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I got a return from the big CPA firm in town and when they looked at the comparison, dividends were double the year before, and rather than double check their work, they circled the increase and wrote "Wow!" next to it. I quickly caught that they had entered a trust 1099-DIV on 1040 as well as the 1041, so, ta-da, dividends were doubled. I got to amend both the 1041 and the 1040, and got the new client a 10k refund. I used to work at that firm. years ago. The word of mouth referrals, or retelling of the story, is always good for my business.

I don't care about the IRS paying me via DD, they do it already. What I don't want is those stupid ba$ta3ds to require me to get an ID.me account to pay them. I don't understand how a nation as advanced as ours has a government that knows when a russian spy sneezes and can't id me without the help of a private company. Tom Longview, TX

Oh that QM PIN will be great, no more searching online! Shoot, some installers invoices don't even include the model name or number. And as Lee said, some just lie. Anything to make the sale, I guess. (Yeah, sometimes I'm sure it's an honest mistake, but it's late in the season and I'm cranky and unwilling to give them the benefit of the doubt, lol.)

Yes, USPS for sure! I've done taxes electronically for years, but still liked paying other bills by check. But 3 or 4 years ago a client paid me by check and mailed it and it took 3 weeks - in the same damn city as me!! So then I started to gradually pull back. Now I enjoy having most of electronic, just so I don't have to leave the house in winter, lol.

I'm guilty. I still write and mail checks. I've thought for some time this may be coming and I would be forced to do everything electronically. I'll do it and clients will have to do it. But what I won't do is do it for the clients. They will have to do it themselves online. I have a few clients who pay their tax payments on line. I remind them to get confimation before they log off and print the confirmations for themselves and me.

I would never do that, I send them back to their installer who should be able to provide them the relevant documentation. Sometimes it turns out that their salesperson wasn't truthful and there is no documentation.

I'm with you, Kathy. I go through the return I've just prepared against the previous year's return; check line by line and then check blank 'records' (i.e. Schwab DIV that I had last year that I don't have this year). I think it saves me tons of time in the long run, and I think clients are appreciative.

Three different employers did not submit W-2's? If it was just one it could be employer was not paying withheld taxes and committing fraud. But three? Something sounds fishy. You've probably already done so, but make sure there wasn't a transposition error W2's received and tax return. Been a couple years since I got out of payroll biz, but it used to be paper W'2s were sent to SSA. Do these show up on annual wages on SSA site? The employer should be checking that all W-2's they submitted were processed correctly. Since we're talking about refundable credits, doubtful IRS will be able to do anything on the individual return.

As long as they used the same account and didn't create a new one the old forms will be there. Have them look under messages in the Jan 2020 time frame.

Pro has a 2 year report that I always run before even checking input. Also run 2 year for C's, E's and F's see if everything looks to be inline.

OIC has no limits. I've done some that owed over a $1M. $50,000 os the limit for a streamlined installment agreement. Beyond that its determined by disposable income and assets.

OP's software must require the address, or at least the zip code be valid, to pass the error checking for e-filing. Does the client have a paystub? Or just put in the city, st, zip where the client worked. That won't affect the return's figures and will allow e-file to process.

It's always possible that these small companies mailed the W-2s to IRS instead of SSA. It's hard to believe that 3 companies for one client would do that though. I agree with Kathy that something seems off.

It highly unlikely that the SSA hasn't finished processing 2023 W 2s. Perhaps filing Form 4852s for these 3 W 2s would be the best solution.

For clarity, on the 2nd K1 you'll have an other increase or an other decrease to make it zero. So on the main K1, you'll need the opposite. If you have an other decrease on the 2nd K1, you'll need an equal other increase on the main K1. This represents the rental income.

No, I was referring to one K1 with both ordinary income and rent income. Those have to be entered as two separate K1s in ATX.

Actually, I've been comparing information returns with previous year's for the last couple years. This was based on advice from kathyc2 some time ago. We'll note if the ugly letters drop some. Again, this still will not stop notices from the IRS that are in error. Still in the 50% range, and providing them ironclad information doesn't help. It's like it just sails over their head.

What Max W said - there is NO LIMIT for total due on an OIC. There is a limit for automatic full-pay installment agreements. Those are not OICs. Form 656 but the return must be filed & processed. You cannot file an OIC on tax that has not been assessed. I don't know of any state that does not also have an OIC-equivalent program. Names vary. Get federal OIC in process before state OIC; that way they allow 100% of state tax assessed as a legitimate claim. If there is a state OIC there's no tax claim. If there is a state payment plan underway then it's "only" a monthly expense.

Believe it or not, I had a client come in today and tell me about it. As she was writing the check to go with her voucher, she said, "This is the last check I will be able to write to the IRS!" I was really surprised as we have only known for such a short time.

