Randall

Sorry to hear this.  All went well with me.  I kept details of Mom's money and things and had records.  But my 3 siblings never asked or questioned anything. 

1 hour ago, cbslee said:

Not reducing QBI by the 1/2 SE Tax would be a classic case of "double dipping."

Not sure about this.  If there is no QBI for that income, why would it be double dipping?  I can see it if the QBI deduction were including that activity's income.

Client has S corp pass thru income.  It qualifies for the QBI deduction.  Client has separate 1099-NEC income with SE tax due.  ATX us saying the 199 activity does not have the 1/2 SE tax deduction in the QBI calculation.  If they are two separate activities, do I still have to reduce the QBI by the 1/2 SE tax deduciton?

I see ATX has these forms now.  My client works in US, has remote software IT consulting business.  Some revenues coming from other countries.  I'm wondering if this constitutes foreign activity.  I've looked at the K2 instructions and form.  It doesn't appear anything applies to my client.  Any comments on this.

The debt bomb keeps ticking.

That was from a recent hike in eastern Ky.  The Sheltowee Trace.  Mother Nature did the honors.

My landscaping.

I'm not sure if I can help.  I have not encountered that except for Ky pass thru returns (PTE) or Single Member LLCs (725).  Maybe look on the main info sheet under the state tab and see if there is something you can do there.

My rep called.  I renewed.  I'm not changing software and I like to get it out of the way.

Back to taking Fridays off.  And the weekend of course.  

I usually renew early (ATX by May 31).  I have received the renewal notice in the mail but haven't gotten a call from my rep.  Usually, he calls by now.  Waiting for responses to see if they will give an additional discount if we ask.  Probably not.  I'm not expecting it.

Did you efile a return for a prior year?  They charge $5, maybe $5.50.  But I think my charges are identified.

On 4/22/2022 at 12:31 PM, Lynn EA USTCP in Louisiana said:

This morning my account rep emailed with a link to the renewal; I responded asking for a greater than 12% discount, especially since the cost of the software is up 11%. 

Let us know if you get the bigger discount by asking.

On 4/23/2022 at 5:04 PM, Abby Normal said:

It's been shrinking since the 90s. A bunch couldn't make the jump from DOS to Windows. Others kept getting bought up and the product was eliminated, so they were really just buying the customers. That happened to me twice, at least.

They call it capitalism.  If I sound cynical, that's because I am.

30 years for me.  But I got a late start.  Accounting major right away but worked in the private sector.  Funny because I wanted to be a CPA right away, other things got in the way, first the draft, I chose the Navy, then private sector, later became a CPA.  I generally plan 3 more years give or take.  Maybe someone will give me an offer I can't refuse.  

53 minutes ago, jklcpa said:

You may want to have the client pay the 1Q'22 estimate now.  Yes, it will be late, but will help minimize any 2210 penalty, if any, by paying that as close to the due date as is possible.  Client's options now for paying the 2nd, 3rd & 4th estimates are by check, direct pay, or EFTPS.

Thanks for the reminder.  But as of now, he may not owe anything.  Had a big tax bill for selling some stock (lots of it from a long time ago).  He's usually good at watching and paying estimates.  So we'll see about the other payment dates.

I told the client I'd call just to see if they would let me cancel.  After being on hold for an hour, they did allow me to cancel.  Had to go thru 3 different cancellations (for the estimated payments 6/15, 9/15 and 1/17) giving dates, amounts, bank routing and account numbers three separate times.  Got the agent's number and cancellation confirmation numbers for each of the remaining 3 payments.  I assume there is nothing to be done for the first payment (4/18) since it bounced.  As someone said, I guess the client will receive a letter regarding that payment.  Since these are 2022 estimated payments, I assume there would be nothing more to do.

51 minutes ago, Abby Normal said:

ATX does not "automatically" make the estimated tax payments direct debit. You have to check a box on the payment page. Ours is marked 'paper check' by default, because we almost never set up estimated to be debited.

Thanks Abby.  I remember setting the 2021 tax payment but not for the ES.  Maybe I hit it accidentally.

44 minutes ago, Lynn EA USTCP in Louisiana said:

I want to clarify my post, just above Abby Normal's.  Calling the IRS to cancel an electronic funds withdrawal should be done by the taxpayer, not the tax pro. 

 

Thanks.  I was wondering if he could do that on line.  Is it the same as the direct pay page?

5 hours ago, Slippery Pencil said:

Has this actually happened?

Can anyone verify this?  Seems outrageous at this time.  Seems IRS would have had this out from the beginning.

I posted this originally.  My client owed a lot of tax on the 2021 return (and Ky too).  He wanted a direct debit payment.  We set it up for Friday, April 15.  He transferred enough money to cover the payments.  IRS took their 2021 tax payment.  Ky waited until Monday, April 18.  Unfortunately I missed something on the return.  The ATX software automatically calculated 1040 ES payments for 2022 using the total tax of 2021.  He shouldn't be anywhere close to that amount of tax in 2022.  ATX automatically used the direct debit info for the ES quarterly payments for 2022.  Client saw a pending payment in his account for April 18, IRS first quarterly 2022 payment.  That was the reason for my post.  Things went as various comments said.  IRS and Ky got their 2021 tax payments and the 2022 ES payment was rejected because funds weren't available.  I was annoyed with myself but also ATX.  Ky 2022 ES also calculated the ES payments but ATX gave me a prompt in the 'Check Return' function.  So I kept Ky from doing the same thing.  I just missed checking the Fed 1040ES and the direct debit info went in with the efile transmission.  Now my question is how to stop or cancel the IRS instructions for the direct debit payment of 2022 estimated payments.  Anyone have any suggestions?  Is there a direct telephone line to call for these matters?  Client has in the past paid online estimated payments.  Is there a way he can go into that system and cancel the direct debit that IRS has for him.  2021 tax is correct and all paid correctly.  Just wanting to get the 2022 ES direct debit attempts stopped for 2022.

Does anyone know if there are not enough funds to cover an IRS direct debit, does the withdrawal take out whatever balance is in the account or nothing at all since the exact amount to be withdrawn isn't available?

This site has been very helpful to me over the years.  More so than another site which I think has a bunch of legal beagle types.  I always try to get my extensions done a week before the deadline.  It seems every year, I just hit the wall and can't get much done the last week.  I usually start cutting down my hours even before the deadline.

17 hours ago, ETax847 said:

On the K-1 it shows up as "Other Portfolio Income".  Randall, what adjustment did you make on the K-1 or 1040 to have this flow through as retirement income?

 

I didn't make an adjustment on the K-1.  I left the amount in Box 5 (Portfolio Income).  Then put the amount in Box 14 code E as a positive and code H as a negative.  I added a statement for Line (Box) 14 saying that the amount was retirement income, listed the payor and payor tax id number and address.  So preparer of 1040 could make the entry on the 1040.  I was the preparer of the 1040 so I entered it as 1099R income from the info on the K1 statement.  No change for Fed but I wanted the software to carry this amount to Kentucky as retirement income and be eligible for their $31k exemption of retirement income.  I hope this helps.

Thanks.  I think she's well above the half of support test.  I was just curious about that 4th year.  If parents could have claimed it but was stopped out because of income, was the 4th year still available to someone (parents or child), all other things qualifying.