jklcpa

If you delete the Sch E input and keep only the fixed asset as unassigned, be sure to also keep track of any carryover amount of operating expenses that were disallowed due to personal use/income limitation that would be carrying forward.

Here's a farm tax course put on by OK State Univ. Registration opens in Sept for the courses listed in Nov 2023.  Cost and credit hours not listed that I can see.

https://extension.okstate.edu/programs/tax-schools-farm-and-business-tax-institutes/

Del Div of Rev in conjunction with IRS hosts an annual Fed/state joint tax conference that is very popular. Covers tax law changes for fed, DE and MD.  2022 was the 46th year, so I would assume this event will be held again this year.

Last year was at Rehoboth Beach convention center early Dec. Other years was at U of DE Newark, DE.

Fee was $50. Not a typo: FIFTY dollars!  EAs can earn a max of 6 credits.

Date not announced yet. Registration is usually a month or so ahead, needs to be in before Thanksgiving.

Link has lots of info including a link to last year's brochure.  https://revenue.delaware.gov/calendar/

How could I forget the CPE that I also need to keep up with?!  That was also more challenging to fit in this past season with the work and all of mom's needs taking priority.

I am not retired but have a lot of down time with work in the summer and fall now that many of my business clients have retired & sold out, and I haven't been able to grow my practice with the extraordinary time spent caring for mom over that last few years.  She ended up 2 months rehab starting in late March, and then about a month ago moved into a memory care assisted living home. I still don't have free time with now the hospital visits she's had and visiting her most days (hour drive round trip), and now I have her house to clean out and prepare to sell (70 years of "stuff", OMG!)

Other than that and the normal mundane tasks of cooking, cleaning, laundry, paying bills (ours, 2 businesses, & mom's), I don't have that much free time. I do pop in here each day, even if briefly at times. I try to stay awake to watch about an hour of TV with husband in the early evening, but I do sometimes doze off for a few minutes. When I do have some time again, it will be spent on hobbies such as knitting, spinning yarn, reading, biking, and I do walk at least an hour and anywhere from 3-5 miles most days, or maybe some fishing again. I haven't had a vacation in over 10 years, so maybe I'll get a chance for some travel at some point too, or enjoy going out on our bass boat since I haven't had time to fish either! I used to own, care for, and ride horses, but my back injuries put a halt to that and is now just a pleasant memory.

My most recent hobby that I really, REALLY enjoy and that is quite addictive is shooting sporting clays (aka clay pigeons to us older folks) with shotgun, and I've also learned to reload shells to complement that. I usually shoot in a group with my husband, brother, a friend, and sometimes other family. As the most novice of the group, I'm advancing along well and just bought my second, better quality gun that is off being customized to fit.  I've read that it is a fast growing and popular sport these days. Maybe something like that would interest you?

Eric, thank you for your quick response and on a holiday too!  You are awesome!

I was able to use it successfully on one occasion when the contact with IRS was made within 12 mos of filing.  Other than that one time, it seems rather pointless.

4 hours ago, Corduroy Frog said:

I'm happy the "cumulative" recordkeeping is gone from the 5695.  Having to keep up with cumulative expenditures going back to 2007 means that we were the only focus of the recordkeeping because clients would not (or could not) do it.  Not only that but we all have clients that are newer than 2007.

This new stuff means that everything is taken on a given year, and that's the end of it.

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

12 minutes ago, BulldogTom said:

Put it on his return, claim the withholding, and if the IRS questions, show them the 1099R

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

4 hours ago, cbslee said:

4 hours ago, jklcpa said:

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

Well that will be a challenge, especially getting the WH refunded

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.

3 minutes ago, schirallicpa said:

the corporate documents do not assign any shares to either of them??!!!????!!!  

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.

2 hours ago, BrewOne said:

Wonder what y'all would do in mc's situation--would you notify your insurer of a possible claim?

Agree with mcbreck's response.

I'd document the dates, times, conversations, and advice given.

13 hours ago, BulldogTom said:

A "you-all" is a trailer Californians haul their stuff to Texas and Florida in.

Y'all is how you spell and say the word .....  Look at me, a Texan for less than 2 years and schoolin' y'all on y'all's grammer.

Tom
Longview, TX

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

On 6/9/2023 at 1:02 PM, Terry D EA said:

sale should be reported on form 4797 correct? Or, should it go on the shareholder's K-1 form under long term gains?

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

10 minutes ago, Lion EA said:

She already picked up a physical folder of her 2021 returns, and I uploaded a set to FileShare and sent complete copies via eSign. No future set unless she pays her $800 fee to me! And, picks them up in person AND signs for them.

I'm talking about her 2022 original documentation.

9 hours ago, Medlin Software, Dennis said:

...and I would send something like a note agreeing to forward copies to their next preparer if desired, or include a sealed set of copies intended for their next preparer.

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. 

3 hours ago, BulldogTom said:

However, since this is an IRS reporting requirement, and we do IRS STUFF with our clients, I think they are going to want us to do the reporting for them, very much like our clients wanted us to do the FINCEN reporting.   Where do we draw the line in what we do for our clients?

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.