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The ways of God and computers is strange, and not for mortal man to comprehend, @BulldogTom. Be grateful you found a work-around that did not include sacrificing a goat.

I have thought about the "conflict of interest waiver " too. Perhaps I need to call my Professional Liability Insurance carrier.

Sad, but you have to do what you have to do. CYA at all costs. Not sure it is needed in this case but a conflict of interest waiver comes to mind.

If no one wants them, at least they can be put to good use! I had an estate that contained a bunch of "old liquor bottles" that ended up selling for over $22k.

I told my own son and daughter-in-law to have their partnership prepared by someone else for 2022, because they are divorcing. I think I could do a better job, and could make sure my son's interests are protected, but I don't think I'm getting the full business story from DIL. So, I don't want to sign my name on their 1065. For that reason and similar reasons, I'm encouraging my son to file MFS, but my DIL is pushing for MFJ. If my son chooses to file MFJ with his estranged wife, I'm not sure if I'll be their preparer.

Couldn't you send an e-mail to all and tell them that they need to all agree who will be the Rep? I personally would disengage from this account as quickly as possible. If two of the partners can't be civil enough with each other to handle business, they will likely try to put you in the middle of things. Not worth it IMO.

Personally I would flow it to schedule C.

Usage dropped from 100 to 60. Asset was purchased in 2020 and we took the bonus depreciation at 100%. Do I need an addback - like with Sec 179?

Sounds like the form may still be waiting for final approval?

This has been a Monthly Write Up/Payroll/Tax Returns client for 29 years. My annual fees are in the 5 digits. I have already let them know, that If I run into significant problems that they will have to find another accountant. Since the divorce became final in November, I have been taking things step by step watching for any"red flags." After giving it some thought, I have decided to ask all 3 members to sign a letter designating one of them to be the "Partnership Representative."

Widow in my extended family, received IRS matching notice on a 1040 for a K1 supposedly showing 9,020 of dividends. The original 1065 (family LLC) was paper prepared and filed, with cents (?! ) on the amounts. The K1 showed 90.20 of dividends, but was apparently keypunched as 9,020 to the member's 1040 account. No other members have received matching notices. CPA advised widow to file an amended 1065, even though the original 1065 was correct. And the bill to date is about $500 for just talking about this. Who knows how much the unnecessary 1065 would cost. And at this point, it's getting close to being more expensive to pay this CPA, than to pay the IRS. I advised to send a copy of the K1 showing the 90.20 in response to the IRS notice, explaining that it was entered wrong by the IRS. All of this could have been avoided by efiling that 1065.

https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before

You don't have to, but you are supposed to. Over the years I've nomineed plenty of things off of one return onto another return and never had a problem. I think this is because the IRS matched the one 1099 they had, and the IRS won't normally question income on your return, for which they don't have a 1099.

Update: All of the members of the LLC refuse to sign the amended 1065, but this is putting a strain on relationships with the widow (who married into the family, later in life). Fortunately, most of the estate is settled, except for a stein collection, that supposedly contains some valuable items, but no one really knows the best way to sell or split them.

I had a similar situation a few years ago with a client who received a notice saying she had received 16300 in royalties that weren't reported on her tax return. The 1099MISC showed $163.00. I simply wrote a letter and attached a copy of the 1099MISC and the IRS corrected it.

These notices always seem (seemed) to land in the TP's mailbox on Friday - so they have to sweat it all weekend. My story is no different, six frantic messages on my home phone from client Friday evening. Then he was beating on the "locked" door of the office @ 6:00am Saturday morning. State Farm 1099 for 1K, IRS said 100K, the tax bill for this small garage was almost 3 times the highest Gross Income he had ever reported. (BTW, this TP died from a heart attack in his late 40's. I know this didn't cause it, but I still remember the stress it caused.) 30 years later, this still p*sses me off to think about it. And this organization now has a $700,000 (that we know about) stockpile of ammunition? ? ?

Years ago, my own client sent me a 1099 for $900 with the cents showing. They used QB with a very small font. I received a letter from IRS showing it was $90,000. I almost fainted. I sent a letter with a copy of the 1099 enlarged so the decimal showed up better. IRS accepted my explanation. Whew!

"Corrupt? Incompentent? Or both?" Maybe both, be curious to see how he justifies $500 on his invoice, if he prepared the K-1 he should take responsibility for it. I agree with all of that. Also a call to TPP hotline might even solve it.

I know. What I wrote was what pops up in the software when you click the dropdown menu in the 8949 box f. Tom Longview, TX

Years ago I had a client who was an appliance repairman. He received a 1099 Misc from Whirlpool for warranty work in the amount of $5,000. He received a computerized matching notice from the IRS saying the amount should be $50,000. To my surprise,I just sent in a simple letter explaining the correct amount was $5,000 which the IRS accepted.

8949 Input sheet, box f. Rec'd 1099-B or 1099-S as nominee. Adjusts the gain and puts the transaction on Schedule D. Pretty slick. Tom Longview, TX

Tom, congress often writes laws that give the secretary of whatever agency the responsibility of determining the operational rules and regs. In the case of tax, most in congress don't understand the whole thing so often defer the practicalities to the Sec of the Treasury. That's why IRS issues so many regs, just making whatever congress passed workable. "Sound tax administration" is probably something left to the Secretary and thus the IRS. I think the agency did the right thing; I just don't know why they took so long to notice this could cause taxpayers problems. Sure, some states didn't give out the money until late in the year, but the others paid out earlier and IRS could have studied the matter then and applied whatever decisions they made to the late comers.

Enter the 1099B as usual. For the sales that occurred after death, start another line and put "IRD reported by {estate EIN}." Then enter the after-death amounts as a negative number. Do the same for any interest or divs paid after death. Be sure to include those amounts on the 1041 with the line reading "IRD reported to {decedent SS#}." In essence, you're reporting the 1099B amounts to match the IRS records, then backing out the amounts that belong to trust. You will have to comb those 68 pages for before and after transactions, so charge accordingly!

@cbslee Thanks. I am over it now. I only have 4 returns to amend and it will be pretty simple, just waiting for confirmation of receipt of their refunds before I file them. I caught 3 others that were completed but waiting for signatures and was able to change them before they efiled. Tom Longview, TX