Terry D EA

No it doesn't. Crypto is considered property. The most difficult part is determining value. One would think the value is either FMV or owner basis at time of purchase, but not that simple. Add in forks, splits and other items to the mix. So, if I donated a bitcoin that my basis is $3000.00 to a charitable organization, is it safe to include this amount on the 8283? Can't be a cash donation because it is property. Like you said, it doesn't get any easier.

Key filing season dates There are several important dates taxpayers should keep in mind for this year's filing season: January 13: IRS Free File opens January 17: Due date for tax year 2022 fourth quarter estimated tax payment. January 23: IRS begins 2023 tax season and starts accepting and processing individual 2022 tax returns. January 27: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify. April 18: National due date to file a 2022 tax return or request an extension and pay tax owed due to the Emancipation Day holiday in Washington, D.C. October 16: Due date to file for those requesting an extension on their 2022 tax returns.

Pacun, I looked on the IRS website, clicked on the news tab and yes, the IRS has set the date to begin filing on 1/23/2023. Here is a link IRS sets January 23 as official start to 2023 tax filing season; more help available for taxpayers this year | Internal Revenue Service

Catherine, I think your issue was with the BSO. I uploaded files today and the only hiccup was changing the password. Just thought you might like to know.

I downloaded and have it all up and running. The only niche was the prior year clients were not showing when using the last year data screen. Had to select build EIN/Name from 2021 and all was well afterword. Only other hiccup I had was my secure file pro or drake portals would not let me access it. A few small steps on the account management page and again, all is well. Hope you all have a prosperous tax season.

The SS payments are included in arriving at the adjusted gross income. A percentage of the SS benefits may be taxable but all depends on other income. If there is no other income from the mother, then not taxable.

This is correct. I have done two of these without incident and did not file form 8832 just the 2553. Just to note. Both were filed timely and no late election was involved.

Mining Bitcoin may not always be reported on Sch C. If it is a small operation using a personal computer, the miner has the choice of business or hobby. If business, then Sch C. Larger operations can be considered a business and can deduct the associated expenses. An LLC can also be established that as we all know, can deduct the expenses against the income and may be a disregarded entity. Could be a partnership so there goes the Sch C. For your reporting in the original post, the transactions are reported on form 8949, especially if there is a 1099B issued. Of course, the associated expenses are not included in the 1099B or the cost amount on the 8949. A lot of good stuff here to learn. Pacun, I agree, the complexity gets worse with forks, splits, stakes; etc. Determining the cost basis and FMV is key. Cryotio is still very iffy in my opinion, so I choose to learn about it but personally stay away from it at this time.

Margaret, I'm going to jump in here. I was researching this very thing the other day. Below is a link to an article on Legal Zoom that should clear the mud. My companies are issuing 1099-NEC's to independent contractors who have provided a service. This doesn't involve the 1099-K. Yes, some entities may get the 1099K if they paid by credit card. Remember, the 600.00 rule is delayed for now. What is a 1099-NEC and when does my business need to issue one? | LegalZoom I talked to the IRS the other day when trying to get access to The TIN system. I asked the 6 million dollar question, what do you do when the person or entity refuses to provide a W-9 or at the very least, provide their EIN or SS#. Do you put refused in the box? How do you avoid the penalties for failure to file the damned form? The profound response, "Great Question". Gave me a number to the fire system to ask them so I still don't know. My only suggestion to my client's is if the individual or entity refuses to complete a W-9, don't do business with them.

<<<<<Is he getting earned income credit by using his winnings on schedule C?>>>>> I'm a bit confused. He has a regular job and earns 20-40K gambling. No mention of dependent children in the original OP or filing status. Enlighten me, how does the EITC come into play here? The main question is whether he meets the requirements to be a professional gambler. I agree with the other replies

Been through this as well and there is no easy answer. One suggestion, maybe contact an attorney regarding the ability to sign a POA competently. I would only do this after your discussion with both Mr. & Mrs. I would definitely try to find out if there were any other family members who could get involved. For you, I think you have to know the person who you are preparing a tax return for understands. Kinda similar to working with someone who speaks another language where an interpreter is needed. Maybe things will work out with Mr.

