mriina

If you're going to tackle a 2013 income tax return, I would suggest that you obtain a transcript from the IRS first. That way you know exactly what is recorded for that SSN. Then, you can take those numbers and prepare the return. If you see that BOTH the 1099-MISC and the W-2 were reported, complete Form 4852 with a complete description of the problem, and send it attached to the 1040. Good luck!

We charge the little guys $110 quarterly for payroll services. However, there are the "owner only" entities who don't believe it is worth it, and for those, I suggest they inquire as to whether or not their bank offers that service when they open a business checking account. More and more banks are offering payroll services at a very low rate, and I would rather have my S-Corp owners do it that way than not at all or have them fight over the bill.

That's a good recommendation. I will make sure I get the AMT calculations in there. Thank you!

This is neither the first or second year that the assets were left out, and no depreciation was recorded. They are 8 years down the road on this now, and the prior preparer was a family friend who really didn't know what he was doing, not a CPA. The assets are 39-yr, straight line assets, so I wouldn't need to worry about AMT. The rental qualifies as active instead of passive, so we are good there.

The assets aren't old enough to be fully depreciated. The only assets there are the buildings that they rent out, so they are S/L, 39-yr assets. My biggest worry is that I am going to complete schedule L and list depreciation on page 1, and it is going to trigger an audit. That is why I was considering the 3115 to acknowledge the mistake, and move forward. My understanding is that the 3115 does offer some audit protection.

No, he still owes $1,593. Tax = 6,593, less 5,000 in tax payments would still be $1,593.

I need a bit of assistance. I have a new client who has a 1065 for business real estate rental, and a schedule C for investment sales. Her past preparer got into big trouble, and all his computers were ceased, but she was able to give me her last two years' returns. The first thing I noticed is that the 1065 activity is listed on Page 1 of the return and that there are no schedules L, M-1, or M-2. I know for a fact that there is $1.2mil in real estate in that business, but it doesn't appear to have ever made it on to the balance sheet. I'm thinking it probably won't hurt to keep the activity on page 1, although it isn't technically correct, but do I need to file Form 3115 to put the assets on the balance sheet and start depreciating them? Any insight is much appreciated.