Lee B

I don't know how to either. What I have always done is have someone pull the hard drive for me and kept it or physically destroyed it. It only takes a minute or two and no one has every charged me to do it. Surely you have a client or a relative who knows how.

Copied from Tax Pro Today: The IRS has started issuing Letter 226J penalty notices for the 2017 tax year, along with other penalty assessments related to ACA enforcement. IRS staff is spending more time reviewing potential ACA violations, and putting the onus on employers to prove they have complied with the law. Here are some signs that the IRS is becoming more assertive in efforts to enforce the ACA: The IRS has started issuing Letter 226J penalty notices for ACA noncompliance under IRC Section 4980H for the 2017 tax year. The tax agency just completed sending its Letter 226J penalty notices in June to employers the agency believed failed to comply with the ACA in the 2016 tax year. This is the quickest we have seen the tax agency transition from issuing penalty notices from one tax year to the next, a sign that IRS ACA enforcement activities are escalating. The IRS has indicated it is now limiting extension requests to one 30-day extension for each IRS notice received in the penalty process, requiring employers to act with even more urgency in responding to a penalty notice. IRS staff is paying greater attention to the methodology and data used in employers’ determination of full-time employees in ACA filings for the 2017 tax year. This is a deeper level of review than undertaken for previous tax years. ACA penalties are often triggered by employers providing inaccurate information on the number of full-time workers they employ. The IRS is asking individual taxpayers to obtain documents from their employers to prove they were entitled to receive premium tax credits (PTCs) to offset health insurance purchased through government exchanges. Employers are being required to provide proof that they filed ACA information with the IRS. Over the past few years, many employers relied on do-it-yourself software and payroll companies to submit ACA information to the IRS on their behalf. In some cases, the software and payroll companies thought they submitted the information electronically to the IRS, not realizing the submissions were never accepted. Now, many employers are realizing the IRS never received their submissions and, as a result, are being issued ACA penalty notices. Expect IRS staff to insist that employers obtain submission acceptance notices to prove they filed with the IRS as part of their defense to have ACA penalty assessments dismissed. With the IRS becoming more aggressive in its enforcement activities and with ACA penalties potentially in the millions of dollars, accountants may want to advise clients they believe to be vulnerable to undertake an ACA Penalty Risk Assessment. This assessment can determine if employers are considered to be an Applicable Large Employer by the IRS, and if they are at risk of receiving IRS penalties under IRC Section 4980H. This assessment involves a review of IRS Forms 1094-C and 1095-C. Some outside experts may offer to undertake this assessment at no cost. It’s also a good time for accountants to check with their clients that have more than 50 full-time employees to determine if they have been filing ACA information with the IRS annually, as required by law. If they have not, they may be at risk of receiving significant ACA penalties under IRC Section 6721/6722. Accountants should work with these employers to file this information as soon as possible to avoid receiving an IRS Letter 5005A penalty notice. Now is the time for accountants to check-in with their business clients to discuss their ACA compliance process to determine if they may be at risk of paying significant financial penalties to the IRS because they have failed to comply with the ACA. I have been preparing and submitting by mail for the last 4 years the required forms for my largest client who is an ALA with more than 50 employess. "Expect IRS staff to insist that employers obtain submission acceptance notices to prove they filed with the IRS as part of their defense to have ACA penalty assessments dismissed." Last year my client ended up paying a $ 9,000 penalty for 2015 for not providing health insurance. Haven't received an assessment for 2016, which could be about $25,000. I have never heard of "submission acceptance notices". I guess I should find out what they are. Although, I don't think I will request one in fear of triggering a letter !

Do you have a significant amount of pdf attachments ?

Also, some insurance companies check your credit, which they might use to calculate a quote for car insurance for example.

Tax Pro Today has an article about 2019 Tax Software enhancements https://www.taxprotoday.com/news/the-2019-tax-prep-software-comparison-guide?feed=00000158-3f5d-dcbd-abf8-ff7f12270000 Curiously Wolters Kluwer does not have any mention of ATX ?

The only thing I can think of is a deceased employee's accruable wages paid in the same year as the employees's death.

