kcjenkins

If she's going to allow the extension if you give her the form, I sure would not tell her that it does not apply. LOL

Taking the last question first, no election is needed. As to the first, it sounds to me like all they really did was to change the name of the partnership, so I would see this as merely a change of organization, and the assets would transfer over to the new entity at book value and depreciation would continue as if nothing had happened, as, related to them, nothing has. As to the mechanics of it, I'd roll over the old partnership, then change the name and EIN, etc, leaving the assets just as they were before.

But it is 'factually correct'. It's the 1099 that is factually incorrect.

I don't understand, that code is an internal ATX code, which just means that YOU CHANGED THE RETURN AFTER YOU CREATED THE EFILE. Usually by printing something. Go back to the return, create the efiles, close the return without doing anything else at all, and transmit the return again.

But we all know that if the parents choose not to claim him, and he claims himself, the IRS will not have a problem processing both returns that way. We can tell such kids all day, "You can not claim yourself because your parents supported you and are entitled to claim you as a dependent." But when the parent is sitting right there, saying, "No, let him claim himself", what can we do if they choose to ignore what we tell them about what the law says? Yes, we can refuse to do both returns, but they will still go somewhere and do it that way, and everything will go smoothly, and they will just believe that we don't know what we are talking about. Since the IRS itself does not ever question such filings, why should we lose business over it?

Wonderful, thanks for the heads-up. I understand how all the late changes made it delayed, but we really do need it more than usual this year.

OK, that changes the picture, then. Sounds like the t/p should by this time have hired an attorney, and you should be consulting with the attorney on what he wants you to file. If RICO is even a POSSIBILITY, your client should be talking with an experienced tax attorney by now. RICO penalties are TRIPLE whatever would otherwise be owed. As for the carryback amount, use the NOL worksheet to determine the amount, it's a very good tool for that. And the worksheets can be printed out to use as supporting attachments.

Well, the doc manager does set up the subfolders for each client, including not only for each year but within each year it sets up folders for the tax return, for Source documents, for Work Papers, and for Client Write-up, as well as one folder for Permanent files. So it's basically doing for you automatically what you would have to manually set up for each new client.

Unless there is a good reason for wanting to convert from an LLC to an LLP, I'd advise leaving it alone. There is nothing at all to be done to convert a SMLLC to an LLC with multiple members. And unless they 'elect' to be taxed as a corporation the default for an LLC is to be taxed as a partnership.

Since the IRS computers track by EIN, there is a chance that there will be no problem. If there is a problem, you will just have to wait until they send a notice, and deal with it then. Since the total amount from that EIN did not change, it may not create any problem.

Assuming the auditor is both competent and at least somewhat reasonable, I'd discuss this with him as to how he'd like you to handle it. He may be able to make the carryback part of the audit results. And even if he decides to first audit the 09 and 10 before allowing the carryback to be part of the calculation, in the long run this will help the client and be the fastest way to get him a final determination of what he actually owes. At worst, he should be able to advise on how they want to deal with the carryback.

Since it was paid to the Trust, you do need to file a 1041, I believe. Just to make the IRS computers happy.

Ah, yes, Nevada has a lot of people set up there because of their banking laws. There are quite a lot of business there offering to be 'registered agents', provide offices, forward mail, etc. Anyway, the only difference in a SMLLC and a regular LLC is the number of members. He can certainly add his dad as a member, then he's not a SMLLC but a normal LLC, and he would file a 1065 for the business, with K-1s to each member.

And it always seems to happen to the client who is most anxious to get the refund fast. But I understand that the IRS did have some kind of problem a couple of weeks ago, that is probably what caused the delay. Only one I had so far was also someone looking for it to use to pay for a car repair. They too got it a week late.

Maybe, [you can at least hope] since she worked for the IRS, she actually got around to making it a legal separation. Son might not even be aware of that detail, as it would not seem important to him. Maybe he can have her call you?

No, he's in the business of being an employee, and these payments, to be Spiffs, must come from some one other than his employer. The law just recognizes that when an employee of Company A gets paid an Incentive Prize, under whatever name, from Company B, which has no relationship to Company A except that Company A sells the products of B, it is not self-employment income, and while it is taxable, it is not subject to SE tax.

It only bothers me when they try to blame ME for the fact that they are now in trouble because of not following my advice.

That's a joke, MAS, since he did not charge you a fee for answering! Just a little humor, you know. Yeah, it's a 'little' humor, but hey, it's March, so we have to cut some slack, right?

I'd put it on Line 21, with a clear explanation, "Form 1099Misc from [EIN here] for SPIFF, box 7 used in error"

God was missing for six days. Eventually, Michael, the archangel, found him, resting on the seventh day. He inquired, "Where have you been?" God smiled deeply and proudly pointed downwards through the clouds, "Look, Michael. Look what I've made." Archangel Michael looked puzzled, and said, "What is it?" "It's a planet," replied God, and I've put life on it. I'm going to call it Earth and it's going to be a place to test Balance." "Balance?" inquired Michael, "I'm still confused." God explained, pointing to different parts of Earth. "For example, northern Europe will be a place of great opportunity and wealth, while southern Europe is going to be poor. Over here I've placed a continent of white people, and over there is a continent of black people. Balance in all things." God continued pointing to different countries. "This one will be extremely hot, while this one will be very cold and covered in ice." The Archangel , impressed by God's work, then pointed to a land area and said, "What's that one?" "That's Texas , the most glorious place on earth. There are beautiful mountains, rivers and streams, lakes, forests, hills, and plains. The people from Texas are going to be handsome, modest, intelligent, and humorous, and they are going to travel the world. They will be extremely sociable, hardworking, high achieving, carriers of peace, and producers of good things." Michael gasped in wonder and admiration, but then asked, "But what about balance, God? You said there would be balance." God smiled, "I will create Washington , DC . Wait till you see the idiots I put there."

He might have sold it for less than he paid for it, just like with any other stock, because he thought it was going to lose even more value, or just because he needed the money.

Basically, it sounds like you are doing manually what the Doc Manager does automatically, that is, setting up folders for client with sub-folders for each year. As to why keep a pdf copy, that is because you can find and print a pdf file even if you can not, for some [or any] reason, open up the tax program to print one. And you can back up the folder with the pdf files, and copy it to any computer, even one that does not have the tax software on it.

Show only his share as deferred, and then deduct the amount he 1099's to Dad as an expense on his F.

Residency is a state of mind, if he intends to be a WA resident, and is simply holding the CT home as an investment, because now is not a good time to sell, then he needs to act on that intention by registering his car, by registering to vote, etc, in WA to help prove intent. Also he should change his insurance on the CT house, since it is no longer his residence. Actually, he should do that anyway, because the rates are lower for an owner-occupied home, but if he has a fire there after he's been gone a significant length of time, the insurance company might well refuse to pay the claim based on his failure to notify the agent of his moving out.

:spaz: :spaz: