kathyc2

9 minutes ago, Medlin Software, Dennis said:

If you believe the employer's withholding obligation (15T) has ANYTHING to do with the employee's tax liability, I have a deal on a bridge for you.

But is has everything to do with how much of their liability is paid in during the year. 

The original comment was that the tables are no longer available.  Simply pointed out that they moved to a new pub.  You seem to be itching for a fight, so I'm done.  

5 minutes ago, Medlin Software, Dennis said:

The calculation/tables are for the employer to meet their legal requirements. They have NOTHING to do with taxpayer liability, especially so since 2020.

Say what????  Those of us who understand how they work can use the formulas to calculate what the withholding will be based on the W4.  

Clients want different things.  Just this afternoon I had a gal with a balance due of around $600 federal.  She doesn't want to have a balance due whether there is a penalty or not.  Just told her to have an extra $15 a week withheld so next year should be close to break even.

Another young couple had a 13K refund.  It's due to withholding and not refundable credits. Asked if they wanted to adjust W4 to have a smaller refund, and the answer was no, they want the big refund.  Not what I'd do, but it's their money.

One thing we should all do is when a dependent is turning 17 or graduating college give them a heads up how that will affect next year.  

22 hours ago, artp said:

With the old W-2 form and exemption tables it was fairly straight-forward.

They still publish the tables and formulas in Pub 15T.  If the pay is consistent from pay period to pay period you should be able get close as to what withholding will be.  If pay varies widely it's much more difficult. 

Many years ago I had a similar situation.  The student at the time was not on speaking terms with the parent who had been claiming her, so no go on seeing if parent claimed.  

Called the IRS to see if they could tell if she had used up her 4 years or not.  Agent said they do not track the years by the student SSN but rather the SSN of return claiming it.  Make of this what you will. 

It comes down to if his 32K wages are more than half of his total support. 

If over half he can claim the full credit, including the refundable portion.

It it's less than half, he can claim the 60% non refundable but not the 40% refundable.  If that is the case also check the box that he can be claimed on another return. 

I don't see a problem with addresses. Just use current OH address on all so they get notices if any are generated.

I had one last year of benefits paid to adult children.  Prior to May 97 beginning date for benefits all benefits were paid on the 3rd of the month.  Since then it's the 1st, 2nd, 3rd or 4th Wednesday so we will likely be seeing it more.  Benefits are delayed a month.  Someone dying today who is paid on the 3rd Wednesday would not have received his January payment before death. 

A claim for the money can be made via form 1724.  In addition to surviving spouse, that check can be paid to children (including adult) or parents. 

I wonder there were none of these that the payment was made to the estate. 

I would think since they were married on 12.31 you would file the states as married also.  Software probably has a way to indicate what part was taxable to each state and then probably a credit on OH return.

I went ahead and started the process to change landline number to cell phone number.  Actually ended up saving money doing so.

So many places including IRS POA let you upload rather than fax now.  Most investment companies also have portals now where they send a link if client has missing information.  If I need to fax, I'll try the free one Abby recommended.  Instead of receiving fax for client missing info, if they can't email it, they will just have to wait to get a copy in the mail!

If one person itemizes on MFS returns, they both need to even if other spouse is less than standard deduction.

13 minutes ago, Randall said:

I thought if they got the full credit ($2000) as nonrefundable, just a deduction of their tax, this pending bill would not affect it.  Only if they got a refundable credit.

You are correct.  If they have enough tax liability to absorb the CTC, this bill will not effect them.  The inflation adjustment as written does not come into play for 2023. 

I currently have Comcast Business for internet and phone for my home office and Verizon for my personal cell phone.

It seems people don't realize there is such a thing as a landline anymore and try to send a text to that number.  It used to be if someone tried texting a landline they would get a message to the effect but that no longer happens. And of course I don't receive any notification that someone tried texting to it.  I called Comcast to see what options were available and they suggested getting an additional cell phone and then transferring my landline number to it.  That seems like it may work, but then I realized I could no longer send or receive faxes. 

I don't get or send faxes very often, but it would be an issue to not be able to.  I've seen there are ways to mimic faxes to/from a computer.  Does anyone do that and how secure is it?

I'm open to other ideas how people navigate situations like this. 

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...