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Max W

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About Max W

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    ATXaholics Anonymous

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    Boston Red Sox, Spanish Civil War History. Flamenco Music & Guitar

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  1. Max W

    Identity Protection PIN Program Expands

    Maybe from the Equifax hack?
  2. Max W

    NT: Help needed in Bay area

    OK. I see your post.
  3. Max W

    Gas, oil rights sold - rents on 1099

    This is the way I would handle it. 1. Report the Rent as income on Sch E. 2. Then under Expenses, enter same amount as Offset to form 4797. After that you could provide an explanation on form 8275. However, if reporting the sale as Rent, is , on the 1099, std op procedure, 8275 shouldn't be needed. The IRM provides this on oil/gas leasing & sale. https://www.irs.gov/irm/part4/irm_04-041-001#idm139661998901968
  4. Max W

    Return to Group

    Had the same thing 6 years ago. Had to wait 5 days in the hospital until pancreas cleared up. Then laparoscopic surgery to remove gall bladder. Lapro is great as it leaves no scars and there is no long recovery, as was home the next day. Hope yours goes as well as mine did. Good luck to you.
  5. Max W

    ROBS - Rollovers as Business Start-Ups

    John thanks for the link. The article is similar to others I have read. Guidant claims an 80% success rate, but it makes me wonder if they are cherry picking their clients. I think the 50% success/failure rate probably includes businesses that were purchased as on-going concerns and the actual failure rate of start from scratch businesses is a lot higher. Restaurant and contractors have about a 95% 5 year failure rate. The scariest part is the IRS. There are quite a few pitfalls that can sink the entire investment. The IRS draws a good picture of this. https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project Investing in one's new business is always a risk and ROBS is the only way to use retirement funds, without being taxed, and there are the risk takers and doers that are willing to do it .
  6. Has anyone had any experience dealing with ROBS? What are the pros and cons?
  7. Max W

    Flipping a house with Dad

    Another wrinkle! The house is going to have a mortgage, which dad is paying. If son is on deed and dad dies, who is going to make the mortgage payments? Will the son become responsible for them. As you said, a "rat's nest".
  8. Max W

