jklcpa

Yes, the returns will just be filed late. IRS MeF will accept the current and prior 2 years (2019, 2018, 2017) up through the date of shutdown that occurs sometime in mid- to late-November. When e-file reopens in Jan 2021, you will be able to file returns for 2020, 2019, and 2018 at that point.

Controllers are allowed to compile a set of financial statements for management's internal purposes, and is typically part of the job requirement to do so. To be clear, the statements Tom asked about are not being issued directly by him to any third parties. Company management would be handing them over to the company's outside CPA that has been hired to audit them. The outside CPA firm is the party that is "issuing" the audit report as part of the complete set of financial statements by doing a lot of work that gives reasonable assurance that the monetary amount and other disclosures fairly represents the position and results of operations of the company and are not materially misleading to the reader. Except for very large clients, I really wouldn't expect anyone other than the CPA firm, or in-house CPA or CMA, to write the notes to the financial statements, especially with the complexity of today's reporting requirements. Sounds too much like someone is passing the buck here, and yet the CPA firm will still be required to go through its disclosure checklist to verify that everything is adequately disclosed, and if something is missing, they'll still have to address it in communication with management to have it corrected. Tom, I agree with PapaJoe that you can start with updating from last year. Basically, that is what the CPA firms do to update from the prior year's statement, and then add or modify as needed. The problem with the CPA asking you to write them is that the auditing firm expects you to know what disclosures are required, and exactly what information on those subjects must be included, either in the financials themselves or in the notes.

OID in box 11 is reported as tax-exempt interest. Box 6 shows the amortization of premium for the year on those securities, and it would reduce the amount of the OID income reported. The broker can either report the OID income net of the amortization and would leave box 6 blank, or report both numbers and make the preparer reduce the OID income by the amortization. This doesn't affect the amounts in boxes 1 or 8. Those are reported as they appear on the 1099.

GAAP, partnership, audited financials. Knowing the specific industry may also be helpful if there are specific guides for it. Fwiw, I use only the guides from PPC (Practitioner Publishing Co) through Thomson Reuters. If looking at its products, I'd start with the guide called "Preparing Financial Statements" that goes through each major item on each statement and has a chapter on disclosures that includes summary and comprehensive checklists of required disclosures, either in the statements themselves or in the notes. The appendix to that chapter also has some illustrative notes. PPC also has a "Trends" volume that I believe is also included with this particular publication that has complete financials submitted by practitioners that includes the notes. The index to that guide allows the user to look up examples of individual notes by subject also. PPC guides are the only ones I've ever used, and I'm sure other publishers of reference materials will have something along similar lines, including WK/CCH, and the AICPA. PPC non-subscription products have a 30-day satisfaction guarantee. Those on recurring subscription have a different cancellation policy.

Not yet. It's always sometime in mid- to late November.

Firefox

Pretty sure that spousal IRA can only be claimed on a joint return.

No, you'll have to paper file. E-file current and prior 2 years.

This article has a discussion of S corp sales on the installment basis, and handling of the note in distribution depending on whether the S corp had, or didn't have, a plan of liquidation at sale. https://www.thetaxadviser.com/issues/2014/sep/tax-clinic-06.html

Yep, my FF setting is at 133% for all pages. Default on the colors and fonts though. I could still go down to 110 or 120% comfortably though.

There are differences between import/export and backup/restore. Using "import" to retrieve a file that was created from the "export" function does not include the e-filing information or things like the bank product information. Using "restore" to retrieve a return that had been created from the "backup" function does include the e-file and bank product information and some other data.

Maybe you've shut it off successfully because I see that Eric is the only one following this topic, and as far as I can tell, you are not one of the followers of the entire General Chat forum. There is one follower there that I can't see, so if that is you, then unfollow there too. If that doesn't work, unfollow, log out, delete your cookies and cache, and log back in to see if that works.

Thanks Eric. I'm going to try them both out. I like the smaller header but the crowded listing of posts not so much. I'll probably go with the default and scroll away. Nice to have both choices!

You're welcome. Glad it helped, if only in some small way.

This is covered in the instructions to form 8949, line 1 where it says that listing individually is the requirement unless the taxpayer meets the exceptions to that reporting. A transaction with a wash should be reported separately. Most of the time our members do not provide references or cites, especially for answers that are found in the forms' instructions, so if that is what you expect from posters here you may be disappointed.

I consolidated the four pinned topics here in General Chat into links within one pinned post at the top that will allow more current posts to appear on your screen.

In general, if the sale of the C corp stock is a taxable transaction then the buyer retains the tax attributes of NOLs and tax credits, BUT iirc, there are some limitations like the acquired business can't be discontinued within a certain time period, and the NOL can only be applied to the future profits made within the acquired company and can't be used to offset profits of other activities of the purchasing company. Please do some additional research to check this if this is something you would consider suggesting to your client. Abby, are you thinking of the percentage the IRS wants to see for continuity in a merger set up as a tax-free reorganization?

Sorry you haven't had any response yet. If it's not a known issue then maybe it's something simple like a checkbox. Have you verified that ATX is checking the nonresident box on both the MI-1040 and the Schedule NR? - or- If it is the MD tax on a passthrough entity that MI is allowing as a credit, maybe you could enter that activity to flow only to the Federal and MD returns because ATX should report this on DE anyway since DE piggybacks the Federal, but check for proper inclusion if you try this.

Under the IRS' "People First Initiative" payments were suspended from April 1st through July 15th for those with existing agreements, so it may not be as bad as you think. Has your client received any sort of notice at all? https://www.irs.gov/newsroom/have-an-installment-agreement-or-payment-plan-payments-should-resume-starting-july-15 https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program Has the client set up an online user account? He/she can check the balance, set up the direct debit, revise an existing agreement, etc.... Here's a link to another IRS page in Q&A format with a lot of links that may be helpful too: https://www.irs.gov/payments/payment-plans-installment-agreements

Oh, maybe this week it's because I moved a topic to the Drake forum, or because every new member seems to revive a topic many years old. I thought that issued had been resolved a while back. Guess not.

I'll send Eric a note. I had trouble with the emojis today. The box was slow to come up but would not let me search within them.

I know I won't remember it and took a screenshot of how to do it. Now I will have to remember to look for this helpful advice on my tablet. I stored something about converting an organizer to fillable fields using some pdf function or through Word, but I couldn't find that either and finally gave up. That's what happens when I need something once a year and think I'll remember how.

Thank you, Jim. I did not know that, and it will be very helpful. Most of the time I want broader searches, but if one does want to search within IRS, this would be better than using the search feature on the IRS site itself.

EINs are never reused or cancelled, but the IRS can and does "close" EINs. Taxpayer can request this. https://www.irs.gov/businesses/small-businesses-self-employed/canceling-an-ein-closing-your-account