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Just made a deposit. No issue as I had an ID.me login already. My impression is this is not a security issue, but a way to more accurately make sure who is in the liability chain. For instance, the non licensed type of payroll people who make deposits "for" someone are now going to be accurately (if ID.me is good) added to the liability chain. I don't "buy" the addition of the new step is for security. No need. If someone access the bank info, the bank indemnifies the account holders (what we pay banks for) assuming the terms of timely notice are met. A hassle to clean up, but not overly costly. Any decent bank will have a way to instantly get WD info via SMS and/or email. BTW, not one customer of mine has asked or mentioned this change! A few have asked about getting into SSA BSO for EOY. --- What I mean by the non licensed type is not those who prepare payroll docs and data and hand them to the employer to handle, I am meaning those who pretend to be a real payroll "service" and get the employer's login and bank information as a way around using escrow accounts and filing as a preparer.

Only time I've seen a return rejected was when both spouses died (within six weeks of each other) and return was attempted to be filed, by executor, after the SSA had locked both SSNs. Return with one surviving spouse should go through. If not, I'd try swapping who is t/p and who is spouse, before bugging a widow. As for signatures, he signed his permission while living. It counts.

Very well done. Search youtube if you don't want to click on it.

I have never seen the IRS honor a direct deposit request for an estate. They always send checks. Furthermore, while Form 1310 is supposedly transmitted with a return, it needs to be attached as a pdf. I don't know if the IRS servers don't see/accept it, but if it isn't added as a pdf, the first thing you'll get is a letter demanding a Form 1310 be sent in.

Yes, each financial institution has its own rules about these deposits.

If the LLC elects to be taxed as a Partnership, then you have to deal with "inside basis" versus "outside basis" which will be different numbers if the partners contribute real estate to the LLC. S Corps are usually avoided since any real estate distributed back out to the stockholders will come out at FMV with the resulting tax consequences. Lots of both tax and legal issues need to be considered in advance, which is not what actually happens too many times.

It will depend on the tax reporting type that the LLC will use. Corp, partnership, or disregarded each have their set of rules. This is an older article from The Tax Advisor but may be helpful: https://www.thetaxadviser.com/issues/2009/oct/contributionsofpropertytoanllc.html

Bear in mind that the return that the return is for 2021 and the filer did not pass until 2023. I would go ahead and file it because to all intents and purposes he was alive and an active participant in the Tax Year 2021.

I am with Judy on this. You have a wet signature from the client. That seems good enough for me. Tom Longview, TX

See what others say, but I think you can file it. TP signed it before his death with intention that it should be filed. If TP had still been alive, signed it, and dropped it in the mail to you and you just received it, you would file the returns when you have the signed form in your possession.

Tell us something we shouldn't have been able to guess. It was only a matter of time!

Long time client, hit some tough times. Pulled some money out of IRA to make ends meet. Did not have the money to pay me for the return and does not have the money to pay the taxes. We waived our fee to help them out, but they still don't want to file because they can't pay. We did not get their 8879s last night. What do you do with a client like this? You can only suggest....they have to sign the return to file. Breaks my heart but I don't know how to handle. I feel for them, but I think I did all I can do (short of paying their taxes. Tom

I have never been able to access what I want from e-services. After much frustration, I just gave up and have not tried it for a few years now.

This annoys me. It has been the same thing for my rare uses of e-services. Each time I'd try to access it, it was starting over with a new process. This last time I finally gave up. I got in and could never get to what I needed and kept getting a message that I wasn't authorized to access the report for that-whatever-it-was that I needed. Useless.

