Lee B

"to do work/research' kinda sounds like self employment Schedule C

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."

"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?

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

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.

Copied from the Taxpayer Advocate Blog: "As of October 30, 2021, the IRS had a backlog of over 2.7 million unprocessed amended returns. The IRS is processing these returns in the order received, and the current processing time posted on its operational page is more than 20 weeks. Our cases indicate that the processing time is considerably longer than 20 weeks, and as such, I have made the difficult decision to suspend accepting cases where the sole issue involves the processing of amended returns until the IRS is able to work through its backlog. We are also analyzing the upcoming filing season and expect to issue revised guidance for original filed returns. Under our current procedures, TAS does not accept cases in which we cannot meaningfully expedite or improve case resolution for taxpayers. Amended returns fall into this category. Due to the broad impact of COVID-19, the IRS has faced significant challenges in all its return processing operations. Unfortunately, until the IRS processes a tax return, TAS cannot assist the taxpayer. For that reason, TAS will not accept new cases solely involving the processing of an individual or business amended return. TAS will continue to monitor IRS developments in amended return processing and will reevaluate this determination as the situation change." I have a family member who has a very large refund on an amended return who has been waiting for more than 12 months. They received their state refund 4 or 5 months ago.

IRS unveils new online identity verification process for accessing self-help tools WASHINGTON – The Internal Revenue Service today announced the launch of an improved identity verification and sign-in process that enables more people to securely access and use IRS online tools and applications. Taxpayers using the new mobile-friendly verification procedure can gain entry to existing IRS online services such as the Child Tax Credit Update Portal, Online Account, Get Transcript Online, Get an Identity Protection PIN (IP PIN) and Online Payment Agreement. Additional IRS applications will transition to the new method over the next year. “Identity verification is critical to protect taxpayers and their information. The IRS has been working hard to make improvements in this area, and this new verification process is designed to make IRS online applications as secure as possible for people,” said IRS Commissioner Chuck Rettig. “To help taxpayers and the tax community, we are improving the accessibility of online tools that help families manage their Child Tax Credit, check on their IRS accounts and securely perform other routine tasks online.” The new process can reach more people through the expanded use of identity documents and increased help desk assistance for taxpayers who encounter a problem when attempting to verify their identity online. Developed under the Secure Access Digital Identity initiative (SADI), the new process complies with a federal mandate. To provide verification services, the IRS is using ID.me, a trusted technology provider. The new process is one more step the IRS is taking to ensure that taxpayer information is provided only to the person who legally has a right to the data. The IRS also integrated this new account-creation process into some applications used by tax professionals, including those used to request powers of attorney or tax information authorizations online using Tax Pro Account or to submit Forms 2848 and 8821 online. Accessing IRS tools When accessing the tools listed above, taxpayers will be asked to sign in with an ID.me account. People who already have IRS usernames may continue to use their credentials from the old system to sign-in until summer 2022, but are prompted to create an ID.me account as soon as possible. Anyone with an existing ID.me account from the Child Tax Credit Update Portal, or from another government agency, can sign in with their existing credentials. To verify their identity with ID.me, taxpayers need to provide a photo of an identity document such as a driver’s license, state ID or passport. They’ll also need to take a selfie with a smartphone or a computer with a webcam. Once their identity has been verified, they can securely access IRS online services. Taxpayers who need help verifying their identity or submitting a support ticket can visit the ID.me IRS Help Site. This will be really different, having to submit a picture of your identity document like your drivers license, then having to submit a selfie. In addition the IRS is using a third party named, "ID.me" ? Has anyone ever heard of "ID.me"?

Since there seem to be multiple different kinds of suspended losses, I guess it depends.

Do your own research

Under the TCJA, the Home Office deduction has been significantly limited to Schedule C, Schedule F and to a limited extent to 1065 Partners on Page 2 of Schedule E. I am not aware of a Home Office Deduction on Page 1 of Schedule E. If your client is a Partner of a PTS reporting on Form 1065, there was a detailed discussion earlier this year of how and when Unreimbursed Partnership Expenses potentially including Home Office might be deducted on Page 2 of Schedule E.

Yes, I have been efiling W-2s for well over 10 years. No problems. The SSA website has improved over the years. I think you just have to work your way thru the process until you're comfortable. Admittedly when you do something like this only once a year, it takes little extra time to refresh your memory.

This is my third year of using Medlin and I can honestly say that everything works smoothly and efficiently the way that it should. An extremely good value for the low price that he charges. My only complaint is that I would like to see a few more features/functions added for which I would have no problem paying more. However I totally understand why he doesn't add these things.

Perhaps, fill in the ______________________________________________

Issue Number: IR-2021-221 IRS updates FAQs for 2020 Unemployment Compensation Exclusion WASHINGTON – The Internal Revenue Service today updated its frequently-asked-questions (FAQs) on 2020 Unemployment Compensation Exclusion. These updated FAQs (FS-2021-14) are: Question 2, Topic Amended Return (Form 1040-X) Questions 8 & 9, Topic G: Receiving a Refund, Letter, or Notice Question 3, Topic I: Post Unemployment Compensation Exclusion Adjustment. These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible

I didn't know you had boonies in CT

I watched the video, it was very interesting. Definitely an out of the box approach, I hope they succeed.

Given the Equifax fiasco several years ago, the are reasons to paranoid about some things!

I have had clients with suspended losses before, however the situation was resolved with profits in future years which I had expected.

The person I am referring to was an longtime ATX user.

Just to repeat, this is the ATX cutoff time & date. Drake usually uses the IRS date of November 20th.

I don't know if he is still an active member of this board, but he used to post at least once every year that he paper filed everything because of ? ? ? ?

Marie's post is that the parents gave the farm to two of the three brothers, which implies that brother # 3 is not an owner. To compensate for that Brothers # 1 & # 2 are going to pay brother # 3 cash equal to 1/3 of the farm's value. Assuming that brother # 3 is not an owner then the cash paid constitutes a gift.

We can't be in the prediction business, sometimes the unexpected happens i.e. one brother has serious health problems and can't farm anymore It appears that the 2 brothers would have to file gift tax returns. The awkward way this was handled, the interest on the loan probably wouldn't be deductible.

Boy, there are going to be 2 unhappy brothers somewhere down the road. No step up in basis. It's truly amazing what people will do with either bad advice or no advice.

Just remember that ATX usually has their own cutoff time which is earlier than the IRS