Lee B

You need a signed response letter from your client. This is the online equivalent of faxing in a signed response letter plus attachments. At first, I asked myself, "Is this an improvement?" After thinking about it,"Yes it is because the uploaded file is cross referenced with a business name, an EIN and a letter number." Previously an IRS employee would have entered that information manually. Moving forward one step at a time

I talked to 3 different IRS Employees today My combined wait time for all 3 calls was less than 30 minutes All 3 Employees were polite, responsive and helpful, which for me to say is high praise. Thank You

No, I didn't have to do either. I had to provide Business Name, EIN, IRS Letter number plus a few other details plus a copy of the IRS letter. The letter code had to be on the dropdown list!

After I uploaded my response I received the following acknowledgement: "Your documents have been successfully uploaded. You may be contacted at a future date regarding your response. The current time is: Wed Aug 09 2023 13:21:48 GMT-0700 (Pacific Daylight Time)"

I don't know about other states, but here in Western Oregon there are multiple sources of fairly good quality fake ID for a reasonable price. i am actually surprised your clients didn't take care of this problem in advance. The knowledge of how to deal with this is widespread in all the immigrant communities.

This is one of the more interesting aspects of our society. There are millions of employees in this country working with fake ID and invalid social security numbers. Both our federal and state governments happily accept the taxes withheld from these paychecks and employers suffer little or no penalty. Who do you think, picks our fruit and vegetables, works in our meatpacking plants, cleans our hotel rooms, and maintains our yards? Very few Americans will do this work.

I am looking at an IRS letter. The letter says the preferred way of responding is via upload to irs.gov/. . . . . . . When this start and has anyone used this and was it effective?

In the back of my mind I am wondering, "whether no depreciation was ever deducted or whether at some point the depreciation detail just didn't get rolled over and depreciation ceased?"

I thought that NOLs could be used to offset ordinary income but not capital gains since the IRS considers the two to be different classes of income?

Don't know how old your client is, but the ultimate fix might be the step up in basis when she passes?

Very tricky situation since post 2020 NOLs cannot be carried back. Will this client ever be able to use this NOL? If she can't use the NOL carried forward, then it would be preferable to create suspended passive losses. My strategy if possible, would be to take the position that she was not an active participant in the rentals Therefore all passive losses would I believe,be suspended and ultimately deducted against the properties when sold. Don't know whether that can be done, but it certainly is worth exploring. Good Luck,

For example, the consulting firm of Booz Allen Hamilton just received a modernization contract of $2.6 Billion. Last month the consulting firm of Accenture also received a modernization contract of $2.6 Billion.

As far as I know, all of their programming and most of their data management functions are outsourced.

It seems to me that any answer lets them know that your number is active?

"The Federal Communications Commission (FCC) has announced a record-breaking $299,997,000 fine imposed on an international network of companies for placing five billion robocalls to more than 500 million phone numbers over three months in 2021. The fined companies operated as Sumco Panama, Virtual Telecom, Davis Telecom, Geist Telecom, Fugle Telecom, Tech Direct, Mobi Telecom, and Posting Express. The enterprise violated a multitude of robocall prohibitions by making pre-recorded voice calls to mobile phones without prior express consent, placing telemarketing calls without written consent, dialing numbers included on the National Do Not Call Registry, failing to identify the caller at the start of the message, and failing to provide a call-back number that allowed consumers to opt out of future calls," explained the FCC press release." Finally these calls are so annoying! Probably 90 % of calls to my office landline are robocalls!

"Hackers breached the computer system of a technology contractor to the Oregon Health Plan and other healthcare operations and gained access to the personal information of as many as 1.7 million clients. PH Tech disclosed Tuesday that a “coordinated attack” by hackers led to the breach. The company suspected there had been a breach in June. The firm said it suspects the hack took place on May 30. Information exposed is believed to include some personal information, including names, dates of birth, social security numbers, mailing addresses and email addresses, as well as health records that could include diagnoses, procedures, claims and member and plan ID numbers." Again, here it is two months later before the hack is acknowledged. Many of these hacked firms view this as a public relations issue. "Lets delay announcing bad news!" It's becoming very clear that most CEOs and Board Members don't value IT Security because it doesn't create any profits!

