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Everything posted by cbslee

  1. Correspondence Processing Delays When a taxpayer receives a notice and is requested to respond or chooses to respond, the taxpayer must generally do so by mail. Through May 21, the IRS processed 5million taxpayer responses to proposed adjustments. It took an average of 251 days to do so – more than eight months. That is more than triple the processing time of 74 days in fiscal year 2019, the most recent pre-pandemic year. “When a math error or similar notice is generated in connection with a paper-filed tax return,” the report says, “the combination of the return processing delay and the correspondence processing delay may mean that the taxpayer must wait well over a year to get the issue resolved and receive the refund due. Well the CP 2000 that I replied to back in December is still outstanding.
  2. I believe the original post, which is kind of unclear, says the person who passed away sold the basket to the to the current owners in 2010 for $ 1,500, which happens to be the only indication of what the basket is worth.
  3. The IRS says it will be caught up with all 2020 and earlier personal tax returns soon, with 2020 business tax returns shortly thereafter: https://www.irs.gov/newsroom/irs-continues-work-on-inventory-of-tax-returns-original-tax-returns-filed-in-2021-to-be-completed-this-week Also: 2.1 Million unprocessed Form 1040-X 3.7 Million unprocessed Form 941 215,000 unprocessed Form 941 X
  4. It definitely not a straightforward simple process.
  5. In order to support a deduction for more than $1,500, there needs to to be support for the item's FMV.
  6. Just because business ceased operations in February doesn't mean the corporation is dead. Does the corporation still have an open bank account? Are there any other assets or unpaid liabilities?
  7. I left ATX due to problems related to business entity returns. I see you are from ID. ATX has a long history of giving less attention to smaller states. I know the last year I used ATX, the users from MT and HI didn't have all of their forms until the last week of February or the beginning of March. If your practice needs tax software that's ready to go as soon as tax season opens, then ATX may not be for you.
  8. If this meets the definition of an unlawful discrimination claim, then the taxpayer may be able to to take an adjustment to income. Was a return never filed for 2018?
  9. Yes, I received the transcript 6 or 7 days later, although I really wanted to talk to a live person.
  10. About a month ago, I called trying to talk to a live person about a CP2000. I ended up in this new voice bot network ordering a tax transcript. Never was given the opportunity to talk to a live person. https://www.irs.gov/newsroom/irs-expands-voice-bot-options-for-faster-service-less-wait-time
  11. According to online reports over 1 Million children every year have their identity stolen. The most frequent culprit is a family member or the family member of a close friend.
  12. If the investments were contributed to the LLC (1065), then you would probably have to deal with differing inside and outside basis, extra tracking work. If the investments were inside an LLC (1120S), and the stockholders wanted to distribute the investments, wouldn't you have the same FMV issues that you have with distributing Real Estate held inside an 1120S?
  13. It depends, when do you want deal with the reduced deductions and the potential increase in taxable income, 2019 and 2020 by amending. Or if you choose the 3115 you get a 4 year forward spread.
  14. Where the heck do our clients get ideas like this
  15. Is it an SMLLC, A 1065 OR A 1120S?
  16. The article I referenced said that the uneven distribution could be made up in the following year even though that would be an uneven distribution. "The regs do include a helpful example, however: S, a corporation, has two equal shareholders, A and B. Under S’s bylaws. A and B are entitled to equal distributions. S distributes $50,000 to A in the current year, but does not distribute $50,000 to B until one year later. The circumstances indicate that the difference in timing did not occur by reason of a binding agreement relating to distribution or liquidation proceeds.Under paragraph (l)(2)(i) of this section, the difference in timing of the distributions to A and B does not cause S to be treated as having more than one class of stock" I wouldn't create a loan document, I would just do a catch up distribution in the following year, nothing more should be needed
  17. There are a number of articles online about this issue, but this one should be helpful: https://www.withum.com/resources/can-an-s-corporation-make-disproportionate-distributions/
  18. I believe that would a reimbursement of the children's expenses. The recipient of the rent, a motel or an landlord would have income.
  19. I use Drake's Depreciation module which is part of their tax software, so I can either set it up with the placed in service date blank or under depreciation Method I can select "Not Depreciable" then either enter the placed in service date the next year or change the depreciation method.
  20. I have run into this several times before and I just debit the normal fixed asset account and enter it on the depreciation schedule when the asset goes into service. Works just fine for me.
  21. If this were my client, I would tell them that I don't have enough information to prepare a return.
  22. https://www.nysscpa.org/news/publications/the-trusted-professional/article/taxpayer-advocate-warns-expect-delays-with-irs-power-of-attorney-forms-012122
  23. This last info I saw was it was taking 4 weeks plus.
  24. Missed the April tax deadline? File and pay by June 14 to avoid a larger penalty and interest WASHINGTON — The Internal Revenue Service today advised taxpayers who missed the April tax deadline that they can usually avoid a larger penalty by filing their 2021 federal income tax return and paying any tax due by Tuesday, June 14. To avoid the larger penalty, the IRS must receive the return by June 14. This means that a return mailed on that date will not qualify. For that reason, the IRS urges everyone to file electronically by June 14. How the penalty works Those who miss the June 14 cutoff will normally face a minimum late-filing penalty, also known as a failure-to-file penalty. By law, If the return is more than 60 days late, the minimum penalty is either $435 or 100 percent of the unpaid tax, whichever is less. This means that the penalty will equal the tax due if the taxpayer owes $435 or less. If they owe more than $435, then the minimum penalty will be at least $435. Under the normal calculation, this penalty is 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25%. Visit IRS.gov/Penalties for details. The late-filing penalty will stop accruing once the taxpayer files. In addition, the separate late-payment penalty and interest will stop accruing as soon as the tax is paid. The taxpayer need not figure any of these charges. Instead, the IRS will bill them for any amount due
  25. cbslee

    SSA Payback

    If the taxpayer is earning too much to receive any benefits, then they have to to repay the overpayment in 30 days or set up a repayment plan.
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