Gail in Virginia

I have now learned that I will never prepare a CA tax return for anybody, unless they are willing to pay me an extra $1,000 or more  just to cover the extra taxes and fees I may have to pay.  Wow.

The payroll software can transmit the 1099 file just like a tax return, but there is a fee for e-filing though the software instead of being included in the price of the software.  If I remember correctly - I have not transmitted any 1099s this year so far. 

In my experience, which thankfully is limited,  if the funeral home arranges for the minister/musicians, then they pay them.  If the family/deceased has a relationship with the church as members or regular attendees, then the pastor and musicians may perform the services as part of their regular duties.  The family may choose to gift the minister or other staff for their service.  But around here, that typically does not run through either the funeral home or the church in those circumstances but is given directly to the people performing those services. 

I stopped in the middle of reading this thread to send an email to a client telling them that I would not be able to do their return this year.  Thank you for the timely reminder that some people are just not a good fit and the sooner we part ways the better for both of us!

Box 7 could be used if the fiduciary issued two separate 1099Rs, just like they issued separate checks.  And if the check is payable to the charity, and clears the bank, I would think that is pretty indicative that it reached the charity.  Banks have gotten pretty cautious about cashing checks for people that are not made out to people.  At least they have around here. 

14 hours ago, Catherine said:

My first ever accounting related job was updating the pages as corrections came in. My dad would bring those binders home from work (a few at a time) with the new pages, and I'd swap them out. For a pittance, but it was my pittance!

My first ever accounting related job was hand addressing envelopes to the Commissioner of Revenue for Franklin County VA.  When I graduated to putting the corrections in the CCH books, it was a relief! 

4 hours ago, Slippery Pencil said:

There's so much free CPE available that years ago I took over 80 hours one year.  40 for the current year, 40 to carry over into the next year.  I've taken at least 40 each year since then so I still have the 40 carryover.  If I suffer a minor tragedy and am unable to take CPE for a year, I'm still good to go. 

Unfortunately, I can't quite work up an entire year ahead just in case.   As an EA, IRS requires that I have at least 16 hours each year, and 72 in the three year cycle.  But working some hours ahead is a great plan to be prepared. 

I, too, really appreciate the information that I can get from the people on this board.  Bur even more i appreciate the camaraderie I find here.  I hope that everyone has a Merry Christmas, a Joyous New Year, and that this tax season will be smooth sailing for all of us!  

The best part of the QCD for some of my clients is that it may result in less social security income being taxable. 

I am thinking 15%.  I did not raise prices for several years so I feel like I am behind.  Besides, I really want to work less hard. 

Sara, I don't know enough about this to have a real opinion.  But funeral costs are never deductible, regardless of whether they are paid directly by the estate, reimbursed to a beneficiary, or reimbursed to a total stranger.  Whereas business expenses may be deductible so I don't see why the fact that she is a beneficiary as well as executor would come in to play.  However, if they are not deductible expenses to begin with, then if the estate cannot deduct them and the executor receives a fee, can she deduct them as an expense of earning that fee and get the benefit of the deduction that way? 

I agree with both answers.  If the client inherited an installment agreement, no step up in basis.  If client inherited a business, they get the step up in basis before the installment agreement goes into effect. 

10 hours ago, cbslee said:

Now that the risk of winning the "Audit Lottery" is so low, both taxpayers and professionals are being seduced with the lure of "Easy Money"

which in their minds justifies all sorts of creative schemes and alternate realities.

Every day in the media, we see hucksters being glorified and getting rich.

It certainly makes the explanation of "how to comply with rules and regulations" seem dull and unimaginative.

It's hard for the satisfaction of being competent and doing a "good job" to compete against the thrill of saving thousands of dollars.

 

 

 

Plus, with the perception that everyone else is doing such schemes and getting away with it, most taxpayers feel like they are just leveling the playing field and that it is only fair. 

Congratulations, Joel!  I am so jealous!

If I understand the question correctly, the FSA is irrelevant.  The employer has been deducting an amount from the employee's wages for the partial cost of the health insurance.  There is no written plan for the health insurance deduction, and yet they have been treating this as a deferral of income not subject to FICA, FWT, Medicare, etc.  A section 125 plan should be in place for this to be tax deferred. 

Are the employees actually signing an election for the amount withdrawn for health insurance?  That is a written document, although I don't believe it is what is typically meant by a plan document.  I am wondering if the election the employees' have signed can be formalized as a plan document and if a determination letter could be requested from the IRS that would clarify this and perhaps eliminate the need to change 15 years worth of W2s and other employment tax documents. If the only benefit under this 125 plan is health insurance, no 5500 is required if I remember correctly.  i do agree that this forum might not be the best place to seek a definitive answer.  And perhaps I have misunderstood some nuance of the question. 

It has been a while since I have had one of these.  Does the NOL he is carrying forward contain any preference items?  I think that it may have to be adjusted for any preference items but then is entered on the 6251 as a deduction and can be used to reduce his income. 

If all of the sales are reported under his social security number on the same consolidated 1099B, then I would report them all on his final tax return.  HOWEVER, i would report as nominee on all of the sales after his date of death so that the return shows no gain or loss on those sales and instead they are carried to the estate's 1041. 

Yes, the basis would be the value on the date of death but the holding period for inherited assets is assumed to be long term even if it sold as soon as it is transferred.  At least, this is how i would handle it. 

My opinion would be that you sign as the successor trustee. You are not her POA any longer because of her death, she can't currently sign for the same reason so even if you were still POA you can't do something that she would not be able to do, and you can't back date them to a date when she was still alive and you were still her POA.  But that is just my opinion and I am not a lawyer. 

I am just wondering if he has any extra business licenses or taxes that need to be addressed as a contractor working in New York, even if it is only one job for two months.

I hate to say this, but if your son has friends who got really taken to the cleaners I would try to find out who represented their spouse. 

Was any of this award due to discrimination based on disability?  It seems that I remember there used to be some exception related to that.  I don't know if that is still the case, or if I am remembering correctly but if this pertains you might do some research to see if there is any help there.  

On 8/4/2022 at 11:58 AM, cbslee said:

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.

And also congratulate themselves for saving the taxpayer's money by cutting funding to the IRS for new staff and computers. 

I can see this either way.  But I don't think that whether or not Partner A can serve as general contractor would mean that he would be limited in terms of the partnership.  He seems to have exercised management responsibility by choosing the site since he bought the lot.  And he could be providing oversight of the financials, especially since he seems to be providing the money.  I am not sure how that is determined/proven after the fact. 

Wow, Judy.  I am sure those old writings are precious now, but I can't imagine still having tax returns from the 70's.  I filed then, but they are long gone.  Kind of wish I had saved my very first return, though. 

They certainly waited long enough to question this.  I hope you will keep us posted about any outcome from this, especially if they do adjust his earnings for 1992 (!).