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I won't do the FBAR filing anymore; preparer penalties are too high. All I'll do is given the fincen site for online filing. Of course, I also make sure no totals are high enough to warrant the 8938, and I include any foreign interest on Sch B and other foreign income on whatever form or schedule is appropriate. Were I to do one for a client, minimum would be $150 and maybe more like $200, even for a "simple" FBAR, considering I'm opening myself up to penalties if the info the client gives me is wrong (let alone if I make a mistake).

No idea what HRB would charge. I would charge at least $150, more when I have to do the currency conversions. You may also have to determine interest, convert it, and add to Sch B or Form 8938, which is another charge. Get paid for your work.

Time to part ways. Life is too short. There are plenty of decent clients out there clamoring for help. IMO

I have few like that before and my answer to them is go to IRS website and all answers are there.

Well, he wasn't being as big a PITA as I supposed, but then got an email (right after the one where he said he wanted the return done right) and his ex hired a CPA and that CPA is going to do both returns. Clean my hands of him. And sent a bill for $500. whether that gets paid or not, I really don't care.

Sounds like a good candidate for firing.

Has the father signed an 2848 or an 8821 authorizing his son to receive information and/or act for his father? If not, just tell the son you are not authorized to discuss the father's tax return with him. Unfortunately, no matter what you do, this is going to continue to be a PITA.

technically NY says yes but we hardly do it in this situation. With the crazy rules a small entity with a few partners could be filing in multiple states.

But before you do, raise the fee!

It is possible that the tax withheld will be for the exact amount of tax liability if the taxpayer works in the same jurisdiction that he/she works in or works outside of the resident jurisdiction and the employment jurisdiction has the same tax rate as where he resides, but that isn't always the case. It is also possible that the resident works in a jurisdiction that has a higher rate than where he resides, but he will not be able to claim the full credit but only up to the rate where he lives. All PA residents with earned income must file a local earned income tax return if their local resident jurisdiction imposes such a tax. Documentation must be attached (W-2s, Sch C, 1099, PA-40 and out of state returns for credits claimed, etc). Since I am right on the DE/PA border, many of my PA residents work in DE and have to rely on the out-of-state credit to cover the PA state and local liabilities or pay quarterly estimates. Either way, they are filing local returns.

My husband "sold the farm" to start a Partnership with his brother in 1973. Many years later the brother sold his half to our son. Family owned Partnership. That sale was one of the most difficult returns I ever did. My research and the paperwork involved, rests in a hard-shell briefcase. I have always treated our contribution as Recourse. The brother contributed nothing but his talent. In nearly 50 years, my 1065 returns have never been questioned. Used Vehicle Sales and Service continues to exist and grow. However, there are slightly different rules for family-owned and this is not a huge business; averaging under $250,000 Gross. Also, it has been solvent for a long time.

I’m sorry, I meant the deductible portion of the expense after the floor was met. I’m out of the office until Monday, so I’ll look again at the 1099 as soon as I get in. thank you!

A bit more complicated than you think. First of all mortgage is Qualified NonRecourse thus is counts for basis, that's for the new property. On the old property you have to follow the interest tracing rules. The percentage of new money that was distributed [for new partnership] is reported separately and on schedule K line 13D. It will flow to the k1 as such. Then it is up to each partner to determine the use of the money they received. Invested on a partnership, deduct on sch E, invested in the market, deduct on sch A, bought a yacht then not deductible.

https://www.thetaxadviser.com/issues/2011/jul/clinic-story-10.html

By "net" , do you mean that is after subtracting the amount of reimbursement from the LTC contract, or do you mean something else? Which box is checked in box 3 of the 1099? Was it a per diem allowance or truly a reimbursement? Do you know if the contract is a tax-qualified contract or a non-tax qualified one?

Make sure that your Preparer options are all filled out correctly.

I would think it would be basis only deductible if the coop liquidated and ceased to exist.

But the point remains that if you file an amendment before the due date with extensions, it's superseding, and if after it's not. And there's not a damn thing you can do about that. But it does lend credence to extending all returns, even those that were completed on time.

