Lee B

"Jack Fisher & James Sinnott were convicted of conspiracy to defraud the United States, conspiracy to commit wire fraud, aiding and assisting the filing of false tax returns and subscribing to false tax returns. The convictions stem from Fisher and Sinnott’s fraudulent tax shelter scheme involving syndicated conservation easements dating back nearly two decades. In total, the defendants sold more than $1.3 billion in fraudulent tax deductions through this scheme. Fisher and Sinnott face a maximum penalty ranging between three and 20 years in prison for each count of conviction. The government is also seeking the forfeiture of monetary proceeds and real properties purchased by Fisher and Sinnott in connection with their fraud scheme." They got away with this scam for almost 20 years

Assuming that he no longer works for this company, the first thing I would have him do is file a Wage & Hour complaint with the Bureau of Labor.

I use Drake's Pay Per Return version which costs $355 this year and includes 10 Form 1040 returns.

Probably, the third party vendor that I use saves all of the issuer and recipient details from year to year

Not all of them do. SUT & FUT don't get picked up. In my state STTX & PFML also wouldn't get picked up.

It does result in a substantial understatement of employment taxes at both the federal and state level. Income taxes are not the only consideration.

What kind of abuse ? What should be changed?

Here is a link to register for a FINCEN online webinar about Beneficial Ownership Reporting this Wednesday: https://fincen.zoomgov.com/webinar/register/WN_lh7pK9P8T5WD7w4ZPAYCGw

My state's normal release date for the new W 4 is is usually the third week of January. There are other states that don't release their new withholding tables until late January. It's been that way for years.

No it just stops late payment penalties.

Tom, I think I read it correctly. Read it again.

"In some of our reports, we called IRS customer service numbers and made tax payments. These techniques help us understand the experience you have interacting with the IRS ─ and opportunities to improve it. Here’s a snapshot of what we've found. We called 102 IRS customer service telephone numbers during this year’s tax filing season. We found that 21 of the lines placed us on hold for more than 30 minutes before we ended the call. We made tax payments with cash at retail stores that partner with the IRS. We described the process as convenient (especially for taxpayers without bank accounts) and determined our payments were applied timely and accurately to our tax accounts. We created 5 fictitious organizations and applied for tax-exempt status using a simplified application form (Form 1023-EZ) to test its effectiveness. The IRS approved 4 of our applications ─ and included them on a list of organizations that can receive tax deductible." The approval of 4 fictitious non profits is troubling.

A family law attorney practicing in NC would be a good resource for person # 1.

Generally retiree health insurance benefits are not taxable. But in this case the reimbursements are not part of a group plan so the reimbursements are probably taxable income. Second SEHI is limited to Schedule C Taxable Income. The OP doesn't mention whether the clients Schedule C makes a profit. Also, how old is his wife is she still working and does she have access to group health benefits?

Form 1096 is only used when you paper file the 1099s.

"In order to prepare for Filing Season 2024/Tax Year 2023, the IRIS Production environment Shutdown/Cutover for all transmissions, including corrections and replacements, will begin on: Wednesday, December 06, 2023, 12:00 a.m. Eastern time"

Just go through the 3115 step by step. You only have to do it once. The total depreciation will be deducted only once in the tax year to be filed. It won't be that bad.

If depreciation was never deducted then a Form 3115 needs to be filed correcting the depreciation which would allow the deduction of the combined years of depreciation in the current year. Then the sale of the house could be recorded using the correct accumulated depreciation. "Form 3115, Change in Accounting Method, is used to correct most other depreciation errors, including the omission of depreciation. If you forget to take depreciation on an asset, the IRS treats this as the adoption of an incorrect method of accounting, which may only be corrected by filing Form 3115."

"Regulations section 301.6011-2 was amended by Treasury Decision 9972, published February 23, 2023, which lowers the threshold to 10 for which employers must file certain information returns electronically, including Forms W-2, W-2AS, W-2GU, W-2VI, and Form 499R-2/W-2PR (collectively Forms W-2), but not Form W-2CM. To determine whether they must file information returns electronically, employers must add together the number of information returns (see the list below) and the number of Forms W-2 they must file in a calendar year. If the total is at least 10 returns, they must file them all electronically. The new threshold is effective for information returns required to be filed in calendar years beginning with 2024. The new rules apply to tax year 2023 Forms W-2 because they are required to be filed by January 31, 2024. The following information return forms must be added together for this purpose: Form 1042-S, the Form 1094 series, Form 1095-B, Form 1095-C, Form 1097-BTC, Form 1098, Form 1098-C, Form 1098-E, Form 1098-Q, Form 1098-T, the Form 1099 series, Form 3921, Form 3922, the Form 5498 series, Form 8027, and Form W-2G."

Yes

I am so glad I am not in a community property state

"Drake Software is looking for experienced tax professionals to work part-time assisting other tax pros with Drake Software. For tax season 2024, we are launching a pilot program to work with seasoned professionals who have Drake Software experience to work part-time in Customer Support. Interested?" This is one way to cut Human Resource Costs.

I agree, I am comfortable with 5 minutes, 10 minutes max.

One additional very important point: "The article makes the important point that the enforcement of the CTA has not been delegated to the IRS, as the FBAR regulations have. Therefore, the privileges that CPAs and EAs have when representing clients before the IRS do not apply. Similarly, their errors and omissions insurance may not cover their actions in helping clients comply with the CTA, perhaps even to the extent of answering a simple question."

"Between Nov 27, 2023, and Jan 19, 2024, tax pros may be randomly selected to participate in a voluntary phone survey. This is not a scam. Please don’t hang up. Responses will help the IRS improve services to the tax pro community and the taxpayers they serve. The survey will be conducted by ICF, an independent research firm hired by the IRS. It will take about 20 minutes to complete, and covers topics including e-filing, due diligence requirements, data security, and electronic document submission. All responses are anonymous and confidential. Tax pros will not be asked to provide any personal info about themselves or their clients If tax pros are contacted, it will be Monday through Friday between 8:30AM - 6:30PM local time and they’ll see a Kansas City (816) area code on their caller ID." Hopefully this result in some useful changes.