Leaderboard

The IRS will throw a wide net, and see who fail to wiggle out. I have been subpoenaed merely because I provide payroll software for others to use, and the case had nothing to do with payroll (it was tax prep fraud, where the preparer was faking returns after the fact, and collecting refunds in the names of their clients). The IRS found my software on one of the computers... There are those who are paid to really manage payroll, and thus, openly accept liability. They usually do nothing without first having the funds available, deposit every payroll, and properly limit exposure. There are those who only do calculations and provide unsigned reports, sort of a grey market. Then there are the rest, who likely do not realize their liability. Whether or not someone is eventually held liable, defense is not free!

What always strikes me is how the seemingly smallest thing can affect one's life. One of our kids had an inkling to go one way with his career, which said career is gone until at least the middle of 2021, and instead took a liking to an internship he was doing, and has become a medical researcher - at present working with COVID patients. He is considering the MD route if he can find someone or something which will pay his way (he refuses to be a freshly minted MD with 20 years of work to pay his med school debt). When I look back, I see a few key twists in my life choices as well. Hindsight and all that...

So much work and ethically questions to work on for just $500? If your client has only a "daughter" the limit is $3K, correct? Let the $1500 transfer to line 7 on your client's return and be done with.

Yes, but considering it's family, the nice thing is to check and make sure it won't cause mom more problems than it solves adult child. Does mom live in subsidized housing where a small amount of extra income will triple her rent, for example? Sometimes it can do the overall family more good for one person to just eat the extra taxes, rather than shift it to another.

You shouldn't sign on the company's bank accounts because the IRS could actually hold you responsible for unpaid trust fund taxes.

Been busier than ever this year. No time for virus fatigue and depression. But there is sadness for those I know that have been affected physically and economically. We need to stay strong because so many depend on us. I’ve been checking in with clients on a regular basis, most doing well. It helps me being stuck inside other than very early bike rides and supermarket trips.

more migraines this year than ever!

MD did the same thing with unemployment and QB hasn't finished the programming yet. Thanks for reminding me I still need to file my unemployment report. Also, my EFTPS password expired so I go to update that and then enter it in QB so I could pay my 941 taxes. Good thing I wasn't doing it last minute!

And, payroll reports. I need to read about CT's new myconneCT and set up an account and make it work with QBDT for my tiny payroll. Except for the tax types not yet open under myconneCT that still must be paid via Taxpayer Service Center. And, PPP forgiveness applications. And, laundry. And, my NY/CT-ATP on-demand courses for September and October. And, a few other on-demand courses I haven't completed. And, sleep. And, visit my grandkids before they forget who I am! And,...

Try restoring it as a portable file, and no you need the same version of QB or higher to open the file. Since 2008 I buy the newest QB version each year because it never fails when a client upgrades to the latest version.

The IRS uses an interview form (4180), Trust Fund Recovery Penalty, to determine who the responsible person(s) are. A "Yes" to Questions 7 & 8 would seem to answer Edsel's question. However, "No's" to the others would probably relieve that person of the Trust Fund responsibility. 1. Do you handle the financial direction and management of the business? 2. Is your signature or authority needed to disburse or transact payments for bills as well as pay loans? 3. Are you part of the team who handles the reviewing, preparation, signing as well as authorizing the transmission of checks? 4. Do you have knowledge about the withholding, or lack thereof, of taxes? 5. Is control of the authorization of payroll under your role or power? 6. Are you the key person for making federal tax deposits? 7. Do you have the authority to make or assign the electronic payment of taxes through the EFTPS? 8. Do you handle the electronic banking part of the business, as well as hold the PINS/passwords?

Me too - got a couple. They keep wondering what is wrong. One is holding up a $7500 refund - but they did get a stimulus of $2900. I don't think they can complain about the circumstances too much if they eventually get their money.

Everything I send outside of the organization (banks, insurance companies, etc.) is labeled "Unaudited". I have a good idea of what I am and am not allowed to do in my position in the company. I don't sign on the bank accounts (especially payroll) because I do our internal audits and bank recs. I don't make any assurances that the work I have done can be relied upon for credit or lending decisions. In fact I always state that the financial statements are not to be relied upon for any reason and I reserve the right to revise or correct them as needed without notification. Hey, maybe I could be a CPA. I think this is what the 4 page engagement letter they send me every year says. Tom Modesto, CA

One of the *nastiest* tax seasons in recent memory, and we lived through it. Congratulations, all. Now we can start working on amended returns, non-filers, and get ready for the non-filers who outed themselves to the IRS with the EIP payment returns. Whimper.

And don't forget to tell mom she needs to report this on her taxes!

But that would be an issue for the mother. The intent is to pay her. If her mother does not include that income on her personal return, that is not my clients problem. Right? Obviously, my client would discuss this and maker her aware of her responsibilities, but the rest is on the mother.