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In case anyone here needs a laugh today besides me, it is so corny that I couldn't resist sharing.

For 2023, there is a new checkbox on Form 1116, line 10, indicating that you don't need to attach Schedule B.

SMLLCs are disregarded, so the IRS was correct. Now if the operating LLC was taxed as an S corp, then the S corp could pay rent to the other disregarded LLC.

Sorry, I lost you at “JohnH has a tax-preparation and consulting business in North Carolina, which makes $100,000 per year.”

My take is that there is only one calculation per student/beneficiary. After subtracting scholarships and expenses used for AOC or LLC from the qualifying expenses, divide the remaining expenses by the total distributions (from both 1099-Q forms) to get the percentage of earnings that is non-taxable. Apply that percentage to the earnings on each 1099-Q separately to get the non-taxable amount for that 1099-Q. The remaining earnings on each are taxable to the person whose SSN is on that 1099-Q. If the distribution went directly to the school or to the beneficiary, the beneficiary's SSN should be on the 1099-Q, even if owned by the father. And note that room and board is a qualifying expense for QTP (529 plans). Even if the student lives at home, the school must publish a Cost of Attendance (COA) on their website with an allowance for that situation. The FAFSA Simplification Act which went into effect for the 2023-2024 school year requires that the allowance be non-zero for a live at home student. Also, "room and board" was renamed to "living expenses (including food and housing costs)" so the COA may list it that way - I've seen some listed as "Living expenses" and some listed as "Food and housing".

Start with Form 14039. I have had two; the same client two years in a row. I believe that it took about ten months before he got his refund.

https://www.identitytheft.gov/#/Steps https://www.irs.gov/newsroom/taxpayer-guide-to-identity-theft https://www.irs.gov/individuals/how-irs-id-theft-victim-assistance-works You can give them the checklist and answer questions but they are going to do a lot of the work.

I had a car wash client.. owned a laser car wash.. two single member LLCs set up. one for the car wash itself/ equipment and one for the building. The car wash LLC paid rent to the real estate LLC.. it was overturned in audit, saying self employment tax was skipped out on.. I have been subsequently told the IRS audit could have been challenged. This was my one and only time I sumitted a claim to my professional liability insurance in 30 years.

Just write a letter that’s woeful enough to make them cry.

Copied from Forbes: "The Corporate Transparency Act (CTA), a burdensome new law that would require some 32 million closely held businesses to file invasive information with the Financial Crimes Enforcement Network (FinCEN), has just been declared unconstitutional in National Small Business United, d/b/a the National Small Business Association (NSBA) vs. Janet Yellen, in her official capacity as Secretary of the Treasury, 2024 Mar 1, 2024, U.S. District Court, N.D. of Alabama. The Court concluded: “The Corporate Transparency Act is unconstitutional because it cannot be justified as an exercise of Congress’s enumerated powers.” This case was just released, and the Government has not yet responded, so stay tuned! "

We need a clapping hands emoji. Tom Longview, TX

Stay tuned is correct! The plaintiffs in the case are the National Small Business Association (NSBA) and one of its members who sued for a permanent injuction. At this time the ruling applies to only the plaintiffs, and it is unclear if the injunction will extend to all ~ 65,000 individual members of the NSBA or to only the association itself. An appeal in the 11th circuit is likely with the U.S. government also seeking an interim stay of the ruling in both the trial and appellate courts. Reporting entities that were not plaintiffs in the Alabama case are still bound by the CTA at this time. There are a number of states that have passed or are planning to pass their own versions of the CTA. Today's ruling would not affect states' ability to pass these similar laws because it is based on U.S. Congress's authority under the U.S. Constitution. The court declined to address different grounds raised by the NSBA that could potentially be used to challenge legislation at the state level. The above are.main points from this law firm's analysis: https://www.akingump.com/en/insights/alerts/federal-district-court-in-alabama-holds-corporate-transparency-act-unconstitutional-and-enjoins-enforcement-against-plaintiffs

While the PIN isn't overly common, 90% of people who got the protection pin lose the letter from the IRS and we have to paper file.

Anyone else get the promotional email this morning from Kiplinger and Tax Tips, offering an "investment opportunity" in bourbon with something called Cask X? It was cleverly done - but in the thick of the season, I'm more interested in drinking it than investing in it. I did get a kick out of it, and would post the entire "opportunity" here if anyone else wants a chuckle from it but did not get it.

CCH was owned by Wolters Kluwer starting in 1996, so CCH may have been the one responsible for 2012 tax year programming overhaul mess, but the parent company of CCH at the time was WK.

Long time client of mine, 2 daughters in college, I remember when they were first going to grammar school. I e-filed the return and got a reject for one of the SS# used on another return. I call the client thinking one of the kids filed for themselves for a part time job. Nope. Neither one filed a tax return this year. Crap. ID theft.... Can someone walk me through how to walk my client through the process? I seem to remember there is an ID theft checklist from the IRS and a couple forms to fill out and send in with the paper filed return. I have not had to do this before, only heard about it in update classes. This is a really good client and I need to help them get through this. Tom Longview, TX

Self-Rental is subject to Self-Employment Tax. One common thing businesses are doing: Create an LLC with their building or real estate - pay at least FMV rent to the building, and take a deduction for rent against their self-employment tax. And then the LLC reports rental income not subject to self-employment tax. If the building is rented to no other party, how does this strategy stack up to the self-rental doctrine? JohnH has a tax-preparation and consulting business in North Carolina, which makes $100,000 per year. He and his wife own a building and decide to open up an LLC filing as a partnership. He pays enough rent such that the LLC makes $20,000 profit, and the LLC reports its income on Form 8825 meaning there is no self-employment tax. The LLC has no other customers paying rent. Eureka!!! JohnH still makes $100,000 per year, but pays self-employment tax on only $80,000. But has he violated the "Self-Rental" doctrine??