Gail in Virginia

According to ProSeries, the IRS does not update e-file rules for disaster declarations therefore electronic funds withdrawal with electronic filing cannot be future dated for the federal 1040 beyond 5/17/21. Like Lynn suggested, they also suggest IRS Direct Pay. So it doesn't sound like this is something that software companies can fix, and the IRS isn't going to apparently.

I have a partnership that is converting to being taxed as an S-Corp. The Form 2553 will be filed by May 15, to make election effective March 1. Is the short year partnership return for January and February of 2021 also due by May 15? I don't think forms are available - can it be filed on 2020 forms? Any warnings from anyone who has done this?

Interesting point. I wonder if you could look at the general requirement for expenses to be in the same period that the income they are related to occurs, and argue that in this case the legal fees should be amortized over the period of time that the interest expense would have been taken had they not paid the loan early based on the court decision? I think, unless it is large amount for legal fees, that I would just expense it but I certainly see your point.

Yes, but some of us are holdovers who used to use ATX, now use something different, but still love the community at this board.

It has been a while since I had one of these, but I was thinking that somewhere farther down there was a box to check that the paperwork had already been sent to the IRS. I think this is intended if for some reason you are on your second return for the deceased taxpayer. But if checking that box would allow you to attach the PDF copy and e-file on the first go round, I would be more comfortable with that than with checking the wrong box. Or that box may no longer be there. Like I said, it has been a while.

Jack, I can't provide a cite, but if she were filing on her own, she would not be entitled to any refund because she has no earned income and did not provide support for their children. So I would agree with your gut.

I'm glad you got it worked out. I would not mind calling support if they answered right away with no hold time, and the person that answered actually knew something. But I really hate being on hold, or even waiting for a call back because then I have to keep that file where I can get it quickly.

Since it says ERO license, I just wonder if putting your EFIN in that space would work so you could move on.

As far as I can tell, the state does not match up sales with the schedule C so I don't know why you are trying to attach the registration to one business. Since Virginia does not (yet!) tax services for sales tax purposes, many business such as garages have gross income that is different than their sales so the Schedule C never matches the sales tax report.

IMO, which isn't worth much anymore because the technology changes so fast, the biggest advantage to a server is the extra backups that are made constantly. Our server has three drives that are mirrored so I don't have to worry about data getting lost. We also have a once a day cloud backup. All of this is managed by a company that specializes in computer technology and security. I started with a sneaker net, upgraded to a real network that was basically on a more robust computer, then to a server. Like Pacun, I use ProSeries now, but I used ATX in a network environment until 2012. I did not have as many problems as some people that year, but more than I found acceptable.

I am not sure that I understand what you are asking. Sales taxes are based on sales, not payroll, so it should not matter that your client is using the same FEIN for both businesses - just what the sales are in Virginia. If they buy anything that they don't pay sales tax on in business number 1 that could be an issue if a sales tax audit is conducted because of business #2, but payroll should not be.

It sounds from the timing of the expansion that did not quite work out yet, that she was affected by COVID to me.

I agree that it is a temporary absence. How can you determine which house the kid would have been at in cases where the kid goes back and forth equally? And the first year if they live together for 65 days in a house that they provide together, before separating and each parent then gets the kid for 150 nights after they separate, who provided the house for more than half the year? They both did but they can't both claim head of household and the dependency exemption for the same kid. This is why I liked tie breaker rules. Sometimes there is a tie.

I realize that 365 divided by 2 is not going to come out evenly. However, if the kid spends a week with grandma or at summer camp, there are 358 nights left which could be divided evenly. And the first year the parents are separated they could both have the kid more than half of the year.

Is it accredited?

I don't want tax season to be any longer than it already is BUT it seems like broker statements and K1s come later every year. I understand why - brokers are now required to track basis, show all kinds of information they did not have to in the past and K-1s are waiting for some of that same information to do the return that generates the K1. So perhaps we need to permanently move this deadline. Or maybe I just need to find a new line of work.

Did whoever changed the deed to reflect the new ownership issue a 1099S for the sale? And even though this is an installment sale, you can elect to report the entire sale in one year. I think the election is made just by doing it. So the only question would be if he has to treat the amount received as including interest and report that interest on the tax returns. Technically, I believe he does. Practically, how much can it amount to?

I understand not wanting her to have to pay all of the employment taxes BUT she expected to make -0-. If she is in a 20% bracket, after paying SS, Medicare, and FIT, she will still net close to $33,000. That is better than -0- in my book and at least in FL she won't have state income tax on top of that which would take another 5.75% if she were in VA.

Actually they fixed it by going out of business last year. Corporation is closed, and what little business they still do is not a sole proprietorship on the daughter's return since she is the only way still involved. Problem solved.

I use an organizer for those of my clients I think will fill it out, or al least use it to help them remember what to bring. But for the vast majority of my clients, I also use a one to two page form. First page is for everyone, second page just has them list children and/or estimated tax payments. Just in case you are interested, I have attached the word file. Questionairre for Drop Offs mailed 1-9-21.docx

And I have seen 1099K generate a letter - repeatedly. Customer who has a corporation let her daughter set up the square account. Daughter set it up in her own name and social security number, even though the bank account belonged to the business. So for at least two years the corporation reported the income but the daughter got a letter because she did not report the income shown on the 1099K. First year that happened was a surprise because I did not know how it was set up. Thought the daughter changed it. But apparently once set up under a SSN you can't convert the square account to a different tax id.

ProSeries does not allow you to remover the form if they have a 1095A attached. However, the software has been updated for this issue, and if you are up to date you should still see the form but there should be no amount carried forward to Schedule 2 as a penalty.

After the tax season that wouldn't end last year, and the last minute changes this year, I have had it with this business. A little young to retire but boy does it sound appealing. In the meantime, I have a client who is a partner in a law firm. He has been working from home this year. Can he take office in home expenses? Would this be shown as UPE? Does it have to be covered int he partnership agreement? Have I lost my mind? Don't answer the last one - I don't want to know since it is probably too late to get it back. Thanks for any help.

Using the dates is somewhat helpful, although I tend to be more general - spring 2020, or this winter. Personally, my stimulus checks came in July and February because one of the main banks here was bought out and changed everyone's account last year.

Virginia also does not recognize common law marriages that occur within the Commonwealth. In the past, if couples volunteer such information and I tell them that i cannot file them as MFJ, they just go somewhere else and keep their mouth shut so the question of what to do about prior years does not arise.