Lee B

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.

6 minutes ago, Max W said:

20 minutes is just too long for a survey.

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.

I am puzzled about the selective enforcement. I had logged into my client's account on November 4th with an 8 character password

then when I  tried to log in on November 20th EFTPS wouldn't accept the same 8 character password and forced me to create new 12 character password.

Perhaps it was because I had to change my clients Bank Account information due to fraudulent activity.

I have used Online File Taxes for a number of years. It's been trouble free and I am very satisfied.

https://www.onlinefiletaxes.com/default.aspx

"The party that pays a taxable settlement or judgment to the injured party and/or their attorney will issue a Form 1099-MISC, Form 1099-NEC, or W-2 to report the settlement. In some cases, the claimant and attorney are issued separate 1099s reporting the same settlement dollars.Jun 15, 2023"

The IRS probably received a lot of pressure from the entities required to submit the 1099 Ks saying they weren't ready to comply.

https://www.irs.gov/government-entities/tax-implications-of-settlements-and-judgments

https://hbla.com/the-five-key-irs-rules-of-taxation-for-lawsuit-settlement

What a mess!

I disagree, I don't think the address of a registered agent fulfills the requirements.

Do you use your registered agents address on your CA Drivers License?

IRS rules say that if your street address is a deliverable address then you shouldn't use a P O Box.

I had to schedule a payroll tax deposit today due to the termination  of an employee by a client ( Semi Weekly Depositor ).

EFTPS now requires your password to be 12 characters or longer so if your old password was shorter

you or your client will be forced to change.

The AICPA has published some very useful guidelines:

https://www.cpai.com/Education-Resources/my-firm/Tax-Services/What-accounting-firms-need-to-know-about-CTA?refID=

Two key points:

"To help reduce the likelihood of claims asserting a failure to advise a client of CTA, consider sending a newsletter or other general client notification letter to all clients informing them of CTA and its reporting requirements. Retain a copy of the newsletter as well as the distribution list. "

"Unless specifically engaged to provide CTA assistance under a separate engagement letter, include a provision in all engagement letters, regardless of service, disclaiming a responsibility to do so. A sample provision is provided in this Risk Alert."

After reading this, I am going to draft a separate letter notifying my clients of the CTA and the reporting requirements

declining to provide any services or advice related to the CTA and it's reporting requirements

which I will require my clients to sign in addition to my annual tax authorization/engagement letter.

On 11/15/2023 at 11:13 AM, Lee B said:

I have used Hiscox for years. Currently paying $367 a year for $250,000 of coverage.

Just received my new quote, my annual premium for 2024 will be $411.

Yes, it's very interesting how some clients will as a knee jerk reaction avoid spending any money on legal fees

or spend any extra money on extra tax research/consultation