Lee B

Assuming there is an attorney involved by far the biggest issue your son will have is the non deductibility of legal fees. Many articles out there about this problem. Here is one from Forbes: https://www.forbes.com/sites/robertwood/2022/02/17/how-to-write-off-legal-fees-on-your-taxes/?sh=32a25c77217f

This is why I posted about potential identity theft

I think most IRS employees are doing the best they can buried under a mountain of paperwork using old computer systems that don't communicate with each other. Most of the blame lies with our elected representatives, who pat themselves on the back whenever a tax law gets passed, giving no thought to what it will take to get the changes implemented.

Then this might be a sign of identity theft.

By your wording I assume you mean a Schedule M - 1 Adjustment?

Lat Fall I took an IRS CPE webinar where the main presenter was Erin Collins, The National Taxpayer Advocate. She said that they had stopped taking referrals from congressional offices because of a large backlog of taxpayer cases they were were working on plus a staff shortage of 500 positions. If will be interesting to see if your clients make any progress via contacting the offices of their congressperson.

https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

First use the "Where's My Refund" Tool to find out what is the status of the return. Once you find out the status then you can evaluate your options.

Sounds like a business

Tom, in theory it would be possible, but for me it would require detailed contemporaneous notes.

Perhaps in your state they couldn't, but in my state they could.

If PTS documents had been drawn up and signed spelling out that A was a limited partner and B was a General Partner then I would agree, but those documents apparently don't exist.

I think it's clear that taxpayer B has SE Income. For me saying that Taxpayer B has SE Income and taxpayer A has investment property and Capital Gains would be a difficult position to support.

Legally a partnership agreement can be a hand shake, signed documents are not required. Doesn't matter whether it's a 1065 or a Schedule C (Joint Venture), it's SE income for both A & B.

I had a monthly deposit posted in the wrong quarter in late 2020. Since I couldn't get thru on the phone, I went ahead and made another payment, which of course resulted in an overpayment. I finally got thru on the phone about 4 months ago and got the overpayment applied to 1st quarter 20022. It took me 5 attempts to even get into the "on hold" queue then I had to wait 45 minutes to talk to someone. It took the IRS person, who was very nice, at least 20 minutes hopping back and forth between systems just to apply the overpayment to 1st Quarter 2022. Fortunately, I was able to head off the refund check that Tom is receiving.

My experience is that streaking usually means that the drum needs to be replaced, which can be over half the cost of a new printer.

In the past some users have posted that they resolved this problem by uninstalling their "bloated" Print Manager software and reinstalling their printers by using Windows basic default printer drivers.

"The IRS is aware that some payments made for 2021 tax returns have not been correctly applied to joint taxpayer accounts, and these taxpayers are receiving erroneous balance due notices (CP-14 notices) or notices showing the incorrect amount. Who is affected: Generally, these are payments made by the spouse (second taxpayer listed) on a married filing jointly return submitted through their Online Account. Some other taxpayers may also be affected outside of this group. No immediate action or phone call needed: Taxpayers who receive a notice but paid the tax they owed in full and on time, electronically or by check, should not respond to the notice at this time. The IRS is researching the matter and will provide an update as soon as possible. Taxpayers who paid only part of the tax reported due on their 2021 joint return, should pay the remaining balance or follow instructions on the notice to enter into an installment agreement or request additional collection alternatives. Taxpayers can ensure that their payment is on their account by checking Online Account under the SSN that made the payment. Note that any assessed penalties and interest will be automatically adjusted when the payment(s) are applied correctly. Additional information for tax professionals: In general, when certain payments are processed, programming does not move the payment to the married filing jointly account when the payment is: - not electronic and is made by the secondary spouse. - electronic, is made by the secondary spouse, and posts before the joint return indicator is present to identify the primary taxpayer. - made by the secondary spouse using the Online Account (OLA) Make a Payment functionality"

Might be a sign of identity theft?

"The IP PIN should be entered onto the electronic tax return when prompted by the software product or onto a paper return next to the signature line." You will not be able to file a paper return without the IP Pin. Does this mean your client applied for an IP Pin?

There was another thread about this earlier this year, saying that a number of young adults used the Non Filers tool so that they could get the $1,400.

This week the IRS is mailing out 226J Letters assessing Employers for noncompliance with the ACA for 2019. I hadn't seen one of these letters for 2 or 3 years so I haven't been thinking about them. Well, my largest client may be paying some more penalties for not providing Health Insurance.

Yes, hiring people is definitely a trial and error process. Just because someone interviews well doesn't mean they will be a good employee.

I don't think it's a scam. However their sales and marketing personnel are very aggressive.

I previewed their their software the second year they were in business before I switched from ATX to Drake and you're right they promise more than they can deliver. I am kinda surprised they are still in business, although this year's user reviews are favorable?