Margaret CPA in OH

A new client is coming later trying to get an exact amount to pay off a tax lien. His father and partner are both in homes with dementia and he (with POA) and partner's sister (with POA) are trying to sell the house they lived in. Partner has $25,000+ IRS liens on the property from 2009, 2010, and 2011, apparently from SE tax. I am planning to get signed 2848s from each (though I think I really just need that of partner's sister) to fax to IRS and hopefully contact a live agent to expedite process. Any other suggestions? The buyer is eager to close by end of the month but title folks (?) need the payoff amount first.

Add Form 9325, it would say when the withdrawal would be.

Medlin, I am so sorry for your loss. This camping trip was well timed. I hope it is comforting, healing.

I would, for sure.

And this after reading about 2 Seatle ER docs in serious condition with COVID19 - a physician friend forwarded this to our church, she used to be a member: From a physician in Seattle: At her hospital, all ventilators are in use and they have reached the point of rationing care. They are now having to choose between venting babies and COVID-19 patients. One of their own 40 year old emergency room physicians is in critical care. Everyone please stay at home. If you absolutely must go to the grocery store or work, stay 6 feet away.

One thing I read recently pointed out that if we have not done enough, we will know that with the mortality counts. If we have done too much, well, we will never know for certain. With lives at stake, I'm on the side of overkill, oops, too much. I do agree that the hoarding and price gouging is unconscionable.

On the worksheet you also have to complete the other applicable information. See the Note. above that area. If only the allowance is entered without the offsetting information, it is excess allowance and taxable. You have to show the expenses or FRV of the home. The minister should be providing this detail to you.

1. You are correct. 2. Add the 1040 Clergy Worksheet form which will be extremely helpful in putting things where you know they should go. Ask again if you still have questions. I and others here have much experience with clergy tax returns. And I always keep a copy of Church and Clergy Tax Guide handy.

Just now from AICPA: Yesterday, we told you about our efforts and conversations with the Treasury Department and the IRS to secure filing and payment relief for taxpayers and tax preparers in light of the uncertainty and challenges caused by the spread of the Coronavirus (COVID-19) pandemic. Based upon our conversations, we anticipate that Treasury and the IRS will announce this week an extension of the April 15th deadline by as much as 90 days, and a waiver of penalties and interest for most taxpayers. Additionally, Treasury and the IRS are aware of the major deadline for businesses tomorrow, March 16th, and the challenges facing taxpayers and tax preparers in meeting that deadline. They have indicated that they would be generous in determining reasonable cause abatement of any penalties for taxpayers and tax preparers unable to file in a timely manner. We will continue to keep you updated as we receive more information.

I've been using ATX for all the years I've been inputting installment sale data for a client including the final year of 2019. Every year Part I info rolled over until 2019 but I just looked at the 2018 6252 for the data, input it and done. Don't you have access to at least 2018?

A couple of years ago a hurricane closed down the east coast flights when I was to go on a dive trip. As it was on a live-aboard boat, if you miss the connections, you miss the boat so you miss the trip. While I had a non-refundable ticket, the airlines did refund it. I think many tickets now are sold as non-refundable so, if something happens like the country being closed down, the airline does not want to refund money already used and 'nonrefundable.' It's easier to give a voucher with some restrictions and threaten taxable income if refused. I'm just guessing that it was nonrefundable except perhaps in special circumstances like this. But I simply cannot see how it is remotely possible to have taxable income on the refund of money paid. Sort of like getting taxed on your federal refund, a return of your own money.

I spun off all my businesses a few years ago when my part-time CPA and friend retired. I didn't want to pick up the bookkeeping and payrolls or returns. And one of my bigger folks emailed me about 10 minutes ago. They have moved over the years to 3 different states and stuck with me. She's a pretty well paid doctor with a musician husband who was stay at home dad. I'm very happy to hear from her!

Thanks for replies. This is the first time I can recall that there isn't a fairly steady stream. I will be patient for at least another week. I know I have a few appointments to finish up next week but nothing in the pipeline after that except a major client who has already sent in the engagement letter but will be in FL until early April and waiting on K-1's for 2 clients. I decided to go for natural attrition but renewed my license for 3 more years. Guess I'm just a little nervous about too much attrition too soon!

Click on yourself and profile. Everything should be listed there. At least I can see all of mine.

