NOTE: Beginning September 15, 2021, employees working remotely outside of Massachusetts should have wages reported and taxes withheld to the state where they are physically performing services. Employers will want to make sure they are registered for payroll in the states their employees are working remotely, and able to handle the complexity of compliance for a mobile workforce." the MA company is reporting correctly. To add another wrinkle, you stated he travels to MA for meetings. Is he performing any services while in MA? I would indeed check with the MA DOR and if a non-resident return is required, then file it with the credit to NC for taxes paid to MA. It would appear to be small amounts here.

W-2 for the child or else he'll pay SE tax. And, he's not an independent contractor if his only work is for his parent's business using the exclusion from FICA for a child of the owner.

He should just apply for an EIN--it's easy enough to do. Best argument in favor is that he won't have to give his SS number to clients. Operating without an EIN makes me wonder if his business banking is combined with his personal, which is a big No No!

And at first I was thinking that cbslee wanted some "warped" emojis added!

Be sure to get a POA and ask for a hold on his account when the notices start coming in.

For a balance due of $27 I would not sweat it.

Stop the check, otherwise it might be awhile before gets his $4,300 back.

ATX doesn't care. They do something like this every year. They never bring back the functionality they remove.

Spoke with ATX technical support today. She says this isn't an option this year, the removed it. I asked her to pass on to the powers that be that this was a really dumb move on their part and is wasting our time.

Thanks for all of the replies and advice. Client finally did get Clickworker to reply and they closed the account. Client is following up with credit agencies with credit report and freeze, IRS fraud hot line, getting a transcript from the IRS, and identity theft pin, ect. We will attach 8275 to the return to disclose the fraudulent 1099-NEC.