Lee B

If you search the internet you will find that Microsoft offered paid extended support for Win 7 to business/corporate accounts for up to 3 more years. You will also find some articles which outline detailed instructions of how to bypass Microsoft's validation procedures and obtain free extended support. At some future date Microsoft may figure out how to block users from obtaining these extended support updates for free. When they do some smart person will figure how to get around Microsoft's new validation checks.

Unless you have Extended Support from Microsoft.

Copied from the IRS Mind website; "IRS compliance enforcement targets With many new IRS personnel on the job, the IRS will focus their compliance resources on resolving big compliance problems. Here are 7 targets that we can expect the IRS to pursue in 2020: #1: Small business taxpayers The big problem for the IRS: recent tax gap studies still show that taxpayers who do not receive information returns (W-2s, 1099s) and must voluntarily report their income and deductions are the biggest contributors to noncompliance. In fact, according to IRS studies, small businesses are the biggest culprits- misreporting their income by 56%. Unreported tax on small business income for individuals is estimated to be $110 billion a year. IRS compliance efforts: enforcing compliance on small businesses is costly for the IRS. However, in 2020, the IRS has hired and on-boarded hundreds of new field auditors (called revenue agents). These new revenue agents will likely be training on audits of small businesses. #2: Crypto-currency holders The big problem for the IRS: there is no audit trail on crypto-currency – and the IRS knows that means noncompliance. Like small business owners, the IRS knows where there is no virtual currency information reporting (i.e. W-2s, 1099s) and the potential for large gains, there is a high likelihood of noncompliance. IRS compliance efforts: the IRS began its scrutiny of taxpayers with virtual currency transactions in July 2019 with several soft notice and compliance programs. These programs are just the beginning. The IRS promises more compliance efforts this year, including several criminal prosecutions for taxpayers who have intentionally not reported virtual currency gains on past returns. #3: Employers with unpaid payroll taxes The big problem for the IRS: 72% of all revenue collected in the US tax system comes from withheld payroll taxes. When employers don’t pay their payroll taxes, the US Treasury takes a double hit. First, the IRS does not get employees’ withheld income and social security taxes. Second, the IRS has to give credit to employees on their filed returns for the unpaid withholding. The IRS views employer collection and nonpayment of employees’ withholdings (called “trust fund” taxes) as stealing. The drop in revenue officers who investigate unpaid payroll taxes has dropped by 47% from 2010 to 2018- and so has enforcement of the IRS # collection priority. IRS compliance efforts: the IRS is diligently on-boarding more field collection resources (i.e. revenue officers). Their #1 priority will be both early intervention visits on employers behind in payroll taxes as well as payroll tax enforcement. Egregious taxpayers who have multiple incidents of unpaid payroll taxes with different entities (called “pyramiding”) face IRS criminal investigation. #4: Certain nonfilers The big problem for the IRS: the IRS claims that nonfilers only represent $39 billion in lost revenue annually to the US Treasury. Many tax experts disagree with this estimate. The big problem with nonfilers is that they leave the tax system for good. Also, IRS tolerance of nonfilers erodes the integrity of the voluntary compliance system. IRS compliance efforts: the IRS has been criticized for not chasing two groups of nonfilers- high income nonfilers (especially those without withholding) and taxpayers who do not file a return after they have requested an extension of time to file. The IRS has restarted it’s delinquent return investigation compliance efforts in 2018 as well as hired more field resources to chase nonfilers. In the future, we should see the IRS pursue the more egregious nonfilers. #5: High tax debtors The big problem for the IRS: from 2010 to 2018, the IRS has lost almost half of its field collection personnel (revenue officers). Many high tax debt taxpayers were put on hold because the IRS simply did not have the resources to chase them. IRS compliance efforts: in 2019, the IRS has significantly increased the number of its field collection personnel (revenue officers). The marching orders for these new ROs are to let tax debtors know that they are present. In 2020, these ROs will be visiting higher debt taxpayers and repeat file/owe taxpayers to get them back into compliance. #6: High-income taxpayers The big problem for the IRS: the IRS has been under some heat for auditing low income taxpayers at the same rate as higher income taxpayers (income of $1 million or more). In response, Treasury and the IRS said it would like to audit more higher-wealth taxpayers in the future. IRS compliance efforts: more IRS revenue agents will mean more audits on higher wealth taxpayers – especially taxpayers who enter into certain transactions like conservation easements or hold interests in foreign financial accounts and entities. In the past, high-income taxpayers have experienced audit rates as high as 12% (2011) – in 2018, the audit rate of high wealth taxpayers is 3.4%. Expect more high income audits due to IRS political pressure and good return on investment – the average amount owed on a high income audit in 2018 was $115,259. #7: Taxpayers with refundable credits The big problem for the IRS: it is estimated that 24% of all earned income tax credit payments – over $16 billion a year – are erroneous. IRS compliance efforts: EITC and additional child tax credit refund hold audits continue to be the #1 IRS audit target. These are easy IRS audits as they are done by mail and taxpayers rarely contest the IRS’ findings. However, the IRS has been under some scrutiny for using their limited audit resources on lower-income taxpayers who claim EITC. But, the IRS is still focused on reducing the 24% error rate – and IRS mail audit resources will continue to flag and audit these returns in the future. What is not an enforcement target More resources for the IRS will not be able to solve all the big areas of noncompliance. The IRS will still be limited in what they can do. Two targets that are not currently on the IRS’ radar for compliance enforcement are: Employers who misclassify workers: with the lack of experienced IRS field audit resources (i.e. revenue agents), this important issue is not on the IRS radar. The IRS only audits 0.14% of employment tax returns, and reserves complex worker status (employee or independent contractor) audits as a part of its small business audits. The growing gig economy and incentives to classify workers as independent contractors is a concern for the IRS – but there is little the IRS can do about it until they train more auditors to specialize in complex employment tax issues. S corporations and partnerships: back to IRS resources – the IRS does not have the revenue agents and support personnel to conduct these complex examinations. The audit rate for S corps and partnerships is 0.2% – and it appears that it will stay that way for the next few years until the IRS can ramp up and train its auditors to examine these entities. The target: all taxpayers – with notices The IRS has figured out how to enforce compliance without compliance enforcement. Since 2001, the IRS has understood that the most cost effective manner to enforce compliance is to let taxpayer’s know that they are there – after they file. The IRS cannot audit or enforce collection on all taxpayers – but they can let the taxpayer know that they may be subject to further scrutiny by sending them a notice. In 2018, the IRS sent over 219 million notices to taxpayers. The compliance by notice strategy is here to stay – and it lets all taxpayers know that the IRS is still there- even though they may not be a target in 2020."

