Leaderboard

The business is the LLC. That didn't change. Part of the year it was taxed as a partnership and part of the year as SP. Nothing was dissolved. The business can continue on with the same bank account. Unless they actually took all the money out of the bank account, BS should show the balance of the account. I would probably show his ending ownership at 0% and hers at 100%, but I don't know that it really matters. 1065 return is a final since one owner no longer allows LLC to be taxed as partnership. Since it's the final 1065 return, K-1's are also final.

Everything is zero, the entity no longer exist for tax purposes.

For tax purposes, the LLC designation is irrelevant. The business is changing from a partnership to a sole proprietor and will need a new EIN. Since the partnership has been dissolved for tax purposes, the assets (and liabilities) are considered transferred to the partners in a liquidating distribution. I wonder if lawyer understands that partnership ceased to exist the instant H transfers to W. I think it would be simpler to show the transfer of assets form H to W after distribution; rather than transfer of partnership interest immediately before dissolution. However, the net basis to W would be the same either way.

The only thing I would add is if it is an LLC, that due to the gifting the W's outside basis and inside basis may end up being different.

It depends on if it is a true partnership or a LLC taxed as a partnership. If it's a true partnership, then everything should be closed out. If a LLC then nothing on the company books changes other than combining the equity section combining the partner accounts to an owner equity account.

While making arrangements for our next vacation in October, I had some issues using the airline's website so I called their 1 - 800 support number. Their phone support has been outsourced to the Philippines. While the support people were nice it was a frustrating experience, they had trouble understanding my problem and ended up not being able to help me. I ended up losing a $100 discount on our airfare.

I believe each letter shows the total owed. I am looking at a CP22A that says under additional information: "Please note: Only pay the amount due once." I assume that would also be the way it works with the "you didn't make estimated payments like Rita has been hounding you to do" letters as well.

Assuming both spouses live under the same roof, if one doesn't want to pay they'll "misplace" their spouses letter as well.

I've seen this for years, and figured it was so each spouse would know about liability - and if one took the other's letter, then they have mail fraud as well as non-payment of taxes for which to go after him/her.

"New York Attorney General Letitia James announced Thursday that taxpayers who were duped by TurboTax’s owner Intuit into paying for free tax services will soon be receiving checks from the $141 million settlement. More than four million taxpayers nationwide were affected and will receive a check sometime in May from the multi-state settlement." Yep, Intuit is certainly all about maximizing their profits!

The punishment for competence.

I tried to get rid of one PITA client this year by suggesting VITA and local free-file services, telling them I had to increase my fees but they could get good service for free. Nope; they came back saying they'd rather pay me more, because they like and trust me. Ah, well.

If I had not "fired" 85 clients last year, I would have been totally burnt out and quit. A much more pleasant year and I'll be renewing ATX in a few days. I did lose some PIA clients along with their "healthy" fees, but a slight bump in price and 99% retention means I'm still profitable.

Just an update from tax season, I did not end up setting a minimum price but I did raise my rates 15% and posted that in my letter as well as in the office. I also provided information on free services from VITA and AARP for those who felt like my service no longer met their needs. I lost some but not as many as I thought I would and pickup up almost as many new clients as I lost but at the higher price point. I had less push back on the price increase from old clients than years I had a 2-4% increase and did not post it. Still have too many but I actually enjoyed my work again up to March 31 then same craziness hit.

What a mess! And the last time I checked, the IRS didn't have any of my income on my wage & income transcript. If both 1099R forms were filed as original, then yes, it should show up twice, and I'm not 100% sure that filing a 3rd one marked corrected will fix this. Keep the documentation handy and wait for a CP2000. Should be easy enough to explain.

I will stick with 10 as long as it is supported. My hardware is not receptive to updates to 11. I am not ready or able to invest in all new hardware; nor do I want to.

"Windows 10 22H2 will be the final version of the operating system, Microsoft said in a blog post on Thursday. Moving forward, all editions of Windows 10 will be supported with monthly security updates until October 14th, 2025, when Microsoft will end support."