Max W

Is there any advantage or disadvantage to this?

Abby, that was the first thing I suggested to him, to just let it die and start fresh with a new corp name, but he insisted that it was for sentimental reasons as his father had started the business and he wanted to keep the name. So, then we are back full circle to the initial question of the "ghost' assets. To liquidate the corp, he would have to file all the back returns, pay the $800 yearly franchise fee to CA plus P&I.

I uploaded a 2848 and received a confirming letter in about a week and checked on line and it had been posted. If you call PPL and fax it to them, always request that the 2848 be forwarded to the CAF Unit. All they have to do is click a button.

It was suspended years ago. The client wants to revive the Corp. This means filig all the missing returns and paying fees and penalties. Client knows he is going to have to pay the $800 FTB fee for 9 years. the SOS. bi-yearly penalty of $250 plus P&I and file a Cert. of Revivor. He's got all of his records from 2013 on and has supplied a P&L. On the federal side he shows losses for most years, Because he paid himself a salary, so very little penalty there. My only concern is too clean up the one item on the balance sheet. I guess I'll just leave it stand nless he an come up with a dep. stmt from before 2012.

Ooops! Mistake. Founded in 2001. Last return filed in 2012.

Thanks for all the suggestions, they have all been tried. However, I have the client searching for additional returns and information, but so far nothing has come up. The firm was founded in 2021 and the last return filed was for TY 2012. With no additonal info, what would be the best way to proceed?

C-corp client hasn't filed 1120 tax returns for several years. The las filed return has a simple balance sheet with few entries. However it shows an item(s) were being depreciated, but the depreciation stopped. In other words, the OY and EOY numbers are the same. Client inherited business from parent and has no idea what it could be. The assets being depreciated had a start value of $75K and $50K acc. dep. The only other asset is cash and the Liabilities are Add'l. piad in Cap $74K and Retained earnings -$46K. The question is what, if anything, should be done with this?

Only a 10% increase???? It should be more like 60%, or 90cts.

It looks like a rubber buoy converted to a punching ... err, butting bag.

Client received $15K EiDL last year. He spent $9K on expenses and still has $6K What if anything is taxable; or is it a grant that has to be repaid and treated as a loan?

This should help. It seems like there are just a few simple steps to take. https://www.guideline.com/blog/what-you-need-to-know-about-calsavers-june-30-deadline/

Those must be the ones that have refunds.

You can get a free demo and try running a few returns on it. That will probably tell you if it is what you need.

Lucky you. It's a pain for MFS, but for stepped up basis it can be a real advantage, if it is recorded correctly.

To complicate it even more, this is in California, a comm. prop. state, where most things are supposed to be 50/50. Then they were running two different business under the S-corp. He was an Indian guru, astrologer an his master guru is in India and paid an enormous price for his consultations. She started a cosmetology business last year and made about 1/4 of what he made in his half of the year.

Clinets were a married couple and he died in middle of last year. How should ownership percentage be allocated?

A million thanks to you, Judy, for managing this site so well and giving so generously of your time and effort. It certainly beats hands down any other tax discussion site on the web and it's all due to you. I hope your husband has recovered well and that you get the rest and relaxation you so deserve.

Who said anything about filing an incomplete return. The asker had tried get a transcript, but if the request was by mail it is going to take a long time. Right now, under the current IRS backlog and long on-hold phone times, filing a complete return will either go through as normal, or be rejected and then the appropriate action can be taken. The tax return has to be filed anyway and with client in the dark, taking action will demomstrate to the client that the preparer is doing something for them rather than sitting on their "idiotic butt."

You may have a long wait. The fastest way to find out is to file the return electronically. If the spouses SSN has already been used on another return, the IRS will reject the return and it will have to be mailed in.

Taxpayer had a home while married. Divorced and paid ex $200000 for the title and refi in her name. Now she sold ot it. Basis is the actual carryover cost of acquisition (not half)? Plus the cash paid to her ex? Or is this a marital settlement with no change in basis?

I thought of that, but they had filed jointly for 30 years. She said 2021 was filed under her name. Was it S or MFS? And, ususally 2 years of tax returns are needed. It's beginning to look like a scam.

Something doesn't smelll right here. Why would someone file a fraudulent return showing a balance due? I could understand it if it were for a large refund.

This is going to result in a CP2000 letter. The current EIN will show up in the IRS transcripts and the wrong one that was used will not, so there won't be a match. It should be easy to explain this to the IRS. What might be more difficult is explaining it to the client.

Thank you DANRVAN

So, if they get the credit then that is deducted from the depreciable basis?