The payroll program that I use for my larger clients does not allow negative other income to be entered .

I have seen this specific error message a number of times in years past for this particular ATX form.

This means that your software provider is still waiting for IRS approval of one or more forms.

I wonder if it's a setting in a browser extension that you have ?

Lion, I must say your experience with this website is really strange.

I totally agree, even now beginning my third year, there several things that are so nonintuitive that I still struggle. For example whenever I have to attach a pdf to an Oregon return, I end up calling support every time. Fortunately, someone answers the phone immediately!

I definitely felt the same way when I switched two years ago. It took me about 10 days before I adapted to all of the differences. I don't regret changing although it still probably takes me a little longer to prepare a tax return on Drake.

Lion, perhaps if you clear your browser history it will make a difference ?

A complete summary of all the resurrected Extenders follows: "Message from our 2018 Spring Fling speakers Mary and David Mellem. Tax Change – Extenders Have Been Extended Again There were a few tax issues included in the budget act that President Trump signed December 20, 2019. This email includes the items commonly known as “extenders”. The following “extenders” have been extended retroactive to January 1, 2018 (yes, we said January 1, 2018) and now have an expiration date of December 31, 2020. We are not providing explanations of these individual items since they have existed for many years and the only change is to make them available for a longer period of time. - The medical base remains at 7.5% instead of 10% (§213). (This was already 7.5% for 2018 returns.) - Deduction for mortgage insurance premiums as qualified residence interest (§163(h)(3)). - Deduction for tuition and related expenses (§222). - Nonbusiness Energy Property Credit (i.e., insulation, storm doors/windows, etc.) (§25C). - Exclusion from income of the debt cancellation that is acquisition indebtedness on the taxpayer’s principal residence of up to $2,000,000 (§108(a)(1)(E)). - Depreciable life of certain race horses as 3-year property (§168(e)). - Depreciable life for motorsports entertainment complexes of 7-year property (§168(i)). - Accelerated Depreciation for business property on Indian Reservations (§168(j)). - Energy Efficient Homes Credit (aka Builders Credit) (§45L). - Qualified Fuel Cell Motor Vehicles Credit (§30B). - Alternative Fuel Refueling Property Credit (§30C). - 2-Wheeled Plug-in Electric Vehicle Credit (§30D). - Black Lung Disability Trust Fund Excise Tax (§4121). - Indian Employment Credit (§45A). - Railroad Track Maintenance Credit (§45G). - Mine Rescue Team Training Credit (§45N). - Expensing under §181(g) for certain productions. - Various incentives for Empowerment Zone Activities (§1391). - Economic Development Credit for American Samoa (§119). - Biodiesel and Renewable Diesel Credit (§40A). - Second Generation Biofuel Producer Credit (§40). - Electricity Produced from Certain Renewable Resource Credit (§45). - Indian Coal Facilities Credit (45(e)). - Special Allowance for Second Generation Biofuel Plant Property (§168(l)). - Energy Efficient Commercial Buildings Deduction (§79D). - Special Rule for Sales or Dispositions to Implement Ferc or State Electric Restructuring Policy for Qualified Electric Utilities. - Extension and Clarification of Excise Tax Credits relating to alternative fuels (§6426 and §6426). - Oil Spill Liability Trust Fund Rate (§4611). The following “extenders” were scheduled to expire at the end of 2019 and have now been extended through 2020. - New Markets Credit (§45D). - Employer Credit for Paid Family & Medical Leave (§45S). - Work Opportunity Credit (§51). - Certain Provisions Related to Beer, Wine, and Distilled Spirits. - Look-thru Rule for Related Controlled Foreign Corporations (§954). - Credit for health insurance costs of Eligible Individuals (§35(b)). Although some of these extenders may help some taxpayers, we feel