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I think I need to go on another week long bike ride.

WASHINGTON — The Internal Revenue Service and the Security Summit partners today announced the availability of a new, updated Written Information Security Plan designed to help protect tax professionals against continuing threats from identity thieves and data breaches. https://www.irs.gov/newsroom/irs-security-summit-release-new-written-information-security-plan-to-help-tax-pros-protect-against-identity-thieves-data-risks

It is supposed to be a simplified plan, but I didn't see anything significantly different than the old plan.

Well, I have no idea what you think is not correct. Is it the wording of the ATX warning you are questioning, or is it the form 8889 instructions for line 2? The form's instructions are clear on the handling of pre-tax funds contributed through an employer's cafeteria plan.

I've seen all kinds of things come out of this person's office to convince me he plays fast and loose. In this case, the LLC had already filed one year as a Sch C for 2022, yet he filed the 2023 as a S without requesting approval first and no payroll. I'm not aware or any late election relief if a return has already been filed for first year. S corp is not always the best answer. In this case business performs services, no employees and minimal investment in equipment. IMO vast majority should be wages and the added costs of an S return, payroll, SUTA/FUTA, lower QBI and lower future SS benefits outweigh any potential "savings".

We have to ask a LOT of personal questions. Form 8863 asks: 26. Was the student convicted, before the end of 2023, of a felony for possession or distribution of a controlled substance? Yes — Stop! Go to line 31 for this student. No — Complete lines 27 through 30 for this student. Form 8863 Instructions: Line 26. Check “Yes” if the student was convicted, before the end of 2023, of a federal or state felony for possession or distribution of a controlled substance. If you checked “No,” complete lines 27 through 30 for this student. If you checked “Yes,” the student isn't eligible for the American opportunity credit; skip lines 27 through 30 and go to line 31.

There is the question about not having felony drug conviction by year's end for the AOTC education credit.

Wow. I hope I don't have to do this. So far I've had only one client in all these years take an early withdrawal and it was for first time home buyer.

Well, you might now have to ask if their children were abused. SECURE 2.0 added an new 72(t) exception to the 10% tax for early withdrawals from retirement plans, effective for TY24, for domestic abuse victims. Domestic abuse is defined as "physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, or intimidate the victim, or to undermine the victim’s ability to reason independently, including by means of abuse of the victim’s child or another family member living in the household."

This isn't a client, just someone I had a casual conversation with. He's a SMLLC organized in 2022. I haven't seen returns, but from what he's telling me he filed Sch C for 2022, which was probably very small. For 2023 return he went to a preparer that plays fast and loose with rules from what I've seen. Preparer told him he should be a S and filed 1120S for 2023. I know if 2553 is filed separately an acceptance letter will be generated. If election relief was filed with return, will the acceptance letter still be generated? He says he hasn't received anything from IRS if election was accepted or rejected.