Randall

21 hours ago, cpabsd said:

I am late to the game here... but ATX does have an exception box.  It is under Elections, Form 1120S and the very bottom.  Just FYI.  

I see that box to check.  But where is the statement?  I can't find where to print the statement.  And what about K-3?

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?

7 hours ago, Sara EA said:

Forced day off sounds like a welcome snow day for school kids.  Enjoy it and sleep late.

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.

19 hours ago, Mike CPA said:

Hi Lynn, as far as I know, the Blank Statements only get attached to the return itself. But the Domestic Filing Exception has to be attached to each individual K-1. How are you utilizing the blank statements w/the K-1's?

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.

17 hours ago, Catherine said:

I won't do the FBAR filing anymore; preparer penalties are too high. All I'll do is given the fincen site for online filing. Of course, I also make sure no totals are high enough to warrant the 8938, and I include any foreign interest on Sch B and other foreign income on whatever form or schedule is appropriate. 

Were I to do one for a client, minimum would be $150 and maybe more like $200, even for a "simple" FBAR, considering I'm opening myself up to penalties if the info the client gives me is wrong (let alone if I make a mistake). 

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?

On 1/19/2023 at 2:11 PM, Max W said:

There must be a record of the original return being e-filed.  If original was not e-file, then an amended return can not be e-filed.

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.

15 hours ago, Medlin Software, Dennis said:

Just finances/taxation.  One cannot call it sensible in any manner <smile>.  If puzzling, consider refraining from offering the client any advice until it becomes more clear.  With a plan, the plan manager can answer their contribution questions, and you can just do what the client wants (unless it is objectionable to you).  Keeps you from being liable for giving the advice or numbers to go on.

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?

15 minutes ago, Medlin Software, Dennis said:

Bingo!  Given a one person entity, the odds are good there is no formal plan.

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