jklcpa

quoted to move the remainder of C.Frog's post to its own topic.

Because he died in 2021 and this was a 2022 distribution reported under his SSN on the 2022 1099R.

And that is why I qualified and limited my answer to the portion of Burke's response where he said 1099R should be corrected to reflect the name and SSN of the spouse instead of the deceased.

See Burke's answer. Corrected 1099R should be issued.

At incorporation the attorney didn't issue any shares? (I know, symbolic, not actually required.) Nothing in the first year's minutes showing director's actions or approvals, no stock record book? Are you sure that you or client requested everything related to the incorporation? What about the state filing at incorporation or the annual filing to keep the corporation active and in good standing? Could anything be gleaned from there to back up the wife's claim? Sorry, just reaching and trying to help. Sorry you are having such a run of difficulties with clients lately.

Agree with mcbreck's response. I'd document the dates, times, conversations, and advice given.

Boy howdy, you got that right! I hear it all the time from a TX friend.

It goes on 4797, pg 2, part 3. If the total depreciation allowed or allowable is more than the $11K gain, then the entire amount should be ordinary gain flowing to 4797, page 1, part 2 and from there to 1120S, pg1, line 4.

This isn't a 3115 change because it doesn't affect more than the most recent 2 tax years. Amending is the appropriate method to correct this.

I simply googled only "OH-SD100-010" and was lucky. It was the first selection of the resulting list and happened to say it was error codes from the official OH state tax dept web address.

Did he eventually have enough in the bank account for the $1,500 that supposedly went toward 2021? If he did, then eventually the IRS should refund that money, but who knows when. Then again, it is possible that IRS will keep the money since he is getting notices. Maybe it is worth a call to the PPL to ask an agent to reclassify that payment to the proper tax year. Client may be out of luck on that though.

That is bizarre. I googled and found an older pdf for years 2018-2020 with lots of the OH errors, and that one said only "the following school district returns were attached to this transmission" and a column with the following "severity" codes of R, S, and A (reject, stop, or alert). It's on page 19 of this link (should hopefully bring up the pdf): https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjTjfiSkrr_AhUyjokEHXwCDJ0QFnoECB0QAQ&url=https%3A%2F%2Ftax.ohio.gov%2Fstatic%2Fohio_individual%2FIndividual%20Income%20MeF%202020%20Error%20Codes%20-%20Public%20Copy.pdf&usg=AOvVaw3z4ihqB2Nx3t2SqkThnJZY

I'm talking about her 2022 original documentation.

You are not allowed to give those records to anyone except the soon-to-be former client without her written consent to release the information. Personally, I wouldn't do that even with permission because that opens yourself up to be a responsible party for those documents being conveyed to her next preparer and this (missing docs) is already her complaint against you. Why would you give her another opportunity to blame you again if there is something SHE has missed giving you in what you have for 2022.

Age 59 1/2 is 6 months after the taxpayer attains age 59. It was covered in this topic a few years ago. From the top of that topic, scroll down to see my first answer that has a link too.

It also looks like the payment had to be in by 4/15, so those S corps and partnerships now on extension would have had to pay this in order to claim it on the form in question.

I can only speak about my state's requirements for formation, and corporations and LLCs incorporated here in DE must designate a registered agent, either themselves or hire an attorney or other agency that represents/handles the legal matters on behalf of these entities. These attorneys or agencies file the annual franchise tax with the state SOS here that keeps the companies in good standing and this new FinCen reporting seems to be similar to me and should be handled by either these corporate clients or their registered agents, not by me. I'm with Catherine, and I've submitted 8938s for several years for exactly one client in my entire career. He also needed FBAR filings that he did himself as I wasn't going to be responsible for that or having to sign up for yet another government agency's filing access for only one client. He moved recently and changed to a more local preparer, so I no longer have that worry anyway. There are the separate agencies that we deal with such as the SSA for filing W-2s that are still tax forms, or some of us utilizing the directly filing of 1099s through the IRS FIRE system, but those are all tax prep-related forms being filed. As I stated above, I think this is beyond the scope of tax preparation, and this is one more reason that I'm closer to the end of my career than the beginning of it.

Thanks @Lion EA. I can now see why this is being put into effect and that this may be put on tax preparers to file these reports. Not to derail this topic, but I will say though that as tax preparers, we should not be "forming companies with the Sec of State for [your] clients" as you said. At least in my state, that would be considered practicing law and also most likely would not be covered under tax preparers' typical malpractice policies. If anyone here is doing this, you may want to check with your insurance carrier about your current risk exposure.

Thanks for the link to the bill. It passed the House and latest action in the Senate was in the fall of 2019. I'm not going to worry until it passes, at least not at this time.

Not that it means anything, but I haven't heard about this. Do you have something authoritative to share on this? The definition for responsible party is here at this IRS page, and is currently also found in the instructions to form SS-4.

Mine won't either. I believe it's an internal hardware issue.

Thank you.all. I did tell her to talk to the bank to see if the deposit could be rerouted. I haven't heard back if that is possible.

The passive activity loss in the current year or the suspended passive losses from prior years CAN offset the gain on sale if it comes from a passive activity. It must be a complete disposition that creates that gain, and it should all be handled through form 8582. Sorry I can't help with your input as you know I do not use ATX any more.

Affects PA state return only. Client called and said her checking account was hacked into and recommended opening a new account to change account number. Anyone know if it is possible to change the account for DD after the fact, or how long PA is taking to issue refunds? Returns were filed on 4/11, so not long ago.

Expenses for repairs and renovations prior to being placed in service must be capitalized and depreciated. IRS Reg. § 1.263(a)-2(d)(1)). Repair expenses after being placed in service must follow the repair regs, and Abby Normal's second link takes you to the IRS page as a starting point. I agree with Margaret that you should segregate as much as possible because there may be some items may have shorter lives (such as kitchen appliances) vs improvements or items considered part of the building that are depreciated over longer lives.