In the future the installer will have to provide a 17-char QM PIN (Qualified Manufacturer Product Identification Number) which is a unique number like a serial number that will be required on the tax return - eliminates any need to verify if it qualifies. For 2025, only the QM part of the number will be required. For 2024, there are a couple sites where you can look up model numbers to see if they qualify: https://www.regulations.doe.gov/product-lookup https://ahridirectory.org/ The first one is more official, but I have found it more difficult to find matches unless you have the AHRI reference number already.

Should, but in my experience almost never do. They tell clients they don't need it. Well, if TP is filing their own return and doesn't care/think about records keeping, I suppose that's true. I try to make them find the manufacturer's certificate for their model, but most of the time I end up having to do it. Tried to avoid it, but at this point it's usually faster for me to find it than to deal with the 20 back and forth emails with the TPs.

Long time client apprised me a few weeks ago that she was scammed to the extent of her entire retirement, some 624,000. She has, I think, some dementia and is in denial. She eventually reported it to the FBI but they told her, sadly, she is one of thousands. She is holding out hope that she will not have to pay the $200,000+ in federal and OH tax due despite my caution that I can see no way out of it. She willingly withdrew all this money to buy bitcoin then gold and never saw any of it. The scammer told her that her identity was stolen and the only way to protect herself was to give them the money and they would invest it. So here we are and all I can see is an OIC. An installment agreement is for up to $50,000. I tried to use the tool for an OIC but 'we are experiencing technical difficulties at this time.' Does she need a tax attorney which she cannot afford? I've managed some installment agreements and a discharge due to inability to pay but not an OIC. Fortunately her competent sister was finally brought into the picture and I've advised her to get Form 2848. Other suggestions?

A church has an EIN to pay its employees, including its clergy.

I mailed my Frontier bill on March 13. It was due today. Today I received a late payment notice and the check has not cleared my account. Now we have to be afraid of electronic payments and paper payments as well. Where will it stop?

Seems like June/July is the season for most of them. What are the error percentages? 50% the fault of the IRS, either in part or in total. 40% my customers for not giving me information, or bad information, as in "I didn't know I had to turn that in" or [tee! hee!] "I forgot. Some of their excuses are quite imaginable... 10% or less are my goofs and mistakes. They don't happen everyday, but I admit they do happen. And overall, maybe 10% (at the most) of my clients receive such letters.

I don't think that they were not submitted; I think they were just small companies who submitted on paper, and SSA is behind on processing those. However, I was just looking at it for a friend and not preparing the return, so my suggestion was that he take the W2s to the social security office and ask them about it. That was before almost all the offices were closed, of course.

A lot of it is USPS issues too. Had a client mail in her $5 balance due to School Tax and it took 20 days to travel 50 miles !!!! We printed off another payment voucher and they were ready to mail it in when they received the "Certified Mail" receipt. Always mail Certified.

It can still be frustrating. I have a friend that three out of four W2s they reported on their return have apparently not been processed by IRS, and perhaps not by social security. This is for a 2023 tax return. This dropped their income so low they are not getting child tax credit or EIC at the level they should. They responded to the IRS letter by sending copies of the W2s, and following up with a letter from the employers. The W2s are still not being added to their return. I realize that anymore, anyone can print a W2 to be able to send it in, but I am not sure what the taxpayer is supposed to do if the W2 either doesn't get filed by the employer or is lost in the system somewhere. i sent them to SSA to try to get it straightened out there. But I am afraid this is only going to get worse as lay offs continue.

I'm guessing that may have to do with how you look at who is at fault. Example: In March 2021 I had a new client that I amended all three years prior both federal and state to correct an error that lowered AGI. State processed amended returns within a couple months and issued refunds. Being Covid year IRS did not process amended until late fall. In Dec 2021 client receives notice of balance due from state, which reversed the state amended return. After calling the state, I learned that they link with IRS computer to verify AGI numbers match three years in. This is to catch if federal upward adjusted and state amended was not filed. To fix client needed to get transcript showing amended amount and then send that to state. I could have blamed IRS for not timely processing amended rather than realizing Covid wrecked havoc at IRS. I could have blamed state for not just accepting the amended return they had already received. Guess what? I realized it was just bad luck with timing and no one was to blame.

I have a certificate but it has numbers and letters but no word description of what it is. I thought this might be a general certificate covering all their products and not specifically for the product the client has. That's why I called it confusing.

This could drift into political expressions about the current administration, which won't be allowed here. But I would expect much of such as this to be rescinded when it hits the fan. Tennessee required all tax payments and unemployment taxes to be electronic 7-8 years ago. But they still accept checks and dare not penalize the issuer. They need and love any kind of money like a pig after slop.