Terry, I can't begin to imagine what you have went through and how time you must have spent wrestling with this. Have you reached a point where you have got this situation under control or does stuff keep happening ?

Some of you may have seen in the news recently the announcement of the Equifax Breach Settlement, which has its own website, https://www.equifaxbreachsettlement.com/ The website allows you to check whether your information was exposed and if it was to file a claim. It is important that everyone check because the Equifax site which was set up back in the fall of 2017 did not work well and was very inaccurate. I have checked my family members so far and I plan to check all of my long established clients. So far my wife and my information was not exposed. However all 3 of my daughter's and one of my son in law's information was exposed. At the very least you should send an email to all of your clients urging them to go to this website and check, because if your clients are like mine, many of them are not as security conscious as they should be !

If the loan documentation/ substantiation isn't done then two more potential basis problems may arise. 1. Additional loan basis will not be created potentially limiting future deduction of losses. 2. If then client dumps the HELOC proceeds directly into the S Corp(s) without documentation and makes the HELOC repayments from the S Corp(s) then the HELOC repayments will be considered distribution of profits which will further reduce basis potentially limiting future deduction of losses. The only way these S Corp(s) get a free and clear interest deduction is if the SCorp(s) are the borrowers.

Terry, I agree

What your client should do to comply and substantiate the S Corp(s) interest deductions and maintain basis: 1. Take out the HELOC with proceeds deposited in his personal checking account 2. Loan the HELOC proceeds to the S Corp(s) 3. Document the loans with the proper interest rates, repayment schedules etc. 4. Make sure that the S Corp(s) repay your client every month on schedule, issuing 1099INTs at the end of the year. 5. Your client should make all the HELOC repayments from his personal checking account. Clients usually want to create shortcuts i.e., make it up as they go along ,which in your clients situation is a recipe for lost deductions etc., etc ! I will leave it to others to mention cites, case law etc.

Actually, our health care system first began during and after the Civil War, when our government provided health care for Civil War Veterans, their families and their widows.

To go over all the pros and cons with a client would take at an absolute minimum 45 minutes. At this point in the discussion, you should making a list of the pros and cons to discuss with the client.

About 10 years ago Oregon had a tax amnesty. I prepared 11 years of regular corporate returns . My client filed the state returns and did not file the federal returns. My client paid Oregon the corporate tax due plus 1/2 of the interest. The state waived all penalties and 1/2 of the interest. The next year I prepared and my client filed both federal and state corporate returns, which we have done every year since then. To my surprise, my client has never received any letters from the IRS about the missing 11 years of Form 1120.

I am definitely leaning towards having a new computer built with a clean install of Win 8.1 that includes a free upgrade to Win 10.

You could also check out TextMagic

I am surprised they got this past the lobbying efforts of all the online vendors ? Here is a copy of section 2102: 2102. Internet platform for Form 1099 filings (a) In general Not later than January 1, 2023, the Secretary of the Treasury or the Secretary’s delegate (hereafter referred to in this section as the Secretary) shall make available an Internet website or other electronic media, with a user interface and functionality similar to the Business Services Online Suite of Services provided by the Social Security Administration, that provides access to resources and guidance provided by the Internal Revenue Service and allows persons to— (1) prepare and file Forms 1099; (2) prepare Forms 1099 for distribution to recipients other than the Internal Revenue Service; and (3) maintain a record of completed, filed, and distributed Forms 1099. (b) Electronic services treated as supplemental; application of security standards The Secretary shall ensure that the services described in subsection (a)— (1) are a supplement to, and not a replacement for, other services provided by the Internal Revenue Service to taxpayers; and (2) comply with applicable security standards and guideline

I agree that this is the conversation that should be held. However, Medlin is correct, the process of creating for a game or an app for the first time is a very long journey. Second, most young adults who have never been in business don't even have the base of knowledge to participate in this discussion. Their eyes will glaze over before five minutes elapse.

You made virtually the same post back on the 21st. Are you trolling?

It looks like checking the yes or no box on line 27 takes care of this ?

I believe the product key that you need is the one for your current Win 7 OS.

