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The client I currently have with this situation incurs significantly higher expenses for qualified LTC services. Not all is reimbursed. The excess expenses that were not reimbursed were carried to Schedule A and listed as unreimbursed ltc expenses. the past two years have put this client well over the standard deduction.

Thank you very much for that detailed explanation. I need to focus on reading more carefully rather than just scanning for isolated facts, even when those facts are my end goal.

I do live payroll and handle Workers Compensation Audits for my clients but I am in Oregon and coverage rules vary from state to state. Link to the New York Workers Compensation Board: https://www.wcb.ny.gov/content/main/coverage-requirements-wc/for-profit-business.jsp These bills could be related to earlier years when she did have other employees? The bills also could be related to work related injuries to employees when she did not have the WC coverage required by New York law? If you don't have experience in this area, you may want to tell your client that you don't have the expertise to deal with Workers Compensation.

Thank you all. I know I'm tired and confused. I read the instructions plus the instructions in my software. From the instructions: Who Must File You must file Form 8853 if any of the following applies... You (or your spouse, if filing jointly) were a policyholder who received payments under an LTC insurance contract or received any accelerated death benefits from a life insurance policy on a per diem or other periodic basis in 2023. See the instructions for Section C , later. Filing Requirements for Section C Were any of those payments made under a qualified LTC insurance contract? Yes Complete all of Section C From my software: Total Reimbursements Received For Qualified LTC Services Enter the reimbursements received, or that are expected to be received, through insurance or otherwise for qualified LTC services provided for the insured for each LTC period during 2023. These amounts should be shown in Boxes 1 and 2 of IRS Form 1099-LTC if Box 3 "Reimbursed amount" is checked. This entry carries to Form 8853, Section C My client's contract is Reimbursed Amount and NOT Per Diem, but I had to enter 365 days to make the math work.

I at least some states, but likely in advance and via a proper form/notice, a shareholder/owner can remove themselves from WC coverage. It may even be automatic when the person is the only shareholder.

Oh - I have. She's one of those "oh I thought you were a CPA" clients.....

you need to fill out and include Form 8853 (page 2)--not usually taxable

This list of counties is often expanded after the disaster. The list in IR-2024-205 is preceded by this statement (note the "Currently"): "The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, this applies to:" and later states: "The same relief will be available to any other counties added later to the disaster area. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov." And you can always find the current list at FEMA: https://www.fema.gov/disaster/3608/designated-areas along with when the amendments were made. The original disaster was declared on Aug 6. Your 8 counties were added on Aug 8: https://www.fema.gov/disaster-federal-register-notice/3608-em-nc-amendment-001, probably too late to be added to the initial IRS release.

Neither site requires your SSN The first site ask for First and Last Name plus your zip code. The second site asks for you First and Last Name plus your State and the year you were born. I did check 2 of of my 3 kids. One pops up and one did not.

One way to do it is to use the IRS calculator. irs.gov/individuals/tax-withholding-estimator Otherwise, doing it on the form is enough to drive Einstein up the wall.

I think the IRS intended ID.me to be the long-term and only solution, but they got so much push-back from Congress and the public that they backtracked and said they would consider other options. That was two years ago, and it seems to me they are slow-walking any other options in hope that the critics will fade away. Here are examples of the criticism: https://cyberscoop.com/id-me-government-contracts-house-oversight/ https://www.wyden.senate.gov/imo/media/doc/Letter to FTC on ID.me deceptive statements 051822.pdf (note this is a PDF) https://krebsonsecurity.com/2022/01/irs-will-soon-require-selfies-for-online-access/

IRS Commissioner Danny Werfel gave the Keynote Address at the IRS Nationwide Tax forum today. I think he is a nice guy and he is trying, but I am not sure he has the chops to make IRS an efficient government entity. 1. He was very happy to get 60 Billion to spend on his department. Some of that money is going to go to making videos with his cat to try and connect with taxpayers. Mixed message. Not sure that is how he wanted his remarks interpreted, but that is how I took it. 2. He is determined to make the IRS digital from start to finish. He says you can still do things the old way, but I think he is not telling the truth. In the future, I think everyone will have an account at the IRS and the only way to communicate with the service will be virtually. 3. He said something that struck me...They are able to find and audit lower income individuals and small businesses who cheat, but they have not been able to get the larger tax cheats. They are hiring like crazy, but I think he knows he lost too much talent to audit more complicated returns. He blames it on being underfunded for so long that they could not grow the IRS to the size it needs to be, but I think that is just his excuse to get more money from Congress. I think he will try to keep the audit rates "fair" - his words not mine, but I think he knows he can't take on the big Tax Practices that are shielding the income of the largest companies and richest individuals because his auditors don't have what it takes to win. Unless he can pull talent from the big 4 he is going to be permanently behind the eight ball on compliance at the upper levels of income. Just my opinion, not offended if you disagree. Tom Longview, TX

Meanwhile, the debt bomb keeps ticking.

Efficient Government is an oxymoron. So, you're saying that the IRS's best hope is that the CPAs that are disgusted with the lack of work/life balance at the Big 4 might apply to the IRS. I think you nailed it all. Thank you for your review of Werfel's speech.