Congress acted irresponsible in retroactively extending many of the “extenders”. The purpose of many of these “extenders” is to give taxpayers a tax incentive to do something. Reinstating extenders retroactively to January 1, 2018, doesn’t seem like a great way to “incentivize” anyone to do something in 2018 or most of 2019. It could cause a person to wonder if these “extenders” were passed to reward friends of our elected Congress. On the government side, IRS is now required to revise all applicable forms and schedules (& programming) to take into account the items that were extended for 2019. We would not be surprised if IRS delays the ability to file tax returns due to this late action by Congress. Further, IRS is required to revise forms and schedules (& programming) for 2018 to take these into account. On the taxpayer side, taxpayers will have to decide if it is worth it to amend their 2018 returns including digging out their documentation for the applicable items. Most taxpayer use a tax professional to prepare their returns and these tax professionals probably won’t prepare the amended returns for free. In fairness, these “extenders” now run through December 31, 2020, which means taxpayers will have an incentive to do something during 202."

Every year the IRS has period of time where all efiles are completely shut down.

Pacun's original post indicates to me that there are fewer members making donations than it would appear. Frankly, I find that annoying. I think that every new member should receive 12 months free. After 12 months they should be required to make a minimal donation of a nominal amount of say $ 10 or $ 20. I don't really care about the donor tag, but I do care about the majority of the members contributing $ 0.00 !

I have sent out emails to my payroll clients plus had face to face meetings with my larger clients. Several business clients knee jerk response is to have all of their employees fill out new W - 4s. Any non business i.e. 1040 only clients will be charged a fee

I have been donating every year, perhaps I deserve a Gold Star

If any of your currently installed programs made changes to the Windows Registry during the original installation, you may have to uninstall those programs and then reinstall after the OS upgrade.

Yes, I have filed the 1094 C & the 1095 C every year. My client being a restaurant has turnover and a number of employees don't work enough hours to qualify. Therefore I report who is a full time employee and who isn't on a month by month basis. The number of full time employees in excess of 30 each month determines the penalty.

I only see a draft version dated November 25th ?

The same client that I posted about 13 months ago just received a proposed penalty for 2017. Again it was triggered by an employee receiving a Premium Tax Credit from the Marketplace for 4 months. This time the penalty was calculated correctly. Since they have not received a proposed penalty for 2016, my tentative assumption is that none of their employees received a PTC during 2016.

!. When did he file his SS-4 and obtain an EIN ? 2. What is the date on the IRS EIN letter and is the IRS expecting a tax return for 2017 ?

Copied from IRS eNews: 7. Technical guidance – Transition relief related to health coverage reporting Notice 2019-63 extends the due dates for certain 2019 information reporting requirements (.pdf) for insurers, self-insuring employers, and certain other providers of minimum essential coverage under section 6055 and for applicable large employers under section 6056. Specifically, this notice extends the due date from January 31, 2020 to March 2, 2020 for furnishing to individuals the 2019: Form 1095-B, Health Coverage Form 1095-C, Employer-Provided Health Insurance Offer and Coverage This notice provides that the Service will not impose a penalty against reporting entities for failing to furnish a Form 1095-B to responsible individuals if certain conditions are met. It also extends transitional good-faith relief from section 6721 and 6722 penalties to the 2019 information reporting requirements under sections 6055 and 605.

