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Max W

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About Max W

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    ATX Master

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

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  1. 7 & 8 are not synonymous. There is a huge difference between "authority" and "handle". Companies that pay their payroll taxes do not have problems. It is the ones that become delinquent that do. I have been through a few of these "interrogations" and what the IRS is looking for is that individual(s) that decide who is going to be be paid and when. The one that says we are going to pay our salaries and suppliers first and not pay the IRS.
  2. The IRS uses an interview form (4180), Trust Fund Recovery Penalty, to determine who the responsible person(s) are. A "Yes" to Questions 7 & 8 would seem to answer Edsel's question. However, "No's" to the others would probably relieve that person of the Trust Fund responsibility. 1. Do you handle the financial direction and management of the business? 2. Is your signature or authority needed to disburse or transact payments for bills as well as pay loans? 3. Are you part of the team who handles the reviewing, preparation, signing as well as authorizing the transmission
  3. So, does one qualify as "affected" by the sole condition of residing in, or having a business in the affected area. All the IRS statements are all the same, OR, CA, FL, TX, LA, etc
  4. The IRS is extending the filing deadline to Dec. 15, for residents in counties affected by the wildfires. Does this apply to all residents in those counties, or to only those affected by the fires. And what do they mean by "affected". Does it mean that they have had to have some loss, have made a claim with FEMA, or what? The last sentence says the IRS automatically identifies taxpayers in those areas and applies the filing relief. This makes it sound as if anyone living in those areas are eligible. From IRS "California — Victims of the California wildfires
  5. No, it is not wrong. The client never remitted the sales tax that had been collected to the state sales tax agency. So, he was audited for 3 years and they came up with the $80K.
  6. Yes, indeed. It is interesting. All the escrow items were repayment of taxes, loans, sales commission. creditors and escrow costs. No Assets. Some equipment was sold prior to escrow and the liquor license must have been a side deal, as well. The client will be able to deduct most of the taxes, except for some $30K of FTB income tax as that will be limited to $10K on Sch A and he won't be able to deduct about $20K in loans.
  7. Yes. The $85K shows up as the total in the debit column and the $85K shows up as a CR as Bal Due Escrow after the subtotal of $100K.
  8. I use enQ service which gets me through in less than 2 minutes. However, I pay them $50/m for the service which gives you 240 minutes. Unused minutes are rolled over. If you make 2 or more calls per month it is worthwhile.
  9. Client sold his convenience store business (Sch C) for $100,000. However, escrow had state sales tax lien of $80,000 and a creditor to whom $5000 was owed. Buyer paid the Sales tax and creditor through escrow in order to close escrow making a total of $185,000 paid. I take this to mean the seller (client) received the $185K as payment for the business. Any thoughts?
  10. Missing a payment will cause a default 30 days after the payment was due at which time a CP523 default notice will be issued. The notice says that the installment arrangement will be terminated if the missing payment(s) are not made within 30 days. I suggest calling the IRS number on the letter as they may be a reinstatement fee and then making these payments right away on irs.gov. The mail can be too slow. If the original payment was only late, sending the payment usually causes the default to be cancelled.
  11. Thanks for your comments.
  12. Just follow the sequence you suggest There is no way to request that the refund be applied to a different year than the following year. Frankly, if you do nothing, the IRS will take care of it, but I would want to double check.
  13. I have tried a few Efile software systems, but found them wanting, especially where 2 signatures are required. I have my clients print out the 8879 and sign it. Then they can email it back, fax it, USPS. https://www.irs.gov/e-file-providers/frequently-asked-questions-for-irs-efile-signature-authorization
  14. EIN's are valid forever. Once assigned they can't be changed to another person, or entity.
  15. You can get an inexpensive website here that comes with a portal. https://getnetset.com
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