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cbslee

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  1. It appears to me that you have interpreted the issue correctly. I think that the date of incorporation and the state of incorporation are "state" related questions not "federal" related questions and that is why I would leave the questions blank.
  2. The instructions don't address this, but I would leave them blank.
  3. There are a number of online reviews which detail the differences, pro and con.
  4. Why would anyone risk using an OS that your software provider won't support? You risk mid tax season being up the crick without a paddle?
  5. My fifth PPP Loan Forgiveness application was just approved. One more to go. Interesting, all of the approvals took 5 business days. I am getting the feeling the SBA is just going thru the motions.
  6. Did you have any clients who were sure that they didn't receive one of the rebates and how did you handle that?
  7. Some months ago, I logged into my Secure Access account to check the details of my rebates. While it shows that the rebates were disbursed, there wen't any details of how the funds were distributed.
  8. I have a client who swears he didn't receive first stimulus rebate, so I efiled his return claiming the Recovery Rebate Credit which resulted in him expecting a refund, which was applied toward his estimated payments Four months later he received a CP 11 saying that according to IRS records he received the $ 1,200 rebate and instead of a refund he now owes about $ 300. So now he will potentially be subject to penalties and interest for late estimated payments. I have no idea how this will get resolved.
  9. "to do work/research' kinda sounds like self employment Schedule C
  10. Copied from The Journal of Accountancy: "Further guidance issued on tax treatment of PPP loan forgiveness By Paul Bonner November 18, 2021 Paycheck Protection Prgram Partnership & LLC Taxation In three revenue procedures (Rev. Procs. 2021-48, 2021-49, and 2021-50) the IRS provided guidance Thursday on the treatment of amounts excluded from taxpayers' gross income in connection with forgiveness of Paycheck Protection Program (PPP) loans. The AICPA had requested guidance in a March 15, 2021, letter to the IRS. While it is excluded from taxpayers' gross income, tax-exempt income resulting from PPP loan forgiveness nonetheless must be included in gross receipts for certain other purposes, which include the gross receipts test under Sec. 448(c) for a "small business taxpayer" eligible to use the cash method of accounting and several other generally favorable tax accounting provisions. Another such inclusion is for certain return filing requirement thresholds for tax-exempt organizations under Sec. 6033. As the AICPA had suggested, a range of issues are addressed in the guidance, including the timing for tax purposes of when PPP loan forgiveness is received or accrued, how partners and partnerships may allocate PPP forgiveness as exempt income and allocate deductions resulting from expenditures attributable to the use of forgiven PPP loan proceeds, and how eligible partnerships subject to audit procedures under the Bipartisan Budget Act of 2015, P.L. 114-74, (BBA partnerships) may file amended Forms 1065, U.S. Return of Partnership Income, and issue amended Schedules K-1, Partner's Share of Income, Deductions, Credits, etc., to partners in accordance with these procedures. Rev. Proc. 2021-48: Timing issues Rev. Proc. 2021-48 covers the timing of receipt of PPP forgiveness tax-exempt income. Taxpayers may treat such income as received or accrued when either (1) expenses eligible for forgiveness are paid or incurred; (2) an application for PPP loan forgiveness is filed; or (3) PPP loan forgiveness is granted. The revenue procedure also describes adjustments that must be made on an amended return; information return; or, for certain partnerships, an administrative adjustment request, when a PPP loan is only partly forgiven. Rev. Proc. 2021-49: Allocation issues Rev. Proc. 2021-49 prescribes how partners and partnerships may allocate among partners under Sec. 704(b) their distributive share of PPP loan forgiveness tax-exempt income and deductions resulting from expenditures attributable to the use of forgiven PPP loans and make corresponding adjustments to the partners' bases in their partnership interests under Sec. 705. For corporations, the revenue procedure provides guidance regarding similar adjustments of stock basis by subsidiary members of consolidated groups under Sec. 1502 and Regs. Sec. 1.1502-32. This revenue procedure's provisions also apply to certain grant proceeds and subsidized payments of certain interest and fees. Rev. Proc. 2021-50: Amended returns Rev. Proc. 2021-50 allows eligible BBA partnerships to file amended Forms 1065 and issue amended Schedules K-1 for the above purposes for tax years ending after March 27, 2020. These amended returns and Schedules K-1 must be filed or furnished on or before Dec. 31, 2021. BBA partnerships are eligible if they filed Forms 1065 and furnished Schedules K-1 for the partnership tax year ending after March 27, 2020, and before the issuance of Rev. Procs. 2021-48 and 2021-49 and meet certain other listed requirements of these revenue procedure."
  11. "Tax Impact The dividends received under the cost method create taxable income. For example, if UVW Corp. pays out 2 percent a year in dividends, your income is 2 percent of $10 million, or $200,000. In the 24 percent tax bracket, you would incur a $48,000 tax liability. The equity method has a larger potential effect on income and thus on income taxes. Suppose XYZ Corp routinely earns a 10 percent annual return on equity. In the first year, you would record income of 10 percent of $10 million, or $1 million. Your tax liability is $240,000. Since income is normally more volatile than dividend yield, the equity method has more potential to affect your company’s tax bill." The way you phrase questions, I never know whether it's a real client question or a head scratching hypothetical question?
  12. Another unscheduled update. Several different tech articles that I have read, say that there has been an unprecedented increase in attacks on all of the major browsers. So which ever browser that you use, check regularly to make sure it's up to date. Chrome is up to date Version 96.0.4664.45 (Official Build) (64-bit
  13. Also, with a C Corp you have more flexibility to load up on fringe benefits assuming the business is profitable enough to support the additional cost of the benefits.
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