Terry D EA

Well that's true, but what is the intent? For the homeowner who forgets their codes? We all know where that will go.

For any Ohio Preparers or others who want to know. Ohio does allow four years to claim a refund. I know folks don't like to click on links but here is the link. Good information to have. https://codes.ohio.gov/ohio-revised-code/section-5747.11#:~:text=Section 5747.11 | Refunds - interest.&text=(A) The tax commissioner shall,or 5747.41%2C or Chapter 5748.

I fail to understand how this can be. At best it is criminal activity to break into someone's garage, car or whatever. This is exactly what every thief needs to have. The authorities need to find these folks who make this stuff shut down their operations and lock them up. But of course, if they are selling the amounts they claim, then there's the revenue lost from shutting them down. You say "We definitely live in a different world now! shoot I remember the days when my dad never took the keys out of the car nor did we close and lock the doors on the house at night. No AC and the air flow through the house was great. No electronic toys, no hackers, no computers just a bunch of kids playing outside in the neighborhood who couldn't stand to be in the house. All we wanted was a baseball, football, bat and glove, and basketball and not the latest and greatest iPhone. Hell we were happy with a telephone party line. Those were definitely the days. A time frame when a man's word was just as good as a signature on a loan document. Never gave it a thought that the first computer, tax prep software would grow to become a tool for thieves. Oh yeah, you could count on the good old US Mail system too.

Have a client who was a resident of Ohio in 2019, in the military and stationed outside of Ohio. Military pay earned outside of Ohio. Ex-spouse had POA so filed the returns and did so incorrectly. Due to not excluding the military pay from the Ohio income, the refund was considerably less. My main question, are there any special exceptions to the three year statute to claim a refund for military personal. My client never signed the return nor ever seen the return. I've looked at the Ohio instructions but they are kinda vague. Any insight is appreciated.

Thanks cbslee. Your comment pretty much answers my concern. So, no sensitive data of any kind on OneDrive. I guess if I use anything at all it will be DropBox. I have always felt Microsoft does too much snooping. I'll continue with all the sensitive stuff on an external device in my office. I know the only method of security is two machines. One that contains all the sensitive data, and is used to prepare returns among other client related functions, and stays offline until it is time to transmit. I mean completely unplugged from the internet. The second computer would be used for research and other work. It's just plain crazy.

Seeking opinions regarding MS One Drive. Is this a safe and secure way to store client data, backups of files, etc. There are times that I travel to my client's place of business and having access to spreadsheets and other data without having to use a thumb drive. Seems like One Drive would save time. I have DropBox as well and wonder which one is really better.

I know right?? Same as putting the rope around your own neck.

Mine too. That Equifax hack cost me tons of aggravation. Been frozen ever since.

New client this year. Partnership that wants to elect S-Corp status. So far so good. I prepared the 2022 1065, K-1's etc and personal returns. They commended my on the job I did and want me to be their accountant/tax pro from now on. Okay, I'm still good. Last week they called and are trying to qualify to buy a new home but the lender wants to see they were making enough money being self-employed and asked me to write a letter stating they made more income than what was reported on their tax returns. No I'm not making this up. After recovering from the stupid question syndrome, I said excuse me but absolutely not!!! They tried to persuade me again with some BS logic and I quickly replied NO!! I wonder what kind of lender would accept a crap document like that??? I wanted to kindly say go to hell and go away. But instead I seized the moment they said they were okay with my answer but still wanted my assistance with the 2553 form. I told them I would email then with what they needed and what the fee would be to do so. $800.00 to $1500.00 apparently blew them away. Its been a week now and no replies. I mean really, what do some people think? What a good way to get disbarred and ruin a career.

Hi Judy, I've been going back and forth with this and thanks for the clarification. From the onset, my original post was to use form 4797. All of the responses were good and some make you question what you already know. Thanks for the straightforward answer. The accountant that prepped the P&L really threw me off with the negative other expense and including the gain in other income. After I questioned this, they removed those two entries. I've read in the past were some say to correct the depreciation in the current year instead of amending. I've never been in favor of this but did question the possibility. As I said, amending the 2021 will make a small dent in an already substantial loss and of course, differences in the shareholder basis. Thanks!

"But, I, like many, get bombarded with emails, sms, and phone calls offering to get me free money because of ERC." Boy if that isn't the truth. The one that called today told me they knew that because I had employees I was no doubt eligible for the credit and hadn't filed for it yet. Really!!! I don't have any employees so I strongly told them as an EA If they called me one more time, I would turn them into the IRS for grossly misrepresenting the ERC and their unmitigated attempts to defraud people just to get money. Naturally, they hung up. This is getting about as bad as the old IRS scams to threaten to arrest and throw you in jail if you didn't pay. I need to find a device that has a BS monitor to block all these calls, emails, and sms. The OIC junk is just as bad too. We have a local guy here that advertises on the radio that he is the only one who can solve your tax problems. Stating the IRS is ramping up investigations due to the hiring of 86,000 new agents which is why you need him who is a CPA, EA and who knows what else. Reminds me of the Ronnie Deutch debacle. Ya know, just work hard with a high level of integrity is all you need to succeed.

