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To answer your question, I vote for firing him. With the work involved and his realization that he will need to correct and pay tax he will probably give you a hard time when he gets your fee. End it now, you will feel better.

I have only 2 S-corps left, and both pay their shareholder/employee well. One has very cheap union insurance; the other has very expensive (pre-existing conditions) family insurance ~$35,000. I turned away a potential client who wanted to use his S-corp like his personal bank, paying for everything he could think of our of his corp, OIH, Cadillac health insurance, taking distributions whenever he needed funds to live on, telling me that HI should be the only amount on his W-2, because he wasn't going to pay payroll taxes nor use a payroll company. I declined to accept him as a client. Maybe that one part was correct, but he was too much of a player for me and my biz model.

Thanks, @Slippery Pencil. It's what makes sense - which immediately made me second-guess myself, because "making sense" and tax rules are frequently incompatible.

Show him the Form 8949 instructions, especially pages 3-4 with exceptions to listing everything on Form 8949 and the sentence, "If you choose to report these transactions directly on Schedule D, you don't need to include them on Form 8949 and don't need to attach a statement. For more information, see the Schedule D instructions." If he doesn't agree, he's a lawyer, ask him to show you the code section.

This is 1040's for clients. He's just being a jerk.

It's always a good idea to have your computer running with as few other things in the background as possible. Programmers love to start crap you don't need running in the background. It's a constant struggle. This is the main reason I don't buy brand name computers. I still use the old StartupMonitor program to alert me anytime some software wants to add an automatically started program, but you can also go into Services and look at the update programs and other things you don't need or want running 24/7.

@Catherine we are in the same boat. I open up the task manager and I have no idea if I can end a process or not. And I know if I do some techie type will tell me (after giving me their bill to fix it) how stupid I am for closing an important process. Tom Longview, TX

Not a requirement. He has no idea what he's talking about. Decades ago preparers would attach the 1099 and put "see attached" on the Sch D instead of typing in dozens or hundreds of trades. Since the 8949, that's not required. Even before the 8949, I stopped attaching the 1099 and just posted summary totals on the Sch D.

Above 2 posts were moved from the topic about ATX crashing so not to derail that one and be able to continue this one on its own.

If there are no employees at all, and the owner doesn't work there either, how does the corp make money? If the corp paid the health insurance, who did the paperwork and wrote the check, a volunteer? Unless you've stumbled across the only corp in the world run entirely by bots or AI, I'd pass on this return.

One benefit to including the health insurance amounts in the wages (as you're suppose to do anyways) is that is helps fulfil the reasonable compensation requirement. With health insurance as high as it is, it's a nice chunk of the reasonable comp being covered and it's not subject to FICA. WIN-WIN.

So many believe they do better not paying RC and payroll taxes, versus a good long healthy contribution to SS... While it does not come up often among my customers, I have yet to hear from one who was doing better with their investments over SS, as many seem to skirt RC. I share this as often as I can. In the last couple of decades (maybe longer?), SS is still a better "deal" for the average person. What often gets overlooked is coverage for non working spouses, disability, survivor benes, and how a disabled child/adult can transition from SSI to SSDI when a parent claims SS (or on death). I have a huge bias - to be clear. My grandmother collected well from SS for 50 years. I was a survivor bene recipient. I have a non working spouse. I have a disabled child/adult - who will likely draw SSDI from my record for 30-40 years (a significant "raise" from SSI, and with no means test).

I would add, create the new efile file and then transmit it. Don't forget to explain that you are adding 1099-int that were left out and as a result lines, 1, 3 and 5 are changing as well as the tax liability and other lines.

Yes. The city isn't required to issue a W2 for poll workers until the amount is $600. There's also a bizarre rule that FICA doesn't have to be withheld if the pay is under a certain threshold. I'm not sure how many cities actually follow the rules. I think last year was the first time I saw a W2 instead of a 1099 for a poll worker.

One way or the other it will be resolved. Either she'll get the signatures, or you'll lose one client. At some point, it's poop or get off the pot.

