Max W

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.

When you have a successful business, competitors will spring up to try and take a bite out of it. Two of them, Jackson-Hewitt and Liberty were both founded by an ex HRB exec, John Hewitt. There are also the do-it-yourselfers that have also taken a bite as well as non-profit volunteers and the IRS itself who will now assist with returns up to what? $60K, or so. The report says that the loss was mostly in the early part of the season with most of the decline coming in 1040EZ and EITC returns. A large part of this may be due to Liberty's spanish speaking offices "Siempre" and to the demise of the instant refund programs. All companies eventually reach a peak and then decline and level off at some point. What is so remarkable about HRB is that it took so long for it to happen to them, over 60 years, but that is probably due to the lack of any meaningful competition for so long. Some of the layoffs in recent years may be due to overstaffing that happens when you are successful.

These are a CA creation. Anyone in CA have any experience with these? They are set up as non-profits, grocer stores, buying clubs and lately a lot of them are being set up for marijuana delivery services to its state certified members. From what I can find out, they need to be S-corps and the members receive 1099-PATR's. TIA

1. This is not a ""Quick question". That would be on sentence with a Yes/No answer. 2. I agree with Rita on this as I have used this method many times. I call it "offset to correct erroneous 1099MISC" 3. I do no agree with Pacun as the IRS doesn't decide which one to use until after the fact when issuing a CP2000. 4. Sometimes these things can be resolved by pulling the Wage Income transcripts. BTW, I've seen many duplications of 1099MISc and SSA-1099's. Either these are rejected by the computer or done manualy when income matching is done.

Letter 12C is a request for additional information after a return has been received. It is not specific to any form. The address is a legitimate IRS address. There is no PO Box as the IRS has the entire 73301 zip code. This is the case with all of their 15 or so regional offices. Seattle, Fresno, KC, Phila, Cinci, etc.

I have a W-2 client who was paid to buy her own insurance. No 1099 was issued. Handled payment on Sch C and took the SE HI as an adjustment. It wasn't a wash because of the SE tax. Another way to do it is to enter it on Line 21, then generate the SE form.

Because we have clients from around the country, sometimes we have to adjust fees according to where the client lives. This link gives the average range of fees by region. Many many years ago when I worked at HRB, they had different fees within 25 miles of different offices, because of income differences. http://www.cpapracticeadvisor.com/news/12065684/average-income-tax-preparation-fees-increased-in-2015

Yep! Human nature doesn't change from year to year. Early filers are most always early filers. Late filers are mostly late filers. And if the filing dates were changed to allow more time, the last minute filers would sill be last minute filers. When extensions that were only allowed to Aug 15, were changed to Oct 15, we tried to keep this info from the late filers and it worked for a uear or two, until they found out about it. So, you all know what happened. The Aug filers now became Oct filers, even with two additional months allowed.

Exactly. The COD becomes income and this is decided at the PTP level as how it is treated. PTP's have a requirement that a certain amount of income (90%) be qualifying income - interest dividends, rents - otherwise it is taxed as a corp. The IRS allows the option for COD to be used as qualifying income. So, I think that at the partner's level, the only out on 982 would be insolvency.

We had one client that always brought in his stuff around 4:30PM on Oct 15th. (of course he was on extension) He was a Sch C and had a number of additional forms, so it took several hours to prepare. One year it was given to me and I said I'm out of here at 6 o'clock. But one of the partners pleaded with me and offerred to buy me dinner if I would stay. At 8 o'clock I told one of the partners, that that was it, he would have to finish it, which he did. The client then drove to SF about 25 miles to mail the return at the only PO open until midnight. The client did this year after year and I refused to touch his returns. Finally, the partners got a little sense and tripled the price of the return. The guy never came back. Were it my choice, I would have just fired him, period, end of story.

Interesting. This reg says you CAN deduct meals . Was this reg amended to not include meals? As for the airfare, there may be a court ruling, or something else that says if you are offered reimbursed expenses and don't take that you lose out on anything over the reimbursed amount. Just sayin'.

Received an email from a Jorge Chabo - "Hi, I need a tax preparer to get my taxes done I have been out of the country since January I just got back and I didn't file an extension either. I got your contact via LinkedIn, so I will like to know what you require to have my taxes done, I made money in Both California and Florida, attached are my Florida driver's license and also my pay/financial doc. I will like to know what additional requirements you may need. Regards, Jorge Chabo" Checked Linkedin and there are two people with this name, one a Cpa/EA; the other with the Miami Hurricane newspaper. There were two attachments sent, a jpg Driver's License and a W-2 pdf. The pdf went to a link which I didn't open because it went to a domain up for sale. Didn't open the jpg as it may have code embedded. The email came from aquinas.edu which is a college located n MI. There was also a phone number located in Placentia CA. Also, since it is address"Hi" with no name, makes me very suspicious that hundreds of this email was sent out. Has anyone else encountered this?

Yeh! I'd say there is a 95% chance they will ask for their papers back. But 95% is not 100%. If you guys want to bet, you have to give me 20:1 odds. 20 banana splits for one. If if they ask for the papers back, you have a chance to turn the situation around. How? Put the fear of an IRS audit of three years returns, additional tax, penalties and interest, possible fraud penalties, etc. Believe me it works.

The best way to check this out is to refer to the CA tax tables. If it is over $100K, you have to use formulas. https://www.ftb.ca.gov/forms/2015/15_540tt.pdf

" do I need to re-figure the basis and report as gain for 2015? " Yes. Sec 121 can only be applied on a resale for one year after the original sale. I believe, you can include in the basis the tax paid on any income received from the original sale.

Isn't an S-corp with husband and wife, MFJ, considered as 50/50 by the IRS? Frank;y, I would pull out all of the coffee shop items and put them on a Sch C. and prep the S-corp as a final return, especially if it is on CA.

I have run into situations where property was purchased many years ago and the basis is unknown. FannieMae has price index tables going back to 1975 arranged by state and city. Working off of these, a reasonable approximation can sometmes be made. http://www.freddiemac.com/finance/fmhpi/archive.html

The FTC can only be taken against foreign income. If the client has brokerage accounts, he could have foreign dividends or interest against which the FTC could be applied.

First of all, you are jumping to conclusions. 'Coming by" might mean they want to talk. Rather than losing sleep over it, call them and tell them that you are extremely busy, but you will be glad to talk to them if they make an appointment. That is when they will tell you - "Oh, we just want to pick up our papers"; or. "we want to talk about the return". Once you can engage them in conversation, you can turn the situation around, but that's another subject.

There is no prohibition on claiming Sec 121 for foreign property. https://www.law.cornell.edu/uscode/text/26/121 It does exclude ex-patriots from claiming the exclusion. But, then these are people who have renounced their citizenship.

The $26K might have been for some type of benefit such as health insurance, which should have been reported as a guaranteed payment and subject to SE. The client should know.

There are special rules for handling Ponzi Schemes and one of them is it has to be determined that it is one and not just an investment gone sour. As I recall, from one I did a few years ago, court records had to be provided where it was shown to be a Ponzi scheme. Also, I do not think that Sch D was used, Sch A was. You will have to research it, because it is handled differently than other investment losses. .

That's what I would do - all zeros. I have had to do a number of corp returns that had no income and no expenses so that the corporation could be revived (CA).

I think this topic has run off the road. If it is personal use, which it seems to be, there is no depreciation. By his own words, it was purchased to save money on hotels.

Has anyone ever dealt with a non-profit mutual benefit Corp? What are the benefits and are there any pitfalls. Also, the corp wasn't filed until Dec 16, 2015. Is a 2015 return required to be filed? TIA