Lee B

Wow, another revenue enhancement opportunity

Given that my Secure Access account will shortly be no longer accessible due to the new ID.me requirements, I will be mailing these in.

I have seen news articles recently saying that professional and political pressure on the IRS is building to have the IRS administratively relax the ACS procedures. So far the IRS is saying that these responses are mandated by law.

I will defer to the experts: "How to report NFTs on taxes For creators, NFT-related income is reported on Schedule C (Profit or Loss From Business) or on the applicable business tax return (Form 1120, 1120S, or Form 1065). Under Section 162, creators can deduct any ordinary and necessary business expenses from the income recognized. Common expenses include auction fees, transaction fees, subscription fees, or any other expenses incurred in connection to NFT sales income. Investors can use Form 8949 (Sales and Other Dispositions of Capital Assets) and Schedule D (Capital Gains and Losses) to report dispositions of cryptocurrency to purchase NFTs and the subsequent sale of NFTs. Make sure to enter code “C” on Form 8949 column (f) to indicate a sale of collectible. There is no robust information reporting mechanism in place in the cryptocurrency space. In other words, participants do not generally get 1099 forms with cost basis information from NFT platforms. Therefore, it is extremely important to keep detailed records of cost basis and market value information of the cryptocurrency used to purchase NFTs and the NFTs themselves. This information is required to correctly calculate your capital gains and related taxes. Trading NFTs generally requires receiving, sending, or selling a cryptocurrency. Therefore, if your client dealt with NFTs during 2020, make sure to check “Yes” on the virtual currency question on the front of Form 1040—“At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency. https://news.bloombergtax.com/daily-tax-report/how-are-non-fungible-tokens-nfts-taxed

Treat them as collectible piece of art in the hands of a purchaser/seller or as self created piece of art in the hands of a the creator. NFTs are not cryptocurrency.

And of course, it could all blow up in your face if the person you confide in repeats what you said to your client. Some people with dementia get frustrated easily and are quick to get angry.

No, NFTs are not the same as cryptocurrency. While they both have unique blockchain identifiers, NFTs cannot be used to buy something, that's why they are referred to as Non Fungible. Most NFTs are digital artwork, although there are exceptions. I disagree with the "Lots and lots of unknowns" categorization.

The Form 941 & 941X Backlog as been reduced from 2.3 Million to about 1.5 Million Returns

I still remember a motivational speaker from about 40 years ago, "I give myself permission to make 10 mistakes everyday, after all, the only people who are mistake free are 6 feet under the ground."

Interesting, I was able to upload my Oregon W 2s quickly and smoothly I use Medlin also.

It took me far less time to to the print and mail the W 2s to the SSA than the time I wasted trying log into the BSO. Yea, I am totally done with all of my 4th Quarter and Year End Payroll Stuff, both Federal and State!

My response assumed that NFT means Non Fungible Tokens.

Why would it be different than anything else. You have basis, what you paid for it. You have proceeds what you received for it. You have a holding period, how long you owned it. I don't think there's any mystery here?

Are all the error messages the same and what are they?

I thought about it before but now that Drake has doubled the monthly hosting fee, the cost definitely exceeds any benefits.

After using BSO for many many years, the new system doesn't recognize me anymore. Even after entering my Name, SSN and DOB, BSO won't even send me a temporary password. I even got through on 1 800 after waiting about 20 minutes which was of no help. I was told to paper file my client's W 2s. I hope I never have another month like this again!

That's a touchy situation. Do you have a good relationship with any of the children? I have several still active business clients who are now in their seventies. They seem to be getting a bit more forgetful. What I do is make an effort to present things as clearly as possible. Then I follow up with a detailed step by step email. However these are all Write Up/Payroll clients that I deal with on a monthly basis.

"An unmarried father does not have legal rights to custody or visitation." In most states unmarried fathers do not have these legal rights. I don't think this has anything to do with claiming dependency.

Looked it up. There are now some instructions for the use of Form 3911. Who knows how long before someone at the IRS would actually look at it???

I don't know of any way trace a payment made by the IRS.

Yes there was thread discussing this, last month I think.

If you are trying to keep the cost down, large capacity thumb drives on sale are very inexpensive. You just have to develop a regimen and follow it.

If the IRS records say my client received their stimulus rebate and my client says they didn't receive the rebate, how do you prove a negative?

Unfortunately, given the number of dishonest preparers, scammers and identity thieves out there, this will never happen.

A number of years ago before I started efiling 1099s, I printed and mailed in black & white 1099s on plain paper. I know you're not supposed to do that, but I never have had a problem.