I've waived fees several time over the years when I decided it was called for, based on what I was told, what I knew, and also on my intuition. Widows, church members who fell on hard times, etc. I just always suggest that if they ever get back on their feet to make a contribution to a mission project (but not in my name, BTW). Probably have even done it a few times when I shouldn't, but I'm not losing any sleep over it. You've described a situation I'd be very likely to waive the fee. I respect your decision and I respect you for making it. Now if you can just get them to listen to your advice and file. After the assessment, they might be able to submit a penalty waiver request if they have a good filing & compliance history, and an installment agreement might be manageable. And as has been mentioned, CNC might be an option. But they need to take action. One suggestion - print out a hard copy and send it to them ready to file. That set of documents might carry more weight with them than an e-filing form. Let them know they can send it in with a token payment or even no payment. After the assessment, they might be able to submit a penalty waiver request if they have a good filing & compliance history, and an installment agreement might be manageable. And as has been mentioned, CNC might be an option. But they need to take action.

Catherine is right about the failure to file penalty. Once they miss the extension deadline, it goes all the way back to April, so your clients are already facing six month's worth. They must file ASAP and apply for CNC when they get the first notice. At some point likely all of us have waived our fee for a client in distress. Know your client, though. Some might be embarrassed by accepting "charity."

Tom, For what its worth, it is very honorable for you to be compassionate and concerned about a loyal long-time client. I think everyone of us has faced something like this in our line of work. I know I certainly have. While these folks may not have taken all of the available funds from their retirement accounts, they may need those funds to survive in the foreseeable future. Knowling what you know about these folks, I sure wouldn't want to be the one to take the last dollar and have that on my conscience that I may have caused them to fall further when I could have helped. I'm not saying this applies to every person who is down on their luck. Different circumstances require different actions. I agree to have them file the return and seek the CNC status. The bill will not go away but no collection activity will take place either. The ones I have no sympathy for are the ones that sit and complain about my fees and how hard it is to pay them and find them sitting at the Longhorn steak house for dinner right after they picked their return up from me. As you said, I think we can tell when the story we are given fails the smell test. You apparently know these folks very well so go with your heart on this one.

When people are struggling financially, their anxiety distorts their decision making. All you can do is listen to them and encourage them to make better decisions by carefully explaining the situation to them. Best Wishes to your clients

Tell them they really NEED to file. Else the IRS will send them a bill for FAR more than what you calculated for tax due, and they'll be behind the 8-ball playing catch up with those notices. Whereas if they file, they can then apply for CNC status. Far easier.

The client is a couple. He had a stroke 5 years ago. She had to stay at home to care for him. They have been living off savings and government support. The amount they have been living on is very little. She had to take money from her retirement account early to cover living expenses as her last resort. He is recovering but she is struggling to find work after a 5 year layoff from the workforce. These are not people who have made bad decisions, they have hit hard times. I know when I see clients feeding me BS about their spending habits. This couple is not that. I have known them for nearly 2 decades. Poverty sucks, especially when you live in a very high cost state. Tom Longview, TX

It is tough to separate goodwill from those who may or may not know what they are doing (asking for free work). I will often adjust price for animals rescue groups. Usually no for groups I know make money, donations or not. In the op, I don’t read it as they are starving broke, so I would not discount, but I would share resources which may help them resolve or adjust their financial situation.

Pulled “some” money out of IRA? Then there may be “some” left to cover expenses. Hard lesson that many have to learn. Just because customer gives you $100 does not mean you net $100, or in this case, WD of $X does not mean you can spend all of $X. Tough conversation but should be dealt with by whomever assists them with money management, not from their preparer. For me, I hear the “I cannot afford to update my 10 year old computer” or “I cannot afford $79 software “. This is from business owners who need to pay employees. A few times, it is from those preparing payroll for others and say they cannot afford my price. I will have the tough discussion that if <$100 software or <$500 computer update will “really” break them, they need to end their business as it is already broken. Or that they are giving away their services for less than minimum wage, if not free or at a loss.

Explain that there are 2 separate penalties, 1 for late filing and 1 for late payment.

I also seem to have a couple of these clients every year, most retired on a fixed income. I always tell them that, even if they can't pay, to file the return. It's not going to go away by ignoring it and will only get worse. I explain the failure to file penalty of 5% per month of the amount owed, 1/2% a month failure to pay penalty, and the interest. I then urge them (and offer to help them) to set up an installment plan to stop the penalties. I like to follow up the discussion with an email to document that we had the discussion so they can't come back and say I didn't inform them.