Max W

Reread my post. I said I would prepare ALL the missing returns.

Hopefully, S-corp election form 2553 was filed the first year. Otherwise, the IRS will convert them to a C-Corp. Will the IRS even process corporate returns going back 10 years? There is a lookback period of 6 years and the IRS does not require older returns to be filed. I don't know of any states that do this. So, do you inform the client of the look back period and tell him he is only morally obligated to file the older returns? What if you don't tell him and he finds out later that you did not apprise him of the situation? It could become ugly. I always prepare all the missing returns, charge them for it, and leave it to the client if they want to file the old ones or not. Most people do want to file.

I have tried to avoid any discussion of the new tax law, but I have a client that has to start making plans for a substantial purchase of business assets. He is contemplating buying large metal ship type containers and renting them out for storage. They will be 7 year personal property as they will not be permanent structures. The new law, allow $1M Sec 179 and 100% of Bonus Depreciation. The purchase is contemplated to be $2.5 Million. It seems the 100% B.D. is unlimited. Does anyone know if this is correct? TIA

J-1 visas holders have a lot of issues that have to be resolved. One thing is certain, he cannot claim the wife or child. He would have to become a US Citizen, or LPR (Lawful Permanent Resident), then apply to ahve the child and wife admitted as immigrants to the US. After you read this, you may want to pass on the return. https://tax.thomsonreuters.com/wp-content/pdf/nra-tax/US_Taxation_of_J-1_Exchange_WP.pdf

Also, for the dependents SSN on the 1040, type in "Applied for". Send both return, W-7, and documentation together to Austin.

Has anyone had any problems in renewing their Eservices password? I have made several attempts and have contacted that office three times. The first time, I was gien totally misleading directions. The second time I was given a temporary password and a access code was mailed to me. After receiving the code, I attempted to log in with the temporary password, but IT DID NOT WORK. Another call and was told that the PW they gave me was correct as was all the other info supplied. Now my case gets passed up to a higher level and am told someone will call me back with one of two identifier codes, depending on who it comes from. This is to prevent phishing. The IRS couldn't give me a time frame for a response. It's been about a week now and nothing yet. Meanwhile, I can't access transcripts either from the IRS or through Canopy.

I have called for several clients in the last few weeks without any problem.only forwards for Tom, haven't you moved a few times in the last few years? If your address wasn't updated on the 2848, it is possible that you were sent IRS correspondence that was returned to them and your POA was removed. Some of their notices are not allowed to be forwarded. Also, USPS limits forwarding to 12 months.

The identifiers, beside the SSN, for individual returns consist of the first letter of the first name and the first 4 letters of the last name, so the last name can be truncated as cbslee says.

I don't see how the corp can contribute to a Roth. The amount should be additional salary to the wife. She can then contribute the additional amount to the Roth.

If the 5 days were W-2 wages, it can all be done on the main form, 540NR, as the income is prorated. No need then for the adjustment form.

In case anyone is curious, she has a rather low key, one page website. http://www.ronideutch.com

Thank you Black Bart, I'm not so sure about either one.

Circumstantial evidence, especially when corroborated, is much stronger than direct evidence, such as an eyewitness. Forensics and fingerprints are circumstantial evidence. BTW, there has never been a scientific study made to prove that a set of fingerprints is unique to only one individual. https://www.cmu.edu/dietrich/news/news-stories/2017/october/aaas-fingerprint-report.html

You can call PPS (or collections) while the client is in the office and the IRS will ask them certain questions to verify who they are. You do not need to submit any form. If the client is not there, you can submit the 2848 (or 8821) after you phone the IRS. They will provide the fax number and they will wait while it is faxed. You can also ask them to forward the form to the CAF unit. It takes 2 weeks , or so, for the form to be entered in the system. Once in the system, you can use Eservices TDS (Transmission Delivery System.).

Twice I've gone through the new drill. Fortunately, I didn't have clients sitting in front of me, which would have created an awkward situation. NATP has taken an active response to the new requirements, with suggestions that hopefully the IRS will accept. https://www.natptax.com/TaxKnowledgeCenter/GovernmentNews/Documents/PPS Issue Paper.pdf

She has been disbarred. You can check the CA Bar Association and look it up.

She has been back since Feb of 2016. Even though she has been disbarred, she can still operate a business and have CPA's atty, or EA's do the representation. https://www.prnewswire.com/news-releases/roni-deutch-the-tax-lady-is-back-300217444.html

Here is an article from Forbe's magazine that deals with the 20% Qualified Business Income Deduction. It's a long read, but provides many examples. The problem with the QBID is in determining what is qualified income and then later dealing with limitations on W-2 income, exceptions and depreciation. Hopefully, when the regs are issued some of the confusion will be cleared up, but that's just a hope. At the end, the suthor states - "With no regulations, no form instructions, and most unfortunate of all, no one who helped craft the bill or vote on the thing who actually understands what it says, it may be a while before clarity is forthcoming. So for now, I"m all ya' got." Have fun reading - https://www.forbes.com/sites/anthonynitti/2017/12/26/tax-geek-tuesday-making-sense-of-the-new-20-qualified-business-income-deduction/#3bf1c5e444fd

Each return should go into a separate envelope, each marked with the year and form (ex. 1040-2015). Then the separate envelopes can be sent together in a larger mailer envelope. Always, mail Certified with return receipt. If all the returns are sent together without separating them, the mail clerks pull everything out and staple it together, so only the return that is on top gets processed. If you wait until the 29th, 2015 and 2016 can be Efiled.

Have you tried calling recently? Either the lines have "High call volume - call back later", or "there are callers ahead of you. The wait is 30 to 60 minutes." Yesterday I waited over 90 minutes and the line disconnected.

Looks like the only change made to 2848 was line 5a. This was added - "Access my IRS records via an Intermediate Service Provider"

A nice little tidbit to know. A $500 fine for not performing HOH due diligence. CA sometimes requires that a questionnaire be filled for this, which consists of a series of 11 questions. Just holding my breath to see what the IRS wants.

Yes. And you can print them out if you wish. Also, you can pull up as many transcripts as you want - no limit - as when Calling PPL.

HELOC has always been deductible up to $100K. If it is not used for improvements or acquisition, it becomes an AMT preference. So, depending on the other AMT preferences, there may or may not be any AMT. Thus, it could still count as a full or partial deduction.

Calculus won't work for SEHI, because everytime a calculation is made, the parameters change. Calculus works for curves, arcs, parabolas, catenarys & straight lines, at least as far as I remember Calculus & Dif EQ from university classes in the mid 1950's.