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I believe it is important to verify the balance sheet numbers you will be going forward with when taking on a corp or partnership. Just recently I took on S-corp in which balance sheet was a mess. Had a note receivable that shareholder was unaware of and prior CPA had no documentation of. Also some prior AAA had been co-mingled with capital stock, and there was additional paid in capital that nobody could explain. Accrued payroll liabilities seemed high and it turned out they had made incorrect journal entries so the liability kept growing as they added another layer to it every year. This came from a firm that has a poor history of quality control. Preparer basically said that was the way she found it when turned over by retired partner. Client got over $5,000 of bogus deductions over the years. Back to your post, you raise some good questions but as others have mentioned do not cross the line of handing out legal advice. Also I would not recommend legal zoom over reference to a reputable attorney.

Grandsons trump everything else!! My grandson turns 5, on April 25.

Any minute I expect the Twilight Zone theme song to start blaring from my radio that's not turned on!! Just found another new present we were left with this year. Form 8990...instructions are only 11 pages long. This form is used in order to find out how much of the business interest expense that can be used as a deduction on Schedule E. 800 returns? Nah, no way!

I'm sincere when I say this, there isn't any way possible 800 returns can be prepared by one person (even with a little bit of help from his wife).....no way in hell. cbslee, if you ever see him again, tell him you barely broke 1,000 this season...1,002 as a matter of fact! What's another couple of hundred returns...child's play. If I could do 800 returns in one season, I would hope I could make it not working the rest of the year....$200,000 should get me through with $$$$ to spare, pay taxes, and buy a really cool pair of to have on when I go visit the other work horse that prepared 800 returns. 800 returns with the new forms, idiotic scheme for the forms, a 300 page rules and regulations issued 1-30-19 or thereabouts....you really can't blame IRS as they only had a year to get that accomplished! 800 returns....no chance in......fill in the blank. Take care all, Cathy

I was at a CPE Class about 10 years ago talking to another EA. He had a Murphy bed and a shower in his office, worked 14 hour days all through tax season said that he did 800 tax returns by himself. The only help he had was his wife who did copying and assembly stuff 3 days a week. He worked a few less hours on Saturday and Sunday, which were the only nights he went home and slept in his own bed. He said he made enough money to take most of the remaining months of the year off. Thirty years ago I could have worked that many hours, those days are now far in the distant past.

I'm the same way - didn't mean it like it sounded. Some days I'm shell-shocked by five (closing time) after dealing with clients all day, but am a night person and can recoup after supper and two hours rest. I don't take any clients after five but can get a lot of work done between seven and midnight (or later) with nobody to interrupt. By late clients I meant I'm still getting some heavy-duty cases to work. The quick-refund-big-box franchise down the street now has an empty parking lot and is looking out the door hungrily 'cause their clientele has already come and gone.

I still have a lot of those heavy-duty cases coming in.... I sure hope I'm not strapped with a ton of extensions. Normally, I like them because they keep me busy. But I have a 2 year old grandson to visit now! And I'm not getting any younger.

This was very helpful Judy, thank you for taking the time to put it together. Last year I was one of a few "firefighter" preparers who was conservative on this subject as some of us did prepare a 1040X for the '17 returns. Some taxpayers did see the relief but others were asked by IRS to get a corrected 1099R which is not possible. It all depended on who was at the other end of the 1040X. I've attached the memo put out by NYC's Law Department for their feelings on this issue. I can see where they are coming from and it is the reason I didn't believe it was worth preparing an amended return last year. But with the few who did receive relief, good news spreads fast (we had a saying, telephone, telegraph, tell a fireman). So it's the luck of the draw, and I may as well join in. Thanks, Bill WTC Disability Memo V2 - (# Legal 8411565) (004).pdf

I'm with Lion, I see very few people. So far this year so far, all of 2 clients, both new, local ones. Appointment time, 4pm, which is when I'm pretty much guaranteed to be awake. I've talked to a few on the phone, but everything is mostly email.

We do use ours in our gardens as mulch and compost. I don't know if that's good enough. There is a lot of smelly stuff from my husband's compost pit with it.

Mine is a crosscut also that makes confetti, but it wouldn't meet the new requirement of the chip being 1mm or smaller in width.

Darn, I was hoping they could file as a threesome.

Me too. I came in most days but only got 1 or 2 returns done each day. You can't make that time up!

