Leaderboard

Exactly this. No way they can tell me they didn't notice the sudden increase in their take home pay.

They noticed the increased net and spent it. Employees always question a penny less than expected, and rarely question increased net until tax time. In any case, the employer will eventually get dunned for their part of any underpayment and the employee is responsible for their underpayment (even if employer error or omission). If the person likes their job, file and pay and let the irs deal with the employer.

Anyone who has MA clients - there is now a required confirmation for taxpayer and spouse, as to whether or not they changed their names in 2022, and whether their DL & socsec card reflects the new name. Drove us nuts with the first couple, figuring why all of a sudden there were state errors preventing e-file. Just thought a heads-up here might be a good idea.

My wife and dad are in agreement - I need to move this summer. I didn't mention anything in the meeting but they noticed half my office is packed into boxes. Bookshelves are all empty and photos are off the wall.

Until they get an explanation from their employer, all you can do is wait.

I would think the first step is for the client to get an explanation from their payroll department .

To clarify, the alternate 6 month valuation is an election per section 2032 made with a timely filed form 706. In order to use the alternate valuation date, the value of the gross estate must have decreased since the date of death. Therefore an appraisal must also be made at DOD to determine if there is a decrease in value. The only practical purpose for the election is to decrease the amount of estate taxed owed. When the election is made, any assets disposed within 6 months of date of death are valued at date of disposition; all other assets are valued at 6 months from date of death. If the section 2032 valuation is used, then the basis for gain or loss is determined at six months from DOD.

But per the uniformity of basis rule 1.104-4 the basis to the estate passes to the heir.

I'm not understanding what part you are asking about? Pub 969 covers both HSA's and FSA's.

He doesn't have the returns from the 70s, for sure. Even the tail end of the depreciation would be in the mid-90s so those are probably gone as well. Around here, it's more likely to be 70% land value and 30% building. Location location location.

I've noticed the same, and have been checking those figures on all my returns.

Extensions are our friends!

I think you need to treat this as if they bought stock, except that now wash sales. A few items, usually a few bucks are earned or drops and they are ordinary income but they are tiny sometimes.

or date of disposal if within 6 month.

The TCJA eliminated NOL carrybacks and permitted NOLs to be carried forward indefinitely. The CARES Act changes those rules temporarily by permitting NOLs incurred in 2018, 2019, or 2020 to be carried back for five years to the earliest year first and suspending the 80% taxable income limitation through 2020. This is all spelled out in section 172. There are special rules for farming.

You can elect to use the alternative valuation at 6 months after date of death per section 2032 if the value of the assets has decreased since date of death; and if an estate tax return is filed. Section 2032(a)(1) allows the use of value on date of disposition if the asset is disposed within 6 month from date of death.

I have been having a kinda similar problem with Drake this year. On some 1040 clients when I update the client from 2021 to 2022, the 2021 federal & state tax liability $ amounts change and don't match the $ amounts on the 2021 filed returns? Then I have to correct the $ amounts. It's a minor issue which only affects penalty and interest calculations and the potential taxability of state refunds if the client itemized.

I don't know how they can check dates as long as the signed date is prior to efiling. I have had clients sign 8879 and then mail it a week later.

I understand completely - but sometimes not having the confrontation is far more destructive. Talk to your dad, then listen to his advice.

Please note that I've found they take some months to implement the IA. That first payment will (should?) go through, but then nothing on the day of the month chosen, just long enough that you (or the client!) start panicking that they have forgotten about it/not implemented it. Then it starts. I've seen 2 months, three months, and one (during the pandemic shutdown stuff) took six months. Just be warned it may well not be immediate after that first payment.

The fact that our efiles now go stale after 5 days drives me nuts. I always create the efile when I do the return so I make sure I've got all my errors fixed and so it gets into the efile menu and isn't forgotten. And lo and behold my client comes in on day 6. And then I even like to wait another day so I don't get the "oh i forgot to tell you" phone call. I waste so much time re-opening and re-creating. GRRRRR grumble mumble.......grumble mumble.....

I have one this year that will be paying with the 9465 via direct debit. At the bottom you put how much they want to pay with the return on the installment on 04.18.2023.