Lee B

Lack of good supporting documentation for a Schedule C can be very challenging.

After reading the instructions for Form 56, it's not clear to me which box you would check under "Section G Authority" without waiting for the Court Appointment Documentation? Just trying to reduce my level of confusion.

"IRS opens free portal to file information returns; new electronic option can reduce millions of paper Forms 1099 estimated to be filed by businesses in 2022." "To e-file Forms 1099 with IRIS, apply for an IRIS Transmitter Control Code (TCC). Once you get your TCC, you can log in to IRIS." The lead up to this has been kinda misleading, because you still have to obtain a TCC code, which now requires that you go through ID.me.

Thanks, John, good discussion. I learned some useful things since my posts make it readily apparent that I don't have any clients in this particular situation.

How do you file a NC return with less wages than shown on the W 2? So are you going to have your client ask his employer to amend his W 2?

If it was my client I would follow the W 2. I don't know if NC does W 2 matching but my state does.

What does his W 2 say with respect NC and MA Wages and SWH?

Yeah, the IRS has problems matching Direct Payments made in the spouse's name.

I did this with my own return last year in February although the amounts were not this large. I just left the balance due amounts showing. No Problems.

The cost varies quite a bit from state to state. Oregon is fairly reasonable.

This reminds me of a client which I fired some years ago. She was a hairdresser filing HOH and her Schedule C Income magically hit the maximum EIC sweet spot every year?

I would wait for the Court Appointment Documents. The Estate represented by the Co-Administrators will be your clients.

Have any of you been following the news about CHATGPT? "Researchers have learned that people can use the new ChatGPT AI to automatically generate new forms of malware, including polymorphic software that is capable of changing its own code on the fly to meet novel challenges." The article goes on to say that the created malware is totally capable of evading any detection available! As George H W Bush was fond of saying, "Now we are in really deep doo doo!"

How was she a client if she hasn't filed since 2015? Were you charging her for each year's extension and a document retention fee?

Your previous post was misleading because your client paid SE Tax which was offset by EIC. Therefore timely filing is still required to update his SS Earnings Record.

"Before the House Committee on Financial Services on Tuesday, recently-appointed FTX CEO John J. Ray III gave testimony to back up comments he made to the New York Times last month about FTX being a “complete failure” the likes of which he hadn’t seen in two decades." "This one is unusual, and it’s unusual in the sense that literally there’s no recordkeeping whatsoever, the absence of recordkeeping. Employees would communicate invoicing and expenses on Slack which is essentially a way of communicating for chat rooms. They used QuickBooks, a multibillion-dollar company using QuickBooks." Sam Bankman-Fried, another misunderstood creative entrepreneur. :)

I assume if the employer has amend 941s, then the employer will also have refile W2s.

Interesting Question. I have been involved in 4 or 5 Employment Tax Audits, but I have never been on the losing side. I would assume the reclassified employee would get W 2(s) and would have to amend the Form 1040(s) and the Schedule C losing tax deductions offset by refunded SE Taxes?

Do you use zoom meetings with clients?

I just finished my annual grind of preparing the ACA Forms for my largest client. Circumstances forced me to change programs. Based on some positive online reviews, I used Tax1099.com which ended up being an exercise in frustration. Very polished website with weak inexperienced support and confusing explanations. I finally worked my way through it but it ended up taking 50 % longer than it should have. Next year I will have to find another program.

"An article in Tax Notes Today Federal reported that Ken Corbin, the IRS’s taxpayer experience officer and Wage and Investment Division Commissioner, stated that the IRS was now answering phone calls to the practitioner helpline in under 10 minutes. Mr. Corbin made this statement in a virtual event hosted by the California Society of Enrolled Agents on January 18, 2023.[1] Mr. Corbin is cited as stating that the agency is transitioning a workforce of over 12,000 employees back to answering phones.[2] The article also notes that Mr. Corbin gave some credit for the improvement to the IRS program looking to reduce the effectiveness of robocalling systems."

Whether you decide it's a 2022 credit or a 2023 credit it's 30% for either year. The words when the original installation is complete makes me choose 2022, subject to the documentation received from the installer.

I have had several clients in recent years spend money on projects because the salesperson promised them they would get a large energy tax credit. Of course when they gave me their annual tax documents they didn't have the required paperwork. When i had my clients call the company that did the work, the salesperson no longer worked there and the company didn't know what my clients were talking about.

Just looked it up. Filing time limit for SE Income is 3 years 3 months and 15 days. So the time limit for 2019 to be filed is April 15th 2023.

Are his benefits based on W 2s or is he a self employed SP or a PTS?