The Omnibus Spending Bill passed the Senate and has been forwarded to the president. Copied from the the Journal of Accountancy: The federal government spending bill passed by Congress on Thursday repeals three health care taxes that were originally enacted as part of 2010 health care reform legislation, makes many changes to retirement plan rules, extends several expired tax provisions, provides disaster tax relief, and repeals the provision that taxed exempt organizations when they provided parking to their employees. The Further Consolidated Appropriations Act, 2020, H.R. 1865, passed the House of Representatives on Tuesday by a vote of 297–120 and the Senate on Thursday by a vote of 71–23. It now goes to President Donald Trump for his signature. Health care taxes The three repealed health care taxes are the Sec. 4980I excise tax on certain high-cost employer health plans, popularly called the Cadillac tax; the Sec. 4191 medical device excise tax; and the annual fee on health insurance providers contained in Section 9010 of the Patient Protection and Affordable Care Act, P.L. 111-148. All three taxes had previously been postponed or suspended, most recently by P.L. 115-120 (a fiscal year 2018 federal appropriations continuing resolution). The Sec. 4980I Cadillac tax had been delayed until 2022. The 2.3% medical device excise tax was suspended through Dec. 31, 2019. And the health insurance fee was suspended for 2019. The three taxes, which were enacted to fund the health care reform known as Obamacare, have now been repealed. Retirement plan changes The bill also incorporates the text of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, which passed the House of Representatives in May but was never voted on by the Senate. The bill is designed to encourage retirement savings in various ways and to simplify administrative requirements in order to make it easier for employers to offer retirement plans. The bill introduces many other changes. Among them, the bill: Increases the age after which required minimum distributions from certain retirement accounts must begin to 72 (from 70½); Modifies requirements for multiple-employer plans to make it easier for small businesses to offer such plans to their employees by allowing otherwise completely unrelated employers to join in the same plan; Reduces Pension Benefit Guaranty Corporation premiums for certain multiple-employer defined benefit plans of cooperatives and charities; Allows penalty-free distributions from qualified retirement plans and IRAs for births and adoptions; Makes it easier for long-term, part-time employees to participate in elective deferrals; Allows consolidated filings of Forms 5500, Annual Return/Report of Employee Benefit Plan, for similar plans; Allows certain home health care workers to contribute to a defined contribution plan or IRA; and Requires beneficiaries of IRAs and qualified plans to withdraw all money from inherited accounts within 10 years. The bill repeals the maximum age for IRA contributions (currently 70½). It also amends Sec. 408 to reduce the amount of deductible charitable IRA contributions allowed to taxpayers over 70½ by the aggregate IRA contribution deductions allowed to them after they turn 70½. The bill allows certain expenses associated with registered apprenticeship programs to count as qualified higher education expenses for purposes of Sec. 529. The Sec. 6651 failure-to-file penalty is increased to $435. The new kiddie tax in Sec. 1(j)(4), which was introduced by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, is repealed. Extenders The bill also extends many expired tax provisions. Among those extended through 2020 are: Sec. 108(a)(1)(E), which excludes from gross income the discharge of qualified principal residence indebtedness income; The Sec. 163(h)(3) treatment of mortgage insurance premiums as qualified residence interest, which permits a taxpayer whose income is below certain thresholds to deduct the cost of premiums on mortgage insurance purchased in connection with acquisition indebtedness on the taxpayer’s principal residence; The 7.5% (instead of 10%) adjusted-gross-income floor for medical expense deductions in Sec. 213(f); and Sec. 222, which provides an above-the-line deduction for qualified tuition and related expenses. Also extended were various incentives for employment and economic growth and for energy production and efficiency. A number of credits that were scheduled to expire at the end of 2019 were extended through 2020. These include the Sec. 45D new markets tax credit, the Sec. 45S employer credit for paid family and medical leave, the Sec. 51 work opportunity credit, and the Sec. 35 credit for health insurance costs of eligible individuals. Disaster tax relief The bill also provides tax relief for victims of various disasters occurring in 2018, 2019, and up to 30 days after enactment of the bill. Eligible taxpayers can make tax-favored withdrawals from retirement plans. The bill also enacts an employee retention credit for eligible employers equal to 40% of qualified wages, which are wages paid to an employee during the time the employer’s business is not operating due to a natural disaster (up to 150 days after the disaster). The bill also implements special rules for disaster-related personal casualty losses and for determining earned income for purposes of the Sec. 32 earned income tax credit. The bill also introduces automatic 60-day filing extensions for certain taxpayers affected by federally declared disasters. Parking as UBTI Finally, the bill repeals Sec. 512(a)(7), which was enacted by the TCJA and which required tax-exempt employers that provide qualified transportation fringe benefits or parking to employees to pay unrelated business income tax on the amount by which a deduction is not allowable under Sec. 274.

I agree, recently I have been finding an increasing number of important emails in my Spam folder. Now I have to check my spam folder almost every day

No, I was just referring to the directly related ACA tax on Cadillac Health Plans and the tax on Medical Equipment Manufacturers