Margaret CPA in OH

Client came this week not wanting to bother beforehand to discuss 2022 990 and income and expenses for new non-profit. State organization as LLC in order and self-submitted 1023 (I didn't go there yet as already submitted). Then I looked at the 2021 activity and self-submitted 990EZ. Sigh... Cash in entity checking account with EIN of $12,000 at 12.31.21, 0 on 990EZ. No contributions on page 1 and all zeroes everywhere. Sooo, there is time to supercede before May 15 but I'm wondering if it's better to wait until IRS responds with 1023 determination and amend. It really should have been 990N but client had no idea with 'advice' from attorney. There is more for 2022 but time for that, just not sure whether it's better to wait and amend. Thoughts?

20%? That's great! I think in the 20+ years I've used it, the biggest discount was 15% and now the renewal for 1040 package is just 12%. I've always renewed in May but think I'll wait this year. Maybe.

"Or at least changing to only doing tax returns for people I like and taking the rest of the year off. " What I've been doing for a few years now and love it! And I'm still not ready to completely stop. It's only about 10 weeks and this board!

Congrats to the long termers! I'm at 36 years after 18 years in molecular biology. I, too, intend to keep on keepin' on as I work to dive. Bonaire in June with my son as dive buddy! Happy vacation to all!

Beth, we are your friends here for sure. Thanks for letting us know of this event so we can hold you and family in our hearts.

What a scary event ending with a blessing! Cars are replaceable things and down in the ranks, as Catherine said. Ever since I've had employees and still with clients I've always said, "Family First." Everything else can wait for family matters whether that family is by birth or by choice. Thanks, schirallicpa and Catherine, for lifting us all. Now breathe, take the time YOU need to process. And give extra hugs...

Thanks, Lion, for the details. I've had several clergy as clients and was church treasurer managing payroll all that time, too, so have first hand experience there. I have been a subscriber of Church and Clergy Tax Guide for about 15 years and pretty much know this which is why I alerted the client to the problem. I did the research and it is possible for a clergy person to revoke the exemption with 2031. And not all clergy choose to be exempt and do not file 4361. It is, in my opinion, that this minister filed 4361 upon ordination per the denomination and hasn't given it a second thought since then. Until now. I believe the person responsible for this perhaps gave erroneous or no instructions to ADP which processed the W-2. Although I kind of blame ADP a bit because it does have housing allowance in Box 14. I guess little to no quality control. It will be sorted out but I had to allow for the possibility of revocation since it does exist. I'm not finishing this return without a corrected W-2 (most likely) or confirmation of revocation (highly doubtful). And I did recommend that she consult her local/state/national denomination even to where she was ordained.

I'm thinking it's whoever processes payroll at the new church she moved to in July - could be in-house our outsourced, don't know. I was taken aback when I wrote to have this resolved and husband (managing the tax documents) said minister wife didn't understand what I was saying. I wrote the basics and included links for the exemption, 4361, and revocation of exemption, 2031, and reminded them that for 10 years and through all the moves to different churches, none withheld SS and MC. Waiting for reply but said I won't prepare the return until I get a corrected W-2 or her affirmation of revocation. I just don't believe that all the other churches were in error.

I was shaking my head at this until I received the documents today from a clergy client of 10 years (other clergy clients for many other years so not new at this). She was transferred to another church and SS and MC were withheld. Nearly spit out my coffee! I'm so glad they are already extended because I don't think this will be pretty. Same denomination all this time, moved 5 times, first time this happened. Sigh...

Judy, we all feel your pain because it is ours, too. I swear the electronic signature option, IF they can figure out how to access (what is my password? how do I find it?) at least the directions and CONFIRM with a click and moving to the next place is hard to overlook. How many times have we all gotten forms returned with those SIGN & DATE HERE arrows still stuck to blank areas? Shaking my head.....

At least it isn't mid-march but won't these folks ever learn that anytime before April 15 is not the best time to ask for renewal? My price for next year, with that whopping 12% discount is only about $30 more but what on earth is the option for "ATX Standard Processing Download Only" for $80.50? How is that different from anything we've had before once the discs were discontinued? We have to pay extra now to download the software and for standard processing? What is the alternative, I wonder? And whatever happened to the community board on ATX site? I didn't often use it but was looking for something last week and didn't see it. Does it go by another name? Also discontinued? My license expires the end of this year and I really don't want to quit yet but, at 76 and with these annoyances, my clients just may have to move along.

Well, at least give her the bottle, maybe the Skittles, too.

You are definitely not alone - lots of good company around here!

'Back in the day' and even now, Form 8453 was the form which had to be mailed in with certain other forms, such as 1098-C and 8332. Purpose of Form - Use to send any required paper forms or supporting documentation.... When and Where to File If you are and ERO - you must mail Form 8453 to IRS within 3 business days.... I've had to use this for the above mentioned forms several times over the years but not recently. I didn't know that it could be attached electronically so happy to see that.

Thanks, Sara, I wanted to put on Line 21 but was a bit overwhelmed with the rather strong responses to put on Sch. C. So I put on Sch. C and it's done. He is still dependent for last year. IRS will get the tax. I'm tired.

Thanks. I agree with W-2 but that isn't what he got. I do believe it was one off but who knows? I suspect mom and dad would be extremely unhappy with paying for 4 years of college and working for a few months detailing cars then retiring. I just report, right? Since he will no longer be dependent (was mom's mom's in the divorce, dad got brother), mom is pretty much finished with him and I don't think he will be paying for me to prepare any future returns.

Client's new college grad just worked for a few months detailing cars and gofer stuff for about $2300. I don't really think it's a true Sch. C detail sort of thing. Is it appropriate to just have it subject to SE? He really isn't planning this to be his life's work and I think it just got him through the summer. Mom says he's pondering life now at dad's (ex-husband) house until life shows up in real time.

Verifyle is $9 per month. Ideally 2 separate email addresses but I just discovered that there is also a custom option for a second signature for shared email addresses (I have a couple of those, too) and numbers to insert for cc payments for 1040 tax due.

An easyish fix for you. Just have the client increase their withholding to some exorbitant amount - you will look like a genius, right? Ugh...some clients are simply not worth having. No fee is high enough for this kind of abuse.

Every 1098-T I have seen is for a calendar year. Box 7 even has a possible check if the Box 1 amounts received include amounts for an academic period beginning the following January-March. I think you other source is mistaken. TexTaxToo is correct. Maybe look at the copy of the 2020 1098-T for reference.

Just gorgeous! How lucky are you!

I just had to look this up for a client with early dementia. She hadn't filed since 2017 so 2018 for a refund would be 3 years from the due date in 2019 or April 2022. However, if income is understated by 25% or more, statute is 6 years and for fraud is forever or something. In this case, when I finally got through to e-services, apparently she self-prepared for 2018 and really botched it so now owes. Unfortunately you do have to mail 2018 returns as it is beyond e-filing deadline so prepare to wait for refund.

Thanks so much, especially for not chiding me for not researching first. I usually do so but had a too quick reaction today. Clearly I have to get more information from the client about exactly what happened. I did see it go to the 'right' place but have to find out more detail. Thanks again!

I haven't seen this code before. The description is "Recharacterized IRA contribution for 2021 and recharacterized in 2021." And this means? The client said she rolled over part of her retirement funds. Her Roth contribution is $2915 and the 'N' amount is 2975 so suspect that she overcontributed so financial advisor 'fixed' it. Sound about right? Code N does not make it taxable but I'm not sure if any other reporting is needed.