Lee B

It's the taxpayer's responsibility to keep documents. Perhaps the question should be, "What do we do when there are no documents?"

Gosh, I have always signed it when I prepared the return, am I in deep doo doo

The stock market has been pretty volatile, there is an equal chance of significant price changes.

Good point, I think I would assume the depreciation has already been taken. In order to file the 3115, how do you substantiate it wasn't taken?

So what happens if their name is changed on their DL but not on their SS?

I would do 30% land and 70% building. First I would want to look at his tax returns as far back as he has copies.

Until they get an explanation from their employer, all you can do is wait.

I would think the first step is for the client to get an explanation from their payroll department .

First step should be to get a transcript of last year's tax return to see the status.

I'm curious, what software did he use to prepare his return? It should not have allowed that to happen.

https://www.irs.gov/newsroom/understanding-digital-asset-reporting-and-tax-requirements

I have been having a kinda similar problem with Drake this year. On some 1040 clients when I update the client from 2021 to 2022, the 2021 federal & state tax liability $ amounts change and don't match the $ amounts on the 2021 filed returns? Then I have to correct the $ amounts. It's a minor issue which only affects penalty and interest calculations and the potential taxability of state refunds if the client itemized.

AidKit Inc. appears to be a fintech that offers a online payment channel to nonprofits that help low income people who are unbanked. https://osse.dc.gov/sites/default/files/dc/sites/osse/page_content/attachments/2022 Tax Filing Resources - English.pdf

As a workaround, can you print the client letter before efiling?

It was started by Ringers on March 1st. If you search for spitting nails you should find it.

Rita, you have done it again, now I have a big smile on my face

There have been several recent threads with lengthy discussions of this issue with some posters in favor of just correcting the carryforward amount in the current return and other posters in favor of amending returns. One thread started on March 1st and the other started on March 16th, which will give you the pros and cons both approaches.

https://gis.fema.gov/maps/em_3592.pdf

I get the fact they are your friends, but doesn't it create a weird dynamic

"IRS Announcement 2023-12 informs taxpayers and practitioners that the IRS has revised Form 3115, Application for Change in Accounting Method, and its instructions. The Form 3115 (Rev. December 2022) is the current Form 3115 (December 2022 Form 3115) and replaces the December 2018 version of the Form 3115. Announcement 2023-12 also provides guidance to allow for a reasonable period for taxpayers to transition to the December 2022 Form 3115."

From my point of view, without the legal documents, everything is still to be decided?

Frankly, this isn't encouraging. If I had been advising a seller in a similar situation I would have insisted on a separate written covenant non compete agreement with a separate 5 year payment structure clearly spelling that each year's payment was specifically related to the same year's non compete.

"Qualifying for an HSA Contribution To be an eligible individual and qualify for an HSA contribution, you must meet the following requirements. You are covered under a high deductible health plan (HDHP), described later, on the first day of the month. You have no other health coverage except what is permitted under Other health coverage, later. You aren’t enrolled in Medicare. You can’t be claimed as a dependent on someone else’s 2022 tax return. If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse’s coverage doesn’t cover you. Also, you may be an eligible individual even if you receive hospital care or medical services under any law administered by the Secretary of Veterans Affairs for a service-connected disability." Last year I had a client who paid penalties on his HSA contributions because his spouse was a teacher and he was still covered under her policy.

Depending on how the covenant not to compete is worded and structured it could go either way. There isn't enough information to tell.