BHoffman

Inc.A started out as a C-Corp. The C-Corp was a partner in a partnership. The partnership held Land as an investment. On 01/01/2013, Inc. A made an S-election. On 12/31/13, the partnership terminated and distributed the Land to Inc. A. If Inc. A sells the Land in 2016, is the gain subject to the build-in gains tax? I'm thinking it is not because Inc. A owned only a partnership interest while a C-Corp and not the actual Land. It acquired the Land while an S-Corp - when the partnership terminated and made the distribution. Am I on the right track?

The client recognized expense in a prior period of $25,000. To correct that, you would debit the liability and credit the expense that was originally debited in the prior period in this current period. If that looks clumsy with a negative expense, I suppose you could credit the same income account as the receivable mentioned below, but keep your notes in order. The client has a $75,000 receivable in the current period. To record that, you would debit the receivable and credit an income account. This transaction sounds like a "contingency", so I agree with rfassett.

I have clients who send such smokey paperwork that I put it in a sealed plastic bag or else my office just stinks! OTOH, I had a pizza restaurant bookkeeping client whose paperwork smelled delicious

I make it a practice to always discuss fees with a new client before I start any billable work - an estimate range and the terms (due on receipt). I don't surprise them with a bill, and they don't surprise me by not paying This has worked very well.

This isn't a penalty. Penalties can be waived or abated. The individual mandate was ruled by the Supreme Court to be a tax. If they had ruled it to be a penalty, we would not be having this discussion. The individual mandate is a tax, and it is in place as a law. The IRS is charged with enforcing the tax law. The President's duty is to uphold the law. Only Congress has the authority to make or change the law. So, IMHO, we don't have the option of failing to properly report the individual mandate tax if we know or should have known it applies.

Extensions can be efiled and accepted AFTER the return has been efiled and accepted. The extension will not be rejected. I have done it myself on my own return by mistake

The Taxpayer Protection Program is used only after the client receives a notice from IRS. I wouldn't automatically assume fraud. After all, whoever opened the mail did put it back into the postal system. I'd think a fraudster would not have done that. I would urge the client to get the return finished sooner than later, and if the efile is rejected then I'd re-file with 14039. I wouldn't go through the hassle of filing an incomplete return with the intention of later filing an amended return.

See form 14039, Section B, number 2. https://www.irs.gov/pub/irs-pdf/f14039.pdf Might be an option...

You might see if your client qualifies to file CA form LLC 4/8 http://bpd.cdn.sos.ca.gov/llc/forms/llc-4-8.pdf

My client provides hospice care and bills Medicare. Medicare pays electronically and I have a report from them that shows payments made per day. I've accounted for deposits in transit. After comparing their report detail to the bank statement deposits, the 1099 shows as overstated by about $40k. Pretty sure getting Medicare (National Government Services - NGS) to issue a corrected 1099 will be impossible. The client is a partnership. I would like the client to send a notice to NGS with supporting documents showing the correct amount along with a request for a corrected 1099, and then report the correct income on their cash basis tax return. Does this sound feasible? I'm not even sure IRS sends CP2000 notices to partnerships if the reported income is less than total 1099s. I've never seen one.

AZ sent out 2015 1099G forms showing 2014 tax refund information to taxpayers. They caught the error before submitting the 1099G forms to the IRS. AZ Is mailing corrected 1099G forms out this week.

At least they haven't mailed the 4th quarter/annual payroll forms yet, so the only thing will be a penalty for late 941 deposit. Thanks everyone for your advice

Dear Medlin:

No W2. They gave the guy a regular check for the one day, around $200 and did not include it in payroll. The advance was $2500.

Pub 535 addresses business bad debt and mentions uncollectible loans to employees. That's the route I want to take. From Pub 535: "...Types of Business Bad Debts Business bad debts may result from the following. Loans to clients and suppliers. If you loan money to a client, supplier, employee, or distributor for a business reason and you’re unable to collect the loan after attempting to do so, you have a business bad debt...."

One of my more brilliant clients (C-Corp) paid an employee $2500 advance for his moving expenses. He got there, worked one day, and they fired him. They want to know whether they can issue a 1099M to him for the advance. I believe employee advances are run through payroll. Is that correct? I'm wondering if they can deem the amount uncollectible in 2017 and issue him a net zero payroll check that will wipe out the advance in this 2017 year rather than go back to 2016 and have to amend the returns, pay late deposit penalties, etc? If they can't issue a 1099M and can't run the amount through payroll, how else to get the advance off the books? Thanks

Here is what I send them:

I found a nice client consent form on the interwebs. This partnership has one partner who is a genius at marketing but a dud when it comes to accounting or taxes. The other partner is an whiz kid with numbers. I usually deal with the whiz kid. Hoping he will tell me to just ignore the third party requests and he will deal with the genius marketer who is hanging all over this mysterious, exotic, handsome financial advisor guy. And I'm out of single malt .

Partnership client wants me to directly provide information requested by a third party. The third party is some sort of consultant. He's asking for financial statements and tax returns, along with projections and some other stuff. I'm uncomfortable with providing services to someone who is not my client. The client says to give the guy whatever he asks for. I've not discussed billing for the services this guy is asking me to provide yet, but I left a message for one of the partners (who is kind of in charge) to call me. Any thoughts? I plan to discuss with the partner the personal information that will show up in the tax returns on the K-1 forms and will suggest that those forms not be included. Thanks!

Got it straightened out with the Paychex rep. No withholding, no actual check. All is well.

Client switched to Paychex mid year and did not set up for SCorp officer health insurance. His total premiums paid by the company were $5700. I told the bookkeeper to tell Paychex to issue a paycheck with a gross amount of $5700, subject only to Fed and State withholding, and to make sure that $5700 is going to show up in box 14 of his W2 with the SCorp officer health insurance notation. Paychex payroll journal (pre-finalized) shows that they are not issuing him any paycheck and lists $5700 in a column "Reimbursements and Other Payments". We are afraid his gross wage will not be increased since the journal shows nothing for wages or withholdings and there is no net check. I sent a sample W2 and instructions to the bookkeeper so she could forward the information to her Paychex representative. Bookkeeper spoke with the rep, and was told that they had this whole thing under control but it doesn't look like it. I would think that Paychex knows how to handle this common situation. I've asked the bookkeeper to have Paychex send a YTD report so I can see his gross wages. Does anyone have any experience with how Paychex generally handles this? Thanks!

I vote to ignore the email. Sounds like your procrastinator is mad at himself and took it out on you. If so, then any response from you might encourage him to continue his silly blaming and quasi-bullying. Let him just go away.

I'm going to bet it's Ok. There are probably other people who never registered with eservices. I only used it once or twice when they used to let us enter POAs. Merry Christmas!

I don't have a mobile phone in my name and I don't want to bother with updating my EServices account. I never use it. If I don't update it and let IRS suspend my account, that isn't going to affect anything else like my ability to efile clients tax returns etc, right? Just making sure. Thanks and Merry Christmas!

I'm also looking for a decent printer/scanner/copier to replace the piece of crap HP M225dw. The copy quality is awful if I use the top feeder no matter what setting, and the scans are ridiculously enormous, like 5megs for 10 pages of text only PDF. I hate this thing almost as much as I despise having to shop around for new office equipment. Santa, I've been good. Bring me a great new printer/scanner/copier!!