cpabsd

Needing to do some research and hoping to get pointed in the right direction.  I was told by a retired CPA that there is a general IRS tax principle that if you have a contractual obligation for an expense, and due to no fault of your own it was delayed beyond the IRS timing for a transaction, the transaction would be considered timely because you would have to break the contract otherwise.  Not sure if this makes sense but would appreciate any guidance or pointing in right direction.  

Client's mother in law passed away on 3/17/2021.  Today they received her stimulus check for $1400.  Does it need sent back or since she was alive when law was signed should it be deposited into the estate account?  

I have them write down and initial what amount they received.  The statement they are initialing says if they told me the wrong amount, and it involves correspondence or phone calls on my part there will be an additional charge for those services.  It hopefully eliminates some of the discrepancies.  

WV lawmakers finally passed the law granting the $10,200 exclusion of Unemployment benefits from state tax.   This follows the Federal adjustment so there will be no state adjustment necessary.  Just wanted to update everyone.  It still needs the governor's signature but he will sign it.  

Hope this gets updated soon.  I have clients that owe large balances and want the extra month to pay.  I'm now beyond the three days for the date on the e file forms.  Ugh!!!

Taxpayer has not received 1099G from Florida DEO.  They have the exact amount.  Can anyone provide me with the EIN and address.  

Virginia update relating to PPP

After more than a month of back-and-forth debate, the Virginia General Assembly voted last weekend to allow businesses whose Paycheck Protection Program loans were forgiven last year, or who received one of the state’s Rebuild Virginia grants, to deduct up to $100,000 on their 2020 tax returns for eligible expenses paid for by the loans and grants.

The standstill had risked holding up Virginian’s state tax returns and making it more difficult for tax preparers, who didn’t know what the law would be, to assist clients.

Client received following email regarding 1099 from MD and taxability of funds received.  These are not PPP funds.  These are a grant from the state of MD.  Question is how specifically is this to be reflected on MD Form 510?  I cannot find a place for the subtraction.  I emailed the address shown but so far.... no response.  

Dear COVID-19 relief recipient,

We will soon be sending you a 1099 for the Maryland Small Business COVID-19 Relief Grant you received. We apologize for the delay.

Please be aware that due to the passage of the Relief Act of 2021, your grant is not taxable by the State of Maryland. However, it may be taxable at the federal level. The Internal Revenue Service has not issued any guidance deeming non-federal government COVID-related loans and grants to be exempted at the federal level. Please direct all questions concerning this to [email protected]. 

We apologize again for the inconvenience. Your 1099 will be mailed to you promptly.

Maryland Department of Commerce

Thanks for the earlier responses!!

Site is back up now.  I just submitted all of mine.  

I cannot get into the SSA Business Services online.  It appears to be down.  Calling SSA national number and get cut off every time.  Anyone else having issues?  

Who do you use for malpractice insurance?  I've never had a claim, but the rates keep going up each year.  Because I am a PLLC, my state requires a million in coverage even though I would otherwise not need that large of coverage.  

Thank you so much.  Just faxes to Ogden number and it went through.  

Hope you all have a great day and stay well!!!

My fax to submit Form 2848 to IRS has failed multiple times.  Is the line shut down temporarily?  It's great the IRS wants us to use the online services, but we can't if no POA is already on record with them.  

My printer was purchased in December 2015.  It's a HP 401 laser printer that has performed perfectly to date... until ATX 2019

Thank you.  I was able to figure it out. 

Specs of my new computer are as follows:

Intel Core i5-8500 CPU

16 GB Ram

Running Windows 10 Pro 64 bit 

I have a new computer and this year am having major issues with this.  It's killing productivity when I have to restart every couple hours.  Any suggestions as to how to correct? Haven't had much success with support actually solving the issue.  

Bonie

Form 1120 S reflects sale of equipment.  Original cost 10,000, Sect 179 10,000 in 2016.  During 2019, sold this asset for $6500.  How is this to be input into ATX on the individual side?  

Thanks,

Bonnie

Tired brain - I was dialing 800 instead of 866!! Thanks for your input.  

Anyone else having issues getting through to the IRS tax practitioner line?  Multiple days and it rings once then cuts me off.  

No tax return required, however, the MD Form 1 is still required to be filed with State Department of Assessments.  It is due April 15 and includes a $300 filing fee to maintain there state authority.  

Bonnie

I have a dependent that it is beneficial for the scholarships to be treated as taxable to free up the ability to use QEE for the American opportunity credit.  I know the taxable portion is reported on Line 1.  Would the taxable scholarship get reported on child's 1040 ( it was received by child) and parents claim the Educational credit?  It seems to be the way it would be but how can that be tracked?  Maybe my tired brain is overthinking it but any guidance or confirmation is appreciated.  

Thanks!!

Bonnie

Anyone else having issues with creating WV individual e file returns?  I delete the 140W, which rolls over but is now an obsolete form.  Go to create e file, and the form reappears.  Delete it a second time, recreate e file and it stays deleted.  Just a hassle on every return to have to delete it twice.  Any workarounds discovered?  

Thanks!!!

Thanks everyone.  

Bonnie