"• Certain family members may be eligible to receive monthly benefits, including: —A widow or widower age 60 or older (age 50 or older if disabled). —A widow or widower of any age caring for the deceased’s child who is under age 16 or disabled. —An unmarried child of the deceased who is either: ◦ Younger than age 18 (or up to age 19 if they’re a full-time student in an elementary or secondary school). ◦ Age 18 or older with a disability that began before age 22. —A stepchild, grandchild, stepgrandchild, or adopted child under certain circumstances. —Parents, age 62 or older, who were dependent on the deceased for at least half of their support. —A surviving divorced spouse, under certain circumstances"

Usually SS monthly benefits are paid about the 10th of the month. If the recipient passes away before the end of the same month, the SSA will reach out and take back that month's payment. I am not aware of any reason that adult children will receive anything other than the death benefit or $255.

There are differences between superseded and amended returns for statute of limitations pertaining to assessments and also for refund claims. The following article has a good summary of the issue, and also the difference between IRS view and the Supreme Court view on this. https://www.thetaxadviser.com/issues/2021/jul/superseding-returns-statutes-limitation.html

Because I am a "Paper Person", I keep a copy of the depreciation detail schedule in the client's file.

Maybe I've gotten fed up with 100-page brokerage statements, but I've been entering just the totals for each type of gain (short, basis reported, total proceeds, basis, wash sale total; then onto short, basis not reported etc.). If there are only a few entries I do the trades individually, but the totals end up with the same bottom line and that's really all IRS cares about. Remember when we had to send the brokerage statements with the 8453?. We all knew they just went into a dumpster in Austin and if the IRS ever audited any of those returns they'd ask for the statements anyway.

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.

Several years ago I had a client who did the 60 day rollover in multiple pieces (Not trustee to trustee ) The rollovers were all done within 60 days, but the stock broker receiving the rollover funds dropped the ball on the paperwork. The IRS took the position that the rollovers didn't qualify. My client was very late getting the IRS letters to me After sending in all of the documentation 3 different times, the IRS agreed to most of the rollovers but insisted that about $ 2,000 didn't qualify and was taxable, Finally I told my client that I had done everything that I could do and advised him that it was up to him to either pay the tax or to call the IRS himself. A classic case of "how not to do rollovers!

Do they have other money he could put into an IRA? This is why IRA transfers should always be trustee-to-trustee.

We would have gone this route but the bank has told them 2x that they will NOT move the money into an IRA at this point. I was the one who asked him 2x to ask them and that was their response both times. Can't get a waiver if the money is still sitting outside an IRA. The bank will charge them a fee for early withdrawal of a CD and in their minds it is better to pay the tax than the fee. Not my problem anymore as he doesn't seem interested in me calling the bank for them. (Bank keeps says they'll only move their allowed contribution and the clients aren't even interested in that.)

See if the client qualifies for self reporting and penalty waiver see https://www.cpa-wfy.com/did-you-miss-the-60-day-deadline-for-your-ira-rollover/

I was thinking that the 396 should be interest, just wasn't sure if it would flag anything since they never received a 1099. Thanks everyone.

Sometimes you can't rescue people from their errors.

I agree that the tax portion of the refund is nontaxable since they used the standard deduction, and also agree with mcbreck to report the $396 as interest income.

Bank says NOPE. I swore I had a client years ago where the bank allowed them to do it after the fact and risk the 60 day rollover question by the IRS and qualifying for a waiver. Maybe the difference was that time it was the bank's error and this time it was the client's error. Senior citizens need help on this stuff (like taxes).

Personally I'd claim the $396 as interest earned.

Wasn't that nice of them to take that away from the Seniors who are working to supplement their Social Security? That was one of the nicest perks about last year.

Just make sure he had some foreign income, details of which should be buried in the brokerage statement somewhere. The credit only applies to foreign income so the carryover will reduce the US taxes on that income. I had a client with several thousand in FT credit carryovers who kept questioning me about why I wasn't applying them. He had liquidated all his mutual funds and had no foreign income, so the carryover was wasted after ten years.

Mine does warn me - I click the icon on the right corner and save and keep working,, eventually I close it.. But then I cannot re-open it!!! I have to go to Task Manager and end task - and it is already ended - It is the 2nd portion of running in the background and end it there!! Sort of scary! D