Randall

11 hours ago, cbslee said:

I would not answer this question, yes.  i believe the context of this question  is about forgiveness of loans which trigger Other Income that is taxable.

As we have discussed in other threads, I would handle this as an M-1 adjustment.

I was wondering if it would trigger something.  This whole ppp thing is another world.

When completing Form 1120S, Schedule B has a question about any loans being forgiven.  Does this apply to the PPP loans forgiven?  If I click yes, it ask for the amount.  Do we include the PPP forgiven loan in this question?  Will it trigger an inquiry?  Is there a  place for a description or explanation.  I don't see one.

1 hour ago, cbslee said:

I have client who had 6 monthly payments paid on her behalf by the SBA on her Loan due to the Cares Act.

It was later clarified that the 6 payments are not taxable and the related interest paid on the SBA Loan is deductible.

Its all good

Thanks.  I thought I remembered reading this too.

What about the SBA making several payments on an existing loan.  Not part of a PPP loan.  Would this too be treated as tax exempt income or just other income (taxable)?

Still waiting on Ky and Oh.  ATX will probably have the updated Fed this week.

Kentucky legislation out on recess while the governor has his veto period.  Whatever that means.  Ky legislation due back March 29.  Ky Society of CPAs are trying to emphasize the need to conform.  Sheesh.

On 2/15/2021 at 2:15 PM, Abby Normal said:

Did you go through the ATX standard process that creates a duplicate of the client? I hate that. I'd much prefer to just have one file for each client. Last year we had several returns rolled over for the original filing and not the amended filing, so the carryovers and comparisons were wrong.

You could call support and they would allow the efile.

In the past, I've always just added the 1040X to the existing file, but that was for a paper file.

I think ATX has an option to 'Amend' the return.  Not just duplicate the return.  I think you have to open the original, then there's the option to 'Amend'.  It creates the 2nd return with the 1040X.  Make sure you close the original and are working in the amended return.

I definitely wouldn't paper file anything these days unless really have to.

I'll do as many as I can by April 15 with the longer hours.  I will cut back to normal hours (and less) after April 15.  But I won't do extensions for April 15.  I'll be able to get more returns done by May 17 so why do the extra work and time.

I haven't seen it yet in ATX.  I would expect it soon.  But then I'm waiting for KY and OH.

I just saw on another forum it would be May 15.

12 hours ago, TAXMAN said:

Do we still have to attach the 8915-e form as a pdf to get it to efile?

ATX seems to require it.  It comes up red in the check list.

But if they have the auto extensions like last year, it will save a lot of time not to deal with the individual ones.  Form 8878, etc.

I've seen an Edward Jones that shows a column for wash sales.  But the gain/loss column is labeled 'unadjusted gain/loss'.  When I input the wash adjustment, gain is increased.  On  some others, I've seen the wash adjustment already included.

Anyone hear anything yet whether IRS will extend the due date?

13 hours ago, TexTaxToo said:

The CARES act wasn't clear about what should happen when someone died, and our previous president said they shouldn't get anything, or should send it back.  The law enacting EIP2 makes clear that only those who die before January 1, 2020 are ineligible, and the IRS has recently updated their FAQs to say that anyone who died in 2020 can claim both payments as RRC.  See Q1 and Q5:

https://www.irs.gov/newsroom/questions-and-answers-about-the-first-economic-impact-payment-topic-a-eligibility

For EIP3, those who die before January 1, 2021 are ineligible.

Thanks for that clarification.  

2 hours ago, Lion EA said:

If her spouse was alive during 2020, the surviving spouse gets the full EIP1 and EIP2.

Full payment for one person or two persons?  I thought last year's instructions were to return the check if one spouse died before the check arrived.  And only qualified for one person.

1 hour ago, DANRVAN said:

I wouldn't either, but after exhausting any possible tax benefit allowable by the law I would have so say sorry you don't qualify.

Yes, I would agree with 'exhausting any possible'

Client died April, 2020.  Spouse received stimulus check for $2400 several weeks later.  She returned the check to IRS and received a confirmation letter that the check was returned.  She also received a letter from IRS saying it was too late for them to issue her stimulus payment.  For 2020 return, she is still allowed to file jointly.  When I input the stimulus info on the Line 30 worksheet, it is calculating the full joint payment of $2400 and $1200.  Does anyone see a problem with inputting that she received $1200 and $600 so the balance she is due only comes to $1200 and $600.  This seems to be the only option in order to get her the correct amounts.

I will wait for the software update.  But my state Ky does tax it.  And Ohio too (I do a few of them since I'm close to the border).  So I guess I'll have to wait on the states.

28 minutes ago, Pacun said:

You are right.

We, tax preparers, keep complaining that we are doing the IRS' job and that we are the enforcers and we hate it. But I have noticed that we are excellent enforcers. Not only that, we are applying common sense and logic to COVID relief, which by itself doesn't make sense in many many cases. 

Thanks Pacun.  I would ask a few questions and make reference notes.  But I wouldn't give him the 3rd degree trying to disqualify the person.

The way they've handed out money to profitable businesses, I'd call a hangnail qualified.  If it's questioned, it's questioned.  But the quotes seem to leave a lot to a judgement call on the individual.

Am I correct in thinking there are two things that will affect the 2020 returns?  UI and the no pay back of excess APTC.

8 hours ago, BulldogTom said:

@Abby NormalThank you for pointing that out.   I had not heard much about it either, but one of my clients just saved 10K.

Tom
Modesto, CA

I've got one who is a maybe. 

2 minutes ago, Lion EA said:

In a newsie (as opposed to a tax pro pub) article last night, it said that people without direct deposit can take their $1,400/person RRC3 on their 2020 tax returns! Please say that isn't so!

Also, anyone read the top EIC amount for a family of four? (My kids in PA asked.)

Can't remember where I read it this morning but it said IRS will use 2019 info and update when the 2020 return is filed.