Max W

Happy Thanksgiving to everyone on this forum and their families. Enjoy!

For more info in the Medallion program- https://firstquarterfinance.com/medallion-signature-guarantee-locations/

Sometimes you have to put yourself in other peoples shoes. Substitute 'Tax Preparers' for ' Mortgage Originators'. Think of the clients that come to you with an easy return and then get annoyed because you ask so many questions. We live in a highly litigious society where law suits are filed at the drop of a hat. Ironclad documentation is not to prevent having egg on the face, but to prevent being sued. When you criticize something, maybe you should be better informed on what you are criticizing. There is no such thing as a 'Medallion Notary', but there is a Medallion Signature. It is only used in the special circumstance of transferring some brokerage held assets. The signature is not a notaries signature, but the legal owner of the assets. This usually comes about when the assets have previously been transferred to accounts at different brokers, or when the street name has changed due to marriage, or some other circumstance. BTW, Medallion Signatures are not limited to your state, but are nationwide. There has been no change to the traditional notaries and FYI in TN they Are bonded.

This is one way it could be done. https://www.dealookup.com/subscribe.asp "Subscribe to DEA Lookup Subscribe to the fastest, most powerful, and most feature rich search software of the official DEA Controlled Substances Act Registration Database available. Quickly find DEA numbers, NPI numbers, physician state license numbers, and much more. Licensed Pharmacist? You may qualify for our Pharmacy Subscription. 1 DEA Lookup Main Login Subscription For One Year: Full search of DEA Controlled Substances Act Registration Database - 1,906,501 records. Updated weekly. Includes advanced lookup options: drug schedule, address (match any), and city (match any). Includes setup and login management tools.$1,350 Additional logins: $375 each$0 Total Logins:1 (1 admin)

That is good to know as I would expect that most states will adopt something similar in the next few years.

Using Drake, I Efiled a client's 2018 1040 and CA, Sat. @ 5:30 PM PST. Received acceptance within the hour.

Theoretically, there is no limit to the number of times a return can be amended, but, bear in mind, the IRS does not have to accept an amended return. The safest way to go is to have hubby amend His return to include her.

I would like to clarify a few things. The 2 and 3 year limitation on amending returns is , the limit for receiving Refunds. Any return with balance due can be amended, no matter how old. The husbands return can not be amended, but the wife has not filed. She can file as the primary and incorporate hubby in the return as secondary. SFR's are no longer being prepared. The ASFR unit was shut down Sep 2017. So, that won't be an issue. http://www.taxabletalk.com/2017/09/26/irs-suspends-asfr-program/ You are correct in that the IRS does not consider an SFR'd return as a filed return, but that is to prevent SFR's being discharged in BK. In other aspects, the IRS treats the SFR as a tax return. The CSED begins running its 10 years on the date of the first assessment. It also allows the SFR to be amended. Many people make the mistake of filing a return as a regular 1040. This creates a new CSED date, the date of filing. If the return is amended (don't use 1040X - just write AMENDED across the top of form 1040), it will retain the original CSED date.

Don't jump to conclusions. Wait for the letter. It will have contact information and instructions.

Especially in Appeals, as it was already rejected once.

There are two solutions. Get a short term loan from the bank, or better yet, factor the receivable. Factoring companies work faster (24 hours) than banks and charge lower interest. They will give an advance on the payment of up to 90%.

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.

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 of checks? 4. Do you have knowledge about the withholding, or lack thereof, of taxes? 5. Is control of the authorization of payroll under your role or power? 6. Are you the key person for making federal tax deposits? 7. Do you have the authority to make or assign the electronic payment of taxes through the EFTPS? 8. Do you handle the electronic banking part of the business, as well as hold the PINS/passwords?

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

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 that began on August 14 may qualify for tax relief from the Internal Revenue Service. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in certain areas will receive tax relief. Individuals and households who reside or have a business in Butte, Lake, Monterey, Napa, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma and Yolo counties qualify for tax relief. but taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after August 14, 2020, and before December 15, 2020, are postponed to December 15, 2020. This includes individual and business tax filers that had a valid extension to file their 2019 return due to run out on October 15, 2020. The IRS noted, however, that because tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief. The December 15 deadline applies to the third quarter estimated tax payment due on September 15. It also applies to the quarterly payroll and excise tax returns normally due on November 2. In addition, it applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 15. In addition, penalties on payroll and excise tax deposits due on or after August 14 and before August 31 will be abated as long as the deposits are made by August 31, 2020. If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty. For information on services currently available, visit the IRS operations and services page at IRS.gov/coronavirus. The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief.

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.

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.

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.

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.

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?

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.

Thanks for your comments.

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.

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

EIN's are valid forever. Once assigned they can't be changed to another person, or entity.