Abby Normal

It's all straight line depreciation so it might not make any difference in the tax, but if they want to show the full 19,000 then they have to allocate 19,000 of the sales price to the building. That's probably the best thing to do.

Land was never depreciated, so all recapture goes with the building, which only had a 5,000 gain, less prorated selling expenses. This needs to be two separate assets.

Distributions in excess of AAA (NOT basis) go on line 7 of the Analysis of AAA worksheet, in the Timing Differences column. No need to override anything.

Apparently it's called a post filing coupon (PFC). https://www.in.gov/dor/search-results/?profile=dor&query=post+filing+coupon&collection=agencies1

The IRS's databases of names, EINs and year end dates, appear to be missing tons of data, this year. I had to do some finagling to get a 7004 to go through, after getting a 'year end date does not match' error on the reject.

That is something I have never heard in over 40 years. This scenario is exactly why we have safe harbor amounts, and I have never seen that fail. Never.

I always tell them that they CAN pay the tax now, if they choose, or they can earn some interest or dividends on the money and pay it 4/15 of the following year. But, yeah, safe harbor estimates is all I would recommend, but some clients are really bad with money and they feel better paying it early. And tell them that this CPA said that you would only use the annualized method for calculating 2022's underpayment of estimated tax, when there's a large amount of income in the 2nd, 3rd, or 4th quarter, not in the first, because it would make the penalty higher than the normal method of spreading income evenly. BUT the IRS can't penalize you if you meet the safe harbor. And next year, when you're proven right, they'll think, wow this guy's smarter than that CPA! And they'll tell that story to family and friends.

Oh, if you accidentally mess up any return, or just have a problem with a return, just use the Restore a backup function, and make sure you use the one from before it messed up. ATX creates a backup every time you close a return. This is why I will close and reopen large returns every 20-30 minutes or so I have a clean backup in case the return has an error.

Never seen that before. When did they add that? I've always just checked the box on the 1065 for amended. >Use Form 1065-X, if you are not filing electronically https://www.irs.gov/forms-pubs/about-form-1065-x

If you mean at the windows file structure level, you can't because ATX is a database. What are you trying to accomplish?

One thing I do is override line 3a Rent income instead of using the 1099 or the Other Income tab.

There is no form 1065X.

So I could swing by New Orleans on my way out to visit friends, and also visit a dear friend in Dallas! I vote for Tom's place, but it's clearly a selfish move on my part.

I think it's someone else's turn to host. @Richcpaman has a pool! Maybe @Gail in Virginia would be centrally located. Don't get me wrong. We'd love to visit Rita again. We had a great time in the area with many fond memories.

Don't they have books from QuickBooks or other software? Print out a balance sheet and see what it should be. My guess is their books are a mess and previous tax preparers never adjusted their books to match their tax returns. In which case, I would either decline the client, or extend and tell them they need to pay you to fix their books, before you can file any returns.

This makes no sense to me. Did they have PA withholding? If not, just file MD as if the worked in MD. If they had PA withheld, file nonres PA to get refunded and file MD like normal with no credit for taxes paid to PA.

Calling ATX when I was still a newbie is how I learned this. You would think there would be a knowledgebase article about it but I can't find one.

Is the estate still open? Who got the money? If the surviving spouse got the money, If the employer can't or won't void that bonus check and process it as a 1099, then I'd just enter the W2 on the surviving spouse's return, or run it through the estate, if it's still open.

Short Year Rollover for Final Business Returns After completing the current year return, go to the Rollover Manager and select the Last Month/Quarter tab (it doesn't even look like a tab until you click on the words). Then find the return you completed and roll it over. When you go back to Return Manager, you'll see two returns with the same name, except one will have (rolled over) after the name. When you open the return, you'll see that the beginning balance sheet matches the ending balance sheet for full year return and the beginning accumulated depreciation on all assets will be the ending amount from the full year return, and any carryovers will be correct. Then, before doing anything else, enter the final short year dates on the main form. Prepare the final short year return as usual and efile it.

You're right it should. I'll see if I can add it. If not I'll ask @jklcpa

When you go into the Rollover Manager and click on the Last Month/Quarter tab (probably named for payroll returns) you will see all returns in the CURRENT year software, not the prior year software. Example: You did a full year 2021 business return. The business closed early in 2022. Even with extensions the 2022 forms will not be ready in time. So you go to Rollover Manager, select the Last Month/Quarter tab instead of the 2020 Returns tab, and you'll see the full year return you did for 2021. When you roll that over, all your 2022 short year beginning balances will match the 2021 ending balances. This is especially important for fixed assets ad any carryovers. The rolled over return will have (Rolled Over) appended to the name. Open it and enter the 2022 short year dates on the main form, and do the 2022 return on the 2021 forms, and you can efile it just like any other return.

We use a Google Voice number for sending and receiving texts from clients. All texts are in one central location regardless of whose client it is, and there's no extra steps involving in saving attachments to our server, like there is if it went to an actual cell phone.

You can extend as an 1120 and it will count for an 1120S. I know the due dates are different, but it works. So efile the 1120 extension then paper file an 1120S extension, and refax the 2553 to the IRS with explanation.

This has been an ATX bug for at least 5 years, but in years past, reprinting the return after closing/reopening always fixed it. This year, that no longer worked for me. So I opened a case and Brent from support called me back two days later. He was able to see the bug by remoting into my computer. This was great because in years past, I was never able to show the bug to support. And what we discovered was that if you print preview before printing, these worksheets will print. And, you don't need to preview each packet. Just previewing any packet will fix all of the packets. But more importantly, he now has a good example of the bug to show the programmers, so they'll have a chance to diagnose this.

https://www.journalofaccountancy.com/news/2022/feb/irs-offers-further-k-2-k-3-relief.html The relief announced Wednesday applies where: In tax year 2021, the direct partners in the domestic partnership are not foreign partnerships, foreign corporations, foreign individuals, foreign estates, or foreign trusts. In tax year 2021, the domestic partnership or S corporation has no foreign activity, including foreign taxes paid or accrued or ownership of assets that generate, have generated, or may reasonably be expected to generate foreign-source income (see Regs. Sec. 1.861-9(g)(3)). In tax year 2020, the domestic partnership or S corporation did not provide to its partners or shareholders, nor did the partners or shareholders request, the information on the form or its attachments regarding: Line 16, Form 1065, Schedules K and K-1 (line 14 for Form 1120-S), and Line 20c, Form 1065, Schedules K and K-1 (controlled foreign corporations, passive foreign investment companies, 1120-F, Sec. 250, Sec. 864(c)(8), Sec. 721(c) partnerships, and Sec. 7874) (line 17d for Form 1120-S). The domestic partnership or S corporation has no knowledge that the partners or shareholders are requesting such information for tax year 2021.