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Agree with Lee, and the withholdings allowed by SSA are flat percentages, and iirc, that percentage is applied to the net benefit after subtracting the Medicare premiums. You can test that from last year's 1099. If you have last year's 1099 for the gross figure, it should be relatively easy to get to the current year's gross without the 1099. You know the COLA increase and the monthly medicare withheld, then look to last year's withholding % and apply that to the current year's figures. For FWT, the recipient may choose from the following %s to have withheld: 7, 10, 12 or 22%.

The Tax Advisor article "The importance of tracking AAA and E&P in transactions involving S corps" https://www.thetaxadviser.com/issues/2017/aug/tracking-aaa-ep-transactions-involving-s-corps.html

The taxpayer had no cash outlay, other than a cleaning, which should be deductible, and they lost no asset value, so there's no economic basis for a deduction.

I've never seen any purpose for AAA. Stock basis is all that really matters. The gain on removal of the assets, if any, will increase stock basis and allow losses to be deductible on the 1040. You're supposed to file a 966 as soon as it's decided to liquidate a corporation, but I'd bet most never bother. https://www.irs.gov/forms-pubs/about-form-966

To be honest, you need to ask yourself if you are qualified for this engagement. If the stock is stepped to FMV at DOD, the gain passed through should be offset by a capital loss upon liquidation, due to the difference between inside and outside basis. It is critical that the distribution and dissolution occur in the same year.

You can download one online after you set up an online account. Actually, setting up an online account is a very good idea since it will prevent your account from being hijacked and your monthly benefits monthly redirected.

IRS Pub 526 "Partial Interest in Property Generally, you can't deduct a charitable contribution of less than your entire interest in property. Right to use property. A contribution of the right to use property is a contribution of less than your entire interest in that property and isn't deductible. Example 1. You own a 10-story office building and donate rent-free use of the top floor to a qualified organization. Because you still own the building, you have contributed a partial interest in the property and can't take a deduction for the contribution. Example 2. You own a vacation home at the beach and sometimes rent it to others. For a fundraising auction at church, you donated the right to use the vacation home for 1 week. At the auction, the church received and accepted a bid equal to the fair rental value of the home for 1 week. You can't claim a deduction because of the partial interest rule. The auction winner can't claim a deduction either, because of the received benefit equal to the amount of the auction winner’s payment."

Margaret, you get some real doozies!

Never mind - it has been found.

Judy, your post and experience are greatly appreciated on this board. I agree with you that if OP involves E&P he needs to dig much further, sorry my last reply was not clearer.

I was responding to Abby's statement that he's "never" seen the purpose of AAA. I thought that was rather obvious since my post directly followed his and considering the title of the article itself. It was meant as food for thought for all of the readership, so in future I will state something much more obvious to that effect and make sure to quote the person I am responding to so that everyone is clear on why I post something. I wasn't suggesting anything more than that. Also, as to your comment about E&P not being a factor, well maybe and maybe not. I'll agree that it may be more likely than not, but you've been around long enough to have seen the many times posters here don't know what to ask and do not give all of the facts until badgered with questions from those more experienced asking for more information or clarification. You yourself suggested that this preparer may not have the experience needed for this engagement.

All you would need is one bank statement from 2024 and you could calculate the same amounts as would show up on the SSA 1099.

Those are the clients that I have come into my office and get them online together. And no need for a printer as long as you can download a PDF.

I have several clients with adult disabled children, but this one takes the cake.

He can't get EIC if he doesn't claim himself as a dependent. It was super nice that one year when they allowed people over 65 to get EIC; this case would be a good example. (Maybe)

This is so true and the recommended procedure. However, many of my clients don't have computers and/or printers; nor do they have the savvy to follow the directions to get the information. I just had a client a few days ago tell me that he could only get so far and it wouldn't let him continue. Of course, he was not doing something correctly, but this is going to cause havoc. I have clients who come in with the letter telling them what their new benefit will be, but don't have the SSA1099; nor do they have a clue what it is.

And what are all the people who can never find their SSA1099 going to do now? It was fairly quick and easy to head to the local SSA office.

The assets come out at FMV which when I have prepared one of these resulted in taxable gains.

No. This is a donation of a partial interest in property. See Pub 526.

Ask them if they got commercial insurance on that vehicle. If you use a car for business but insure it as personal, the insurance company can deny any claims. Also, I agree that you can't use standard mileage because the business is not buying the 100% of the fuel.

Eric Green has been doing just about daily short updates on the IRS situation. Here's the youtube channel. https://www.youtube.com/@TaxRepNetwork

While I understand the desire to be DONE on April 15th, I also don't want to work myself to the bone three months of the year. I use extensions extensively (intended doubling up) and work steadily while still taking Sundays off all season. Do what works for you, but remember that extensions are your very good friend. I'd rather put a client on extension and do the returns correctly the first time, than rush to finish and find an error - or get a corrected consolidated 1099 - months later that makes an amended return required.

March 2,2025 "The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either." "The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only." https://home.treasury.gov/news/press-releases/sb0038 These changes were like a leaky faucet, drip,drip, drip . . . . . . now it's gusher!!!

Here’s the latest list of Social Security Administration offices that have been closed or are in the process of being closed by DOGE: Georgia Brunswick Columbus Gainesville Thomasville Vidalia Alabama Anniston Cullman Gadsden Jasper Arkansas Batesville Forrest City Jonesboro Texarkana North Carolina Elizabeth City Franklin Greenville Roanoke Rapids Texas Abilene Nacogdoches Victoria New York Horseheads Poughkeepsie White Plains Mississippi Grenada Greenwood Meridian

They are already not answering their phone here in Wisconsin. SS applicants without computers are getting frantic. Oh, how simple life used to be.