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Boiled down from the article: The taxpayer's check goes to a lockbox of IRS-contracted banks that converts it to an ACH payment by means of electronic image and data file. IRS proper doesn’t receive the paper tax returns or the payment checks. The taxpayer's bank also settles electronically using only routing and account numbers, so the taxpayer's bank never receives a digital or physical copy of the check. There is no canceled check to use as evidence.

The follows up on a similar thread several months ago: https://www.nj.com/news/2023/10/woman-takes-on-irs-after-it-charges-penalties-and-interest-on-her-tax-bill.html

Also, the bank account used in 2023 is in the corporation's name so all activity goes on the 1120S. We account for what happened, not what we wish had happened. Shoot for dissolution on 12/31/23 to avoid short year calcs.

I don't see how you can retroactively dissolve the S when presumably payments for services in 2023 when to corporate bank account.

Several quick online searches suggest that this may be available to tax professionals only???

We mailed something to MD at year end, a time when they get a ton of mail. It ended up going to an agent of the state to hold until MD was ready to handle it. Because of the 3rd party agent receiving it, it never showed as delivered on the USPS site and we never got back the green card proving delivery, but MD did eventually receive it.

I thought they were required to keep a copy of the post mark. Guess not any more, especially if it is to their advantage not to.

You're NOT filing an inaccurate return. You're reporting what the biz did last year. Not what it should've done, because it didn't do what it should've done. The BIZ was not accurately following the regulations for an S-corp if it wasn't paying reasonable compensation. Circ 230 tells us to explain to the client what they did wrong and the consequences. We do NOT have to repair their prior acts, unless they engage use to do so.

I just hope this will not be like when CCH took over ATX

You see this is why I throw stuff out there to my colleagues. Something about my plan bothered me. I didn't think about the bank account being in the corps name and that in and of itself says not a good idea and can't do it. I am not one to do anything creative or imaginative return preparation. I did advise the client of their non-compliance to cover me. I have prepared the 2022 return and have been questioning transmitting the return knowing full well the non-compliance. Almost like I am filing an inaccurate return on purpose.

It was for me personally, but I think you might be right that it's because I'm also a pro. https://www.irs.gov/payments/your-online-account Access Tax Records View key data from your most recently filed tax return, including your adjusted gross income, and access transcripts View information about your Economic Impact Payments View information about your advance Child Tax Credit payments View digital copies of certain notices from the IRS Here is the setting in my IRS account:

Maybe, or you could just as easily get an agent that told me this years ago: "It only proves that an envelope was mailed and received, not its contents."

I can't imagine the grief if all of our clients start getting emails from them after telling them for years "not to open them". It will be open season for scammers.

Did you give your consent to receive emails to the IRS in advance via an online application? I would appreciate a cite. Thanks,

Are there links or only a mention of logging into your official account? I don't like this because people may receive similar looking scam emails and could innocently go to a website ending in .com or .net instead of the official .gov site.

I copied the info for a client to explain the rules for RE professional. And told him to keep good records, time sheets, etc. This was in 2021 for preparation of 2022.

This is why I always tell clients to get, at a minimum, a certificate of mailing, certified mail with return receipt preferred.

I, and my children, are my own worst clients. When I say I, that includes my husband's business as well as mine. Guess who does the bookkeeping.

You did exactly right. Depreciation recapture applies to pre-MACRS property.

He came to me some years back from an H&R Block office. The associate there had set the rental up in 2011 using SL/GDS with a 27.5 year schedule. I will need to take some time to review the form I used and get back to you pointing out everything done. Well no I did not add the depreciation back. I used the second page of the Form 4797 lines 20 through 24. This took the original costs of his property and deducted his total depreciation which produced his adjusted basis which was then subtracted from what he got from the sale. Looking at this retrospectively it now looks to be correct after all. In a word he subtracted the depreciated basis of the house from what he got for it. I did not in fact recapture any of the depreciation which comports perfectly with my review I just finished.

Bump for those who haven't seen this.

I stopped preparing tax returns for family members and etc. I asked my daughters to find someone else. Last spring, I fired the young woman who used be our dog sitter because she emailed me bits and pieces, never had everything I needed to prepare her return. I decided I was happier not knowing their financial details.