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This morning in the McDonald's drive-through lane, my wife handed money to the cashier who said "No. Keep it. The person in front of you paid your bill." Touched, she said "I guess some people still have the Christmas spirit. Okay, take this anyway; I'm paying for the people behind me." She then pulled up beside the car in front that was waiting for an order to be brought out, rolled the window down, and called out "Thank you!" The lady smiled broadly and replied "Merry Christmas!"

https://www.irs.gov/pub/irs-pdf/f8867.pdf Many posters here say they do few or no EIC returns and the old 8867 was annoying but not a major PIA; however, I think several of us still do CTC/AOTC returns. You're exactly right - that form was duck soup compared to this new combo-monstrosity which could be substituted for an NYPD Blue interrogation. Quite interesting is the question "Have you determined that the taxpayer has not released the (8332) claim to another person?" Well, I can ask, but if the answer is "yes" with an unconvincing facial expression, would I be required to track down the other party? Another attention-getter was page two's blunt-trauma ending statement: If you have not complied with all...you may have pay a $510 penalty for each credit...". You're a better man (or woman) than I am. I ask for a report card, an insurance card, and a medical bill with their name and address on it. But if I go with the new marching orders, then IRS really can accurately describe me as their "partner".

Merry Christmas to you and yours from me and mine!!! God Bless us - everyone!

She should ask the management company how they handle this. Most timeshares are so worthless that some management companies will take them back free (or maybe charge a reasonable fee), so they can try and hawk them to some other unsuspecting soul. At least when the company does that, they decrease the risk of an "owner" who just stops paying.

All of the net profit will ultimately be taxed at the individual's rate whether or not the income is on a Sch C or is in an S corp. The savings would be on the payroll taxes incurred in the S corp vs the entire profit being subjected to the SE tax on the Sch C's profit. Let's say that the net profit is the high end of $50K you mentioned, and if the client did go the S corp route, let's say she pays herself wages of $40K. In this example there is the SE tax savings on the $10K difference that is roughly $1,300, and the closer the W-2 wages are to the net profit of a Sch C, the less the savings. I did not sleep at a Holiday Inn last night, but this seems like a bad idea to me. It might save that SE tax, but it also puts the client on the IRS radar for that assignment of income, and the client would incur the additional expenses of whatever corporate licensing fees OH imposes plus the additional professional fees of incorporating, accounting and preparing the S corp, W-2s and other payroll filings on top of the individual returns now being prepared. It does not seem worth it to me to save a net of a few hundred dollars, and the lower the net profit we are talking about, the less the savings. Another factor to consider is what each client's situation is for health insurance. If the person is not covered under a spouse's employer plan and is paying premiums individually, the client will lose the above-the-line deduction for self employed health insurance if shifting the income away from the Sch C. I'd have to see a comparison side by side of where there are more savings, including the effect on the state returns. What other savings am I missing in this picture?

Responsible, need to documents AND save copies of client documents, and WE get fined if clients' data is wrong. At various conferences the IRS reps keep saying "we know you're the good guys!" but the crap coming out of DC puts the lie to that.

Just write a letter saying she's abandoning it. Those things are worthless. The management company may have a form.

If you use your working tools to see fancy and nice looking websites, you need to reimage your computer every year at least. My partner was laughing (she doesn't do taxes or touches my computer) because she tricked the Microsoft technician and the technician fixed her computer and she didn't pay him. She got infected and then she got a message that if she wanted the computer to be fixed, she needed to call Microsoft at this number. She called the number and the Microsoft technician took control of her computer and fixed. The technician told her that if she wanted to be protected, she would have to pay $199. She replied that she needed to contact her partner and that the partner was out of the country. The technician said, that he could sell her another protection for $99... she gave him the same answer and the technician hung up the phone. I call her about 5 minutes later and she was laughing because the Microsoft technician fixed her computer and didn't charged her. I asked if she was done for the day and she said yes. I said shut down your computer and unplug the LAN cable from it and go home. I also told her, tell your husband what happened and follow his advice. a couple of hours later, while I was having dinner, my phone started ringing and ringing. Her husband told her what I didn't. She wanted me to reimage her computer. I reimaged her computer and she learned her lesson. How can you laugh after you have been so stupid about three times? The first, when they get you and they install the program on your computer, the second, when you call "Microsoft" and the third one when you give control of your computer to the "Microsoft Technician".

Every time I get a stream of Viagra ads, I always ask myself "How did they know...?"

Saving on SE tax is not a forward-thinking plan. Does your client want to collect SS someday? The more she makes the higher that monthly benefit will be. I remember some time ago when SSA started to send everyone a statement of projected earnings each year. Amazing how many self-employeds suddenly showed huge increases in their profits. Wonder if looking at those statements that showed they could expect to collect $200 a month had anything to do with it.

I don't know any other way to handle it. I've never requested a Revenue Ruling or the like, but I've have never had it questioned when I backed out 1099-Misc Box 7 amounts that were really employee reimbursements that belonged on Form 2106, for example. That doesn't mean it won't be questioned when you do it. But you know they'll question it if they don't see it on Sch C gross income. Let's see what others think.

I am cautious about bundling too many things into one basket for the reason you give in your post. I don't want to have to change tax software because of issues with the portal service went up, and I don't want to have to change portal services because of issues with the tax software. And price is not the only issue.

Have you looked close at the new "due diligence" documentation requirements for the new 8867? Very invasive and seems to indicate that we are responsible for all answers. Just read it closely and you will see what I mean.

Merry Christmas and a VERY Happy New Year to all my friends here!

Merry Christmas!

And a happy, healthy and successful new tax year!

Gail is absolutely correct. Nobody here is advocating trying to make another preparer look bad. And Pacun, Catherine raised an excellent point. My new clients with loss carryovers frequently don't even know they have them. Let alone how much. Forget getting depreciations details out of client. It's impossible. Are you not concerned that you are missing deductions?

Merry Christmas!

Yes, Merry Christmas.

Form 8809 extension request works for both 1099M NEC and W2 forms. The process is more involved for W2 but an extension is available. https://www.irs.gov/pub/irs-pdf/f8809.pdf