mcbreck

Stock market earnings in 2022?

Was this is a payroll tax issue? Do you have signature authorization to file the tax forms? If both of those are yes, you are likely liable.

Some pensions are tax free if part of the contributions were made with after tax income. Back in the 70's, that wasn't all that uncommon for employees to contribute after tax money and the corporation to contribute before tax money. That generates a portion being tax free. That's what happened with my client and their pension which was rolled into other pension plans via a merger. The only way to figure it out is for the plan to tell you via their actuaries.

I think you need to contact the plan administrator. My understanding is it is different for every person. Good luck. I have a friend / client who worked at Ozark Air - was purchased by TWA. Then TWA's pension was raided by Carl Icahn, went bankrupt and were bought by American. He gets about 1/3rd of the pension he should receive. Part of his Ozark Air pension is non-taxable but it was rolled into TWA and then American so it was complicated.

Yes, it's exceptionally rare and I generally get through very early in the morning. I start calling at 7am and usually can get through before 8am.

When someone declares their rate on the internet, I'm always very skeptical. It's pretty common for people to declare they charge astronomical rates ($1k for a basic return). There are firms that advertise on the internet their rates and there are averages put out by the industry. The NSA put out a 400+ page survey with average pricing.

I already set mine up. The photo portion is essentially voluntary at this point if you want to call in and be verified that way.

Seems to me for small firms, you could do one of two options for delivering electronically. 1. have us upload via EFTPS. If I can pay the tax via eftps, why not have us upload a copy of the form to include with payment? Then in February I upload the W2s or 1099s. Basic pdf software can go into it and read what you've submitted if it needs more information. It could quickly add up all your numbers. 2. have a fax number which automatically scans, reads and routes the form to your account. I work with a firm where we fax in new account forms, W9s, IRA agreements and the software routes it to the client's account and the software marks off that you've delivered the form. If their current machines scan 1099s in this way, they should be able to eliminate all that and just have the software scan the pdf you've delivered.

It's weird that I receive a hand written 1099 from a law office and it was scanned incorrectly by the IRS. But they did scan it. It's the small companies who file information that is lost - that's why it's only 30m pieces. I file paper payroll forms for a few tiny offices (mine included) - were those all just destroyed? They need to immediately stop requiring 1099's be on the original red ink forms.

If you have VOIP, you enter the phone number you want caller ID to show (it can be ANY number you want) and you enter the name of your business that will show up on caller ID.

On April 18th last year I started intermittent fasting with the goal of losing about 20 lbs but ended up losing 33 and am well below the BMI index "overweight" bracket which is nice. On April 18th of this year I decided to initiate weight training workouts (I've been walking about 20miles per week since last summer). The stronger I get in my 50's, the better shape I'll be when I'm in my 70's (is the theory). In September we are taking a vacation and I'd like to be pretty lean by then. Not sure where yet but we have friends in Portugal so we may go back there. Otherwise my only recuperation is sleeping better. During tax season I always have insomnia and that goes away almost instantly on the last day of taxes. The first few days I was sleeping 10 hours per night.

If there is distributable net income that is not distributed, the 1041 would owe the tax. You can't just delay paying the tax but you can delay distributing the money.

Back during the economic meltdown of 2008 I received bills from the states of Washington, Oregon and Colorado wanting me to pay for their state license to have an office within their state. We aren't within 1,000 miles of any of those and have one total client who lives part of the year in Oregon. Thankfully Illinois has transitioned out of requiring a business license within their state and an agent to represent you if you do any business within the state. When will the Supreme Court get the case for cities charging earnings taxes for workers who worked remotely during the pandemic? I have a client who is a consultant and his employer is within the city but he's been working for Fortune 500 company outside the city limits for 6 years. Pre-pandemic the city said he wasn't a city worker but during Covid they reversed and said that was no longer allowed. He doesn't live in the city, hasn't been in the city in years for work but the city claims he's a city worker and subject to the tax.

That was interesting. Thanks for posting.

My major concern this year is that inflation is real and it isn't going away. I was able to lock in the renewal rate for 2021 and as a new customer I thought that was pretty good. I raised my fees last year and pretty much every product in my life that I buy raised their price and I'm guessing the software companies will be raising their fee considerably. I've never been charged sales tax on my tax software or it was included in the price quoted. Why does ATX charge $95 to be their client? Is that like a car dealer putting a service fee on their new car price?

For the last decade I always renewed as soon as tax season was over. I'm flush with cash sitting in an interest free account, why not get the lowest price possible? This year I changed to another software company and when I called to buy she laughed and said "really? for next year?" So I'm guessing that isn't common? I got a nice price and am locked in if they raise prices.

Is anyone having problems with efiling with the client's privacy pin? I've efiled 4 of them this morning and all were rejected as not matching with the IRS database and I know I entered them correctly from the IRS letter.

I have a stack of people to pick up / sign / pay me today. One lady said she would come in today and drop off her stuff which is on extension. When the last one shows up, I'm going home!

I never would have figured out what you meant by logged off.

I always included the 3 zeros. It's an 8 digit number so when they enter your EA number, you have to include the 0's.

This is the first year in a lot of years that clients are driving me absolutely nuts. Gave a lady a list of questions a month ago. Two weeks ago we went through them again without her answering any of them. Today she can't figure out why I haven't gotten the taxes finished. Then she wants me to figure out if her AC replacement would qualify for a tax credit, they added a new section to their house so is that tax deductible? why didn't I deduct their 529 contribution (after 20 minutes the husband quietly admits they didn't make one)? Now she's texting that I should help them find other deductions in their lives. One lady took an extra $100k over her RMD and she's upset I didn't account for that when I did her estimated taxes.

Client is partially paralyzed and the IRS has flagged his return that he needs to be authenticated to get his refund (5071c letter). ID.me is next to impossible for him to sign up but he supposedly has but when he logs into the system, it's someone else's data. I have absolutely no clue how that's possible. When we call the number the IRS has on the letter they instruct him to visit the website and hang up. It's a wonderful system. Now I get to drive over to where he's living and see if this can be fixed together.

Crazy thought. Had a lady bring me her information on Monday and on Wednesday I delivered to her a list of questions which she acknowledged. Today she's wondering what refund she'll get even though she didn't answer any of the questions. You took a $15k IRA distribution and withheld no tax and you think you are getting a refund? Daughter of a client asked for a copy her mother's 2020 tax return. I said I need proof of POA so she sends her brother a request to order me to provide a copy. Her brother emails the same request and puts POA after his name at the bottom of the email. These are highly educated people.

This time of year the thing that gets me is the "panic" freakout that you missed something. Was doing a return and freaked out that I'd forgotten to do a trust return for the deceased wife. Scrambled for 10 minutes and remembered they picked that up 2 months ago and the K-1 was on the return. Takes my heart 20 minutes to settle down. Or the person who just drops in, I see them and panic that I can't find their return. They were just dropping off brownies to thank me because I was so quick last month when they picked up.

If they get the EIN there will likely be a letter asking why they didn't file. If they are okay with that, no need to file. If an IRS letter is going to freak them out, file it.