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I'm so sorry for your loss. No matter how long they are with us, our pets leave us much too soon.

I've been trying to convert my clients that insist upon mailing checks to use IRS's DirectPay instead so they get an immediate confirmation. CT has a similar system; although, not as user-friendly as DirectPay. Most states I prepare have something similar. Of course, I strongly encourage Direct Debit with e-filing, but sometimes clients have to move funds around before they can pay, or we're dealing with ES during the year.

I'm so very sorry. It's hard to lose a furry family member, and an office staffer, too. I'll miss seeing his pic. Hugs to you.

Not that I want the IRS to go after every S-corporation that doesn't pay reasonable comp - but I feel like the IRS is missing easy catches on that topic.

Another pet mother here so sorry for your loss. But you may not need to change your avatar. I have lost all three of my office helpers/paper weights in my avatar but love seeing them again every time I check this site and post. Warm memories...

Paying SE tax on a "draw" is filing an inaccurate return

Surviving spouse has filed MFS for a couple of years. Divorce never settled and then H died in April 2023. She got a request from IRS for 1310. I was kinda surprised. I am sure he never filed a return for 2022 before he died. He was self-employed and had gotten behind with taxes. The couple was separated. I did the wife's returns MFS for last 2 years. So this is only regarding her tax refund. He certainly would not have any. But I'm not understanding why we still need the 1310 when it's MFS. Oh well. Will fill out and send along......

CPWROS (Community Property With Right Of Survivorship) is what is required in CA for for full stepped up basis. Prior to 2001, it was Joint Tenancy WROS.

If you're going to send a check near a deadline, shell out for Priority Mail and get a receipt from the Post Office that you handed it in directly to them. I push people towards Direct Pay, too - and then find that instead of following my instructions, they pick estimated taxes or payment for notice or something else wrong. Then I tell them they have to call and get it moved. Not dummies, either; just sloppy or rushing or both.

I'm so sorry for the loss of your furry friend and helper. It's so hard to lose them. When we had to put down our 21 year old cat and office greeter, we got three kittens to make up for it. It has been fun, but a lot.

Maybe the SSA has the wrong spouse marked as deceased. Or, the IRS computers flagged the wrong spouse. I've seen other preparers say the IRS requested a 1310 when it was not needed in the situation (such as MFJ). Good luck.

I think it can get into how the property was held, also. But, I can't give you any details about the different ways a couple can title property might or might not make it community property in CA. You might need to talk with the family's lawyer about that specific legal title.

I don't think so. But it is possible. Domicile at the time of purchase is the controlling factor (at least that is how I understand it). If your couple were both domiciled in CA at the time they made the purchase of the property, then the property would be community property and carry that designation even if they subsequently moved to a separate property state. If they were domiciled in NY (not a community property state) when the purchase was made, then the step up would only be for the half of the property owned by the decedent spouse and the living spouse would continue with their own basis. Double check this because I am commenting from memory and not research. Tom Longview, TX

My little doggers - Vinny - passed away a few weeks ago. He was with me for 14 years and was a major part of my tax practice as the social and welcoming committee. He had his own Instagram and I swear I got clients because of him. We had gotten him in January. We live in western NY and my husband is the town highway superintendent. So in January, he's pretty busy with roads. When I called him to go down to the house and check on my new puppy and he told me he was too busy, I started bringing him to work with me. He peed on lots of clients that year, and W2s and tax returns. As soon as he heard the door open, he'd be up and running to see who it was. I had a number of clients who would bring him toys and treats. I'm missing him!

Bump again. Got the first draft of my WISP plan today and it is thorough, and specific to my needs. The few tweaks that are needed are all items that I left out or did not explain properly to him. I highly recommend this gentleman. PM me for contact info.

yes, Lion. I did some research for this situation. If they were living in CA, and then moved to a common state, they should redesign the structure to make sure it will remain as community property. It is so complicated to me. Thank you! Kate

Hi Tom, They never lived in CA. So, I will take it as normally we do because she is still alive and only his half transferred to his estate. Thank you so much! Kate

The person you are addressing has not revisited this site since the post was made more than 14 months ago. I approved your post, but I doubt you'll receive a reply.

Just plain run around BS. No faxed form contains an original signature. They can't tell if it is a wet signature or copy on a fax. I have had them refuse a digital signature even when it was processed through docusign or verifyle which are both IRS approved. I have used all methods of uploading, faxing through normal channels and the portal plus client accounts, nothing is any faster and depends on the agent answering the phone. Faxing the 2848 to the CAF means it may or maynot ever get recorded.

I see a paper copy of the notice is arriving today. That's probably for the best or even required by law, but I've already handled it, so I can just shred the notice.

They might say that, but their own rules say otherwise. At least that’s what I would point out to anyone who said that to me.

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.

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.

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."

Even if you don’t get the green card back, the tracking can be downloaded from USPS. (Although recently I had one that the tracking did not reflect delivery but I got the green card back). Belt and suspenders - Maybe one or the other will work.

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.

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.

"The IRS never initiates contact with taxpayers by email, text or social media regarding a bill or tax refund. As a reminder: Never click on any unsolicited communication claiming to be the IRS as it may surreptitiously load malware." Jul 3, 2023 I WOULD'T OPEN IT

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.

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

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.

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.

After spending about an hour on the phone with IRS to get a damn PIN I was told that the electronic signature on the 2848 was only acceptable when uploaded thru the IRS portal. Which it was uploaded thru the portal. Which my software says it was accepted on Oct 3. But the woman at the PIN phone center didn't find it. So she asked me to fax it to her. And then she wouldn't accept it because it needs to be an original signature.