mcbreck

This is 1040's for clients. He's just being a jerk.

Working with a law firm and their tax attorney is insisting that all returns with a Schedule D MUST have a copy of the 1099 attached. Does anyone on here still do that? He's insisting it's an IRS requirement and trying to draw red flags against me with other partners and I haven't attached 1099s in 15 years probably.

The withdrawal is for excess contributions. The earnings are taxable. Is that what's showing up on the 1099r? box 2?

We would have gone this route but the bank has told them 2x that they will NOT move the money into an IRA at this point. I was the one who asked him 2x to ask them and that was their response both times. Can't get a waiver if the money is still sitting outside an IRA. The bank will charge them a fee for early withdrawal of a CD and in their minds it is better to pay the tax than the fee. Not my problem anymore as he doesn't seem interested in me calling the bank for them. (Bank keeps says they'll only move their allowed contribution and the clients aren't even interested in that.)

Bank says NOPE. I swore I had a client years ago where the bank allowed them to do it after the fact and risk the 60 day rollover question by the IRS and qualifying for a waiver. Maybe the difference was that time it was the bank's error and this time it was the client's error. Senior citizens need help on this stuff (like taxes).

Personally I'd claim the $396 as interest earned.

Client took money out of their IRA bank account and moved it to a CD at another bank. Upon arrival today and talking about it we realize the new bank didn't move the money into an IRA account. Anyone ever have a bank recharacterize such a mistake as having been put into an IRA as it should have been?

Many states issued checks to people whether they paid taxes in 2022 or not because they called it inflation relief payments. The state of California issued 1099-misc forms - not 1099-G. Spidell initially said to expect it to be federal taxable but backtracked and said to wait for the IRS to rule which they haven't yet. Illinois called it a rebate but they literally have no money so how they can afford to rebate taxes is beyond me. Most of the states paid out amounts less than the 1099 limit so they aren't required to issue forms - will the IRS pursue it if they decide it's taxable? Talked to a guy who received his Minnesota frontline worker payment of $487. How many people do you think are going to claim that on their return since they didn't issue a tax form?

Thanks, I only use one computer.

That wasn't it. Not a big deal and I'm not going to work on it but it's weird. I think I'll hide completed just so I know to look elsewhere.

I'll check that, THANKS

Just noticed an 1120S that I've completed and efiled isn't showing up in the PCM on the front page of the software. Shows up on the recent returns list and it shows up if I look them up with the Client Status Manager. Fed and State were both accepted so I'm done but wondering why it isn't showing up. The only other 1120S I have started so far is still on the list but not finished. I've done a "repair index files"

I have a relative who took the credit when it was installed. Just needed an electrician to hook it up to the grid. That last step took 18 months because of installation problems the electrician found. As was said previously about others, the guy who sold it moved onto another company and the company they bought from sold to another so nobody thought they were responsible. When the second company wanted to sell to a third, it was put on hold when they figured out this relative wasn't making payments (and nobody was sending them to collections) and demanded to know why. Poof - they got it fixed.

If you are a sole proprietor you are no longer allowed to use your SSN once you have employees. It isn't illegal to merge your personal banking and business if you are a sole proprietor. If no taxes are withheld and it's for their child - should it be a 1099?

Ditto also. Website says it is Hipaa and IRS compliant. Everything is sent and received via an encrypted platform. It may not be the easiest but it's not difficult and is very cheap. $120 per year but for IRS KBA you have to buy a bundle of SMS texts for $.16 to $.25 each. $80 is 500 of them so likely $200 for the year for anyone. Clients can send you all their document via your personal upload site. Now is it actually safe? Don't know and am told no by experts but it meets the legal requirement I think. No site is actually completely safe. Password sites which a few years ago we were told are impossible to hack have been hacked.

Investment clients, company I work with does a weekly zoom meeting for all of us to get together and an attorney I work with has a client that likes to have zoom meetings whenever he has questions. I'd gladly have meetings with tax clients via Zoom but almost all my tax clients live locally.

I have two that I use to hold up my laptop for zoom meetings.

I've been noticing on a Facebook community page of Drake users that people are having significant problems getting Drake running correctly. Is anyone on here having a difficult time? I've had zero problems so I'm just wondering. Seems one of the major problems is the multi factor authentication and I turned that off immediately.

The Supreme Court will need to rule on this. Imagine if 50 states had this type of ruling. Locally we have a city earnings tax. If you live outside the city but work in the city, you owe the tax. Prior to covid if you worked remotely or at an off-site (outside the city) you were exempt for those hours. During Covid the city ruled you were subject to the tax whether you stepped into the city limits ever during the year. The Supreme Court will be ruling on that also but it's going to take years.

Had a new guy last year who I really thought was going to be a problem. 3 calls before we ever met (all implied problems were possible) and when we met he gruffed and complained. Turned out to be a terrific guy and he's referred several others to me in 11 months. Over the summer he dropped by my office just to thank me and see how my vacation went.

And no I don't think the beneficiaries get another stepped up basis if one was already taken. But I have heard attorney's argue otherwise.

Sara has it figured out. But, would the beneficiarie's share of the trust that they have a legal right to receive a stepped up basis? For example a person owns property in an S corp. They die they company doesn't get a stepped up basis. The shares of the company get a stepped up basis so if you sell the property you must liquidate the business to not have to pay taxes on the gain.

My scanner is just my brother printer. I use NAPS2 as the software. It's free and tiny in size so it doesn't bog down the computer. Years ago I was using an older laptop which was hanging when tax software was open, Quickbooks and using dialup so I shifted a lot of programs to something tiny. I remember I had Paperless and it just brought everything to a standstill when I loaded it so a change had to be made on my end.

I don't use ATX but I've had zero problems with Windows 11 and I upgraded the day it was available for me. That's over a year without a problem.

The 2023 version is available for free download now.