Lee B

Back in April, my work around was to use the prior years EIN. It was a very large company which had multiple EINs. If you are dealing with a smaller entity, you will probably have to paper file Note: This topic was discussed about a month ago.

Actually, it was deliberate, remember all the talk about how much bigger everyone's pay check would be . It was an attempt to pump up the enthusiasm for the TCJA and to juice up the economy.

WASHINGTON (AP) — Congressional auditors say about 30 million people — 21 percent of U.S. taxpayers — will have to come up with more money to pay their taxes next year because their employers withheld too little from their paychecks under government tables keyed to the new tax law. New tax withholding tables for employers were put together by the government early this year. About 30 million workers received pay that was “under-withheld” — making their paychecks bigger this year but bringing a larger bill at tax time next spring, according to the Government Accountability Office’s report. About 27 million taxpayers would have been affected even if the new law hadn’t been enacted. The changes, however, added 3 million to that number.

No, Section 199A only applies to Qualified Business Income at the 1040 level from pass thru entities (including Schedule C).

I did an analysis of a conversion from S to C for my largest S Corporation client back in March. My conclusion was that while the gap is definitely narrowed, it was still advantageous for my client to remain an S Corp. If a client wants to load up on fringe benefits, including a customized defined benefit plan, then I think a C Corp would be the way to go.

That's O K, it happens all the time

Yeah, I thought about, but my understanding is that with respect differential wages that the payments and the W-2 comes from the employer while the employee is on active duty.

In my experience, the use of the phrase "failure to deposit correctly" is only used when a deposit which should have been made via EFTPS or other electronic means was made by check or cash. Your letter may actually be due to a IRS computer glitch.

Excellent advice, in a complex situation like this, there so many ways the exchange could be blown.

It's a bit unclear whether you're talking about a 2016 or 2017 efile reject ? I had one of these rejects back in April. In my case a very large employer changed one of their FEINs during 2017, but according to the IRS the new FEIN was not approved until after 12/31/17, so they rejected my client's return. My workaround was to use this employer's previous FEIN and the efile then went through.

It's fillable on my Chrome browser.

Copied from Tax Pro Today: "The American Institute of CPAs is asking the Internal Revenue Service and the Treasury Department to simplify the draft version of the Form W-4, the Employee’s Withholding Allowance Certificate, along with the accompanying instructions. The AICPA’s comment letter comes as the National Association of Enrolled Agents has also criticized the draft Form W4 in a separate comment letter last week, saying it raises privacy concerns, creates a substantial risk of underwithholding, and requires taxpayers to forecast a number of tax-related items that are traditionally difficult to predict (see NAEA sees lots of problems with new Form W-4). The AICPA raised some of the same issues in its own comment letter. “The AICPA recommends a simplified Form W-4 that reduces withholding in an appropriate and fair manner without placing undue burden and onus on taxpayers and their employers,” Annette Nellen, CPA, CGMA, Esq., chair of the AICPA Tax Executive Committee, wrote in the letter. In regard to simplicity, Nellen suggested that Form W-4 should not include nonwage income, itemized and other deductions, tax credits, and total pay of all lower paying jobs (“personal information”). She described the draft form as “unduly complicated” and said it essentially requires taxpayers to calculate their tax liability. “Taxpayers need a Form W-4 that is easy to understand and simple to complete, thereby reducing compliance burdens and minimizing the risk of tax underpayment and penalties,” Nellen wrote. Nellen recommended the IRS and the Treasury Department develop a simplified Form W-4 that doesn’t request personal information. She pointed out that many employees would probably be hesitant to provide their employers with spousal and family income information on the Form W-4 as it could lead to unfair and discriminatory employment practices. However, if taxpayers don’t provide their other household income, deductions and credits, they could inadvertently face the risk of inaccurate and incomplete annual withholding calculations, which could then lead to underpayment of taxes and penalties, she wrote. To prevent the shifting of unnecessary responsibilities and liability onto employers, the AICPA recommended the IRS and Treasury should give employers a straightforward method to determine their employees’ withholding. “The Form W-4 has transformed from a long-standing form that was systematically distributed by employers to new employees as part of their initial onboarding process, to the current draft that employers need to calculate their employees’ withholdings on an annual basis,” Nellen wrote. “This form transition is a significant change and the risks and responsibility of accurate withholding calculations have shifted to employers."

Here is your chance to tell the IRS what you think about the new Form 1040: Send an email to : [email protected]

Yes, you can use 3115 to correct the depreciation that was deducted, either way, whether it was over depreciated or under depreciated.

First you need to know how many board feet were sold. Second you need a logical valuation as of 2012 once you known the board feet. Without a quantity and a value, you're whistling in the dark with a zero basis.

After you have been preparing returns for a number years, sometimes the gray area between doing what is right and what is expedient gets kind of expansive. This can be troublesome, especially for those who like me, who practice by themselves.

So is this real or is it a scam ? How would you know ?

Also, the asset should be reported on personal property tax returns.

Was all of this activity finalized before January 1st 2018 ?

I think you have posed an imponderable.

Under the TCJA, I don't believe any theft losses will be deductible. Also, Casualty Losses will only be deductible if they occurred due to a Federally declared disaster.

According to an article in Tax Pro Today, the IRS plans on targeting S Corp Distributions , "As part of the S corporation distribution campaign, the IRS noted that S corps and their shareholders are supposed to properly report the tax consequences of distributions. The service has targeted three issues as part of this campaign: When an S corporation fails to report gain upon the distribution of appreciated property to a shareholder. When an S corporation fails to determine that a distribution, whether in cash or property, is properly taxable as a dividend; and, When a shareholder fails to report non-dividend distributions in excess of their stock basis that are subject to taxation. For this campaign, the IRS plans to conduct issue-based examinations, suggest changes to tax form, and conduct stakeholder outreach"

What I do in a situation like this is I tell the client there will be penalties and interest then I let the IRS calculate the numbers, which I double check of course. This approach lets the IRS be the bad guy, instead of me. Then if I find a mistake, saving the client money, I can be the bearer of good news, sort of.

Sorry, I wasn't trying to post a link. This is the lead item on the council's website, which will pop up if you search.

From the Evangelical Council on Financial Accountability: We are circulating a position statement for nonprofit organizations (including churches) concerned about a provision in the Tax Cuts and Jobs Act that taxes parking benefits provided by many employers. A new provision in the tax law requires tax-exempt nonprofit organizations to file federal income tax returns and pay unrelated business income tax (UBIT) on the cost of parking provided to employees, even if the organizations do not actually conduct any unrelated business activities. The law states that the Treasury Department is to provide guidance on the complex issue of how cost is to be determined for this purpose. In addition to filing federal income tax returns, many nonprofit employers affected by the new law will also be required to file state income tax returns and possibly pay a state income tax as a result of the new federal income tax. By signing onto this position statement, you will be advocating for the repeal of this new burdensome provision in the law...either by legislation or effectively by action of the Treasury Department. The position statement may be used to communicate these concerns to members of Congress and/or Treasury officials. Actually, the TCJA's language also includes, Travel Reimbursements and Meals in addition to some other fringe benefits which would be subject to taxation. The consequences of rushing through a complicated tax bill in a few weeks without a single committee hearing will be coming home to roost for many more months.