Evan S. Golar

Was the S Corp prepared under the accrual method of accounting where it could possibly have been included in the final return?

That's why it's continually referred to as "Tax Simplification"

This place is a forum for practitioners to discuss issues relevant to our occupation between ourselves. No one on this board can provide you sound advice until we know all the facts - I doubt any member here on on this board is your accountant. You need to deal with your accountant directly to resolve your issue.

What made the client come clean now?

This sort of engagement, knowing ahead of time that it would involve extensive amount of time should have had a signed engagement letter specifying compensation terms, so this dispute wouldn't come up after the fact.

How much does a car cost? The answer depends on the description of the car - new car, used car, manufacturer make, model, year, options included, 2 door, 4 door, etc. How much was the value of the assets? That should impact on the fee charged. How much would you charge a client for that billable time under normal conditions? What issues had to get resolved in completing the return - multiple sets of similar information, or highly technical tax issues involving discretion or decision making on specific special conditions that would/could cause IRS or state audit disputes?

Are you talking about a Traditional IRA or a ROTH IRA? I can't figure out (as I'm unfamiliar with PA tax law) why if a Traditional - he'd be taxed on it in PA - if it's a deduction FROM income unless PA doesn't provide for Traditional IRA deductions. ROTHs are only taxed on premature distributions - what's the age of the client? If a ROTH, then the 1099-R should be coded that the distribution came from a ROTH.

"In 2017 that no longer was the case, and she doesn't want to take the chance of him claiming the child as he had in the past." Robin - you DIDN'T state that in your original post - that issue she has to work out with the ex. STILL has nothing to do with itemizing. Skipping facts in a post to get an answer you're looking for is very deceiving.

Huh? If they are already divorced - the main consideration is "who do the children live with" for the exemptions. Has nothing to do with itemizing or not. If she's the custodial parent - she's the one who rightfully claims them, unless she signs Form 8332 releasing them to ex - which, based on your post - I doubt she'd do.

Not true - was able to 990-N e-file a calendar year 2017 return the other day - no problem, got e-file acceptance within a couple of hours.

What do practitioners like me to do who just received (01/20) the IRS authorization code via mail for e-services because I don't have a cell phone from a phone company - I'm a prepaid card user? Do I dare attempt to go in and try completing the application - or wait until the Federal government is up and running again?

Then wouldn't the dividend distribution to the father, in order to clean it out of the corporation, then require the father to gift tax return the vehicle in year transferred? But I'm also confused with the original post stating " the daughter always held it personally, and used it for business" and she paid the insurance on it.

NAEA recently launched its new version of the former WebBoard - it's quite different than what you may remember if you haven't been there lately - here's the link to login - you may need to use your username and password - webboard.naea.org/browse - and there's a group of tutorial information there to learn the new use.

yes

Some of you weren't even around when you had to pass the exam the old fashioned way - you had to learn it. There were no things as software programs to assist, or education programs to attend, no online programs - you had to read Pub 17 and (at that time) Pub 34, and Circular 230 and remember them. You had to know the formula for Gain on Sale of Personal Residence (Form 2119) which was a deferral of gain, Maximum Tax on Earned Income calculation, zero bracket amount, no Education credits - and it was a multiple choice hand written exam - no calculators were available.

I contacted the e-services # to assist in getting me through the registration process and found that once again IRS doesn't tell you the whole story upfront in encouraging you to register. Remember - I'm not a daily/weekly e-services user - so those of you who have already registered don't need to pay attention to this - (For once I must compliment IRS - I only had to wait 5 minutes) IRS requires use of Internet Explorer as opposed to Google Chrome or Mozilla Firefox When requiring a cell phone number to provide you the access information- IRS DOES NOT accept cell phones, even in your own name, that are PREPAID minutes - only cell phones paid to a telephone company like Sprint or Verizon or the variety of others. So be wary of these restrictions ahead of time for those of you who haven't attempted to take the plunge yet.

One of the things I have noticed over the years is that we as tax preparers are now required to enter data into a tax return that we were never officially trained to be experts on - health insurance, EICs, investigative fact checkers, dependent Social Security numbers, divorce issues, lifestyle changes, engagement letters, etc etc that all create a larger liability for reporting than we ever bargained for - and we become the first victims IRS and tax authorities look to should a return have an issue. And we have to rely on the reliability of third party information. Until we can control our clients' honesty and reliability of data we're given, these problems are never going to stop.

I was told by my software tech support (UltraTax) that the target date is November 20th.

How about the client who comes to you each year with totaled information on charitable donations as well as other itemized deductions - and in going through the details lumps cash and non-cash donations together as one amount. You question further, and it turns out he segregated the cash from the non-cash but the non-cash was less than the threshhold to require 8283. So I advised him for next year to itemize the non-cash on a listed schedule, and takes pictures of the items before he donates them. The next year he brought me a photo of stuffed black garbage bags, and reminded me that I told him "to take pictures of what was donated before giving it away".

Fund accounting is normally used when discussing the government accounting. It has other uses as well, but it's most commonly used when public tax money financial planning is involved. The discussion on this thread refers to the collection of funds for a specific purpose for a future event. When funds are collected in advance and the event for which the funds are collected takes place beyond the balance sheet date for financial reporting - it's considered a deferred liability and is properly reported in the liability section of the balance sheet distinguished by the timing of the event - whether short term (under a year), or long-term (over a year). The concept of "Restricted Net Assets" refers to income that has already been recognized by the entity for it's reporting period, where the income and its related costs are reported, but where there's been a restriction on the use of the money - ie - to be set aside for a future specific event or specific purpose. But the money has to be recorded as income on the profit and loss statement first, since its use has been predetermined. Then when the contingency occurs, then the monies spent are charged against the Restricted Net Asset account.

Yes - your reasoning is correct. Funds held for deposit to either be applied against a future payment or refunded are considered liabilities. Restricted Net Assets are funds that have been already recorded as income, but are designated for a specific purpose in the future.

If the organization wishes to become a tax exempt, then I suggest as BHoffman states apply for a 501(c)(7) status by filing Form 1024 and submit the appropriate application fee - Form 8918. However, donations to non 501(c)(3) entities (charities) don't qualify as charitable donations to donors.

How is it that you received the NYS approval prior to Federal? That sounds strange. Anyway - NYC does not recognize S Corp status, so ALL corporations - S or C - pay tax on the same form - even if S Corp is approved for Federal and NYS.

Before I complete the return, I would insist that the client contact Ameriprise and take the RMD for not only last year, but take it for 2017 as well. AND, request that Ameriprise automatically program for an RMD every year from now on so the client wouldn't have an excuse to overlook it. THEN once that's done, I would prepare the form (I forget - either 5329 or 8606) to request the 50% waiver and note in the explanation that the RMD for prior year was taken prior to submission of the tax return. I have that type issue with a long time client who is now age 85 and widowed. While she is coherent enough to discuss tax issues, I need to work through her granddaughter (an authorization has been given to me) to execute transactions for tax filings.

I have not - either. However, to protect your client's best interest regardless of whether purchaser or seller - it's always best to do so, because, should the IRS or state tax agency audit the tax return, the first place they'll look to is the 8594 form to see that it was filed, and if the tax treatment of the assets matches the 8594 breakdowns.