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I am pleased to announce that I am member in good standing. No Warning Points so far. This tax season may significantly change that.

Its odd how we have a love hate towards the IRS, we disliked them when we are on hold for up to an hour or more, or when nothing is resolved, or when you really need to talk to someone but they are closed because its a federal holiday etc... Now we really need them because it might have an impact on our revenue etc.

In our state it is illegal for private employers to not pay people for time worked, and the DOL comes down on them hard. How do the Feds get away with this? And who in the IRS (or any other gov't agency) would gladly go to work in this high-stress job if they could just stay home and know they'll get paid anyway? I don't want to go into politics here, but at the very least can't our gov't find a way to pay those who are working? Not only will it incentivize them but it's the right thing to do. I can imagine people calling the call centers and getting very rude responders, who had to get out of their PJs and go to work for nothing and didn't get enough training in the new tax laws to even answer the questions. To repeat myself, I am SO not looking forward to this tax season.

I've never had a federal government employee before now. He told me he'll get paid but in the mean time they have to pay all bills from savings. They have about 2 1/2 months of expenses saved and he's not sure if it'll be enough before another paycheck shows up. The wife is really worried about it and they are taking steps to get the paperwork completed so he can borrow from his retirement plan if needed. If you are a paycheck to paycheck type family, it's a serious issue.

Hey guys, I just wanted to share my experience. I switched to drake after the horrible ATX revamp experience a few years ago, but I continue to use the payroll software because as far as I'm concerned it is the best payroll software out there. I had to upgrade today but my password was not working so I had to call support because the rest password option is horrible and forces the user to enter a "registration code" instead of normal procedure like security questions. After a tough time getting through due to the system would hang up on me for a mistake in my user number and that I had to look up my user number I have now been on hold for 20 minutes to speak to someone just to reset my password. Whenever I call drake support I am able to reach someone after a few rings. I can't believe that ATX does not realize that these customer relations blunders are the reason why they have lost so many customers.

Ah, payroll compliance, new 'improved version. Um hum. I am trying a corrected W-2 since it has the same EIN as the 1099's so no extra charge ($10 per EIN) but the data from the W-2C does not flow to the W-3C and, of course, those fields are not accessible. After 2 hrs, 54 minutes on hold I did reach a really nice tech person who couldn't figure it out (it shouldn't do that - duh!) and ran it up to the next level. I stressed the importance of expedience so we will see. If it isn't fixed, BSO direct it is. I guess the 'if it ain't broke, don't fix it' adage didn't apply here. The new program looks prettier, matches better but doesn't work as well. Whatever happened to beta testing before prime time? /s

I agree with you. But the evil side of me wants to say..."Now you know how we feel. You have been pushing us to do your audit work at the preparation end and not paying us. Now you can do your work without getting paid as well! Serves you right." But I do feel for them. It sucks to be the property of the government. They do live their lives just like the rest of us and it must be hard on their families. Tom Modesto, CA

Slacker. Anyone worth their salt should have a few warning points. We have to keep @jklcpa on her toes. If @kcjenkins was still moderating, we would see a boatload of warnings hitting the members. I think we should have a very nasty political fight on the board to get some points flowing. Just kidding Judy. Please don't shut me out from the board. I need you all this year. Tom Modesto, CA

I prefer FUBAR....

Really....anyone who watched the process of this bill getting butchered by the Washington political process knew it was going to be a cluster fudge. SNAFU is a very appropriate acronym for the tax laws of the US. Tom Modesto, CA

All I am sure of is I started studying the 199A last May and the more I study the more confused I get. Who would have thought a 20% deduction would turn into what it has. Geez!

Dear IRS: Confusion reigns (see all of the above posts, as well as all of the similar pro and con arguments on countless other boards). Please give us a bright line test! Here it is Jan 14, filing season opens in two weeks, and tax professionals still do not know what to do.

Section 199-A was highly influenced by real estate lobbyist. Special preference was given to owners of REITs as were owners of qualified property in the form of real estate. Note the wording on page 21 of the TCJA BLUE BOOK: 'For taxable years beginning after December 31, 2017, and before January 1, 2026, an individual taxpayer generally may deduct 20 percent of qualified business income with respect to a partnership, S corporation, or sole proprietorship, as well as 20 percent of aggregate qualified REIT dividends, qualified cooperative dividends,104 and qualified publicly traded partnership income." It does not list REIT dividends as QBI along with that from a partnership, S corporation, or sole proprietorship but instead states "as well as 20 percent of aggregate qualified REIT dividends...". Page 29 of the blue book specifically states that a 199-A deduction is allowed for "qualified" REIT dividends etc. There is similar wording in prop reg 1-199A 3(a). The law expands the deduction beyond QBI to include "qualified" dividends from REITs, therefore an investment in a REIT does not have to rise the to level of a trade or business under section 162 as does a real estate rental. As I read it, a dividend from a REIT qualifies under section 199-A as long as it would not otherwise receive capital gains tax preference.

I disagree. The person creating the K-1 has to indicate to the partner/shareholder/REIT owner how much of the income generated is from QBI sources. It is reported on the K-1 on lines 20/17/14 (I am not sure of the exact line numbers) to be input onto the K-1 worksheet of the final personal tax return. When preparing the personal tax return we must include all forms of QBI, including Schedule C (if any), to determine the final amount of QBI, subject to taxable income limitations.