Copied from Tax Pro Today: In the first step of what could be a lengthy process, the House Ways and Means Committee voted 25-17 on June 20, 2019, to advance the tax extenders bill, which would temporarily extend a number of tax breaks that expired at the end of 2017 and 2018, or that will expire at the end of 2019. “These extender provisions have been in the Tax Code for many years, and Congress has continued to extend them,” said Jorge Castro, former senior advisor to the IRS commissioner and currently a member of the tax practice at law firm Miller & Chevalier. “They haven’t been made permanent, but they are a group of different provisions that have diverse constituencies that care about them,” he said. “For example, it includes tax benefits for tuition expenses, and a mine rescue team training credit. This was in response to a coal mining tragedy in West Virginia in 2006, and covers training program costs for mine rescue team employees.” “Other incentives in the extenders include provisions for the renewable energy sector, the New Markets Tax Credit for economic development, and the Work Opportunity Tax Credit,” he said. “The point it that it’s a large package that has a lot of constituencies that care about these tax provisions. Most of these provisions have been expired for a year and a half, so they will be retroactively extended back to Jan. 1, 2018. This package will not be made permanent, but the hope is that Congress at some point in the future will try to address them permanently.” “Different provisions are important to different sectors, which is why the package currently has momentum,” he said. “It is generally bipartisan and bicameral, but the different chambers will disagree on how to enact it. Senate Finance Committee Chairman [Charles] Grassley and ranking member [Ron] Wyden have a clean extension -- just the extenders with nothing added. However, the bill that the House Ways and Means Committee marked up makes some changes, with which Republicans generally are not in favor.” Specifically, the Ways and Means bill contains an offset to the extenders. It would “pay for” the extenders by accelerating the expiration of the higher estate tax exemption levels from 2025 to 2022. (Under the Tax Cuts and Jobs Act, the exemption increased from $5.5 million to $11 million for individuals, and from $11 million to $22 million for couples. “This is obviously just a first step in many important steps,” said Castro. “Senate Republicans have raised objections to the changes the House bill would make to the estate tax -- that’s just part of the negotiations,’ he said. “And [Ways & Means Chair Richard] Neal, on the House side, is under pressure to make this package fully paid for with revenue offsets so it will be a point of contention between the House and the Senate. Neal made the comment that they would look for more offsets by the time the bill hits the floor of the House.”” Although the markup is complete, the timeline is fluid, according to Castro. “The provisions have already expired, so there’s an urgency on that end to pass the legislation,”he said. “I can see this play out over the next several months, and possibly into the fall.” And the possibility that the package may pass in late fall is one more complicating factor facing practitioners as they prepare for the filing season

I agree, I have had the same EFIN for about 20 years.

Why wouldn't you charge for amendments, unless the amendment is your fault ?

Copied from Tax Pro Today: Technical corrections While a number of errors have been identified in the TCJA, Democrats have been reluctant to help the Republicans correct errors in legislation that passed without Democratic input without getting something in return. That issue continues to be the impediment to passage of technical corrections. A “grain glitch” in the TCJA was corrected in budget legislation early in 2018 by giving something to the Democrats on low-income housing. A so-called “retail glitch” involving the depreciation of leasehold improvements, retail improvements and restaurant property (referred to as qualified improvement property under the TCJA) and an error in the dates applicable to changes to net operating losses are the two most substantive errors for which corrections are being sought. The repeal of the Kiddie Tax changes made by the TCJA, as proposed in the current retirement legislation in Congress, could also be viewed as a TCJA correction. Ways and Means Committee Chair Richard Neal, D.-Mass., may seek an expansion of the Earned Income Tax Credit and the Child Tax Credit as part of any bargain. Some Republicans and Democrats from high-tax states are also pushing for repeal of the TCJA limit on the state and local tax deduction. However, this is viewed as a fix that would largely benefit higher-income taxpayers, and Democrats may not want to focus on that with the theme of the 2020 election campaigns being help for the middle class. There is also a bipartisan bill to restore a deduction for performing artists that was removed by TCJA. In spite of the clear unintended consequences in the TCJA for qualified improvement property and net operating losses, movement on technical corrections does not seem to be a top priority in the House and might not get enacted in 2019.