I wait eagerly every weekday for the door to close after my last employee leaves. I have an amazing team, but I need quiet and no interruptions to just slog through returns. I, like Lion, take very few appointments. I don't have the patience anymore for individuals to hand me one document at a time after staring at it for several minutes trying to tell me what it is. The appointments I do take have to be before 15 March. I make a few exceptions, but a very few. With the late 1099-div forms this year, I'm only half-way through the returns I need to complete, and I'm starting to panic a bit. On March 23rd, I always take an official 'count' of what's waiting in the queue and how many returns I have to do per day to meet deadline. Aaargh! Why do we do this to ourselves. This is a crazy profession!

Yes, Judy and Catherine, I was less than explicit. I meant the earnings was subject to the penalty unless an exception applied. I just did one of these last month. I did say to use 5329 for clarity even when I am not.

Because the taxpayer is only 48 years old (under 59 1/2), the earnings withdrawn will be considered as income and subject to income taxes and a 10% penalty tax. The 10% penalty may be waived if you meet one of the exceptions.

form 8606 part III will show the distribution. enter the basis on line 22 the taxable $2,000 will go on 5329 subject to 10% penalty

If an exception doesn't apply (over 59 1/2, disabled, first time homebuyer, etc.) penalty applies even if 5 years has passed since first deposit otherwise not a qualified distribution. See Form 5329. I think.

keep in mind that it is not reported on the 2018 return If you had included the non-deductible contribution on the 8606 for 2017, you want to remove it Guess you should amend the 2017 8606 to correct it and include the statement that the 2017 contribution was recharacterized . There is a page for the explanation. see tab at the bottom of the 8606. AND in response to the people who are complaining that the 8606 is not working... you just have to make sure you have the correct boxes checked on the 1099R and the top part of the 8606. IF it dosn't look correct, look for another box to check. My stumbling block was always when they have a traditional IRA with a basis and an inherited one- to keep the inherited one out of the calculation. Finally figured it out: for the inherited one: check inherited and do not check IRA.

Well, . Good thing it's still sitting here! Thanks!

https://www.accountingtoday.com/news/irs-expands-underpayment-and-underwithholding-relief-for-more-taxpayers-to-80-threshold?feed=00000158-20c2-d6a2-adfb-70eb85460000

make sure TP qualifies for FEIE. TP must have a residence in the FC either a) on the day before the year began (12/31/2017) and continued the residence through at least 1/1/2019 and didn't make a stmt to the FC that they were not resident in FC, or b) meet the PPTest (330 days during any 365 period - just don't count any part day in the US as a part day in the FC. All part days in the US are consider a US day, never a FC day. Don't forget FBARs or Sch B asking if they have a non-US account.

add FECWKST form to ATX If you use f2555, you have to allocate any days TP was in the US working (meeting clients, adding training, conferences, etc..) on F2555, tab Earned Inc Allocation If you use F2555ez, you have to calc your own alloc and insert the # on page 2 of F2555 line 17

A couple years ago I had a client sell Coca Cola and other stocks that were acquired in 1932. The broker provided the basis. Plus for all the ones acquired in the 50's & 60's. I was overjoyed. Must have been you, Robert!

Thanks! That's why I'm looking at something new. They are trying to upsell me on a more expensive version that I still don't think will handle it.

My late Uncle himself an IRS field agent once said something to the effect that they were considered as adding to the land or some such thing. I suppose cows pooping on the soil and passing methane into the atmosphere has it's proponents in congress.

FDNY, it's part sec 101 of the Victims of Terrorism Tax Relief Act of 2001 that was H.R. 2884 found in this link. Check out the full text here: https://www.congress.gov/bill/107th-congress/house-bill/2884/text And the code references are there in the text of the bill, specifically referencing sec 6013(f)(2)(B) and sec 692. Also, there's this non-official news brief: https://www.gillibrand.senate.gov/news/press/release/gillibrand-reminds-9/11-first-responders-survivors-of-possible-tax-relief-available-through-irs , and this Journal of Accountancy article that came out shortly after the bill passed. Hope these links help with your documentation.

I have a very reliable Ativa 1850 which does the confetti cut, for which I paid about $ 400.

Wow, I always thought my brother-in-law was weird for saving his first payroll check, keeping the cup of my nephew first sip of starbucks coffee and having to buy a shipping container to store all the junks he holds on to

Thanks Catherine, maybe someday it will happen. All the city has to do is request a ruling.

