Crank

Just saw on ATX's support site that states that it runs "Best" on Win 11 standalone

I spoke to support last week and asked about upgrading to Windows 11 for 2023.  Their response was "not yet".  I didn't even ask about prior years working.

ATX estimated release date 2/28/22.  Sheesh!

Does anyone have this form yet? 

ATX still says pending agency final approval

Deceased

I haven't done a final tax return is a while and I wanted to ask the group some questions.  There is an executor and it looks like there will be a balance due.

1. Do I need to file Form 56 before efiing the return?

2. Which address do I use on the final return? Deceased or Executor?  Deceased's address may no longer be valid

when filing.

Usually their bill is slightly higher plus the cost of the extension if needed.

I especially take pleasure in charging the extension fees and then completing the return the day after for those special types of clients.

Unbelievable!

The daughter of a close friend has been trying unsuccessfully to collect unemployment since the beginning of 2021 and I believe she deserves it.

On the other hand I have had two clients that have been and continue to collect unemployment since 2020.  One is a retired 76 yr old that hasn't worked in almost 20 years.  The other is a legally blind 52 year old on social security disability that hasn't worked in over 30 years.

How do these people collect unemployment?

Also, are tax preparers under any obligation to report possible unemployment fraud?

I didnt think of that.  I will give it a try.  Thank you.

Client's father passed away in 2020.  Due to family conflict none of the 2020 tax documents (1099s etc) are available.  I contacted the 2019 preparer and he didn't keep copies of the 2019 docs so we are unable to call and request new 2020 docs.

Any advice on how to obtain 2020 docs is greatly appreciated.  Thank you.

36 minutes ago, jklcpa said:

Good article from The Tax Advisor specifically about when the S corp comes into existence. 
"An S corporation's initial tax year does not begin until the earliest to occur of the following three events: the corporation has shareholders, acquires assets, or begins doing business. The term "month" is defined as the period starting on the day within the calendar month that is numerically equal to the first day of the tax year and ending on the day before the same numerical day in the next calendar month (Regs. Sec. 1.1362-6(a)(2)(ii)(C)). Since most newly formed corporations do not begin their first tax year on the first day of a calendar month, the election deadline may not fall on the 15th of a given month."    "

"Practitioners will generally find that the earliest of these three dates is triggered by the legal incorporation process (the filing or registration date of the articles of incorporation with the secretary of state). At this point, even though the shares of stock may not actually have been issued, the corporation may be deemed to have shareholders and, therefore, be considered to have satisfied one of the three tests."

There's much more in the article and worth reading.

The 3/15/20 deadline assumes that the business was for a full year, so obviously a short year return will have had a different deadline.  I am not entirely sure this business would qualify for the late election.  Was there reasonable cause for missing the date to elect?  Worth a try?  Why do the owners want to be an S corp instead of a partnership?

Thanks for the reply.

I don't do many business returns outside of sole proprietorships so my knowledge is limited but I believe the reason for the S corp is the single passthrough taxation vs the possible double taxation of the partnership.  

Id love clarification on this issue.

Not sure what you mean about open for business.  Cant we claim the losses without revenue?  They have a website up and running just no sales have happened yet.

I read that the S corp election must be done no later than 2.5 months after the beginning of the tax year.  I interpreted this to be 3/15/20 for TY2020.  However I believe you can "late elect" and have it applicable to TY2020 under certain circumstances.

Client formed a two member LLC on 1/15/20, has no revenue and about $3k in expenses for 2020 and wants to be taxed as an S corp.   

EIN doc says to file 1065. I assumed I would file an 1120S along with a 2553 to make the S corp election.

First time doing this and any help is appreciated.  Thanks

I completely understand everyone's frustration and I'm with you.  I started doing this as a side business over 25 years ago when I began getting referrals from family and friends.  Over the past few years I've gotten rid of all non1040 clients.  Sixty is right around the corner and I keep debating will each year be my last.   My worsening health since 2014 has only exacerbated the frustration.  As someone who has been health conscious my entire life it amazes me how many people lead unhealthy life styles without significant complications.

Thanks for the info!  i have no recollection of that case at all.  

i don't believe that there was a fee for the last 2-3 years.  For few years prior to that i think it was $50.   They must have reinstituted it to make up for all the stimulus costs  sheesh!

Pennsylvania has now decided to let income tax preparation proceed.  Its been a crazy day

https://www.mcall.com/coronavirus/mc-nws-coronavirus-essential-business-list-revised-20200320-qmw7cpxshrhcbmndxf2gqkja5e-story.html

Im self employed and in Pennsylvania and I believe i will have to stop.

Governor Wolf of Pennsylvania has ordered ALL non-life sustaining business to close or face enforcement action.  Not surprisingly, this includes income tax preparation.

https://www.mcall.com/coronavirus/mc-nws-pa-wolf-mandatory-shutdown-20200319-jgrxxz474vhfvcdgn34unitw4m-story.html

Thank you!

Client received a letter from Pennsylvania claiming an underpayment penalty was due for 2018.  This was the result of a $20,000+ year-end capital gains distribution from a mutual fund.

Is this correct since there is no way to anticipate something like this as you would with earned income.  This is the first time ive seen anything like this.  Cant find anything in the Pa regs concerning this either.

Staples bother me but not as much as:

1. People who dont bother to open their mail.

2. Getting documents all crumpled up in a bag.

Just venting but who the heck thought up this question  AND who approved it!

"If someone can claim you as a dependent, do not check the box." 

Woulldnt it have been much clearer to just have a  box to check if you CAN be claimed as a dependent on someone else's return?

4 hours ago, Margaret CPA in OH said:

How do you all answer this question when the taxpayer has been in your office ("taxpayer physically present") but you prepared the return later ("remotely"?) when they weren't there? The question isn't worded well in ATX.  Just curious...

If they are at my office, regardless of if I see them, then I check "physically present".  The only ones I check "remote" for are the clients where everything is handled by email.

Seeing a significant amount of late filers this year.  Oh well.  I just charge a fee for filing extensions and then they get annoyed that their taxes are completed a few days after 4/15.  Cant pile everyone in by 4/15 is what I tell them.  Get here earlier next year.  But they dont listen.