Ah, Mr. Google does know almost all. Judy has the gift of the proper wording or using the right key strokes in the search box. She's found stuff for me in the past that I searched for hours trying to find. She's either got that Midas touch or I'm too dumb to ask exactly what I'm searching for

Pacun, I had a similar scenario. Client made an estimated payment for 20k to be applied to the 2022 tax year in Feb 2023. The filing time was extended due to NC being claimed a disaster area due to Hurricane Ian. The IRS did not provide a means to properly route the estimated payment to the proper year becasue of the filing extension. Calling the PPL, first agent said no problem and supposedly put in motion to move the funds from 2023 to 2022. Called back 3 weeks later and was told that the PPL agents did not have authority to move the funds and that everything I was told was not true. Good thing I recorded names and agent ID's The agent went to their supervisor and after they realized this was their mistake, made an exception and correctly moved the funds. Because your client made the error, they may be less than cooperative. Be ready to apply for a refund for the overpayment for the wrong year that was used. Personally, I would require payment to help this client. It is not your error, they can pursue it themselves or pay you to do it with no guarantees. I would tell the client to get his mess straightened up, pay what is owed and then work to get the overpayment, if any, back. They may have already applied the overpayment to what he owes. If that is the case, then tell him to pay the balance and move on.

The jeep was not fully depreciated which is why there is a 10K gain. I was thinking of removing the asset in the year of the sale which is July 2021. I(n doing so, there is minimal impact on an already high loss. I've already completed the tax return for 2022 and have changed everything a couple of times. Their accountant has removed the expense and income figures per my instructions. I'm now leaning on 3115 to correct the depreciation and have already removed the asset for TY 2022. We're only talking a couple hundred dollars for 5 months of depreciation.

The funds were used to purchase another vehicle. Their accountant showed the gain as a negative "Other Expense" and added the gain to "Other Income". That makes everything a wash which I cannot believe is correct. I will ask the owner but I think it is a safe assumption (dangerous I know) the funds were deposited into the OP account. I know there was no dealership trade-in.

That was my first thought initially. I don't see the need for a 3115 but just amend the return. Just for clarification cause I've been at this entirely too long, the sale should be reported on form 4797 correct? Or, should it go on the shareholder's K-1 form under long term gains?

11K

S-Corp client sold a 2016 Jeep in July of 2021. Lost in an email was a request for me to remove the asset which I did not. The vehicle was sold and after depreciation there is a gain. First thought was to report the sale in 2022 and report the gain on the shareholder's K-1. Not sure the best route to take. It seems to be proper to amend 2021 to reflect the sale, then all is well. Opinions.

Client entered the military and was married at the time. The now ex-spouse had POA to take care of his affairs. At this point the ex-spouse refuses to cooperate. The federal return for both years in question are correct, both years contain two states. One year prepped by a pro and is correct. Still waiting on documentation from the other year from one of the states to see if the return was filed correctly or an amendment is needed. I've been looking for some relief for this guy as the ex expects him to pay all the balance due plus the penalties. I think he' stuck because of the POA. The window to change from MFJ to MFS is long gone. Opinions please.

Ya know, I always wonder what people are thinking when they engage in the unscrupulous activities. Do they think they won't get caught? I guess living the good life isn't so good right now. Will the IRS ever get their money from this guy? Now I laugh, I alerted a CPA of a client of mine about miss classifying an account so there are no questions in the event of an audit. Seems really trivial compared to this. I hope this guy prepared his own tax returns and didn't take anyone else with him.

I know this is an older post. Just a suggestion, if your credit is frozen with all three credit bureaus, the ID.ME process or any other process that uses credit information for verification purposes won't work. I set mine up a while back and can't remember if I had to thaw the credit or not. Again, just something to watch out for.

My struggle has been with the CAF unit. I obtained a CAF number numerous years ago. I moved to SC in the fall of 2021. Changed all my addresses on everything. First 2848 I did since the move, I checked the box new address. As of yesterday, the CAF unit still has my old address. I called the EA line and they couldn't help nor could the PPS. No known numbers to contact the CAF unit. The action to take was to fax the information to the CAF unit asking them to update the address. I am not very positive this will work but we'll see. On another note, how can you find the status of a POA that was faxed? I did one yesterday online with the client and it still says pending on my end and no authorizations on the client end. In my experience, the quickest way to get the POA to the CAF is through the PPS. They don't really care for the wait time for the fax to arrive but all I can say is fix the system and make it better for all.

This very issue occurred in Drake as well. At the beginning, I thought it was a Drake issue but later discovered it appears it was an IRS issue and the software vendors had to make last minute changes.

Thanks, everyone. Unfortunately, the answers are good and no doubt spot on from J Stephens and Margaret, none of them made my day any easier. I moved from Ohio to NC nearly 30 years ago. Bank then, no Rita but the same crap with the cities. This return should be easy but it is the part year portion in two different cities that I don't think Drake is handling well. So, I gotta dig deeper.

That is exactly what I thought. I'm going to check the rates in Drake. They have Kent at 2.25%. Kent is the city where the client lived until October. Kent is also a RITA city so am I correct that I have to do RITA as well? I put the information regarding the move on the RITA form and the result was zero.