One issue with using the Task Manager is that there are so many items listed where one really has not idea of what they are and what they do. It's not good to shut down required processes and how does one know what is required? License server, mgmt server, shceduler, hotkey uwp service, qbidpservice, secomnservice - there's no good way to tell from these cryptic names what is crucial, and what is discardable bloatware.

I have been in my current practice for over 30 years and I have never heard of this requirement

Windows Task Manager is also a fair way to see what is running. History and fact. Most of the issues with preloading and startup are user caused. What I mean is devs are inclined to preload to lower customer complaints about software startup speed. Same reason we (computer users) still, since Windows 3.1, have issues with lost data from power interruptions (disk caching enabled). Disk caching is when the OS loads memory with what it thinks can be safely handled later. Exactly like a child promising to get chores done now, when the child really means they will try to get them done before they get caught. Then, add in networking, and you get unexpected delays from another machine, and just plain delays from the OS checking and waiting to see if other machines are connected, and complication exponentially grows.

Assume you are in ATX. Open the Completed return. Upper left corner above the save button is the "Returns" menu drop down. Select "Amend Return". After ATX creates the new return, close the original return without saving. Make your changes to the new return. Save and name the new return. Tom Longview, TX

Just a follow up. This finally went through yesterday, Feb 20.

So, HI in Box 1 does NOT help an employee/shareholder meet RC, because no SS/Medicare is being paid on HI.

Final instructions for K-2 & K-3 were issued the last two weeks of December. https://www.irs.gov/instructions/i1065s23#en_US_2022_publink1000107247 3. Partner notification. With respect to a partnership that satisfies criteria 1 and 2, partners receive a notification from the partnership at the latest when the partnership furnishes the Schedule K-1 to the partner. The notice can be provided as an attachment to the Schedule K-1. The notification must state that partners will not receive Schedule K-3 from the partnership unless the partners request the schedule. https://www.irs.gov/instructions/i1120s23#en_US_2022_publink1000102223 2. Shareholder notification. With respect to an S corporation that satisfies criterion 1, shareholders receive a notification from the S corporation at the latest when the S corporation furnishes the Schedule K-1 to the shareholder. The notice can be provided as an attachment to the Schedule K-1. The notification must state that shareholders will not receive Schedule K-3 from the S corporation unless the shareholders request the schedule. Who was the CPE provider?

It's not pinned, but you can find the related posts by searching for "large address aware". Use the quotation marks in the search box to search for that exact phrase, otherwise the search will bring up every post with any of the three words. Look for the posts specifically by Abby Normal, but some are a few years old now and I'm not sure if those are still all valid or if the linked site to obtain the LAA is the correct one any more.

To Bulldog Tom, IRS K2K3 webinar 2/9/2023 had the revised instructions along with a nice flowchart.

You need to load the large address etc. should be in the pin items. I am having more trouble this year than I ever had and I have a new computer. Mine just crashes without the warning of shutting down.

There are 2 separate issues being discussed One is reasonable officers compensation on which SS & medicare needs to be paid. Amount of SEHI needs to be added in line 1 of W2. Also you will take deduction of SEHI amount against AGI in 1040. For you to take this deduction, amount of SEHI should be less than SS & medicare wages. Should the amount of SEHI is higher than medicare wages then your deduction is limited to amount of SS & medicare wages & excess will get reported in Sch A under medical expenses.

Try Here - 3rd tab over. I think you can put the information in manually. I don't see anywhere else it can be entered. Never had this come up. Tom Longview, TX

I learned last year that if you do a print preview and print from the preview, it fixes the problem with 1120S & 1065 basis worksheets not printing. I'd try that first, whenever you have a printing issue.

I totally agree with what Tom said here. If he pushes you into something you know is not correct this year, he will continue to push in the future.

Hope that works out for you.

For years I have dealt B with whom I have a working relationship. I would prefer not to work with either A or C. Therefore I gave B the Designation Letter and it's up to her to get A and C to sign it.

This is why TT hires EA's and CPA's to assist DIY clients in preparing their TR's. Clients pay additional fees for phone line help. If he doesn't want to play by your rules, send him back to TT.