"A far-reaching data breach by a government contractor has put Social Security numbers, birth dates, driver’s license numbers, health insurance claims, medical history notes, prescription information and other personally identifiable information of 612,000 Medicare beneficiaries at risk. The Centers for Medicare & Medicaid Services (CMS), the federal agency that manages Medicare, as well as the contractor in question, Maximus Federal Services, have begun sending apology letters to individuals whose data may have been impacted by the May 2023 security breach. In an 8-K filing with the Securities and Exchange Commission on July 26, Maximus estimated the cost of the investigation and “remediation activities” thus far has been approximately $15 million, though the investigation is ongoing. Moreover, Maximus says files impacted by the cybersecurity hack contain Social Security numbers and protected health information “of at least 8 to 11 million people” whom the company anticipates having to notify. According to the Centers for Medicare & Medicaid Services, Information at risk includes: Name Social Security Number or Individual Taxpayer Identification Number Date of Birth Mailing Address Telephone Number, Fax Number and Email Address Medicare Beneficiary Identifier (MBI) or Health Insurance Claim Number (HICN) Driver’s License Number and State Identification Number Medical History/Notes (including medical record/account numbers, conditions, diagnoses, dates of service, images, treatments, etc.) Health Care Provider and Prescription Information Health Insurance Claims and Policy/Subscriber Information Health Benefits and Enrollment Information" This is another one of the MoveIt related hacks. It's taken almost two months for the hack to be publicly acknowledged and they still have 8 to 11 million people still to notify!

"In a recent survey by financial app developer Capterra, 60% of respondents now seek advice from personal finance apps before reaching out to financial professionals. Furthermore, 64% of fintech users feel that these tools have significantly reduced their reliance on financial advisors." "The most popular solutions for fintech users include banking (82%), payments (63%), and personal finance management tools (57%). Overall, 73% of fintech users actively use between two to five tools, which include everything from do-it-yourself investing apps to AI-powered planning tools." "Despite the high adoption of these apps, some fintech users still prefer an accountant to handle tax planning and preparation (47%), estate planning (42%), auditing and assurance services (34%), and business consulting (28%)." Almost all of my clients are older than 50, but that in itself is concerning because when my clients use these apps they don't really understand the relevance of the information or the risks and issues associated with these apps.

I have never had a monitor die. My current monitor on my Win 10 system is about 9 years old and still works fine.I used it on my previous Windows system. I am semi retired and don't work full time any more so my monitor probably has the equivalent of 4 full time years of use.

https://www.thetaxadviser.com/issues/2022/nov/federal-implications-passthrough-entity-tax-elections.html

The way it works in my state is as follows Lets assume taxable income of $100,000 and a state tax rate of 10%. PTE Tax = $100,000 x 10%= $10,000. S Corp pays 4 estimated payments totaling $10,000 which reduces Federal Taxable Income - $100,000 - $10,000 = $90,000 thus reducing shareholders Federal Income Tax by $10,000 x 24% (marginal tax rate) = $2,400. In my state the $10,000 is an add back to state taxable income and the $10,000 increases the shareholder state income tax paid. Net Result is a $2,400 reduction in Federal Income Tax and no change in State Income Tax.

The Economic Impact Payment scheme "This is currently the highest volume email scheme the IRS is seeing. Emails messages are hitting inboxes with titles like: “Third Round of Economic Impact Payments Status Available.” The IRS routinely sees hundreds of taxpayers forwarding these messages each day; the IRS has seen thousands of these emails reported since the July 4 holiday period."

Obviously there is a due diligence question here. If it had been just one client, it would probably have never happened. It appears that he was targeted because he had multiple clients in this situation. Years ago I picked a new client, an 1 employee S Corp who had an appliance repair business. At the time I picked him up he had a very low monthly salary which was not reasonable. It took me 4 or 5 years gradually raising his monthly salary bit by bit before it was at the low limit of reasonable. It took me that long because he had cash flow limitations due to spending everything he made.

If the $203 was a charitable contribution, I would think the deductible amount would need to be reduced by the value of the service provided. If Habitat for Humanity considers the value of the hauling service to be $203 then the deductible amount would be $ 0.

If you could do this could you deduct mileage for hauling your donations to Goodwill or another charity???