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Terry D EA

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  1. Thanks for the Tax Advisor Article. After much research, I don't really see an advantage to changing the tax year. If anything at all is the S-Corp making a tax payment that would as you say, defer the taxes for the client. That in and of itself, may eliminate late payment penalties but wouldn't help on the S-Corp end of getting the financials done in a timely manner. I guess it is best to wait and see what affect their proposed changes will have. Thanks to all who responded.
  2. >>>>>>Tell them that they either need to pay you to keep the books up to date, or hire a third-party bookkeeper that you can train and work with. <<<<<< I agree totally and have already been down this road. They are using QB Enterprise, which I would like to see them get rid of but, that's not happening. I'm taking the "I told you so" attitude. Just trying to see if there is any way to help them that is not a crutch.
  3. ILLMAS, check out pub 4681. I put a link here if you want to use it. Seems that page 4 & 6 may be of help to you. 2021 Publication 4681 (irs.gov)
  4. I have a single shareholder S-Corp that each year cannot get the books done on time to get me the P&L and balance sheets. Thus, extensions are filed each year, and then the shareholder extension gets filed as well. They usually don't want to pay any estimated taxes and do not pay anything at all with the extension which results in penalties and interest. In some years, due to large income, the penalties are significant. Yes, I have been trying to get them to do things differently without much success. it took a number of years of paying late filing penalties to get the S-Corp done in a timely manner whether extension or not. 2K each year was beginning to hurt so now the S-Corp usually files by Sept 15th. All's well in the neighborhood except the individual shareholder return. So, I am looking at the possibility of changing tax years. If this S-Corp elects, let's say June 30th as a fiscal tax year. how does this change affect the shareholder? Does his tax year change as well, is there a process to go thru requiring IRS approval? Looking at form 1128, understanding the short year; etc, nothing says how the shareholder's tax year is affected. During a conversation this morning with the shareholder, I tried my best to stress the importance of getting me the S-Corp financials as early as possible and to make it a priority. Does this sound like a reasonable idea or not?
  5. Found this below. My thinking was exactly as yours but I thought there were either limits or ordering rules "Yes, but there are limits. Losses on your investments are first used to offset capital gains of the same type. So, short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain."
  6. No, I have not. After discussing this, the bonus is solely based on reaching on the job goals and profit goals.
  7. Yes, this is for 2021 and thanks for verifying my thinking.
  8. S-Corp contractor paid supervisors a bonus for meeting production goals. No problem so far. The S-Corp paid the bonus as a 1099NEC. This should have been included in each supervisor's W-2. When I questioned the S-Corp, they said they knew this and made each of supervisor's aware that moving forward, any bonus pay would be included in their respective W-2 forms. Isn't the employer required to do catch up/backup with holdings and adjust their payroll liabilities and pay the employer's portion of the payroll taxes? My thoughts are yes. Opinions please.
  9. My client passed away Aug 31, 2021. A revocable trust was created in 2015. My client never informed me they had a trust. While I know this trust is considered a Grantor Trust and does not pay any tax. I have asked the fiduciary/trustee if an EIN was applied for. If it wasn't, it appears things become fairly simple. I can only assume (dangerous thing) that the Option 1 filing method has been used each year. If an EIN was not applied for or granted for the trust, does the trust just automatically terminate and no filing is required? I know the trust itself becomes irrevocable upon death. Should the trustee apply for an EIN, file a final zero 1041? I don't have any information regarding which assets are or were placed in the trust or even if it matters at this point. I did tell the trustee(s) to contact the law office that created the trust for their guidance. I am just now getting the documentation to file the decedent's personal return which no extension was filed. The trustee(s) contacted me in January, and we spoke regarding what needed to be done but I heard nothing and assumed they had taken care of this through other means. Of course, I was wrong. I don't think any of this will have an impact on the decedent's final return. Any advice is appreciated.
  10. Ya know, I try to do this but not boast about it. For the longest time, I did not increase prices and when I did, no one complained. I have taken on a couple of resolution cases and no complaints about the retainer. This upcoming season will be one where prices will increase maybe by 10% across the board. Like all of us, everything has increased. Drake increased the software this year and with the basic budget for basic office needs, to start preparing returns for 2022, I'm close to 5K to open the door. If I have a client that wants to whine about my fees, or a few dollars increase they can move on.
  11. I have been looking to see the status of the proposal to raise the EA renewal fee from $67.00 to $140.00. I checked the docket on the Federal Register and from what I see, it is assumed there has not been a final ruling. If this proposal becomes final, the cost to maintain the EA license, like everything else, will have gone up significantly. I enrolled in the third year of the renewal cycle for my SS# and have to renew by January 2023. $140.00 renewal $35.00 PTIN On the above two fees, I am wondering what do we really get for $175.00? Just the right to practice and be held accountable? $600.00 (Average 100 hours CE Package give or take) Yes, you have to stay updated and it seems it is never ending. I wonder how folks that are seasonal do this without performing some type of work or study all year. My practice started years ago with the idea to work four months in my retirement years and cruise on the beach the rest. That idea was a great plan but, I am now year round and try to only work from 9 till 1 each day M-F. $386.00 NAEA membership & Two states (This is me personally, while some find this as not helpful, I have found it to be very useful for now. I do like their discussion board, but the ATX Community has been the best for me for over 20 years. Other resources such as verifyle and others from the NAEA are useful as well) So, for me, $1,161.00 is the magic number to maintain my EA status. I'm not complaining but I sure hope my clients are appreciative of the additional cost that will cause my fees to increase.
  12. Thanks Judy for doing this. I didn't know if it would be a good thing or not. Quite a bit to read but not tremendously bad either.
  13. The link from the IRS below may help. New rules and limitations for depreciation and expensing under the Tax Cuts and Jobs Act | Internal Revenue Service (irs.gov)
  14. Here is a link to an article that I received this morning. I know some don't like to click on links but I don't know any other way to do this. The article does answer a lot of questions. The Biden-Harris Administration's Student Debt Relief Plan Explained (studentaid.gov)
  15. FYI- I have called on behalf of a client and they were very helpful at stopping the draft.
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