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Sellers of new and used EV's have to register with the IRS and issue a report to the buyer of an EV. "Sellers of vehicles that are eligible for a new clean vehicle credit under IRC 30D must furnish a report to the buyer at the time of sale and then to IRS for those vehicles to be eligible for a credit under IRC 30D. This includes manufacturers who sell directly to customers. Dealers who sell vehicles eligible for a used (previously owned) vehicle credit under IRC 25E must furnish a report to the buyer at the time of sale and then to IRS for those vehicles to be eligible for a credit under IRC 25E." https://www.irs.gov/credits-deductions/clean-vehicle-credit-seller-or-dealer-requirements#SnippetTab

"The tax treatment of legal settlements can be confusing for individuals who receive them, especially when they involve employment-related claims. One such issue was the subject of the Tax Court case Montes v. Commissioner,[1] which examined whether payments from an employment suit could be excluded from income." https://www.currentfederaltaxdevelopments.com/blog/2023/6/30/firefighters-settlement-payment-related-to-harassment-claim-did-not-qualify-for-exclusion-from-income

How is the buyer of the used vehicle to know if the credit was claimed before? The new EV rules make the credit easier and at the same time harder for everyone. Easier for us is that we no longer have to search to see if a certain vehicle qualifies. The rules are so complex about this or that material being sourced here or there in what percentages that now we can just tell clients to ask their dealer for credit eligibility. Harder for us are the rules that will kick in later that the credit can be claimed at the dealership to lower the price of the vehicle if the purchaser chooses. How many will take it when they buy and then "forget" when we do their tax return? Will the IRS systems detect the double dipping? There will be AGI limits too. How many dealers won't even ask and give the buyer the credit to cinch the deal? Will the IRS systems notice that? Credits taken at the dealership are out of our hands, but of course any rejections will be our fault.

and determine whether it was marital property or separate property of either spouse.

For previous years probably nothing. Just go forward with correct ownership and reporting.

i got my he's and her's mixed up.....sorry Tom Longview, TX

I guess the first question I should have asked was: did the IRA's have the spouse as a named beneficiary on them? It does look like the custodian screwed up regardless, if they knew the owner was deceased. Normally they would have requested the estate EIN if no one was named as a beneficiary.

More hacking details: "This includes approximately 3.5 million Oregon driver license holders; roughly six million Louisiana residents; some 770,00 members of the California Public Employees’ Retirement System; between 2.5 and 2.7 million Genworth Finance clients; approximately 1.5 million customers of insurance provider Wilton Reassurance; more than 170,000 beneficiaries of the Tennessee Consolidated Retirement System; and more than half a million Talcott Resolution customers. Callow tells TechCrunch that the mass-hacks include U.S. educational non-profit National Student Clearinghouse, which could be a “potentially significant” breach in terms of numbers. The organization, which began notifying schools of the data breach, works with 3,600 colleges and universities and 22,000 high schools."

And, thanx for the helpful info re MA NR/PR.

Just wrapped this one up after placing it on extension back in Apr. Had a couple of telephone conversations with the MA DOR. Nice folks - very helpful and patient as was predicted on this forum. It was pretty easy in the end using their PY/NR schedule. Had to allocate working days in MA divided by net working days everywhere. A little quirk in the MA rules required us to divide MA working days by 365 minus weekends, holidays, and even PTO days. This produced a smaller divisor (less than 260) and therefore a slightly higher MA tax liability. But the tax liability wasn’t too bad and the taxpayer got a full credit on their home state return for the MA tax paid. So it was a wash to the taxpayer, except for my extra prep time. Also had to do a little extra analysis on the work days vs travel days in MA. You don’t have to count travel days if you fly in late in the day and/or out early in the AM. Those are just travel days. But a morning arrival in MA and/or and afternoon/evening departure from MA counts as a MA work day. Thanks for all the good advice and suggestions on this thread It helped me focus on the important things

The problem is not the income but the withholding. It was reported in the decedent's SS number. He died the prior year and can't file for 2022. Spouse or estate can't claim the withholding because it was reported in his SS, not hers or the estate's EIN. I'll go the route of trying to get the 1099Rs corrected. Thanks everyone for the suggestion.

This sounds like a malpractice lawsuit waiting to be filed

Thanks guys. I will tell her to find an attorney - hopefully a better one than what they started with.

Do nothing until given something which shows “new” share allocation? The clients had years to show something other than the 100%. Now that they are not cooperating, with having likely two persons to make the decision, and not agreeing, a court will have to decide.

I don't think so, as you never borrowed anything from them. I would consider it a refund of prep fees and not send a 1099 at all....unless you are pissed at the client and want to mess with them as they go out the door. JMHO. Tom Longview, TX

Tax wise, It's not a big deal if there was one K1 for one spouse or two K1s split 50/50. The 1040 tax will be the same and there are no SE issues. This more of a divorce settlement issue. Who gets the corporation? This will be part of the overall property split (you get the corp, I get the house, etc.).

At incorporation the attorney didn't issue any shares? (I know, symbolic, not actually required.) Nothing in the first year's minutes showing director's actions or approvals, no stock record book? Are you sure that you or client requested everything related to the incorporation? What about the state filing at incorporation or the annual filing to keep the corporation active and in good standing? Could anything be gleaned from there to back up the wife's claim? Sorry, just reaching and trying to help. Sorry you are having such a run of difficulties with clients lately.

Lion, it sounds like you are going to be very busy. I am so very thankful, I don't any clients like these. Live long and prosper

Thank you, all. Going to start calling Tuesday on this situation. Have paperwork ready. The 2022 penalty is only $70, but the 2021 is 4 figures so will get FTA probably. Otherwise, this client is clean, just got behind a year when she was very sick and ultimately diagnosed with colon cancer. A similar but more complicated client (died suddenly in January, court-appointed rep in FL, hadn't filed in 6 years, might be ID theft in 2020, need to get 2019 filed since she always had refunds, etc.) is the other one I'm working on. IRS saying a balance due plus P&I for 2020, but don't think she filed 2020, so that's why ID theft suspected. Gotta get the ducks in a row on this one.

I had never heard of this and had to google it to see exactly what a USB pet rock was. Now I know. What will they think of next?