Max W

I just ran across this web site. It has loads of information on how to combat unwanted phone calls. http://no-more-calls.com/

You might want to check this out. http://www.cpaacademy.org/

I agree with Jack, it's a waste of time. You can get your phone company to block a few numbers, usually ten, or buy a phone blocker, around $100. Both can be defeated by the caller putting a "0" or "00" in front of the number making it 3 calls to block. Then the numbers change, so it's back to square 1 again. I have an unlisted number (over 40 years) and am also on the No Call List, but neither of these helps. I called one of these numbers back to play with them and found to my dismay they even had my address. This was quite disturbing, because you are dealing with criminals. If anyone is interested, they can search the phone numbers and get a page full of sites for reporting scam calls. You can also find out where the call is coming from. One call I traced came from a town in eastern WA where the state prison is located. Hmm! Any connection?

The question is whether or not the members, or contributors, are looking to get a charitable deduction on their personal taxes. If so, it would have to be a non-profit. However, if that is not the case consider a not-for-profit corp, much like a mutual society. Then an 1120 would be filed and any excess membership would be refunded to show a zero gain/loss. The cost of preparing the 1120, even for one year, could exceed the cost of the determination letter.

If it were a business, it could be treated as deferred income and pro-rated accordingly. However, It is a prepaid vacation rental, which can't be considered a business. So, it seems that it should be reported in 2014.

What happens when an individual has all the rights, duties and responsibilities of a parent? The American Law Institute recognizes "de facto parent", as do many states. What makes the argument stronger is if the parent is related to the child. The tax code does not state "biological" father or mother and there are new defintions of parent adjudicated by some courts, it might be an issue worth closer examination. https://workfamily.sas.upenn.edu/glossary/d/de-facto-parent-definitions http://www.brewelaw.com/?page_id=225

The W-2 mistake could be a blessing in disguise. If all the back pay is reported in the year paid, it could push the client into a higher tax bracket(s) and either reduce any refund , or increase tax due. It could be that the corrected W-2's and subsequent amended returns might be beneficial. It could be an interesting problem.

The tax questions aside, annuities are always subject to withdrawal penalties in the first six to eight years. This protects the insurance company so that it can recover the commission paid to the salesperson. Let's say the commission was 6%. Then the penalty for withdrawal in the 1st year is 6%; 2nd year 5%, and so on. After the 6th, no penalty.

From my reading of this, income is non-passive, losses are passive.

That goes without saying. Different judges could come up with different analyses. My comment was on this court's decision.

There is one exception - if one of the spouses died after the return was filed. §1.6013-4. For any taxable year with respect to which a joint return has been filed, separate returns shall not be made by the spouses after the time for filing the return of either has expired. See, however, paragraph (d)(5) of this section for the right of an executor to file a late separate return for a deceased spouse and thereby disaffirm a timely joint return made by the surviving spouse. BTW, if any return is changed prior to the filing deadline, it is a Corrected return (Write "CORRECTED" across the top). You do not use 1040X.

Hubby might qualify for foreign income exemption ($101K) if MFJ.

Based on the courts analysis, it is the only decision that could have been reached. Three factors positive; 5 neutral; 0 negative.

If you wait, the audit could be expanded to include 2014 and possible 2015. What stage is the audit in? This could be important if you need more time to prep the amended returns. Are you representing the client in the audit?

From my experience, I vote for phone call to PPL. They may be able to fix it on the spot. Someone suggested, bury them in paperwork. Wrong! If something has to be mailed, never send anything that is more than a few paragraphs and certainly not more than a page. Any written communication with the IRS should state the problem in one short sentence. This should be a separate line right after the taxpayers name and ITIN and start out RE: Payment not credited to TP because of SSN entry error on back of attached check. You can go on to elaborate, but keep it short. Attach front & back copy of check and page 1 of CP14.

It is not a given that it is best for the buyer to acquire assets. There are some things that work in buying stock. For instance, large NOL's, large business credits and the buyer can use Sec 338 to treat the assets as if they were purchased separately. Also, if the assets are encumbered, or are being leased, such assets under asset purchase would have to be negotiated with each lender/lessor individually. There are so many variables in a buy/sell arrangement that each option has to be looked at carefully.

Moderator!. Might this be a topic worth pinning - to have the info needed for each state for retrieving the state withholding tax amounts? Over the years, I have had to do this with nearly every state DOR for this information. CA may be the easiest as it can be done with a phone call. One stumbling block is the clients address on file with the FTB. Some people move around a lot and having the older W-2's and IRS W&I or Account statements will help. I have had to provide 6 or more addresses until the right one was hit. Perhaps once or twice, the client had to call to provide the address. Another twist in their system is that depending on the age of the year in question and also the amount assessed it could be in a different section. Start with 916-845-7044, and they will give you the other number if necessary. When filing a CA return without a W-2, they will tell you to use their Substitute W-2 form. However, using the IRS form 4852 attached to the state return works as I have never had one rejected. NY requires a form submitted for each year, but they will return the info quickly. There are at least another half dozen state that will provide the info. The ones that I seem to remember are MN, OR, HI, LA, MD, ME, VA, although there are surely more. One state, UT, requires verification (W-2), but will not provide any info, so client has to go back to employer. The rest usually accept any reasonable estimate on the return. (I always make sure that there is no state refund.)

I agree 100% with Rita. If tax is owed on any year, an amended return can be filed.

The absolute worst days to call are after a 3-day weekend.

Bet their fine was peanuts!

Suggestion: Try around 8AM or late afternoon and avoid Mondays and Fridays. I have made hundreds of calls to the IRS and this seems to work best. Even though they weren't on the 1040 number, the results should be about the same.

It's a scam. Here is the address from irs.gov Internal Revenue Service Return Preparer Office SE:RPO, Room 3420/IR 1111 Constitution Avenue NW Washington, DC 20224 Phone Number: 202-317-7063 Fax Number: 202-317-4358

The General Instructions regarding "Void" that BlackBart refers to are for use when preparing (typing/writing)the sheets of 1099's in sequence and an error is made on one of them. It's not for correcting a file form. BTW, the link works. No, we agree. For some uknown reason, I brought up "Void", but that wasn't anything that you mentioned.

I had an accountant before I got into the tax business who was ex IRS CID and thought he knew all of what he could get away with. He padded expenses on numerous returns for several years until a couple of his clients got audited. This led to the IRS to raid his office, ski masks on, guns drawn and hauling off all his records. He and an associate got million dollar fines and 18 months jail sentences. None of the clients were charged.

It is going to vary as to when it was filed, but my experience is 4-6 weeks. Early in the tax season and after the tax season will have shorter times than during the peak periods. It may also depend on the return, whether it is a simple W-2, or a more complex one with various schedules. Send the client this link- https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp