kathyc2

She will have to pay full price and return all APTC.

No, but the only way wife can claim PTC is if there is spousal abandonment or domestic abuse.

Software is not recognizing that account has been open for 5 years. Likely a check box somewhere.

If you have EIN and it's a larger company it will show up on google search what company is attached to that EIN.

Three different employers did not submit W-2's? If it was just one it could be employer was not paying withheld taxes and committing fraud. But three? Something sounds fishy. You've probably already done so, but make sure there wasn't a transposition error W2's received and tax return. Been a couple years since I got out of payroll biz, but it used to be paper W'2s were sent to SSA. Do these show up on annual wages on SSA site? The employer should be checking that all W-2's they submitted were processed correctly. Since we're talking about refundable credits, doubtful IRS will be able to do anything on the individual return.

I'm guessing that may have to do with how you look at who is at fault. Example: In March 2021 I had a new client that I amended all three years prior both federal and state to correct an error that lowered AGI. State processed amended returns within a couple months and issued refunds. Being Covid year IRS did not process amended until late fall. In Dec 2021 client receives notice of balance due from state, which reversed the state amended return. After calling the state, I learned that they link with IRS computer to verify AGI numbers match three years in. This is to catch if federal upward adjusted and state amended was not filed. To fix client needed to get transcript showing amended amount and then send that to state. I could have blamed IRS for not timely processing amended rather than realizing Covid wrecked havoc at IRS. I could have blamed state for not just accepting the amended return they had already received. Guess what? I realized it was just bad luck with timing and no one was to blame.

https://www.revenue.alabama.gov/faqs/if-i-am-not-a-resident-of-alabama-but-earned-income-from-alabama-sources-am-i-required-to-file-an-alabama-tax-return-2/#:~:text=According to Reg.,%2C Form 40NR%2C each year.

As long as they used the same account and didn't create a new one the old forms will be there. Have them look under messages in the Jan 2020 time frame.

Pro has a 2 year report that I always run before even checking input. Also run 2 year for C's, E's and F's see if everything looks to be inline.

5% is still a ridiculously high number. Farms, Sch C, and rentals have very little if any matching with IRS database. I only remember one federal notice client received over the last 2 years, and that was part of the group last year that IRS admitted were sent in error. I know you think analysis is a dirty word, but if I didn't use it on returns I would have a lot more. If client had investment statement in prior year but did not provide for current year, they are asked about it. If they only give me page 1 on investment 1099 accounts, they are asked for the full tax forms. If amounts are significantly lower without a 1099B they are asked if they moved to a different brokerage. If they are at the age for RMD's and don't provide 1099R they are asked. If code W on W-2 but no 1099SA they are asked. Even if W-2 is significantly lower, they are asked. Surprisingly, some people forget a W-2. Basically, if anything is significantly different between years, I ask. If elderly people or others that get confused about investment have discrepancy I ask them to give investment adviser permission to speak with me. I required one client to set up an IRS account and print out their estimated payments as they would often have it apply to incorrect period. As far as TT simple returns not being in error, I disagree. I had one the took the amount of 401K on W2 as an IRA deduction. If they have HSA and don't input 1099SA, they are going to get a notice.

Agree with Margaret. Joint ownership is generally for unmarried couples sharing a house or for MFS.

Holy cow! That's close to 5 times national average.

They use different technology. In mild climates heat pump can replace both furnace and a/c, In colder climates a furnace is still needed. I just had one and used model numbers on invoice to check efficiency ratings on manufactures site. Then checked energystar.gov to verify efficiency ratings met the criteria. Client received 600 for furnace plus another 2,000 for heat pump.

A lot of people aren't comfortable doing electronic transactions. I've had several instances when they try to make estimated online and apply it to an incorrect period. If they want to advertise and encourage it, fine. If they want to mandate it, they aren't thinking through the consequences or letting people decide what is best for their personal situation.

Soooo many things I could say about this.....

Unless client keeps full books with balance sheet, what is being reconciled on COS? Info client provides? Does client understand how inventory and COS works? Does client take a full inventory at year end every year and provide it to preparer? If pulled for audit, you don't think IRS would want some documentation as to cost for write off? From info provided here, it doesn't pass the smell test. Simply provided some ideas to OP as how to CYA. If audited depending on facts and circumstances there may be an attempt to invoke 6694 penalties.

By documentation I was referring to documenting the cost of inventory. Unless client kept full books including balance sheet, it may be difficult. One way may be to take average purchase cost over last couple years with receipts. Say average cost was 50, which would mean 2,000 suits. If you assume hanging is six suits to a foot, that would work out to 300+ linear feet. Have client take picture to document their claim.

Zero sales and 100K loss may raise a flag. Make sure you have good documentation. If the inventory is indeed worthless, how would there be a value of donating it?

I can't see that it's passive as they are providing substantial services and don't have an investment due to not owning building.

You are probably thinking of this: https://www.irs.gov/pub/irs-drop/n-24-70.pdf

Sometimes the insurance company will use 2024 and automatically renew 2025. Make sure to tell them to check to make sure son isn't on 2025 policy.

You can't elect other income. However, it may be an advantage to not elect the full amount of 2024 farm income. What it does it take the elected amount, divide by 3 and then recalculate what the 2021, 22, and 23 tax would have been with that extra 1/3 added on to taxable income for those years. For example, say the prior 3 years taxable income was in 12% marginal rate. 2024 alone has 60K in 22% rate. That would likely be the optimal to elect. If wouldn't do you any good to shift more to prior years as that may put some or more in 22% rate in the recalculation while not taking full advantage of 2024 12% marginal rate. The calculation would then be 2024 at 12% marginal and as long as there is 20K per year in prior years room before 22% is hit, essentially all the 2024 income is taxed at 12%

Interesting. Curious where you heard that???

LOL! Way back in the day when I worked corporate, the owner of company said that to many a supplier. Best is when he said it to police department when company driver was ticketed!

I'm done playing those games. Client wants to do things through portal instead of driving close to hour to office. It went on for days to get info. First they only sent state signed form. Emailed them that I needed federal also, and to put CC info on invoice and return it if they want to pay that way. Couple days later, I get the federal form and CC number and code. Email asking which of their names in on CC and that I need expiration date. Couple days later responds that it's under his name, but still no expiration date. Finally get everything and they get an email from me that this is not working and they would be better served going somewhere else next year.