Lee B

You can use the following private delivery services for filing tax returns and mailing payments to the IRS: Important Note: The delivery addresses are different. The attached link has a link to those addresses. https://www.irs.gov/filing/private-delivery-services-pds

I have noticed that a number of stamped letters and large envelopes are being processed by the Postal Service without a postmark. One of my business clients and I mail documents and reports back and forth every month. Several times we have reused a large envelope 3 or 4 times before the stamps were cancelled with a postmark

Margaret, You sound like an energizer bunny. Just reading your post made me tired.

Some accountants here in Oregon have had the client's IRS checks returned by the USPS as "undeliverable." The checks were mailed to the correct Cincinnati OH P O Box. Several accountants who called the IRS were told, "yeah it's been happening and to have their clients mail the payments again.

I have started reading articles about the SECURE 2.0 Act which went into effect January 1, 2023. Now that I have started reading, frankly I am amazed at how many changes are heading our way. We have been discussing QCDs for about 4 years now. Now we will have one time Charitable Gift Annuities which will count towards fulfilling the annual RMD of an IRA. "The SECURE 2.0 Act of 2022, which was included in the $1.7 trillion omnibus spending bill signed by President Biden on December 29, 2022,[1] has a small gift for charities and individuals over age 70 1/2 who are willing to transfer up to $50,000 to a charitable remainder trust or into a charitable annuity arrangement." There will also be a significant expansion of distribution penalty exceptions and repayment options. Our life is going to be more complicated. I need to find some CPE that covers all of the changes.

This is the correct approach. So often we take mental detours into alternate realities

I should also add we take two vacations every year, the last two weeks of April and October to Kauai.

I work about 3 hours per day, then I take my dog on a walk. The rest of my time is split between yardwork, maintaining and cleaning our house. My physical activity is limited due to a moderate case of nerve pain in my feet. So my late afternoons and evening are mostly spent reading books. Over the years I have read many thousands of books.

In my experience, as long as the reported revenue exceeds the $ amount reported on the 1099 NEC, it will not cause any problems.

Don't know how it works in Virginia, but in my state an Employment Dept audit would have caught this and forced the mother's company to reclassify her son as an employee. The penalties and interest for the amended quarterly and year end payroll reports would be substantial ! Over the years I have participated in at least 100 workers compensation audits. Most of these audits were a simple reconciliation of premium against payroll reports. However between 10% and 15% of these audits were detailed enough that the auditor would have caught this. Hope he is registered as a business and files his federal state highway/road taxes. From time to time he should pick up jobs from other companies!

Thanks Eric, that is good news. In today's world I find it to be safer to be somewhat paranoid, so I changed my password.

I would just add the fuel and insurance expenses to the $ amount on the 1099 NEC for the total revenue, then deduct the fuel and insurance as expenses. Actually this would be a better presentation since the IRS is looking for revenue to equal or exceed the 1099 NEC amount. I wouldn't worry about correcting the 1099 NEC for 2022. However I would advise your client to have these expenses added to his 2023 1099 NEC.

Our email addresses are readily accessible. We will need to watch and see if our individual email addresses start getting spammed. Perhaps our email addresses should be treated like passwords?

In all the years that the third party designee has existed, I have always filed in the details but I have never used it

"WASHINGTON ― The Internal Revenue Service warned taxpayers today to be on the lookout for a new scam mailing that tries to mislead people into believing they are owed a refund. The new scheme involves a mailing coming in a cardboard envelope from a delivery service. The enclosed letter includes the IRS masthead and wording that the notice is“in relation to your unclaimed refund.” Like many scams, the letter includes contact information and a phone number that do not belong to the IRS. But it also seeks a variety of sensitive personal information from taxpayers – including detailed pictures of driver’s licenses – that can be used to by identity thieves to try obtaining a tax refund and other sensitive financial information." Scammers are endlessly creative

Since the dealer has to report the VIN, the name and TIN of the buyer to the IRS, which they won't do if the dealer is claiming the credit on a leased vehicle our clients may get confused but if the IRS can keep track and match the vehicle info with our clients tax returns there shouldn't be any double dipping.

"The tax treatment of legal settlements can be confusing for individuals who receive them, especially when they involve employment-related claims. One such issue was the subject of the Tax Court case Montes v. Commissioner,[1] which examined whether payments from an employment suit could be excluded from income." https://www.currentfederaltaxdevelopments.com/blog/2023/6/30/firefighters-settlement-payment-related-to-harassment-claim-did-not-qualify-for-exclusion-from-income

I think Abby's suggestion is a good backup plan.

The IRS has created a one page poster to be passed on to clients: https://www.irs.gov/pub/irs-pdf/p5797.pdf

Other than Box 3 being called "Other Income", the instructions for filing a 1099 Misc don't really address this question? Situation Normal - Confused!

More hacking details: "This includes approximately 3.5 million Oregon driver license holders; roughly six million Louisiana residents; some 770,00 members of the California Public Employees’ Retirement System; between 2.5 and 2.7 million Genworth Finance clients; approximately 1.5 million customers of insurance provider Wilton Reassurance; more than 170,000 beneficiaries of the Tennessee Consolidated Retirement System; and more than half a million Talcott Resolution customers. Callow tells TechCrunch that the mass-hacks include U.S. educational non-profit National Student Clearinghouse, which could be a “potentially significant” breach in terms of numbers. The organization, which began notifying schools of the data breach, works with 3,600 colleges and universities and 22,000 high schools."

As a practical matter I agree. However I do wonder whether the taxes withheld by the fiduciary are valid based on the instructions of someone who passed away in the prior year?

I don't recall that being a determinative factor listed in the 1099 Misc Instructions?

How about determining stockholders basis?

This sounds like a malpractice lawsuit waiting to be filed