Max W

It's been a long time since I dealt with HRB's Peace of Mind program. As I recall it worked best with people who had prior audits and persons with Schedule C's. The one feature that stood out was that in case of an audit, HRB would represent you free of charge. In order to promote the program, an incentive was offered to the preparer, but I don't quite recall what it was - $5, maybe.

If the returns are MFJ, or RDP, you have to file a POA for each person. If there is any difference in what is entered on line and the uploaded copy, it will not get posted. Although, they say it takes 30 days on line, the few I filed actually took about 20 days. Not much of a consolation, though. It was much better in the past when you could phone in and fax the poa's directly to the person on the other end. If the client has any collection notices, garnishments, levies, etc., you can still get info on the phone without the poa on file.

Client is a C-corp owned 50/50 by two foreign individuals. If there is ownership by a foreign individual of more than 25%, form 5472 has to be filed. The corp started in 2015, ran up about $200K in expenses and had no income. 2016 it was inactive, zere income, zero expense. Client wants to file returns to close out corp. Is there any out for them for form 5472, which has to be timely filed, or be subject to huge penalties? IMO, whoever set up the corp should have advised them on this, because as foreigners they needed to get a Reference ID Number. Any ideas?

I have used the method that Rita describes for many years and have posted it here more than once. It also works for 1099's that should have been reported in Box 3, but were in Box 7, changing the wording to "......reported on Line 21".

Wage and Earnings are individual transcripts. The account and returns transcripts would be joint, if that was how they filed.

Most Time-shares can be sold on the secondary market. This is one company that does that. Some are disreputable, but this one looks like it might be OK. Would certainly do a little more checking. http://www.webuyandselltimeshares.com/

Thanks, Rita. Nov 30 is great. Usually it stops the week before TXgiving. And BTE, Happy Thanksgiving.

I'm assuming that efiling is closed down now for the rest of the year. Can anyone confirm? TX

If you haven't seen the letter, how do you know it is even from the IRS? Any letter clients receive about taxes they almost always attribute to the IRS. Even if it were from the IRS, you have to see the letter. You can not rely on what clients tell you as they don't understand what they are reading. Don't waste your time on this until you know exactly what the issue is and who the tax agency is.

It has been signed into law awaiting IRS regs. many of which come after tax season and the end of the year. It makes sense if the object is to prevent ID theft as W-2's are so numerous, possibly more than the rest of the forms combined. https://www.adp.com/-/media/Eye on Washington/EoW YEL.ashx?la=en

Truncating SSN's on W-2's is now allowed for upcoming years. Some companies jumped the gun last year as I saw numerous truncated W-2's and 1099R's. http://www.bna.com/irs-allow-truncated-n57982066286/

Received an email purportedly from ATT saying that my email account had exceeded capacity and account would be blocked if it wasn't remedied. AT&T 'Account Limit Exceeded' Phishing Scam OutlineEmail purporting to be from AT&T claims that the recipient's email account limit has been exceeded and that the account will therefore be suspended unless it is verified within 24 hours.Brief AnalysisThe email is not from AT&T . In fact, it is a phishing scam deigned to trick AT&T account holders into divulging their account login details to Internet criminals.

This article may help. http://www.fishercpafirm.com/blog/174-tax-treatment-of-real-estate-lease-options-houston-real-estate-cpa.html The last item can be a problem, so the lease-to-own period should be no more than two to three years. There may be state specific laws to consider as to this.

Wishing your sister a speedy recovery.

check out Code N in the instructions https://www.irs.gov/pub/irs-pdf/i8949.pdf

Six hours are allowed for teaching. https://www.caltax.com/spidellweb/public/webinars/self-study-materials/2014Circular230EthicsONLINE.pdf page 11 of the pdf; numbered page - 7

This is very good news. Based on the number of persons involved and the amount of money being collected, this was a large scale operation. Other operations that have been shut down involved a handful of people. There are surely others still out there, but for the meantime, my "IRS" calls have stopped.

Doesn't there have to be basis in the corp (either with Paid in Cap or a legitimate loan,) to take the NOL? There may well be a bank loan to the owner, but the corp is not paying any interest. As for return of capital, there is also a minus $700K in retained earnings so there is nothing to be distributed. How would you suggest legitimizing the loans? Some of the loans were made seeral years prior to 2012. Thanks for your help.

Very good suggestions. I appreciate your help. Thank you.

Thanks, rf, it does help. The previous CPA was remiss in not insisting that the loans be formalized and interest paid. For 2012 the interest @ 6% could be as high as $30K. Since substantial NOL's have been taken and will be taken, the lack of basis, if the loans are not legitimate, could jeopardize the NOL's. As for the minutes, I haven't determined that yet, but I'm doubtful that any yearly stockholder meeting was held as there is only one shareholder who has 100% of the stock. However, I was only able to talk to her husband who manages the business and handles tax matters.

New client with C-corp and 3 years due. The 2012 1120 Balance sheet shows $500K Loans from shareholders, zero capital. From talking to the client the loans were more like paid in capital as there is no loan paper between the corp and client and no interest changing hands. Is there any reason the "loans" could not be re-characterized as Paid in Capital on the 2013 and subsequent returns? This could be a major issue because of large NOL's. TIA

Straightforward! Just love it when a client says "I have a straightforward tax return, just two W-2's". OK! "Oh, and BTW, I sold some rental property and the bank sent me something, I think says 1099C". Yep! Straightforward.

I've had problems with PEO's getting payroll issues wrong. You should contact your client and let him know what the situation is. Tell your client that unless the PEO issues a W-2C, you will have to file the returns based on the incorrect W-2, then amend the return, for which you will have to charge him, when the W-2C is issued. When the client learns that he will be overpaying tax because of the PEO's mistake, plus additional prep fees, he will swing into action and hopefully put enough pressure on them to issue the W-2C next week. I would also prepare a pro-forma W-2C and circle the changes, so the client can send it to the PEO and the dummies on the other end will know exactly what to do. The 941X is not so urgent, but the client should make sure that it gets filed.

Form 4797 is not exclusive for reporting 1250 gain. It can also be reported on Sch D, Line 18 which is what is used when reporting the sale of a home converted from a rental.

It always goes on 4797 which will report the depreciation as well as the sale. If it is Land only, and no dep., it can go on 8949.