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Yeah, I'm staying as far away from W11 as is humanly possible. During the filing season? Not just no, but no possible way on God's green earth not ever no way no how no!

I would not worry about a single part year return. In Bindley quoted above, the rule is that the benefit of the work was received in CA. In your case, you could argue that the benefit of the work is received in OH, where your client sits at the time you deliver the work papers. If your client was in CA when you delivered the work, you would be subject to the rules above. At least that is how I read it. FYI, I have a lot of clients in CA and I apportion my income in the state and out of the state. Tom Longview, TX

I'm already on 11, have been since last year, but I'm not installing 24H2 until after tax season, and only then if I stop seeing daily articles about problems it's causing.

We have a couple of Fujitsu ScanSnaps at the office, and they are great little workhorses. Love the duplex scanning.

Be careful preparing CA tax returns. It may make you subject to apportionment rules, creating the obligation to file a CA tax return and pay CA tax. Here is an excerpt from a Forbes article (https://www.forbes.com/sites/robertwood/2022/07/07/california-is-taxing-nonresidents-who-never-once-visited-really/). I doubt they would come after you for a single return, but if you prepare many CA returns you may be fair game. "In the Matter of Blair S. Bindley, OTA Case No. 18032402 (May 30, 2019), a sole proprietor performed all of his services outside of California, but some of his customers were in California. Is that enough for the poor guy to attract California tax liability? The California taxing authorities said he was operating a "unitary" business. Therefore, his tiny business was subject to California's apportionment rules. The FTB would not budge, so Mr. Bindley went over their head to the state’s Office of Tax Appeals (OTA), but it agreed with the FTB. This case has precedential effect, so it is clear that the Golden State can go after other non-Californians too, and it’s happening."

Talk about the stone age. I need to learn how to use a scanner. I have a brand new one in the box and my son told me that it is obsolete and won't work with Win 11. It is painful to have to admit this.

Be careful with your optional upgrades. No sense inviting trouble during the busy season. https://www.windowslatest.com/2025/01/23/microsoft-is-now-officially-rolling-out-windows-11-24h2-on-windows-10-as-an-optional-upgrade/amp/

I have had Brother scanners for many years. Currently ADS-2800W, very reliable.

I also use EFileMyForms and it's a great bargain. Easy and fast to use, and you get pdf copies instantly. Plus confirmations when 1099s are mailed, e-filed, and accepted.

Curses! You think for a single part-year return for an ex-resident? If so, I may prepare it and show her how to submit on her own - maybe. I think the apportioned income would yield less CA tax than it would cost CA to manage it.

I've been using Zenwork Tax1099: https://www.tax1099.com/?utm_source=convertkit&utm_

It does seem that I attract some weird clients! The client is a 501(c)(3) SMLLC as stated. Client has a book and desires it to be made into a movie or something. Client stated that $5000 was paid to other person to facilitate this. The beginning of the "Option and Purchase Agreement" states "This agreement, effective as of DATE is made by and between XYZ Entertainment LLC (an individual is named here) and client.... concerning the rights to a script.... then goes on to specify terms and conditions. I think you may be correct to call this a partnership. Without naming the arrangement as a partnership, it explains why client referred to this $5000 as an investment. My client is a 501(c)(3) with an IRS determination letter. I am not comfortable detailing the stated purpose in the current climate. Suffice to say that the application was approved. I will suggest to client that client seek other counsel about this arrangement and soon. Despite this development, I am still okay with filing a 990N as the entity meets the criteria. After that, client is gone. How can I learn to say no? A current client today said daughter recently relocated from CA and needs a preparer for at least 2024 with the two states. It's been several years since I've done a CA return. I said we could meet and chat. If there is anything other than wages and maybe interest, I need to say no! LeeB, thanks for continuing to read and respond to may ongoing tales of, well, not exactly woe but, interesting challenges in my professional life, let's say.

Margaret, it's like you're a magnet that attracts these strange client tax scenarios Kinda sounds like a for profit endeavor that should be a partnership . Why are they a 501 (c) 3?

I have been filing mine with the ATX Payroll module which comes with Max. Already filed and accepted.

re: the zip code, I realize that the official pronouncements indicate the county. I only mentioned the zip code because the IRS used that to include that ever so helpful insert for you to consider the disaster relief for your late filing. Without indicating why you filed late, the IRS' system just saw a late return but based on your zip code, said you might be able to use the disaster relief as the reason. Your post trigger the memory of paper-filed returns with notations at the top such as "filed pursuant to blah, blah" and was the reason I asked. My return is usually one of the earlier ones filed because I use it as the test.

Yeah, I used to do that too until I missed the October 15th deadline Now my return is one of the first ones that I file.

I The use of the zip code is never mentioned. All of the documents issued by the IRS indicated all 46 counties of SC. No, I did not give any reasons for the late filing. I do use Drake and really never thought of using the MISC screen for this. Good to know though for the future. I just did a terrible thing and assumed the IRS would follow their own rules. SC did without incident. No worries as it will not happen again. I have managed to get into a bad habit of putting my own return on extension and leaving it until the very last to take care of everyone else.

Me too. It is easy, information is saved year to year so you don't have to re-enter, and for $4.69 per 1099 to efile, print and mail it's a bargain.

I've used efilemyforms.com for a few years with ease.

This has not been updated for TY2024. There is now a field at the top of Schedule 1 for non-taxable amounts reported on a 1099-K - there is no need to report it and back it out. By "Block", I assume you mean the company formerly known as "Square" which runs the "Cash App" payment app. If the app is used for gifts or reimbursements among family and friends they shouldn't even issue a 1099-K. But if they do, or if these were for sales of personal items at a loss, use the new field: https://www.irs.gov/instructions/i1040gi#en_US_2024_publink1000131906

No, that's not what I meant. I'm sure people have not filed for a number of reasons. What I am saying is I don't see what the downside is to filing now is since the information is already available and it's looking more and more like it's going to be required.

This sounds like an annual merchant services activity report

Not sure what program you are using. But Proseries on the 1099k form has a section for stating that the 1099k was incorrectly issued or was for items sold at a loss. That way the amount does not flow to the 1040. Then attach a note explaining.

https://www.irs.gov/businesses/what-to-do-with-form-1099-k