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  1. Pacun

    ATX 2022

    Let's say that you have 3 computers but each one is a stand alone computer. Your password is checked by each computer independently. In most cases, you only need to have the computer you are using on and everything will work. On a domain, there is a server, and the other computers are workstations. When you log on to the workstation, the server verifies your user name and password. In the case of ATX, you install the server software for ATX on the server and most likely that server holds the clients' data. If the server is down, you don't have access to your clients data. The advantage is that everybody in the office uses the same data repository and everybody has access to all the clients (if needed). You don't need a domain to run ATX server but the computers need to be connected to each other and be using the same IP subnet, but having a domain is better when you a few computers. Technically, you can install the server portion on laptop running windows 10/11 and that becomes, NOT the server for the domain, but the server for ATX. Then you can connect other desktops, laptops or servers to that laptop and they are the subordinates of the laptop running the ATX server software. Keep in mind that the laptop still reports to the domain server (controller). Please ignore this last paragraph if needed.
  2. yes, there were two distributions.... one for 45K and another for 99K. Client paid taxes and penalty on the 45K. the 99K was divided in 3 years and for 2020, 33K were re-invested (rolled over). IRS is wrong and I have seen the signed 8915-E form and sent a copy to the "auditor".
  3. client withdraw 99K due to covid in 2020. Wife (filing jointly) had her workplace shutdown in 2020. On March 26, 2021, client deposited back 33K to his plan as a rollover for year 2020. IRS letter states that $144K were distributed and only $45K were reported as income. As you know, those $99K could be divided 3 ways and reported 1/3 in 2020, 1/3 in 2021, 1/3 in 2022 AND the whole or portion amount could have been rolled over before April 15, 2023. (1040Xs might be needed if taxes paid and monies were rolled over) I have seen people on this forum citing the sessions of the code when replying to posts. If you have a letter or cites please share them since I am preparing a letter for the IRS. Client efiled and form 8915-E was added as pdf.
  4. I would efile as soon as possible and pay from my pocket any penalty. It happened to me once and by paying the penalty from my pocket, I never forget to efile anymore. After that event, every April fools day, I click on each return on return manager to see if efile was accepted. If I don't see the efile transmission, I check my paperwork. I also make a note on return manager if client picked up her/his papers and didn't file with us. I also make a note such as "2021 by mail" if forms were sent by mail. As you know, checking 1000 returns on return manager might take you an hour but it is a good investment. I think I use the field named "client #" to make my notes. Since this field is rolled over each year, I make sure I use the year that was paper filed so that I don't get confused in subsequent years. "Paper filed" will not cut it for me.
  5. Transportation is ordinary and necessary for that job. So, I would ask him how many miles he ran his car last year and then ask him to calculate what percentage was business vs personal and enter that information against schedule C. Most of the time, I prepare returns, I don't audit my clients. Since he is under EIC, he didn't make a lot of money. He might know how many houses he painted and how many days he works on each house (on average), he might know the distance to the house and then you can help him to recreate. Again, ordinary and necessary is key.
  6. The same way you do it when you prepare a regular return... by clicking on the form that needs to be added. If you are paper filing, you need to attach new forms that were not originally filed AND forms that have changed. If the customer efiled, you should be able to efile the amended return and as long as you fill out the new forms, they will be included in the efile file.
  7. So, if I want to partner with the owner of ABC, LLC and I invest $10K from my 21 month interest free credit card, ABC, LLC will get a 1099-K?
  8. Debt forgives from that law will not be taxable nor reportable.
  9. Pacun

    EIP3 Question

    Follow the dependent rules and file accordingly. Don't worry about the $1,400 because that's based on years and/or issues that don't have anything to do with the parents' return. Identity theft will not change the facts on 2021 parents' return either.
  10. Pacun


    Maybe spouse got it the previous year and was renewed semi automatically. Was her marital status changed in the last couple of years?
  11. MD and DC have reciprocal agreements so filing as a resident or non-resident will have the same effect. Just for fun, did the wife die a few weeks before him and lived in the house in MD? That could make him a MD resident, right?
  12. If the original 1040 was efiled, you are allowed to efile 1040X. I would create 1040 exactly as it was filed. Then I would select amend return, make the changes and create the efile file. Then efile.
  13. If you are a payroll processor, I think the client doesn't instruct you to NOT file a W2 if you processed paychecks for an individual. I think it is your responsibility to file those forms with the amounts you have on records.
  14. How much is the K-1 for? I would wait for the bill to come if not a lot.
  15. I think the new company needs to amend the first quarter. They are lucky to have access to January payroll information but they don't know if paychecks were issued because they didn't issue them. The old company correctly filed when they had records and shouldn't be bothered. Also, who will be more inclined to help? The payroll company that was fired or the payroll company that is still receiving payments from the employer?
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