kathyc2

28 minutes ago, Lee B said:

Each financial institution has it's own matching rules

Exactly, that's why I said to make sure there is time to correct it if the payment is rejected.  I've had a couple instances where banks would kick back a joint refund where only one of the people was on the account.

24 minutes ago, Abby Normal said:

Are you saying that LLC doesn't provide legal protection?

I'm guessing the way a lot of them are handled, there is not a lot of protection.  How many times do people just go to the SOS site and form the LLC without having so much as Articles of Organization?  Do they have documented meetings?  Do they keep all transactions with members at an arms length transactions?

If they need to use the protection, it's likely they are being sued.  Plaintiff can subpoena documents to see if they are following the rules and requirements of an LLC, or if they are just using the LLC name.  

At the very least have them talk with an attorney regarding piercing the veil and then sign off that you have advised them a Sch E is not correct method.

13 minutes ago, Catherine said:

The IRS will take $$$ out of a live account. They don't ask for a name, and don't care a dingleberry who is paying, as long as they are getting paid.

The "IRS name" comes through to the bank.  The bank may choose to reject it for a name mismatch. 

Like previously stated, unless in a community property state, there should be a dozen 1065's.  I wouldn't put a lot of time in this return until you tell them the fee to prepare the 1065's.  I'm guessing they may not want to pay and go to someone who would continue to handle it incorrectly even though it may circumvent the legal protection they tried to achieve by setting up all the different LLC's. 

18 minutes ago, Lion EA said:

I try to get them to then email it to me instead of text, so I can save it in my computer to their file

If you have Android, google messages for web is wonderful!  Texts on computer, full screen, full keyboard, etc. 

Does this help?  https://www.howtogeek.com/345504/how-to-open-heic-files-on-windows-or-convert-them-to-jpeg/

It's sounds like you have decided this is your last year and you aren't looking to sell practice?  How about contacting your colleagues asking if they are looking for business and would like to be on a list you give to clients?  You could even ask they pay you a percent of revenue for clients that come to them from the list?

A number of years ago I had a client come to me because their preparer was in a similar situation as yours.  Talking with the client I could tell that we were similar in price and procedures.  I contacted her, chatted a little and offered 20% referral fee to her.  It worked out well for both of us. 

I've paid my son's tax bill with direct pay in the past without problem.  I think it's up to the bank if they allow the withdrawal or not. I wouldn't wait until the last day in case it happens to be rejected. 

Judy, did you see this?  https://www2.deloitte.com/us/en/pages/tax/articles/tax-reform-impacts-on-section-118.html

I attended a webinar hosted by an ex IRS agent recently.  She said ALL S returns with zero or low shareholder wages are flagged by computer for an eyes on review.  First agent can accept return as is or send it for further review.  It then goes through a couple more people to decide if it gets audited or not.  

If SH is taking large distributions and essentially no wage, chance of it being audited are increased.  IMO basing wage on IRA amount is borderline fraud.  Proceed with extreme caution if you are in any way condoning or advising on doing this. 

What is the legal structure of the company they purchased the assets from?  SP? Scorp? LLC?  

Are the payments made to a business or a person?

If you have looked over the issue from a CP2057 notice and determined the original return is correct you do not NEED to do anything.  However, if you want to I'd send page 1 of 1040 along with the 2 1099R's. 

Just now, Medlin Software, Dennis said:

The ones who are likely scraping by, or trying to get to the scrape by level...

Simply pointing out that we don't need to hold all returns with CTC waiting to see if it passes or not...  

2 hours ago, GLJEANNE said:

So frustrating to have this come up at the last minute, since the folks the child tax credit will help are the the ones who like to file right away, because they need the refunds.

Even if passed, it won't affect the majority of returns with CTC.  Only those that have the refundable part limited due to income or maxing out the 1,400

https://gop-waysandmeans.house.gov/wp-content/uploads/2024/01/BILLS-118hr7024ih.pdf

Like any kind of insurance, some people will get more than they paid, but most will pay and not receive benefit.  I certainly hope people that want to sign up for this have read the small print of the exclusions.  

19 minutes ago, Lee B said:

 Having your screen blocked like that is a sign that you may have unknowingly downloaded some malware.

More likely, "don't allow sites to send pop-ups" is not turned on.

Q11: Do I have to use the IP PIN I received this year if filing prior year returns this year?

A11: Yes. You must use this IP PIN to confirm your identity on your current tax return and any prior year returns filed during the calendar year.

https://www.irs.gov/identity-theft-fraud-scams/frequently-asked-questions-about-the-identity-protection-personal-identification-number-ip-pin

2 hours ago, mcbreck said:

I've seen threads on other boards where people have outsourced their data entry, they are outsourcing their problem solving and they refuse any client meetings during tax season and want everything handled remotely. I'm not sure what service they are providing clients but I'm guessing clients will soon be demanding a significant discount for such non-personalized service.

I agree.  TT seems to be going more in the assisted returns area.  If you don't have a relationship with client there will be some who don't see the value of us rather than going that route.  

I had always met in person with clients.  During COVID I refused to let clients in my home office, although I would have phone consults. I had a drop slot for them to drop off info, and then we would meet briefly in the garage to sign.  I lost a few clients during that and have a few that continue (mostly younger) to use that method.  It's what works best for client.  

I don't remember ever charging a client extra to deal with a notice.  I've never had a full audit and most notices can be dealt with without much effort.  Other than the clients who had to file in 15+ states, I only remember one client notice for 2022 due to the fact that they messed up their estimated payments.  

I'm way too much of a control freak to outsource.  First off, I'd want to make sure that the notice wasn't in any way because of an error on my part.  Most notices are from matching.  If it affects federal AGI, I need to amend state or get a notice from state when that do an AGI match 2 years later.  Doubtful the PP company would handle the state amendment.  

I know if I was the client I would appreciate the preparer handling the issue.  If I was told I need to contact someone else to handle it, I wouldn't return the next year. 

5 minutes ago, mcb39 said:

I have at least one major client who has not received his e-filed 2022 refund yet.  Notation on website says "Pending"  Telephone calls say "Pending".  Neither the client nor I have been able to speak with an actual live person as of up to yesterday.  Please advise.

I had one like that a couple years ago.  He contacted the office of his Senator and had the refund in a couple weeks.  I don't know if it was just coincidence or if her office actually did something to get it moving. 

2 hours ago, Randall said:

The sale will be in 2024 so not urgent although they may have to make a 1stQ es payment.

They may have a balance due when 2024 is filed, but if they have paid in 100% (110%) of 2023 liability they won't have a penalty. 

Are they in the same state or different states?

If different, the state they file tax as a resident, where cars are plated, voter registration, etc. should tell you which is main home.

Also, many states offer some kind of RE tax exemption for primary or main residence which would indicate which is the main home. 

22 minutes ago, BTS said:

But of course the cost will be passed on to the client.

LOL!  Would you have confidence in a restaurant that charges you extra to cover the cost of pumping your stomach in the case you get food poisoning?  

It looks like they charge you $10 for every return you prepare, including any you may prepare at no charge.  That's $1,000 for every 100 returns.  How many notices per 100 returns do you receive? One?  Possibly two?  If it's more than 2 I'd say people need to look into their procedures.  

Is it worth $500- $1000 to you to have someone else write a correspondence, or to ascertain if the notice is correct? 

51 minutes ago, Lee B said:

The property can be both section 1231 and section 1250

1231 property is used in a trade or business. 

Why would this be 1231 property instead of 1250?  I would think it would be reported on Part III and then carry to line 6 of Part I.

Any passive loss released shouldn't show on 4797, but on Line 5 of Sch 1.