jklcpa

Terry, even though we know the rules, we are still required to prepare the return with the transactions and fact pattern that occurred. If there was no salary and only draws, then that is the return to file whether or not it violates "reasonable compensation." In these cases, what we should try to do is educate the client and correct these problems going forward, or choose to terminate the relationship. As someone already said above, report what actually happened, not what we wish had happened. That goes for CPAs, EAs, and any other paid preparer for that matter.

I'm so sorry for your loss. No matter how long they are with us, our pets leave us much too soon.

The person you are addressing has not revisited this site since the post was made more than 14 months ago. I approved your post, but I doubt you'll receive a reply.

Maybe, or you could just as easily get an agent that told me this years ago: "It only proves that an envelope was mailed and received, not its contents."

Are there links or only a mention of logging into your official account? I don't like this because people may receive similar looking scam emails and could innocently go to a website ending in .com or .net instead of the official .gov site.

Boiled down from the article: The taxpayer's check goes to a lockbox of IRS-contracted banks that converts it to an ACH payment by means of electronic image and data file. IRS proper doesn’t receive the paper tax returns or the payment checks. The taxpayer's bank also settles electronically using only routing and account numbers, so the taxpayer's bank never receives a digital or physical copy of the check. There is no canceled check to use as evidence.

None of the loans mentioned would create debt basis for an s corp shareholder. Debt basis comes from the shareholder loaning money to the s corp.

Another excellent article on the subject with a discussion of rules for those that also holdings as limited partners where rental income from the limited partnerships are less than 10% of the total. https://www.thetaxadviser.com/issues/2017/mar/navigating-real-estate-professional-rules.html#:~:text=The election may be made,it in a subsequent year. Within the article, use Crtl-F to find "limited" and you will see this paragraph: This article and the one posted by cbslee have the code references for the rules mentioned within each article.

If some or all of those loans created debt basis, and if that basis is less than the amount owed... then the repayment of debt during the year will be cap gain if the debt is evidenced in writing. If not formalized, then the resulting taxable amount would be ordinary income. Could that be what is happening?

No, it should start sometime later this month. This was approved on Sept 25th and the effective date is Oct 19, 2023. Right now the PTIN renewal page says it is still processing for 2023 new apps and renewals. I got this info from the National Archives Daily Journal of the Federal Register here: https://www.federalregister.gov/documents/2023/10/04/2023-22103/preparer-tax-identification-number-ptin-user-fee-update

see sec 179(b) on this page and then more specifically further down same page at 179(b)(6)A) where it says : and then be sure to see this page for sec 1.179-2(b)(7) under the heading "Component members of a controlled group" about allocating among the members and the statement needed to be attached to the return https://www.law.cornell.edu/cfr/text/26/1.179-2

Not necessarily. Ordering rules come into play in calculating shareholder s corp basis to determine if any loss is allowed. I agree with cbslee that we need information about distributions.

Website is updated for current year including registration. Use link in above post.

https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contributions-quid-pro-quo-contributions https://www.nolo.com/legal-update/irs-changes-thank-you-gift-rules-35445.html

I never suggested that you don't. What I said was:

Lion, I do know that about the credits and logo. It's great to maximize credits for the money expended, but maybe some other readers here may want or need to expand knowledge in areas that may or may not involve earning the credits in order to better serve clients or for their own benefit. Schirallicpa had asked for courses, and as a CPA she would be able to earn credits with either Surgent or Checkpoint. Both companies have courses on the subject.

Surgent's detailed course descriptions include a breakdown of the potential credits for CPAs and EAs who will recognize those (NASBA, IRS...) Fwiw, I've taken the SS course by Bob Lickwar and found it helpful and informative but certainly not enough for me to want to create various complex scenarios for my clients.

Is this more of a substance over form though? Individual owning the vacation points receives nothing in the transaction. Church has no guarantee of payment but indirectly benefits by the possibility of increase in pledges. It seems to me that this transaction merely sidesteps the individual's donation to the church of the item being raffled. ETA - OH gaming is regulated by state's AG. Here's the portion about raffles.

The e-file system still operates, so file as much electronically as possible. Postmarks for returns mailed should be honored as usual although possibly no one will be at IRS to process paper returns. Statutory deadlines still must be met, so plan for your clients to make all payments by normal due dates. IRS hasn't finalized the contingency plan yet, but I'd assume that there will be no one to issue refunds unless automated, and definitely assume no one will be there in customer service areas to answer the phones or answer questions. In prior shutdowns, somewhere around 88% of IRS employees were furloughed, and there was a catch up period when it reopened. In one year, the start of tax season was delayed because of the extended shutdown that occurred. https://www.journalofaccountancy.com/news/2023/sep/irs-developing-contingency-plan-as-government-shutdown-looms.html If you have audits with deadlines after the possible shutdown date, contact the auditor to be sure that the deadline for materials submission will be extended or meetings rescheduled. Although this page was updated this year, this IRS page has details related to the shutdown and reopening from the 2019 shutdown: https://www.irs.gov/newsroom/irs-activities-following-the-shutdown Donations to this site are appreciated any time of the year.

I'd call support. The only requirement should be met is by IRS, that the original was efiled. The program used to create the amendment shouldn't matter. I've done amended returns in my program for new clients, not ATX though.

cbslee is correct. 1099-misc, box 3, issued to the estate or beneficiary.

I use it infrequently and mine said it was UTD with v 16.0.5845.188 this morning, and when I clicked "help" and "about" it started the updater and is now at v 117.0.5938.89. I wonder if this is one of those times when multiple updates will be issued as additional weaknesses are identified, or if the corrections caused problems for enough users to be immediately addressed.

https://www.irs.gov/filing/time-you-can-claim-a-credit-or-refund

A quick google search took me to GA Dept of Revenue's page here: https://dor.georgia.gov/2020-hb-1302-tax-refund-faqs where the information you seek is covered in the FAQ. The state was supposed to issue it as a refund if applicable. No line exists on the return.

Residency and domicile are two different things. Your client is domiciled in the other state, but IL still considers him a resident. There are many factors that can be used to determine residency, and only one is where the TP lives or spends time. Basically, where has the TP planted his flag so to speak: driver's license, car registration and inspection, voter registration, church, doctors, banking, where the rest of his immediate family lives, where the kids attend school, mailing address, still maintains a home in that state, social club memberships, etc.