gfizer

I agree wholeheartedly. I haven't been here much this year because it's been a crazy season for me but I always know that this is a place I can turn for good sound advice and knowledge. Thank you to Eric and to all who participate here. You are all appreciated very much. That said, I made my donation today.

Are you using the clergy worksheets provided in ATX? I believe it's worksheet 3 that calculates the SE subject amount (salary, Sch C profit and housing allowance less expenses). I usually right click on the business expense line and create an itemized list there. Then everything from that worksheet flows directly to the Sch SE.

Thanks everyone

I have a client asking if donations to private family cemetery are deductible. The cemetery does have an EIN but to the client's knowledge has not filed a Form 1024 for recognition of tax exempt status. I've done some research but can't find a satisfactory answer. Does anyone here have any experience with this type of thing? Thanks in advance!

In my situation, they are going to issue a 1099-NEC for the total amount paid, showing both the salary portion AND the housing portion as non-employee comp.

My question relates to the proper way to report ministry income. My husband is a minister so I'm pretty well versed in tax returns for ministers. I have a new client who is a minister. His pay was properly allocated between salary and housing allowance. The church wants to give him a 1099NEC but the proper way to report the income is on a W2 so that the salary portion can be shown in Box 1 and the Housing Allowance portion can be shown in Box 14. My question is can the church furnish a W2 when they haven't filed any 941 returns during the year? The 941 forms would've been informational only because there was no federal income tax withholding and the wages weren't subject to social security or medicare withholding. Thoughts?

I have a similar issue but different. My husband is a minister so I'm pretty well versed in tax returns for ministers. I have a new client who is a minister. His pay was properly allocated between salary and housing allowance. The church wants to give him a 1099NEC but the proper way to report the income is on a W2 so that the salary portion can be shown in Box 1 and the Housing Allowance portion can be shown in Box 14. My question is can the church furnish a W2 when they haven't filed any 941 returns during the year? The 941 forms would've been informational only because there was no federal income tax withholding and the wages weren't subject to social security or medicare withholding. Thoughts?

If you choose this route you also have to fax Form 15397 (Application for Extension of Time to Furnish Recipient Statements) to the IRS prior to the 31st.

I have filed prior year 990-PF's before so I don't think it will be a problem. I certainly hope there's no issue since those are accepted by electronic filing only. They will (eventually) return anything you try to paper file. This I know from past experience.

Thanks all

I spoke with a rep yesterday. It sounds great. I have clients who sometimes get letters that take up my time and energy in the off season. They are often wrong but as you said still require a response. The rep said that I could opt to act as a middle man between them and my client or I could simply say, “I have a team of EA’s and CPA’s working with me who will handle the matter.” If I wanted to be completely hands off. I would probably opt to stay involved in the process but still it would be nice to have someone else to deal with the IRS. Also the $2500 return preparer error benefit was attractive. I’ve only had to cover minor penalties a couple of times in my 36 years but you never know.

Does anyone have any experience with protection plus? Seriously considering the firm level coverage but wanted to reach out and see if anyone has actually had any experience using them to resolve client issues and if so was the experience good, bad or ugly? Thanks!

Just received an email from my insurance agent stating that their tax preparers E&O insurance program is being discontinued. I am a small firm with only 1 employee. Any suggestions as to where I should look for reasonable coverage? Thanks!

I had a similar situation a few years ago with a client who received a notice saying she had received 16300 in royalties that weren't reported on her tax return. The 1099MISC showed $163.00. I simply wrote a letter and attached a copy of the 1099MISC and the IRS corrected it.

I have a client who is a self-employed heavy equipment operator. He is resident of Kentucky. He has been contracted to do a job in Hudson, NY. He expects the job will take him approximately two months to complete. Is he going to have a New York tax liability and/or filing requirement for 2022? Thanks!