Thankyou!! Merry Christmas

Can we efile form 1065 or is that shutdown as well?

Thanks to everyone, just all be aware that I have not volunteered anything. I have no reason to keep data beyond the requirements mentioned above. However, with Drake, each year there is a document cabinet that is backed up and contains all the information used to prepare the return, copies of the signature forms, and copy of the actual return. Maybe I'm anal but I keep an archived backup of everything. In this case I can't provide everything the client wants because I don't have it. It's older than three years and not my problem. I've made that well known. The client seems to think that because he was/is the majority partner, he can give permission for everything. I told him I disagree. He thinks I'm being paranoid. Damned right, my license is on the line. I also told him I would not provide copies to his attorney of anything involving the spouse without her permission as well. Still waiting to hear from the attorney that I called.

Thanks Lynn, here is another concern and maybe I'm over thinking this. There are three partnerships that this client is the tax matters partner and has signed all of the tax returns. Should I obtain the consent of each partner prior to releasing any information of the partnership returns. I guess maybe the easiest method would be to eliminate the K-1 information for the partners except the client. I've contacted an attorney to get these questions answered. What about the spouse's information on the MFJ returns. I think by Circular 230, both have to authorize consent.

My questions are the same as Tom's. If I'm subpoenaed, how can I charge when it is a court order to appear? i did not volunteer to be a witness or anything else. I was given a heads-up that the possibility exists, and the court date is set for February. I will do as Max said and get the copies of the circular 230 ready. I have been deposed before in a wrongful death claim for my father and hoped I would never have to go through that again. I can't testify to what the guy actually did with the insurance proceeds. All of this is to prove he replaced a multi-family rental unit that fell to a catastrophic loss (fire), that was part of a pre-nuptial agreement, with other property making other said properties part of the pre-nuptial agreement and not on the table for the divorce. I have nothing but worksheets and not even the tax returns as the transaction occurred in 2014. Because I had nothing to do with the bookkeeping, bank accounts, receipts or other records, I have no idea why this even involves me. For all I know he could have bought the other said properties with funds from who knows where. My personal take, there is significant real estate on the table, close to 30 properties, along with other assets, and it sounds like the soon to be ex-spouse is taking him to the cleaners. Another twist to add. The guy gave verbal permission for his attorney to contact me regarding any items he, the attorney, may need. Provided me the attorney's name and phone number as well. I wrote down nothing and did not agree to give out any information unless there was a signed disclosure statement. In this case, I think I will require the disclosure statement to be notarized.

I will start off by apologizing for the lengthiness of this post. It is necessary to gain a full understanding of the situation. A previous client who I prepared multiple years tax returns for their rental enterprises, including three different 1065, personal returns, calculated all the depreciation, etc. Our relationship began around 2010 and lasted until 2021 when I moved my office. The client always provided me documents beginning in late December to prepare the upcoming year. For 2021, I sent several emails, voicemails, and text messages requesting the documents. No phone, calls, emails, or text messages were ever returned. I assumed the client moved on to another preparer. Now, the client is going through a serious divorce and has reached out to me for prior year tax returns to provide them to their attorney. Before I agreed to anything, I asked what had happened to our relationship and they said they wanted their accountant close to them. Okay so far, no problem. I just thought it would have been a decent thing to do to at least talk to me or let me know instead of ignoring me. The client wanted tax returns from three different LLC's and individual returns back to 2011. I could not provide all of them due to some of the software not being available. He said his partner in the rental enterprises was responsible to keep the copies and he did not. Ok, not my problem. I was able to produce copies for 2015 moving forward. Mind you, that each year they received hard copies of all of their returns. Some of these returns were so large I had to buy a paper binder. For providing the copies, (digital), I charged $15.00 per year. The client is good with that and paid the invoice. Now they have notified me that I may be called as a witness in their divorce proceedings regarding a property transaction that resulted from a catastrophic loss and discuss where the funds were applied and the taxation. (I can't track the funds coming and going, all I did was prepare the tax returns and had nothing to do with the books.) The client needs this according to their attorney to prove the property purchased from the insurance proceeds were used to replace the property that was destroyed that was part of a pre-nuptial agreement. As I see it, none of this is my problem. If I am called as a witness, do I have a right to charge the client for my appearance? Would there be any reason to contact my E &O insurance? No IRS errors, no notices, no reviews, no audits, my work is not being questioned, nothing. I would appreciate any advice with this matter. I want to tell them to take a hike but there's that subpoena thing.

