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The rule is, if you don't know what it is, leave it be. But if you see Adobe update or QuickBooks update, go to services, stop them and also set them to manual start. This is reason #121 why it's good to restart your computer every day. Tasks that were trigger started or manually started will continue to run until a reboot.

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.

Been building PC's since the old Intel 286 days. Back when hard drive capacity was measured in megs and 5 1/4 hard drive where the norm. Showing my age. Anyway the best info on tweaking or streamlining any version of Windows is Black Vipers's web site. https://www.blackviper.com/service-configurations/black-vipers-windows-10-service-configurations/ Here is a link to Windows 10, but any version is available. Windows itself has many services that are not necessary for 90% of all users. Fluff, I call it. So even Windows can bog down a system.

I've seen where some claim if you put it on the 8949 and not on the Schedule D itself and have summary totals of non-basis given trades, you should include it. I don't agree but that's what they are saying. I can't remember the last time I didn't itemize out the non-basis trades as there are rarely more than 2-3 in a year for clients.

That's not allowed. If the foreign tax withheld is only slightly over $600, it's entirely possible that the credit allowed this year will be less than $600, with the excess needing to be carried back or forward.

Last year, the IRS started allowing efiling of superceding returns: https://www.irs.gov/newsroom/irs-taxpayers-now-have-more-options-to-correct-amend-returns-electronically But not all software supports it.

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.

@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.

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.

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

Ask him for the regulation that requires it. If he can produce the IRS guidance, then give it to him. I assume it is a partnership return like most law firms. Everything he needs for his personal return should be included on the K-1. Not sure why he wants the actual 1099B. As a partner in the firm, he should be able to get a copy from the partner who handles the PS investments and it is probably discussed at partnership meetings. Weird. Tom Longview, TX

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

Thanks for reporting that this is fixed! You can find some issues like this in the first xml file at https://www.irs.gov/e-file-providers/known-issues-and-solutions, but it doesn't get updated very often - the last was Feb 1. Your issue is on row 76.

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.

"Next week the IRS will begin accepting electronically filed 2022 amended returns with direct deposit information. The IRS will not allow direct deposit if an amended return is paper filed." Every little bit helps

Don't do this. The 8949 has code m for this situation. As many have stated above, have the lawyer back up his claim with a code section or reg. He's trying to make you look bad to the partners, make him the one that looks bad.

Have your client make his broker send you a spreadsheet to import.

I seem to remember that you used to have to attach a 1099 IF there was tax withheld, but even that stopped many years ago.

...paying for everything he could think of out of his corp...

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

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.

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.

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

IR 2022-38 dated February 16th https://www.irs.gov/newsroom/irs-provides-further-details-on-additional-relief-for-certain-partnerships-preparing-schedules-k-2-and-k-3-for-2021 FAQ 15 https://www.irs.gov/businesses/schedules-k-2-and-k-3-frequently-asked-questions-forms-1065-1120s-and-8865 I haven't seen anything about this notice in the various tax news sites for which I am signed up? I just did an online search for "Schedule K 2" and this stuff popped up. Amazing! This time the IRS has totally dropped the ball with the way that they have handled this issue!

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.

As I understand the January 15th deadline was eliminated in the updated instructions released in January. The notification to partners can now be made as late as when the partnership/S-corp furnishes Schedule K-1 to its partners and can be provided as an attachment (footnote) to the Schedule K-1. The example I saw used verbiage along the lines of the "the company has determined it has met the necessary exceptions and will not issue schedule K-3 unless the shareholder requests it within one month of the company filing its Form 1120-s" or something like that as best I can remember.

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.

If the required January 15th letter was not mailed out to the S Corp owners then your only option is to file Schedules K2 & K3.

"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 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.

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.

Either he agrees to correcting the depreciation using Form 3115, or he can go back and cry to Ttx. I understand reluctance, but he's pushing into wanting to cheat because he sees it as troublesome and possibly expensive to be honest. Dishonesty is always too expensive for me ever to work with.

That was my reading as well. Since he took around $10,000 from his account I am assuming I would put the figure for example $3,000 on line 5. Place 5 as the exception on the exception used line on the front of the 5329 and the ATX software will compute the 10% penalty on the $7,000 unspent on medical expenses. Wallah !

3115 charges as a separate line item too with the explanation that that is the cost of his choosing to not hire a professional in the first place and/or using TurboTax incorrectly. That's assuming you think you can train him to be a worthwhile client, otherwise dump him now without wasting any more time.

And, with his "simple" pricing adjusted for the 3115 and for his time suck to you of being a PITA.

The only way I would prepare this return is with a 3115 correcting the depreciation which would give him a 4 year forward spread on paying the additional tax. I would clearly state that in an email and as Tom says," Make him make the choice to stay or go."

If you don't set the ground rules for the engagement this year, you will regret it. Personally, I would tell the client that it is not your practice to produce incorrect tax returns, that it is his choice to correct the prior years, but if he does not, you cannot produce a correct return this year because the carryforwards are incorrect and you will not sign a return you know to be wrong. Make him make the choice to stay or go. Tom Longview, TX

Until we receive clearer updated guidance all you can do is advise your clients that you and Putnam have interpreted the requirements differently and let them decide what to do. Perhaps you could put that in writing and get your clients acknowledgement that you have informed them.

According to The Tax Book comparison chart there is no recapture of the Special Depreciation Allowance unless it's listed property whose use falls below 50%.

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.

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.

So , Wells Fargo is correct and the IRS will not be expecting a 1099R. Good. One less form for them to deal with.

A client's wife inherited a house which she and husband lived in for a number of years. They then bought another house and basically let family use the inherited one for a number of years. Last year she sold it and since the couple has not lived there in eight to ten years it cannot be sold as their residence. I will show it as an inherited house using the basis as of the date of her father's death and add any improvements made by them since he passed on. This seems correct to me but as usual any input is appreciated.

This should be standard procedure for everyone. Computers simply run better after a restart.

Yes, but if you close out the message you can keep working. Abby gets the credit for that workaround. I do shut down the program every few returns, another Abby recommendation