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Bonnie, @NECPA in NEBRASKA my heart goes out to you and I'll keep you in my prayers. Lurk for as many years as you wish, or disappear in a few weeks, as seems good to you. You can always get sympathy here, and advice for those family returns, and more.

I had an unknown lady call and leave a message that she wanted me to call her back - she called on Monday evening. I ignored the call as I was busy, the caller ID just said it was a wireless number, every other word was garbled on her message and I thought it was a scam. She called yesterday late afternoon and acted all high and mighty that I hadn't returned her call promptly.

You should immediately reimburse the first client and then collect the money from the other client. It was your mistake.

I had the same experience several years ago. Came home from work and water line under the sink had blown and I walked in ankle deep water to the phone, which; of course, didn't work. Pretty much the same scenario as you except that by then I had moved my office upstairs. We worked until well past midnight getting stuff out of the basement and into a dumpster. I, also, got a new kitchen, but I had to pay for the upper cabinets as the water didn't touch them. I made a deal with the Insurance Co for a settlement. I had enough clients in all different phases of construction so I took the settlement and contracted the work out to my clients. Pretty much a nightmare, but so much better than what we are seeing in the South right now. Good luck to you going forward. I just remember being really tired for a long, long time.

Bonnie, what you have endured the last several years is mind boggling. I wish you and your family the very best.

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Hope you all had a good season. Tom Longview, TX

So, IRS has their money? Why not pay client that the account was dinged the amount plus an extra amount for the error? Then have client who should have paid IRS pay you.

Thanks Judy. I did answer one of my questions. There is a box on the 1099R that shows the NUA amount.

My comments are in color. I haven't had one either, but from what I understand, for what it's worth:

The one check a year I was making (literally printing on blank stock), I no longer have to. I talked to the person (a service person, inspecting our backflow device annually) and gave them some tips. They now use a postcard mailing service I shared with them (rather than doing it themselves, and the service is cheaper than what they were spending), and they now have CC payments via Costco/Elavon, which has no monthly fee, and competitive rates. Did not even raise process, as they likely spend less overall on handling payments (well, his spouse does, and she is happier!) We talked about him setting up a prepay system too, to avoid having do leave a bill (handwritten on one of those old-time books) and to avoid dealing with collection issues.

My router died on me yesterday. Spectrum. We know a guy and he knew a guy and tech service came and replaced the router around 4:30pm. I had 1 return left to send. And can you believe it rejected because we needed a damn PIN. It was 6:45 when I got the rejection and called the client. They called the IRS and I went home. At 9pm she finally got an answer, and I sent the efile this morning. Hopefully we can waive the penalty because we did attempt to file on time. (Although it did kinda serve them right - afterall, I had had the return done since June and they didn't want to pay the tax.)

I mostly get paid by check, some cash. I deposit it all. I've had some ask if I take cc. I did get one of those Square devices to plug into my phone. But it's so rare, it would take me an hour to figure it out. Usually clients understand and pay by check. One younger client says it's the only check he writes each year. Ha.

I am still waiting on one client that hasn't given me anything directly. What I do have is what I got from the year end W-2 runs from his company's payroll processor and the 1099s directly from his broker for just a few of his many investment accounts. I've had all of that since Feb or March and that part was input long ago. All of the missing stuff, he handles himself! I'm really tired of beating my head against a wall every time I try to get some data. I can't even work on it.

I wish I could say I was done, I had close to 20 that still didn't bring me their work. Looks like I will be still working for a while. Have a great rest of the year everyone!

True, I assumed Catherine was aware of that. The reason I mentioned it is because it still has to be reported, and the taxpayer already received a letter from the state looking for the transaction. So if a loss, then the entire sale(not installment reporting) would be on the 2021 Form 8949 showing total sales price, basis, and using code "L" for the disallowed loss from other than wash sales.

You can't take a loss when selling to a related party.

72t? I had client with this situation (750K) in the '90's. His broker set the whole 750 up as 72t. Three years into it, he took an extra 10K to buy a car. This nullified the 72t, and forced penalties on ALL funds taken since the beginning. It's been a long time since I looked at the rules for this sort of thing, so YMMV! My broker's advice was that the "whole" should NEVER be set up under 72t for this very reason. Some should be kept in a regular IRA for cars and other unexpected needs, and the 72t left alone for the, (at the time?), 10 year period.

Wow!

Oh boy, my first thoughts are these - First, you have to figure out the basis to know whether you're dealing with a gain or loss since the sale price is so low. If a loss then you would report the entire in 2021, the year of the sale. If a gain, was this family cottage ever rented with depreciation taken? Then you'll have the recapture in 2021 and (possibly) no income again until in 2024, but with it being a sale to related parties you need to know if the brothers have already disposed of it before she got all of her money. If they have already disposed of it, then this client must recognize what they realized as if she received it herself. You can check out the IRS Pub that deals with installment sales for more on this. Also, if the transaction results in a gain, then you definitely have to use installment sale reporting which is the default method of reporting. The opportunity to elect out of installment reporting is gone because that election has to be done on a timely filed tax return, including extensions, for the year of the sale. Will this woman ever receive the money from the brother that is technically in default, or will his non-payment ultimately result in the terms of the installment sale being redefined? With installment reporting, it sounds like you are looking at 6252 and Sch D for 2021 to document the transaction on the return with no payments in that year, and then in 2024. If it was ever rented and depreciated, then you possibly have recapture income for 2021 and add 4797 into the mix. If no installment reporting because it's a loss, then only 2021.

When I finally get done, it will be for the last time, except for my future returns and a couple of family freebies. Our house got flooded on 10/1 from a water line break under our kitchen sink. My downstairs (including my office) is down to the studs and all of the rooms upstairs except for the bedrooms and bathrooms lost their flooring, furniture, tons of drywall. We were fortunate that our son had come in the night before to help us get ready to sell the house. LOL. I could barely go up and down the stairs after my knee replacement so he got my desktop and monitors first thing before the water could get inside my desk or ruin them. Insurance had a restoration company and awesome packing company over that day. They were pulling stuff out of cabinets and drawers and putting them in boxes so that everything could be moved into the garage, upstairs, trashed or stored until we get the house fixed. It sucks, but I just look at the natural disasters and am glad that we still have our pets. Belongings can be replaced and I've got all of my files. Even my Scansnap worked again after we poured out the water and let it dry for a few days. I could finally get some work done after I had my IT people come over and set up a different network upstairs. The most difficult thing was letting my piano go and all of my music. It was a birthday gift for my mom and me when I was 7. I am still in considerable pain from my knee replacement and that hasn't helped at all. My therapists tell me to keep my knee above my heart which makes it very tough to get anything done. If my surgeon hadn't told me that I could go back to work in a couple of weeks, I would have put this off until next year. Now I just have to finish up the stragglers and clients that were already way behind. We were going to put the house on the market in December and hope to be in Colorado by February. Now, we just don't know how long it will take to restore. At least the kitchen will be brand new for the buyers. The baby is due in March and I don't want to be this far away if he comes early. They already asked me to help out with daycare and I am tickled pink. I appreciate all of the support from this website over the many years. I will lurk around unless you kick me out. It will be such a relief to get this year over. It's been a terrible struggle for so many reasons. If anybody knows good doctors around Denver, please let me know. Specifically cardiologists and Pulmonary Medicine for my husband. I am also researching on the Internet. Thanks, Bonnie