Lee B

I really glad you recovered. My neighbor who lives across the street from me who is in her late 60s came down with covid 19 at the beginning of March. Her doctor told her that she wasn't quite sick enough to be in the hospital. She told me that it was by far the sickest she had ever been. She had very similar symptoms to yours, however it took her 5 weeks to recover.

It sounds similar to NBA players having to file tax returns in every state in which they play a game.

No free slurpys, say it isn't so

Copied from Accounting Today: Despite COVID-19, the Internal Revenue Service is continuing forward with moving 1099-MISC Box 7, “Non-Employee Compensation” to a new form, the 1099-NEC. This is effective starting this tax year, 2020, meaning that in January 2021, organizations will file this new form. The 1099-NEC is straightforward: Box 1 is for non-employee compensation and Box 4 is for federal withholding for that contract employee. To put it simply, income that the company used to report in 1099-MISC Box 7 will now be reported in 1099-NEC Box 1. State tax withheld, payer state ID number and state income is reported in Boxes 5, 6 and 7 on the 1099-NEC. ASC 842, IFRS 16, and GASB 87: The dramatic impact of the new lease accounting standards To comply companies and public entities will need to overhaul the information collected and how it is gathered and stored. SPONSOR CONTENT FROM And that's it: Those are the only boxes on the 1099-NEC. Who gets it According to the IRS, the people for whom an organization should use the new 1099-NEC are those with at least $600 in: Services performed by someone who is not an employee (including parts and materials) (Box 1); Cash payments for fish (or other aquatic life) that the company purchases from anyone engaged in the trade or business of catching fish (Box 1); Payments to an attorney (Box 1). The term "attorney" includes a law firm or other provider of legal services. Attorneys' fees of $600 or more paid in the course of the organization’s trade or business are reportable in Box 1 of Form 1099-NEC, under Section 6041A(a)(1); or, Each person from whom the company has withheld any federal income tax (report in Box 4) under the backup withholding rules, regardless of the amount of the payment. The new 1099-MISC All of the other income typically reported on a 1099-MISC will stay on that form, though Boxes 7 through 17 on the 1099-MISC have been shuffled. Box 1, “Rents,” and Box 3, “Other Income,” remain the same. More information on the MISC and NEC are on the IRS web site: www.irs.gov/instructions/i1099msc. Most accounting software likely does not yet support a "1099-NEC" flag for vendors, nor does it produce a 1099-NEC report. If a company has vendors that use 1099-MISC Boxes 1 or 3, they may want to consider inserting a “Display Name” flag such as "Vendor Name 1 - NEC" and "Vendor Name 2 - MISC," so that in January they can easily download the 1099-MISC CSV file and separate out the vendors who will go to the 1099-NEC. APIs that connect accounting software to 1099-NEC software may or may not be updated by January, so we suggest reaching out to the organization’s 1099 software tech support and ensuring that they have a plan for mapping vendors into the proper form. Other issues State requirements. Individual state filing requirements are as yet unknown. All of us in the 1099 world have our fingers crossed that the IRS will make the 1099-NEC part of the Combined Federal/State program. This decision is still in flux; and according to the IRS, will be made by late August. We anticipate new state 1099-NEC requirements arriving late in the year, making for a hectic January. Corrections for a prior-year 1099-MISC. So what if a company has to correct a Box 7 amount on a 2019 1099-MISC and the new 1099-MISC Box 7 no longer exists? The IRS says corrections to 1099-MISC box 7 for tax years 2019 and earlier will remain on the old 1099-MISC form. Due dates. The due date for 1099-NEC is Feb. 1, 2021, to both the IRS and to recipients. The new 1099-MISC due date is pushed back to March 31, 2021, for IRS e-filing, since it no longer contains Box 7. It is still due to recipients on Feb. 1, 2021.

The point is that the IRS will not allow a S.P. to have more than one EIN. Second, If you have client who ceases to use an EIN they should notify the IRS to have the EIN deactivated so that it can't be used by someone else for fraudulent purposes.

The changes in tax law both federal and state is what generates work for us. Without the changes there would a lot fewer practitioners .

I have a client who is a coffee roaster who also sells espresso equipment. Occasionally, they will receive good sized deposits a month or two in advance of delivering the espresso equipment to their customer, which I record as a liability.

I believe that if it generates a Net Operating Loss, then the NOL would carryforward.

The president signed the extension bill into law this morning.

More changes are on the way. A bipartisan bill in the Senate Banking Committee would allow PPP Loan recipients of loans in the amount of $150,000 or less, to receive forgiveness with the filing of a one page attestation which would not require any complicated calculations. The PPP webinar I took yesterday covered both forgiveness applications. While the EZ application is less complicated, just determining whether you qualify to use the EZ application is definitely not easy unless you are a small business with a few employees with no changes.

Today, the House also passed the Extension Bill by unanimous consent. It now heads to the White House for the president's signature.

Actually, I was wondering whether Instacart provided any supporting reports in addition to the 1099?

This reminds me that about 15 years ago some prospective clients, husband and wife , who worked full time as independent commission agents for a merchant card services firm approached me to prepare their tax return. They had purchased a custom made Class A RV Marathon Coach at a cost of about $ 1 Million. They wanted my assurances that they could deduct the depreciation on the RV since "they used the RV as their mobile office." When I explained to them why they couldn't do that, they left my office in a huff and went"accountant shopping".

The scenario as posted sounds very questionable

Late today, the Senate voted unanimously to extend the PPP Loan Program from June 30th until August 8th, since $130 Billion is still unspent. The House has yet to vote.

Just curious, was this a S.P., setting up a second business ?

Thanks, I had already read this article. I was hoping that someone had prepared a return(s) .

Talked to new client on the phone who did Instacart shopping/delivery last year. My preliminary research online suggests that the only annual information Instacart provides is Form 1099? Any addditional information that you can provide would be appreciated Thanks in advance,

I have taken 2 online webinars already and I am taking another webinar on Tuesday, because they keep changing the forms, rules and guidance. I have also seen lengthy step by step articles about completing the forgiveness process. Unfortunately, there are still a number of unanswered questions.

Copied from IRS eNews: "Processing of paper employment tax returns, Forms 941, 943, 944, 945, and Form 8655, Reporting Agent Authorizations has resumed. The Ogden and Kansas City campuses have recently re-opened (but not yet at full staffing levels), and they are working on the backlog and processing new submissions" They will be receiving 2nd Quarter forms before they finish processing the 1st quarter.

Bonuses are allowed and included both for calculating the the PPP Loan Amount and PPP Loan Forgiveness, as long as their annualized compensation doesn't exceed $100 K. It sounds like you are concerned that the inclusion of their 2019 bonus generates a loan amount which will exceed the amount that can be forgiven. If that's the case, then they can either return the excess or convert to a loan.

Yes that is fine, there are no related party or attribution rules which apply to PPP Loan Forgiveness.

Multiple news sources are reporting that yesterday in an interview, the Treasury Secretary said, he may consider moving the April 15th Filing/Payment Date from July 15th to September 15th? It sounds like he is floating a trial balloon to see what kind of response he gets. If they are going to make another change like this, they also need to move back the 3rd and 4th quarter estimated payment due dates, otherwise the combined payments that Schedule C Filers will have due on September 15th will be extremely difficult to handle.

I have decided to go with Firefox with my next computer later this year.

Supposedly, there are still truckloads of mail just sitting there. If it was my client, I would strongly lean toward waiting.