Lee B

I would insist on copies of the prior years tax returns or take the LLC.

That's how I interpreted it when I posted that it meant "noncash" which doesn't match with the wire transfer scenario.

This situation is like wrestling with pig, the pig enjoys it and you end up all muddy.

According to news articles, this bill is stalled in the Senate and if it comes to a vote it will be late this month or early next month.

1 hour ago, mcb39 said:

Everything that I read says that my 91 year old client can deduct medical expenses for 10.5 months in a CBRF.  She was declared chronically ill by a licensed physician.  She requires extensive assistance with more than two activities of daily living.  She paid $70,712 for her total share.  Long term care insurance paid $12,600.   I am having a difficult time convincing her son that $69,512 is a legitimate medical deduction.  It is a difference of paying in and/or getting about a $6000 refund because she had  paid in estimates.  Am I right or wrong?

I question whether a CBRF meets the definition of a facility whose expenses are deductible?

I deducted a similar $ amount each year my mother-in-law was in a memory care facility for advanced dementia.

Your client should ask for confirmation of the wire transfer.

Perhaps the funds went to an old account of your client?

Has your client called the insurance company and asked why?

As far as the CTC you can go ahead and file.  If the bill passes, the IRS will make any adjustments internally and issue any additional refunds due.

Very similar to how unemployment compensation was handled several years ago.

I can envision a situation with 2 unmarried adults living together each with their own child sharing the rent and utilities 50/50

while each one pays for their own food, clothing,etc would be able to both file HOH.

Excerpts from Internal Revenue Code Section 72(t)(2)(F):

"(8) Qualified first-time homebuyer distributions. For purposes of paragraph (2)(F) - (A) In general. The term "qualified first-time homebuyer distribution" means any payment or distribution received by an individual to the extent such payment or distribution is used by the individual before the close of the 120th day after the day on which such payment or distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer who is such individual, the spouse of such individual, or any child, grandchild, or ancestor of such individual or the individual's spouse."

"(C) Qualified acquisition costs. For purposes of this paragraph , the term "qualified acquisition costs" means the costs of acquiring, constructing, or reconstructing a residence. Such term includes any usual or reasonable settlement, financing, or other closing costs. "

"(iii) Date of acquisition. The term "date of acquisition" means the date- (I) on which a binding contract to acquire the principal residence to which subparagraph (A) applies is entered into, or (II) on which construction or reconstruction of such a principal residence is commenced. "

3 hours ago, Gail in Virginia said:

If social security pays a benefit to the estate after the final tax return of a taxpayer has been filed (and in this case after the first fiduciary return was filed), 

You need to give more us more details because this scenario makes no sense.

Just curious, where were they married and which state issued the marriage license

ATX has had memory leaks ever since the program was rewritten with a shareware database called "Raven" back in 2011,

sometimes referred to as the "2012 Debacle".

7 minutes ago, Terry D EA said:

That is the 65k question. I hope this company (Equity Trust Company) is cooperative and will quickly issue a corrected 1099-R

Perhaps the 1099 R is correct?

1 hour ago, powell777 said:

if drake tax was no longer produce ( or stop for whatever reason) what professional tax software would you switch to/use?

Why would you be worried about that?  Drake is owned by an international private equity powerhouse with billions of dollars available.

Back in December the House passed a bill 420 - 1 to delay the implementation by one year.

The Senate has yet to vote on this bill.

2 hours ago, BulldogTom said:

But the box 1 & box 2 amounts are the same

Tom
Longview, TX

Check and see if he had a Universal Life Policy that generated Dividends and Interest

It may depend upon the type of life insurance policy.

The K means it was not a cash distribution.  It sounds like you need more information about the IRA and the kind of assets it held.

"Use Code K to report distributions of IRA assets not having a readily available FMV. These assets may include: • Stock, other ownership interest in a corporation, short- or long-term debt obligations, not readily tradable on an established securities market; • Ownership interest in a limited liability company (LLC), partnership, trust, or similar entity (unless the interest is traded on an established securities market); • Real estate; • Option contracts or similar products not offered for trade on an established option exchange; or • Other asset that does not have a readily available FMV. "

I will file my own BOI and no more. I will give them a letter so that they are aware of the requirements supported by several pages with more detail.

I am not going to answer questions or offer advice. If they have questions or need advice I will refer them to seek out a knowledgeable attorney.

FINCEN BOI has nothing to do with accounting, tax law or tax returns.

It is  not administered by the IRS and our privileges and responsibilities under Circular 230 do not apply.

You could just send your client this link   https://www.irs.gov/wheres-my-refund

https://www.irs.gov/individuals/itin-expiration-faqs

Copied from Forbes:

"An Austin-based CPA firm was hacked after a part-time employee clicked on a link in an email with a reminder to renew her password. The scam is becoming increasingly common, and last month, the IRS alerted tax professionals to watch out for a new round of filing season-related email schemes. Cyber insurance can help, but not all policies offer complete coverage."

Here's a phishing email scam that worked

Yes with help of AI, the scammers are getting more sophisticated and polished.

"What information is available?

You can start checking on the status of your refund within

24 hours after e-filing a tax year 2023 return

3 or 4 days after e-filing a tax year 2021 or 2022 return

4 weeks after mailing a return

Where’s My Refund? will give you a personalized refund date after we process your return and approve your refund.

The tracker displays progress through three stages:

Return Received

Refund Approved

Refund Sent

To use Where’s My Refund? you need to provide your Social Security number or individual taxpayer ID number (ITIN), filing status, and exact whole dollar amount of your expected refund."