    Flipping a house with Dad

    The reality is that the father is buying the house and hiring the son as a contractor to make the improvements. Anything else complicates things and could lead to unforeseen consequences. What is the reason frothe father putting son on title? Is it because of age and the possibility he may not be around when the project is completed? That cn certanly be handled differently. Also, are the ongoing payments to the son in addition to the 50% the son will receive as his share of profits, or are they advance payments? f dad dies before the project is completed, how will the rest be financed?
  9. Here is the article, cut and pasted. One thing to be aware of is that the author is known to use a lot of hyperbole. However, the basic substance is correct as it comes from IRS Pub 3744. https://www.irs.gov/pub/irs-pdf/p3744.pdf By Daniel J. Pilla One of the reasons identify theft is considered by the Treasury Inspector General for Tax Administration to be the crime of the century is because of the IRS. The Internal Revenue Service makes growing demands for information about people’s businesses and private lives every day. There is no such thing as personal privacy these days. That the IRS sends citizens a so-called “Privacy Act Notice” in all its mailings is a farce. The IRS lays claim to your data without court authority more so than any other government agency. And to make matters worse, they share the data with any other federal, state or local government agency claiming an interest, including foreign governments. A river of data In 2019, there will be about 152 million individual tax returns filed with the IRS. There will be roughly another 100 million business tax returns filed. There will be millions more miscellaneous tax returns, including trust, estate and gift tax returns. On top of that, over 3.6 BILLION information returns (Forms W-2, 1099, etc.) will be filed. There is quite literally a river of data flowing into the agency. The flow cannot be stopped, and as far as the IRS is concerned, they need even more. For example, one of the six “Strategic Goals” presented in the IRS’ 2018-2022 Strategic Plan is to increase its access to data, and use that data more effectively to drive its agency-wide decision making, as well as case evaluations and selections for enforcement purposes. See: IRS Publication 3744 (4-2018). This is consistent with the IRS goal of becoming a “data driven agency.” The IRS is awash in data. The 2018-2022 Strategic Plan boasts that the IRS’ volume of data was 100 times larger in 2017 than it was 10 years prior. In 2018, the IRS Criminal Investigation unit alone collected 1.67 terabytes of data from various sources. A terabyte is 1,099,511,627,776 bytes, or 1,024 gigabytes of data. I’m told that approximately 900,000 plain text files can fit into a single gigabyte. The number of users in the IRS with access to that data has increased 23 times (Strategic Plan, p. 19) in the past 10 years. Managing massive data How do you manage, process and assimilate such a massive amount of data to the point where it becomes usable? The 2018-2022 Strategic Plan expresses the goal to “invest in analytics and visualization software and tools, and develop processes to support analytics in IRS operations” (p. 20). The end game is presented in these words: Advancements in how data is collected, stored, accessed and analyzed will allow us to deploy data better. We’ll standardize our data processes and protocols and encourage collaboration among all IRS business units. Increased interoperability of data systems and sources will enhance the secure and seamless flow of data to enable greater authorized access to information. We’ll invest in training to develop more advanced analytics skill sets across the IRS, and use data to improve our business processes. (Strategic Plan, p. 19.) The investment in analytics was recently undertaken – in a big way. Big Government, meet Big Data On Sept. 27, 2018, the IRS entered into a contract with Palantir Technologies of Palo Alto, California, to handle the task of data assimilation. The contract calls for Palantir to provide hardware, software and training to IRS employees to “capture, curate, store, search, share, transfer, perform deconfliction, analyze and visualize large amounts of disparate structured and unstructured data.” (IRS Contract Proposal, Performance Work Statement, Jan. 11, 2017, p. 1.) Palantir is to build and train the IRS to use a unified supercomputer to: search, analyze, visualize, and interact with a wide variety of disparate data sets so users will be able to leverage the platform to perform advanced analytics, such as link, pattern, statistical, behavioral, and geospatial analysis on an investigative platform that is scalable and interoperable with existing IRS equipment and systems. (Ibid, p. 2.) What kind of data are we talking about? The contract proposal specifies the following data formats: · Oracle, MySQL, and PostgreSQL databases; · Delimited files (.csv, .dsv, .log, or .txt); · Excel files (.xls, .xlsx); · GraphML files (.graphml, .xml); · IVML files; · Email files (.eml, .pst, .mbox, .msg, .ost, .txt); and · PCAP files (.pca, .pcap, .pcp). Ibid, pg 20. Ingesting massive amounts of data The contract proposal states that the IRS is looking for an “analytical platform with a strong storage and indexing power allowing for rapid integration and analysis of ultra-large scale data sources.” (Ibid, p. 2.) Specifically, the system must meet the following criteria: · Allow for the rapid ingestion of massive amounts of data. · Users should be able to immediately use the imported data in the imported format to perform queries, analysis and identify links. · Allow users to drill down on massive amounts of disparate data to find connections. · Allow users to visualize connections from millions of records with thousands of links by grouping data visualization by the commonalities and roles. (Ibid, p. 20.) This would allow the IRS to meaningfully link tens of millions of tax returns, billions of information returns, and trillions of bank and credit card transactions, phone records and even social media posts. For example, if a U.S. citizen moves money from a Swiss bank to some other offshore bank, then uses credit or debit cards to spend the money in the U.S., Palantir’s software can link those transactions. It could also flag a person whose tax return shows relatively low annual income but whose social-media posts indicate something entirely different. This is exactly the kind of data analysis it will take to establish the IRS’ so-called “up-front tax system,” which I describe in my book “How to Win Your Tax Audit.” Under that system, the taxpayer is essentially removed from the tax preparation process because the IRS knows everything there is to know about your personal, business and financial affairs to the point where the agency prepares the return for you. How’s that for tax simplification? The cost of spying The IRS began working with Palantir in 2013. The agency spent $30.8 million on a five-year contract and granted Palantir access to files for more than 1 million people, according to a July 28, 2015, audit report. That contract provides the IRS with access to spy software for use by special agents (criminal investigators) “to generate leads, identify schemes, uncover tax fraud, and conduct money laundering and forfeiture investigative activities.” (Case Lead Analysis, PIA ID No. 1120, July 28, 2015, p. 4.) Under the September 2018 deal, the government will pay Palantir $98,750,546.94 over seven years to fulfill the contract. My question is, why the extra 94 cents? If the IRS’ $99 million spy software works as promised, the agency will have unprecedented ability to track the lives and transactions of tens of millions of American citizens
  10. Data collected from banks, credit cards and other sources without authorization. 100 times more data collected in 2017 than in 2007. Privacy - GONE. Audits to be made through data analytics. One can imagine all kinds of scenarios on the horizon. https://www.wnd.com/2019/01/big-data-meets-big-govt-new-irs-spy-software/
  11. Max W

    MFJ Status Question

    You will have to mail a paper return to the Austin, TX address in the W-7 instructions. In her SS box of the 1040, enter APPLIED FOR. All the required documents are sent along with the return. Figure on 6 months for processing.
  12. Max W


    The return (8879) was signed and dated before the client died. He preferred to have it efiled. I don't see any problem with this. The refund will go into his estate and the executor will be able to deposit it.
  13. Yes! This is going to be a very taxing season.
  14. Max W

    Hiring help contract sample

    This looks like a very amateurish document. The first thing I noticed is that a statement as to who the parties are is missing.Also, in some states, the signers name need to be printed under the signature. You can get all kinds of sample templates for theses letters and this site will adapt it to your state, as each state has different requirements. https://legaltemplates.net
  15. It will be safe when the OIC section sends a letter acknowledging receipt of the the offer.