jklcpa

No, according to the OP's initial post that I just reread, the client changed payroll processors sometime during the 1st quarter, so the old processor's filing could not be correct and was instructed not to file it. OP also said she has already handled that part of the problem by calling the IRS, and the IRS finally agreed to ignore the first processor's 941 filing for the (partial) 1st quarter and accepted the 2nd processor's 941 for that quarter. My next post immediately below quotes the IRS instructions of how the W-2 issue should be corrected (not voided), as cbslee pointed out.

The former payroll company should take care of this by voiding the 1st quarter 941 that was filed and by voiding any w-2s it issued in error.

Yes, he must take the RMD for 2021 to correct the issue, and he must also make sure to take the RMD for this year too. I'd suggest you keep copies of all documentation now while he has so that if IRS asks for it, you don't have a mad scramble to find it later on. For what it's worth, I've never had one of these questioned either. I don't know why the broker should be confused. All they have to do is make the corrective distribution for 2021 now. They have nothing to do with the penalty at all.

Penalty is 50% of the shortfall of RMD not taken. Correct the shortfall ASAP before the return is filed. See the instructions for part IX of form 5329 "Exceptions to the Penalty and how to fill out lines 52-55 to request the waiver. I've never had the penalty assessed for anyone that made the correction as soon as this was discovered and before the return was filed. By filling in these lines per the instructions, the software will not assess or include the penalty with the return.

Yep, my first ones were during high school too. Not a big deal since it was only 2 sheets of paper per year for many of the early years - one for federal, one for state. I can't claim super-nerd status as I don't have any spreadsheets.

I'm confused. Did you already send more money or forms after the original filing, and you now believe that you've paid the penalty twice?

Did you prepare and efile this return through ATX? If so, why not look at the forms that were actually transmitted. As I recall, ATX does show that information. ETA: Now that I've merged the two topics, I see that you paper-filed this return so that ATX will not have an e-file record of the forms.

Nah, not really intentional, just an old file cabinet that got moved around and never emptied out. I have an old desk with stuff from my youth too. I found a very funny short story that I wrote at about age 8 entitled "The Story of My Life" and also some things and writings from my father too. Now those things are very precious and glad I still have them.

Good thing I still have all my own tax returns ever filed and supporting documents going back to the '70s and and also for husband and I starting with '92.

Have you determined that this is a real inquiry? Why would SSA wait 30 years to contact the person, and was there something extraordinary about that year's earnings compared to the others?

This makes me really angry, because aside from the potential harm to the public, the programs and monitoring that came about because of previous ethical violations actually costs me a lot of money in peer review fees and annual enrollment fee into the program that administers those reviews.

You didn't say what entirely makes up the $21K of AGI but will assume since you used "AGI" and have input the data, that the $21K includes only the taxable portion of their social security. As far as the Sch D/8949 activity, the determination of gross income for the filing requirement includes capital gains but not capital losses, so your client may still have a filing requirement if they have losses offsetting the gains in your calculation AGI. You must use only the gains in the filing requirement calculation. There is a whole list of items in Chart C of the 1040 instructions that lists other situations that would require filing. Probably the most common for older retired folks are if they had any distributions from an HSA, or Archer or Medicare MSA, even if those were used for qualified medical bills that has zero taxable effect. Obviously this doesn't consider the state requirements either, so you'll have to check that also.

Have you tried entering the IRC section in the box just above the serial number area? Or possibly there is a different entry required for "method" and "convention"? Sorry, no longer use ATX so just guessing it is something simple on that screen.

The person that paid $1,500 back in 2010 has died and family member who inherited the basket is the donor. Basis in the basket is FMV at DOD.

Thank you. Is there a specific place to check POAs that are recorded, or do I just try to get the transcript again?

I'd enter this on the balance sheet in the Other Asset section with the caption "Asset Not Yet In Service". Then in 2022, make a journal entry to debit the fixed asset account, credit the Other Asset to remove it, and put it on the depreciation schedule.

If parent was on good terms with the former preparer, perhaps that person would be willing to share the depreciation schedule with the child who inherited the business. I would provide that data if child could provide documentation that he or she was executor and the new owner of the c corp.

I went through e-services today and uploaded POAs for H&W as pdfs that were hand-signed in person and received email confirmation. With this being first come first serve processing by IRS, anyone have experience with the wait time I should expect? Do I recall correctly that it could be 6 weeks or more? Will I receive notification when these are finally recorded in the system? ETA - these cover 2018 - 2020, and I did previously call in to discuss a 2018 tax notice with an agent and faxed them directly while on that call, but they are not in the system. Does the agent not record those through CAF but merely verifies that the representative has authority for that call?

Agree with the others to get back year returns and check those. Also check the books used to prepare the returns: trial balance may have separate categories for types of assets (autos, furn & fixt, leasehold improvements, etc) and look for details in the general ledger, if you are able to do so. Tom made a good point about listed assets where this could have been their automobiles. Maybe that's why he/she has no idea.

I see, and thank you for explaining. Sorry I don't use ATX any more to see the actual input, but perhaps it isn't sophisticated enough to automatically transfer the unused PALs from the old to new property so that you may have to change the numbers manually. Possibly let the program calculate the total allowed PAL for the year, if any, leaving the relinquished property on for the 2021 tax year, and then delete it at the rollover on the 2022 return and combine the carryover of PALs from the relinquished property into the newly acquired one. That wouldn't allow the detailed worksheets to be correct, but the overall totals to 8582 and what it calculates going forward should be, I think. Has ATX support given you any guidance at all?

Yes, that's true, and ALL of that should happen on the S corp return. Are you preparing that also, and is that where your question is (?), because initially you mentioned the form 8582 and the answer your initially received mentioned Sch E and 8582 which would indicate that the discussion revolves around the individual return. At the individual level, the shareholder receives a K-1 with one figure for the rental loss that will be passive in most cases. At the individual level, the client must pass three limitations: basis limitation, at-risk limitation, and then finally the passive activity limitation on form 8582. BUT, on the individual return there isn't any such reporting on a property-by-property basis of those properties held in the S corp.

In that case, there should be nothing to change as far as the PALs for specific properties on the individual return. That happens at the s corp level and the indiv shareholder receives the K-1.

How could there be anything to transfer from one property to another on the individual return if the exchange took place all within one S corp. Is the new property acquired in the same S corp as the property given up, or just what piece of this puzzle are we missing?

I thought that was usually withheld from future monthly SSA payments until fully repaid, so in other words, it is automatically handled prospectively by SSA and the future reduced net SSA amount would be reported in for that tax year.

Found these: on IRS site from 2020: https://www.irs.gov/newsroom/proposed-regulations-address-direct-primary-care-arrangements-and-health-care-sharing-ministry-memberships and this article from JoA in 2020: https://www.journalofaccountancy.com/news/2020/jun/irs-rules-direct-primary-care-arrangements-health-care-sharing-ministries.html a couple of more: article by a CPA in Jan 2021 on the subject: https://bradyware.com/proposed-changes-hcsmp/ and this blog-thing-article written this year, more geared toward employers and HR depts that may be helpful?: https://intercom.help/take-command-health/en/articles/4399639-update-on-sharing-plans-and-qsehra-for-2022 Maybe some of that will be helpful?