Randall

Did the deposit cover the future tax in the later 'full' year? And was the client credited with that payment when the following full year was reported?

Anyone ever do this? S Corp client (currently on calendar year) wants to change to a fiscal year. Only one shareholder. I understand we use Form 1128. There is an automatic approval request and a IRS ruling request. Can he get an automatic approval? or does he need a business reason? Also, I understand he will not be able to change his personal reporting tax year.

Even though first time penalty abatement may be only for the first year, try to lump the years together and claim that it is the first time. This worked for me (one of my clients) several years ago. The IRS originally only abated the first year but after a second letter (which I composed) they abated the penalties for all years. It is worth a try.

You can always request a waiver of penalties. I don't think IRS can waive interest though. You will need to talk to the client and get the circumstances. I usually compose the letter, but it is addressed to IRS from the client. And the client signs and mails. When IRS opens their efiling system, you can efile current year and two prior years. The earlier years will have to be paper filed.

Yes. When you log into the ATX tax program or the ATX Payroll program, you input your user name (Admin) but do not enter your password. Below that is a link that says Authentication Manager or Manage your Authentication. When you hit that link, you will be prompted to re-enter your registration number. When you do that, the QR code appears. This is what I needed, the second QR code for the Payroll program. You can then scan it with your phone and my MS Authentication app (only one app) then displays the security code for both the regular tax program and for the Payroll program. I didn't notice the link for managing the authentication and entered my password, then the security code window appeared which I didn't have. I only had one security code on my phone for the regular tax program. I hope this helps for anyone having a similar problem.

Ok, I finally called support. Wasn't too long on hold. The rep walked me through how to access the QR code again. That's what I needed. I only need one authenticator app on my phone but I needed two QR scans. Now I have two separate codes for the two different programs. So I can get into both programs now. Hopefully once I do this a few times, it will be easy. Ha. Thanks for all the help.

I can't seem to access the second QR code for the payroll program. Is there a way to get back to the QR code without calling Support?

Thanks for the info. I'll try it.

I downloaded my ATX software. I got the Microsoft Authenticator app on my phone. Everything worked for the regular tax program. But I can't get a code for the Payroll program. My phone MS app shows ATX Desktop. Is there a second authenticator program for the ATX Payroll program? What a rigamarole.

Thanks for this topic. I haven't downloaded the new ATX program yet. But I too don't know that much about the phone and QR code stuff. I guess I'll have to start.

I'm just one person so I only have a stand alone PC. I still like to get a new computer every several years. I don't trust the hardware lasting that long. It's just me. I also like to purchase two new external hard drives every couple of years for the same reason. I would hate to try to access them and learn I can't access them. Maybe I'm paranoid.

I too don't like to update an existing computer to a new os. I have been waiting for Win12 but there is no word. I will probably get a new computer next year whether Win12 comes out or not.

Oh, the tangled web we weave.

Yes, I would expect an LLC to have an EIN. There is a place on Sch C for the SSN and the EIN. I doubt everyone includes the EIN if they do have one though.

I'm a sole practitioner with no employees. I am not a SMLLC. I do have an EIN though. I did not want to use my SSN on the tax returns I prepare. I also give it out if anyone needing to 1099 me. I put the EIN on my Sch C. I don't know why IRS would care one way or the other on 1099s using SSN or EIN. But I haven't heard anything from them on that. I have a separate business checking account. It was opened long ago probably before I got the EIN. I used my SSN. I think a bank would take a person's SSN if they were opeating the business as a sole proprietorship.

That's what I thought. Thanks.

The IRS efiling allows for the current year and two prior years. Right now, the current year is 2023 and the two prior years are 2021 and 2022. Does anyone know if the 2021 prior year just ended with the October extension due date or will continue until IRS closes their efiling system later in November and keep it closed until sometime in January, 2025?

I mostly get paid by check, some cash. I deposit it all. I've had some ask if I take cc. I did get one of those Square devices to plug into my phone. But it's so rare, it would take me an hour to figure it out. Usually clients understand and pay by check. One younger client says it's the only check he writes each year. Ha.

Thanks.

Can you change a tax year for an S Corp? I thought they were required to use the calendar year. Unless there's a good reason to use a different fiscal year. I have a client asking. I see Form 1128 but I haven't gone thru the reasons yet. Does anyone have any experiences in this and is the procedure routine? Or does IRS require a very good reason for approving?

I don't use Drake so maybe I'm off base here. But above in Patrick's instructions, under the Note, doesn't it say FinCen114 must be done thru the BSA website? Is BSA the new parent of Drake? Does this take you to another website for the FinCen filing? So maybe this is an indirect way to file directly with Fincen. Maybe you're both right.

I complete the Form 8938 with the return. But when FinCen went to required online reporting, I turned it over to the client for him to do himself.

I'm going to check into some of the things Medlin has posted. There has to be a way to satisfy the regs without doing the absurd.

It seems to me that the employee should also have access to the money (funds) in order to pay the withheld taxes. But then that's me and not the court system. I agree, don't sign anything.

I still have questions about this. First, if the tax software has a MFA to access the software (currently I think ATX has only the password), what happens to the Program Files and Program Data that the software stores on my c drive. Isn't that still subject to hackers without opening my software? Second, if I get a MFA app, once I'm into my computer, isn't my computer subject to any of the hacking out there in cyberville? And how can I trust a 3rd party app anymore than my own computer? Third, does Microsoft have somthing like this thru their os system? I'm just wondering why I would need to send myself a code by text to my cell phone in order to access my own computer? And once I have access to my own computer, isn't my computer susceptible to any online hacking that might be going on? I'm just a one person office, no staff. I turn my computer off every night. I come in the next day, use a key for the outside door of the building, use a second key for the inside door of my office, then turn on my computer, enter the password. Isn't that MULTI-FACTOR??? That unlocks the computer and my c drive. I have a second password for a second hard drive (where I store my pdf files and scan client documents). But the software (ATX) I let install where it installs (the c drive) and I let the software program files and program data install where their software tells it to (the c drive). I learned long ago not to mess with changing this.