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Things like direct deposits of refunds, direct debits of balances due, application of overpayments to estimated taxes, are computerized functions that should and used to work almost seamlessly. And if they still are, the computers that spit out letters are getting the wrong information. The DOGE kids had gotten into the IRS systems at one point. Could they have somehow messed up the coding? I can't imagine why electronic transactions and/or automated responses have become unreliable. I have seen a number of know-it-alls mess up their computers by rapidly clicking away without reading what is on the screen. If the kids inadvertently broke something, they surely know enough to fix it so hopefully these odd letters will cease soon.

Eric Green of Tax Rep Network sent out a warning today about this. He got one yesterday, as did a local colleague. Here's what he sent out:

This bill is an abomination and needs to die in the Senate.

However your taxable income will go down due to the increased standard deduction and the increased Section 199 A deduction.

The increase in the standard deduction doesn't help those of us who have SE tax.

Well, that's really sneaky

If they listen to me. If the come in next year with the same thing, they pay the $50 fee. Being near a border, the OOS withholding is the bigger problem (though KY [usually] is a much higher taxed state, they generally get twice the refund from KY than they pay OH).

You are doing business in the state. CA has never made an issue of unlicensed preparers or preparers unlicensed in CA preparing returns. They recognize all EAs, CPAs and Attorneys from other states to practice in CA. That being said, if you are organized as an LLC, Corp, Partnership or any entity organized under the SOS of your state, they do want you to register as a foreign entity and pay the fees and taxes associated with doing business in CA. They do like their nexus. Not a problem for me as I am a SP, so my Sch C just goes to them with my 540NR, no special filing required. I keep my workpapers for my allocation of income and expense but they have not audited me on my application of the market based sourcing rules. The statute is running on my first year filing an NR with them, so I might see a letter at some point before it runs out. Tom Longview, TX

I use e-services so infrequently that there is always some new requirement to get in. I hadn't bothered with it until yesterday and went through the ID.me process. I had opted for the login.gov to access EFTPS instead. Just watch, now it will probably change again in the near future!