Thanks Bulldog, I will give it a try attaching the disability determination letter which does state pension was granted due to WTC related illness. I will also attach the corresponding section of pub 3920 to help along the agent whose desk the 1040X lands on. The explanation from the city's corporation counsel is aware of this but the fact that a certain part of the pension is from accumulated additional contributions and interest by the retiree it is not considered part of the regular pension. The letter also states they would like to see a more substantial authority from the IRS. Worse that can happen is IRS asks for a corrected 1099R. We know where that will go. I will pass along your thanks to those members who were affected, all of them came down with weird form of cancer. Thanks again, Bill

Married filing singly double jointed as long as spouse is filing separately.

Carbonite doesn't backup ATX's default file locations. We use CrashPlanPro.

Absolutely. And thank your clients for their service and heroism. The argument is substance over form. The law clearly states that the money is tax free, regardless of what the paper from the payer says. It is no different than getting a 1099 for Misc Income that should have been coded to rents. Just because the amount is in the wrong box does not change the substance of the transaction. Just make sure you have your documentation solid and be ready to appeal if the IRS denies the claim. Tom Modesto, CA

Gah, what next! There's always burn or mulch too. One more great reason to go totally paperless. Maybe I'll offer my chips to my neighbor with the dirt farm that could churn it in with his used mushroom soil compost, and no one would touch it then.

The only problem with efaxes is you learn to hate people who fax upside down.

I'm starting to panic more than a little. I got the flu in late Feb and was so sick for a full two weeks that I couldn't work and then was finally able to work enough to meet the March 15th filing deadline because I had the accounting or bookkeeping in good enough shape to complete those. It's taken a full month to recover completely, and now though I'm in a real hole with the individual returns. How ever many I finish in a day, it seems I'm getting double that many in.

Both eFax that I use and RingCentral that my largest biz client uses will not print unless you choose to print. Both save in their system, available on my computer or anywhere I have internet service. Both allow me to move a fax into a client folder or where ever I choose to save it.

Nice Chart^^^^ TaxTools had a worksheet as well. *IF* you had a beginning basis, the worksheet did the rest. Rich

I can get a lot of work done after dinner when the phone's not ringing and clients aren't expecting an immediate reply to their email and when hubby stops walking in my office, sitting down, and trying to show me some video or something that could wait until dinner! So, I end up working very, very late. I take few face-to-face appointments, but make them in the afternoon.

I'm out of the office by 5:30 at the very latest. Any work after that is done at home. The CPA upstairs comes to work at 10am all year and goes home around 9pm three nights per week.

As a broker, we have cost basis info on all trades going back to 1932. We used to get tons of calls asking for really old cost basis information and with mergers and stock splits it would become a nightmare. For ATT I came up with a spreadsheet to plug in the original cost and it spit it out. Around 2000 a bunch of firms got together and proclaimed everything has a cost basis of $2 per share because it was essentially impossible to figure it out and the major firms were purging their systems of the data so that they didn't have to look it up.

I start early, so by 5pm, there is nothing much nice about me. If I took clients in the evenings, I'd be arrested by my own son, for murder. I think we should all get Medals of Honor when we get through a season without killin' somethin'!

I stopped taking night clients last year and it is soooonice... I have a prior 911 dispatcher answering phones for the season - no one gets by her - drop box baby! or 9-5 M-F

Only titled assets go can go into a trust. It is called funding the trust. For instance, if a home is not titled in the name of the trust, it is not part of the trust, . However, It is still part of the estate and a trust can make election to be treated as an estate. All trusts will say that all non-trust assets are to be distributed by a will. These are called pour-over wills and are included in the trust papers.

Having the correct DoD on her 2017 return is fine. Yes you need a personal return for 2018 for all income up to the DoD. Trust income before the date of death goes on that personal return unless they filed a separate trust return every year which is rare. Income after death in the trust, you need to report it on the irrevocable trust return. Income earned that isn't in the trust but is earned after death needs to go on an estate return. I've never seen it legally handled that the trust can just declare all assets go into the trust upon death. You need to title it that way BEFORE death. Things like insurance or an IRA where it is distributed via a beneficiary form can do that but generally not bank accounts and so forth. They could have used "transfer on death" but why?

The IRS will be looking for the income reported in the deceased's SS# on her return, so you have to include it there or expect a letter. On the next line I usually subtract out the after-death income with the description "reported by XXX trust EIN ###." Then report that amount on the trust. I have never gotten an IRS letter doing it this way.

Just because the Employer screwed up doesn't magically create a QBI deduction.