I had one customer get the PPP loan and did experience a loss in revenue and in my opinion, the loan was justified and served its purpose. I do remember, the first round was absorbed quickly, and I seem to remember it being reported that a lot of big firms got the first round who really didn't suffer at all. Those companies should be forced to return the funds or pay taxes on the funds received if the fraudulently applied and didn't meet the criteria. Like Judy said, I am one of those folks who is always concerned about raising prices.

Margaret, What Pacun told you is a network type setup. After all of the years seeing you on this board, I don't remember you having employees or other workers in your office that would require a network setup. A domain is a work group where the admin of the domain sets various controls and is much more involved than you need I think. Your web domain is an address on the web. Your single desktop is a stand-alone installation and is all you need to be concerned about.

Tom, I know you know this. But...the daughter's POA expired when her father passed. Don't know what CA calls them but she has be appointed the Fiduciary by the will or court and be granted letters of authority over the estate. I agree with you and others, the card should be part of the estate and as Catherine stated, you can make a good argument based on the post mark on the envelopes.

"Easy decision when they emailed their documents - not sure what the solution is when they mail or drop off?" I don't think you have a choice. Could be wrong but, I mail the docs back with their copy of the return. "I can relate to this so much! The pictures of documents are the absolute worst." I agree totally. Been trying to figure out how to turn the monitor around, up and down, to see the ones they send upside down and backwards.

I did this the second day it was available without any problems. I submitted my renewal for my EA and haven't heard anything yet. I called the offie of enrollment to check to see if they received it. Yep, they got it, just sitting there waiting for someone to process it. Kinda scary.

I just spent two hours in a webinar learning more about this form. I have a fair understanding of its purpose as well as who must file the form. Good information on stock basis and debt basis and the need to re-create if the shareholder is clueless. The webinar was hosted by an Attorney who admitted several things were not tested in court yet as all is too new. One question that I couldn't get answered that hopefully we can discuss here. Yes, I've tried researching this with no definitive answer. I have an LLC who in 2015 chose to be taxed as an S-Corp. All required forms filed, IRS accepted; etc. Here are my questions: 1. When an LLC chooses to be taxed as an S-Corp, they retain their LLC status correct? They have not established a full corporation correct? 2. LLC's do not or are not permitted to issue stock. Hence the stock basis part of form 7203 calculation. 3. Should the LLC who elected to be taxed as an S-Corp choose the desired number of shares at the time the election was made to properly track stock basis? This particular entity doesn't meet the filing requirements for form 7203. But... the attorney in the presentation it would be best practice to fille the form anyway. I can't find anything in the regulations or anywhere else that gives any instructions or exceptions for an LLC taxed as an S-Corp. Applying logic, being tax as an S-Corp means you follow all of the S-Corp rules when filing form 1120-S. I'll welcome all comments and opinions.

Agree with both the above. Cash it, put it away until either the SOL runs out or if questioned.

Update, client just confirmed they have the proper documentation and agreed to enter the partnership effective 12/31/2020. He originally told me the other partner left before the end of the year which triggered all of my thought. Now it is easy.