Lee B

Wow now the Louisiana DMV has been hacked "A statement on Thursday from the governor of Louisiana, John Bel Edwards, said that his staff believes everyone with a driver’s license, identification card or car registration issued by the state of more than 4.6 million residents probably had their names, addresses and social security numbers exposed to the hackers. Other personal information to which the cyber-attackers apparently had access were Louisianans’ driver’s license numbers, vehicle registration data, handicap placard information, birthdates, heights and eye colors, Edwards’s statement said. The number of records involved is thought to be about 6 million, Louisiana’s homeland security and emergency preparedness director, Casey Tingle, told reporters Friday."

Yes, Drake also has a worksheet for that which I filled out and attached, which the IRS ignored!

In over thirty years I have only had three divorced clients and the previous two divorced clients didn't have any estimated payments, so this is a learning experience for me. Thanks for the feedback everyone.

Are these sales associates his employees? Personally I would consider their wages to be an operating expense.

Unfortunately, they aren't talking to each other. Any communication gets passed through their son:(

Clients divorce finalized in November 2022. Estimated payments for the first 3 quarters of 2022 were paid from a joint account. My client W just received a letter from the IRS billing her for about $12,000. Looking at the details of the letter the IRS credited the husband with 100% of the estimated payments for the first 3 quarters. Any good ideas other than responding in writing to the CP23? Thanks in advance

"This month, a massive hack targeted the Oregon DMV. The Oregon Department of Motor Vehicles confirmed Thursday that an estimated 3.5 million driver's license and identification card files were compromised when the agency was hacked two weeks ago." Wow! I have am going to have to freeze my credit and notify my clients to do the same thing.

"DEAR ANNIE: I’m feeling torn between pursuing my dream and maintaining my financial stability. I have a job as an accountant making six figures, but it’s boring work -- so boring that I dread getting out of bed every morning. The days go by slowly, and I find myself living for the weekend." You don't usually see accounting mentioned in advice columns

The only potential problem would be related to payroll reports which would only arise if payroll taxes weren't getting paid. However I would change to the correct EIN with the filing of the nest Schedule C. In addition the old EIN needs to be closed.

In addition, the taxpayer cannot be eligible to participate in a subsidized health plan maintained by either the taxpayer's employer or the spouse's employer, which would not include Cobra Continuation since it's not subsidized.

"A net positive IRC 481(a) adjustment increases income and is often referred to as a "government-favorable" adjustment. A net negative IRC 481(a) adjustment decreases income and may be referred to as a "taxpayer-favorable" adjustment. When a taxpayer uses the voluntary method change procedures or a regulation provision, it generally takes a net negative IRC 481(a) adjustment into account in the year of change. A taxpayer generally takes a net positive IRC 481(a) adjustment into account over four years (year of change and next three taxable years). See also IRM 4.11.6.6.4.1. When a taxpayer under examination requests consent for a voluntary change under Rev. Proc. 2015-13 or successors, it takes a net positive IRC 481(a) adjustment into account over two years, unless one of the following exceptions applies. See Rev. Proc. 2015-13, § 7.03(3)(b):" The item that was reported in error on the 2021 tax return sounds like a separate issue which would be handled by an amended return.

Form 1120, 1120 S, 1065 or Schedule C

This is a classic case for the filing of a Form 3115 and a 481(a) adjustment. Since the 481 (a) adjustment will be positive, your client can choose to spread the increased income over the next 4 years.

If it was my client I would expense the property taxes in the tax year in which the property taxes were paid via the mortgage closing. One year clients complain that their taxes are too high, the next year they want to show more income.

Your client should be able to call and get this moved, supposedly wait times aren't too long right now. If it was my client I wouldn't call for them.

I would go to the Ohio website and pull up the form and compare it to your clients form. I did notice the instructions say upper case letters only?

Is there anything strange looking in field # 1?

Since most of my work is monthly client writeup/payroll, I work with a lot fewer clients for which I charge more per hour than I can for tax preparation.

If all my clients had competent bookkeepers, I would make a lot less money

Assuming that the Jeep was fully depreciated at the end of 2021, it would be a wash, in which case I would remove the asset in 2022.

Excellent question, was it included in sales or was it posted to a balance sheet account?

"Intuit announced the release of a new generative AI-based operating system with custom-trained large language models that specialize in solving tax, accounting, marketing, cash flow, and personal finance challenges. Intuit GenOS, as the company is calling it, is comprised of four core components: GenStudio, a dedicated development environment allowing Intuit's developers to rapidly experiment with and refine generative AI experiences for users; GenRuntime, an intelligent layer that chooses the right large language model in real time and calls the right data access points; GenUX, a library of user-interface components and consistent user flows; and, Financial custom-trained financial LLMs that specialize in solving tax, accounting, marketing, cash flow, and personal finance challenges. They can provide actionable insights and invoke actions like contacting human experts." The CEO of Intuit announced that he thinks Intuit can grow their market share 400%

In that case I would amend.

How much of a gain are we talking about?

"Things are getting better at the Internal Revenue Service, according to National Taxpayer Advocate Erin Collins but there's still some way to go: That's reflected in some of the statistics she shared on the tax returns and correspondence that are backlogged at the agency, including at last count: 3.7 million amended returns; 6.8 million other returns that are "in suspense" — they're missing a form or a signature or are what she described as "otherwise unpostable;" and, 5.3 million pieces of correspondence. One of the things the customer service reps do in their downtime is process paper — correspondence and amended returns. If you're answering the phones 80-90% of the time, guess what you're not doing? Processing paper. And we're now back to a backlog of paper correspondence and amended returns like a year ago." Sounds like the IRS is playing "Whack a Mole"