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About Richcpaman

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    ATXaholics Anonymous

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  1. This may be unpopular... But I would have your client fire the employee, and make them a subcontractor. Then, there is no nexus. Maybe that will not completely get CA out of your clients pocket, but it is a start. And yes, your client has nexus. Rich
  2. Bulldog: I agree with you. The excuses do not work anymore. They have plenty of money and resources to generate notices and automatic levies, and nothing to do a simple "taxpayer in OIC Consideration right now" note in the file. Rich
  3. Edsel: You quoted this: Seems to me... if the prior preparer did NOT elect the carry back of the loss on the 2015, then all the stuff you did with 2013, 2014 and maybe even 2015 are pointless. For 2016? You have your allowable carry forward, that might carry forward to 2021 or so. The IRS can be PITA, but sometimes, they are correct. An NOL can not be rolled back after the return is filed and the election to roll back is not elected. Sorry. Rich
  4. Its an election. It is not mandatory. She started it, but did not finish it. Pay the tax. Rich
  5. Margaret: Usually, if proper treatment, the Restricted Stock in Box 14 is for Dividends paid to the employee on the restricted stock, and it is included in their W2 boxes 1, 3, and 5. It is just ordinary income. Rich
  6. Nice Chart^^^^ TaxTools had a worksheet as well. *IF* you had a beginning basis, the worksheet did the rest. Rich
  7. If the replacement property had no basis, then the sale is all taxable. No 8824 needed. Just the 4797. Rich
  8. BT: Generally, a S Corp can not own another S Corp. A C-Corp can own 100% of an S-Corp. And its earnings are passed through and taxed to the C-Corp. Why one would want to do that, I do not know... BHoffman's article addresses this issue. Rich
  9. It doesn't matter to me. But it would be nice if they printed it about 4 lines down from the top..... Rich
  10. This line: "but by the end of the conversation she was laughing " after a few minutes with you, I would presume we would all be laughing.... Rich
  11. Is it a rounding issue? What do you think the difference is? Rich
  12. What if the Farmer is still actively farming? You can collect SS benefits, but still be working the farm. And we can only exclude CRP from SE? If so, report on Sch F for matching, but not taxed, and then move to line 21? (the OLD line 21...;) Rich
  13. Virginia Voted Friday to "de-couple" from the Feds with itemizing, but MD voted to stay in the stone age. Rich
  14. If, playing devils advocate here: The business owners are contributing to a an account labeled SEP-IRA, but they are only putting in the $5,500/$6,500 amount per the IRA rules, and NOT deducting it on the Corporate return, and only on the 1040, then they just need to relabel the account. If they are deducting the SEP contributions on their SCorp return, and not contributing the same % to the eligible employee's, then they are in deep kimchi. Rich
  15. I use the engagement letter because it keeps the IRS out of my hair. The IRS dislikes Engagement letters more than any one else. The Engagement letter clearly puts it on the taxpayer, and not on ME for their fraud. Or for their inability to give me info in a timely manner, or why I did year X, but no year Y and Z (when they didn't send me anything) or why state W was not filed for them. I use the engagement letter EVERY Year so that you can say that you didn't read it one year, but EVERY year for 10 years? I use the Engagement letter to satisfy a "block" that gets checked somewhere. Even if I never get sued. But if I do, it get checked. It DOES limit my legal liability. I may pay, but it might help save as well. I use the Engagement Letter to establish the parameters of MY STAFF and MY behavior going forward. Not the clients. If I do not like what the client is doing, I fire them. And then I do not have a problem anymore. Rich
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