Pacun

"with intentional or reckless disregard for the facts" I would file with 0 or 1 dollar income. I would also inquire if they did some work and were paid cash. So, going to the quote above, who will determine if they intentionally disregarded the facts? We as preparers don't have the skills, knowledge, competence and drive to determine that, correct?

Does he have any tax liability? Since he has EIC QBI might make 0 difference on the return.

Schedule C, SE and fire him.

Welcome to the club. I never had a problem before and I start to wonder if my printer is getting old.

I find this forum very useful when I don't know what to do and I don't have time to research. Please consider donating so that Eric feels that we appreciate his efforts.

I noticed that fewer people are participating in this valuable forum and based on the overwhelming response to my post, it is understandable.

check the name and number. Spaces sometimes cause similar issues.

millions of people are ready to file on that date.

Good idea. I donated something today.

No, we are suggesting to efile a complete return as soon as possible. If it gets rejected, then mail it before April 15th so it supersedes anything filed previously. In addition, we have suggested to report it to authoriest/agencies.

I am sure that Eric will appreciate a donation from you. Let's use Fiat for now since we don't know if he will accept a whole bitcoin.

That happens to me when I have a large return and try to print. I wonder if others have that issue only when invoking the print subroutine. By the way, this didn't happen on Windows 10 but now that I have Windows 11, it happens.

I would say it is half of the original cost plus $200,000. Did she live in the house 2 out of the 5 years immediately before the sale? Is the profit more than $250K?

I agree... but the original poster, I believe, has that sorted out and the question was more about ATX taking out 100% of the profit.

I used to know how to enlarge a field so that on the dependents last name field I can enter Washington Ramirez and be visible on the 1040 form. Thank you in advance.

That's one of the features of crypto. They are decentralized and therefore they reside everywhere and nowhere. Technically you could have them in your pocket. I would think that they are like the million dollar pennies. You pull out all your change and look for the pennies that have extra value and go to the bank or where ever and cash those pennies. In this case you go to your computer, connect your hard wallet and your computer is like a branch of the bank and gives you the money. US citizens are not allowed to buy anything from some foreign exchanges such as binance.com. Binance.com had to open a "branch" called binance.us because of US regulations so I doubt FATCA will play any roll in crypto at the moment. Keep in mind that about only 5 percent of the population have crypto. Imagine when 90% of the population do. Our tax preparation will be changed and the sooner we embrace these changes, the better. In my list above, I forgot to mention NFTs and that's a whole new subject. From 1 to 10, I feel my confidence level is 1 when it comes to crypto and tax preparation... how about you?

If staking is income and therefore not listed on form 8949 given by Coinbase, then you will have to read all those reports to hand pick it. These are a few things that will trigger a taxable event when the event is over or a sale occurs: (too many things that even we, preparers, don't know, so don't expect the regular taxpayer will know). Staking Coins given for opening an account Coin Airdrop "sale" of ether to pay for gas at a gain o loss liquidity pool investment coins given for playing in block chain Coins given for being part of a DAO Profits from coin appreciation Coins Given for mining.

I would try to efile. If it goes through, then nothing has been filed. It is gets rejected, file police report, contact credit companies as suggested by Judy and mail the return to supersede the fake return and deal with situation with the IRS.

Not really. You used your fiat to purchase some luna and you staked it. By staking it, you earned $200 worth of Luna. Now you have more Luna. You sell everything for $11,000. You report earnings of $1,000.

you are right. I went back to read and it is for 2021. So, something is very odd. Are we sure that that letter comes from the IRS? My clients who e-filed at the very beginning of the season have not received their bill from the IRS. Knowing that most, if not all, of the fraudulent returns asks for refunds, the IRS either asks for more information or sends a letter and not a bill. Plus the IRS is not in a position of billing someone since they don't have the payroll information uploaded yet, unless they efiled a Schedule C with a lot of income. If a return was filed already, you have no choice but to send it my mail so, send it before April 15 and your return will supersede the other return and your issue should be soften.

We are both assuming as to when the letter was received.

Think of crypto as any other stock except that you don't have wash sales. So, since you don't expect a 1099 from Fidelity Investments for stock sales, don't expect one from crypto exchanges. I have noticed that if use $10,000 of fiat to purchase a coin and you stake that coin and hodl it, this could happen. Let's say that the coin your purchased was luna coin. For staking, you get $200 in Luna and let's say that Luna made to the moon and you sell everything for $11,000. You will enter the basis for $10,000 and proceeds for $11,000, you will report $1,000 short term. I doubt the IRS will say anything because you didn't split the profit as $200 and $800.

You should have efiled on January 24th so that the next return is rejected. If someone else is filing for 2021 tax year, they will be enjoying the refund while you are waiting for PIN.

I think in this case "child" means son or daughter: "Have a child, stepchild, or adopted child who qualifies as the taxpayer’s dependent for the year or would qualify as the taxpayer’s dependent except that he or she does not meet the gross income test, or does not meet the joint return test, or except that the taxpayer may be claimed as a dependent of another taxpayer." So, I would say your client doesn't qualify for QW.

Correct. He has pay Federal Taxes on CA and GA unemployment. He has to pay GA taxes for the GA unemployment received. CA unemployment is not taxable on GA or CA, unless he was a GA resident while receiving CA unemployment.