Piratization

The $5200 was most likely a tuition assistance employee benefit from Starbucks, not a scholarship. It can be used for more than tuition https://www.irs.gov/newsroom/employer-offered-educational-assistance-programs-can-help-pay-for-college That said, Pub 970, figure 2.1, makes clear that the same expenses covered by the employer-provided tuition assistance can't be used for the education credits. Seems like you have a taxable scholarship of $3200 - expenses for books, equipment, etc. Note that the choice to include a scholarship in income isn't that simple. The terms of the scholarship must specify that it may be used for nonqualified expenses like room and board. Most scholarships specify that they are for tuition only. I once researched whether a particular scholarship allowed nonqualified education expenses and that info just isn't out there.

Thank you! I don't do very many trusts and haven't done an estate income tax return in probably 10 years. But I have a bunch of estate & trust returns this year. My client's parents are dying.

From IRS.gov: What if I am not eligible or unable to apply or revise a payment plan online? If you are ineligible for a payment plan through the Online Payment Agreement tool, you may still be able to pay in installments. Individuals can complete Form 9465, Installment Agreement Request If required in the instructions, please attach a completed Form 433-F, Collection Information Statement. Mail your forms to us If you prefer to apply by phone, call 800-829-1040 (individual) or 800-829-4933 (business), or the phone number on your bill or notice If you are unable to revise an existing installment agreement online, call us at 800-829-1040 (individual) or 800-829-4933 (business). If you have received a notice of default and cannot make changes online, or you received an urgent notice about a balance due, follow instructions listed on the letter and contact us right away.

Don't overlook the possibility of CNC (Currently Non Collectable). Even if OIC is feasible there is still the 5 year compliance and est tax requirements. CNC will also protect future garnishments of SS benefits.

One issue with the OIC approach: all returns must be filed, so she has to sign a return that shows her owing tax on the disbursement of her retirement funds. And of course the elephant in the room is getting the IRS to respond when OIC was a very slow process even before the gutting of the agency. Sorry, I didn't notice your comment that she can't afford a tax attorney.

Have you tried the pre-qualifier site? https://irs.treasury.gov/oic_pre_qualifier/

hopefully someone who isn't as brain dead as me will chime in. It's not the identity theft, it's that you lost money in the pursuit of profit, and fall under Section 165 of the IRC: (2) losses incurred in any transaction entered into for profit, though not connected with a trade or business... Not sure of the mechanics and I would probably hand it over to a tax attorney.

Nothing to report other than the sale of the house. As Bulldog mentioned, the escrow deposit is basically a balance sheet transaction. The escrow deposit is part of the sale proceeds.

I might be wrong, but here is my thinking: You have a capital transaction, the sale of an asset (home) for another asset (cash). Simple balance sheet adjustment from Investment Asset to Current Asset, assuming no gain or loss on the sale. The Cash in the account still belongs to the estate. The funds may be restricted for use to pay tax, but they are still the property of the estate until the tax is paid. If you know the exact amount of the tax due, you have a liability for taxes and a non-deductible expense (for accrual accounting). I would not overthink this one. Sale of an asset for cash. Hope that makes sense. Tom Longview, TX

I have a not so old couple (in their 40's), very high earners, who pay by check. I don't know if this means anything, but one of them works for Google and the other as IT for another tech company.

You're right. And I think this was always the actual goal. It wasn't necessarily to chase down people who make minor mistakes in their listing (or even didn't list at all), but rather to create a trap for those who were laundering money IF they were caught by other means. Regardless of whether they had lied on the BOI form or had never filed, the draconian penalties would serve as a wedge to force them to give up info on the major culprits in exchange for penalty forgiveness. Failing to cooperate would be financially devastating. (Of course, cooperating might be even worse in the real world ). Anyhow, we couldn't say any of this to our clients because there remained a real risk of huge penalties for even simple clerical errors, much less not filing, for which they might try to hold us accountable. So we were intimidated into giving them just enough information to scare the hell out of them without being able to offer them any real help - on a simple clerical task that would only take about 15 minutes on average. Makes us all look sort of silly in the eyes of many clients, IMO.

Exactly. This is another example of the powers that be are so out-of-touch with the real world. No firm guilty of these crimes is going to comply to begin with. And especially after the application which has hiccuped in fits and starts.

Does Social Security even issue paper checks anymore ? All of our older clients have it direct deposited anyway. And with the state of the USPS, it seems a good move. We have had so much stuff lost or damaged by the postal service.

I can already hear it from some of my elderly clients: "I don't want to give my bank information to the government." Then they mail the check, which has the bank information. Another reason this is looking more and more like my last year.

Ha! This stupid law wasn't going to do a damn thing to help catch a single money launderer.

So THAT’s really what it’s all about!

Seem only foreign entities have to register now.

I mailing something to a client the other day on a Friday. I was told it would arrive Monday. It was a week later on the following Monday when the client received it.