Several long time clients have not yet returned engagement letters or contacted me about returns. One already said he did his own for free so not returning (his situation has finally gotten very simple, so all good). My plan has been to allow natural attrition so I'm quite okay with some leaving but it would be nice to know sooner rather than April 15 when I have heard nothing. With long time clients, I stress out for them whether or not they know it. Of course it isn't even the ides of March yet, but I am getting a little stressed about some of them What, if anything, do you folks do?

It goes on the Main Info page just under the Date of birth data.

Ain't it the truth!

Um, nevermind. I stumbled around some more and found it, just not or where I expected. Carry on.

For some reason I cannot get a client letter with estimate instructions to appear let alone print. The federal and state letters were there so I changed the state to include the estimates. Nada. I checked preferences, wasn't marked so marked it. Nada. Closed program, reopened. Nada. What am I doing wrong? I've had these before just not for this client.

So the 1099's were sent using the 'partner's' SSN? And, if so, that gets negated? I'm glad you are handling this but agree it's on the right, and probably only, track to correct, then for the clients to 'go and sin no more.' Just be sure to be compensated. I kinda harp on this having been really burned several years ago. The client was just arrested last week for fraud and other charges. I coulda shoulda taken her to small claims court back then but it's unlikely I would have realized real money. I moved on but it didn't and will never happen again.

Just-wow! Don't you wonder why so many folks think they know how to do these things because, well, because? I have no great insight but admire you for this untangling and immediately don't see the traps. Likely others will. Does the original p'ship return actually have zeroes? Or are you thinking it should because it really is a sole prop? What I don't quite get is why the friend becomes a consultant and what happened to the 'small group' created? And if this is really expected to be a non-profit at some time, you might want to educate those involved on the costs to apply and education needed to comply. And you need this in late February, don't you? Hope you get paid appropriately!

Question: What is the security of the online fax services? Some of my clients fax tax documents to me with all the data a hacker would love but it goes to my computer which is protected 6 ways to Sunday (says my tech guy). With all the hoo hah about security, is an online service safe? I started using Verifyle for a client portal now but they promote encryption and security. I'll still look at that fax.plus service, I think.

Fax.plus sounds good! The reason I have wired lines is that a few years ago I went wireless in early February (it was a deal) for my main line and internet but kept the fax, wired line for some weird reason. Within 2 weeks the power went out for a couple of days and the only access I or clients had was my fax line. I still don't give out my cell number to clients or I would be called too often. When I retire, then and only then will I give up the wires. Burned one, twice shy.

I have and have always had a separate fax line connected to a retired computer with a fax modem and program in it. All faxes are "printed' and saved to the appropriate client file through the connection (it looks like another drive) with my main computer. Junk faxes are deleted. Before cell phones it was nice to have an extra phone in my home office to call out when needed. Costs about $12 monthly . I also use the number for 'required' phone numbers when I don't want calls.

Okay, I had this issue with my church when i was treasurer. In Church & Clergy Tax Guide this is addressed but it applies to all employees. IRS Letter Ruling 200437030 (2004) suggests that the assumption that small amounts of cash or gift certificates are not the same as hams, turkeys, fruit baskets, etc. commonly given as gifts. The IRS ruled that these coupons represented taxable income that should have been added to the employees' Form W-2. It rejected the argument that the coupons were a de minimis fringe benefit (i.e., so low in valur that they could be ignored for tax purposes). The IRS conceded that taxable income does not include any fringe benefit that qualifies as a de minimis fringe benefit. Section 132(e)(1) of the tax code defines a de minimis fringe benefit as "any property or service the value of which is (after taking into account the frequency with which similar fringes are provided by the employer to the employer's employees) so small as to make accounting for it unreasonable or administratively impractical." The IRS concluded that cash can never be a de minimis fringe benefit, since it is not "unreasonable or administratively impracticable" to account for its value. The same conclusion applies to cash equivalents, such as gift coupons, even though the property acquired with the coupon would be a nontaxable de minimis fringe benefit had it been provided by the employer. Further, the definition of de minimis fringe benefits in Sec. 132 refers only to 'property or services' and not to cash. The regs provide several examples of de minimis fringe benefits and none involves cash. It is not administratively impracticable to account for even a small amount of cash because the value is readily apparent. I could go on but am tired of typing. I suggest looking up the Letter Ruling above and Sec. 132. I hope this is enough. There were many examples listed but I don't want to type them all.