Randall

What constitutes these transactions? Does a company making a tangible product, ships to a foreign customer for a sale? If the company in in US, does all activity in US, point of sale in US, does no reporting to a foreign country, pays no tax to a foreign country?

Ha, I plan to come in really early to get a couple of hours work in before they start. Then I'll take a nap and run some errands.

At least this year, we don't have all the stimulus and temporary incentives. Ah, but for me, my office building (a house converted to offices) had a water pipe burst several weeks ago, no interruption to my work but now they're having an electrical wiring test Friday, should take over half day, no power. I'll have to be out.

I don't bother unless there is state tax withheld.

Wasn't there a waiver last year to pay back any excess advance PTC? I thought that extended to 2022. I'm seeing now that if income is greater than 400% of poverty amount, excess needs to be repaid.

It's March 1 now. Feb seemed to take long.

I have 2 statements, one for K-2 and one for K-3. Both are attached to the return. I print an extra statement for K-3 and attach to each K-1.

I don't do them either. Send the client to the website. I do the reporting if needed on the return.

Sounds like the client (father) is ok. It's the son who's a pia. Tell the son he can advise his father to use someone else.

It still happens to me sometimes. I have recently tried to open ATX and get nothing. Clicking on the icon and nothing happens. I've restarted the computer and all is well. This is a new thing and has happened twice now.

I don't think ATX has any options to check. According to IRS instructions for 1120S and 1065, we can attach a statment for K-2 and K-3 exception. ATX has a Blank Statment option that I'll use for the statement. This will go with the efiling so I don't have to attach a separate pdf.

Whew! I stopped doing 990s years ago. Recently turned down a request from a nonprofit 990.

Years ago, my own client sent me a 1099 for $900 with the cents showing. They used QB with a very small font. I received a letter from IRS showing it was $90,000. I almost fainted. I sent a letter with a copy of the 1099 enlarged so the decimal showed up better. IRS accepted my explanation. Whew!

What ATX files are you referring? Is this in the ATX Program Data (WoltersKluwer) file?

Client back in States early part of 2022. Will not meet the 330 day test in 2022 but will by May 1, 2023. Can he still file before that date and get the pro-rated income exclusion for 2022?

Thanks. I didn't know that. Actually he prepared his own return by hand and paper filed it. After reviewing things, I'm not going to amend the return at all. I agree with the client and I'll just compose a letter for him to respond to the IRS letter.

I could use my eleven volume History of Philosophy.

What about the 941? Do we have to wait until Jan 23?

Client received a letter from IRS regarding 2021. He prepared his own return. I want to prepare an amended return for 2021. Should I efile the amended return and reference the efiled amended return in the letter responding to the IRS letter? Of should I include a paper return with the letter to IRS? I'm thinking the efiled return will be processed quickly and already be in the IRS system by the time IRS receives the letter and they can refer to it.

I'm still waiting on the client talking to his Fiduciary. But I keep seeing that the 25% of compensation applies to the limit the employer can take as a deduction. In other words, employee elects to defer $20,500 so that is a deduction as Salary. The employer can contribute up to 100% of compensation (assuming the plan allows). So an additional $40,500 (getting up to the overall limit of $61,000). But the employer would only be allowed to deduct $15,687 (25% of the salary of $62,750). This would leave an allowed contribution of $24,813 but not allowed as a deduction. So the S Shareholder would be reporting an additional pass thru income of $24,813. Not a big deal except if the person wants to then convert it all to a Roth. Then would the $24,813 be double taxed.

Yes, I've referred him to his Fiduciary for the Plan specifics and to verify with the Fiduciary's tax department, not just his rep.

I'm still puzzled as to what the 25% applies to. Seems contradictory.

Does the Jan 23 date include efiling an amended 2021 return?

It was probably a boilerplate. Client is talking to the Fiduciary and they will have the plan. Ha.

Thanks for your comments. I understand the busy time. I did find Pub 4222 which seems to support your comment about if employee elected zero contribution, then employer could still contribute $61,000. The wording in Pub 4222 says employer decides the percentage of compensation to contribute, which could be 100%. Client is talking to Fiduciary and will have the plan documented. His question to me was if he has already contributed too much and if he needed to withdraw the excess. Thanks again for your help.