gfizer

After speaking with the attorney and reviewing the trust documents with the trustee, we determined that the trust did qualify to be taxed as a 4947(a)(1) non-exempt charitable trust. I looked through my file and it looks as though I simply filed the 990-PF for 2008 marked as an "initial return." I can't find that I did anything else to make the switch. The trustee never received any correspondence from the the IRS and we've been filing the 990-PF ever since. That being said, I'm not sure if or how that would work today. When my situation occurred we were still filing the 990 series on paper. Now that those forms are required to be filed electronically you might (and I expect you would) get a reject code showing that the entity type doesn't match the entity type listed on the EIN application when you try to electronically file the return. I wish I could be of more help. Good luck.

I have a retired client who decided it would be a good idea to withdraw $70k from his 401k to purchase a new pickup truck. He received advance premium tax credit payments amounting to almost $10k. The additional retirement income throws him over the 400% threshold. Is it really true that he won't need to repay the $10k thanks to the cares act? Seems too good to be true.

Paypal allows you to send and receive payments for goods and services which are subject to Paypal fees and payments from friends and family which are NOT subject to Paypal fees. Both types of payments are reported on 1099K if they meet the IRS thresholds. That being said, I would be surprised if it were questioned by the IRS. Venmo and cashapp are also popular in my area.

Yeah. Kentucky used to have separate returns for general partnerships, LLC partnerships, corporations, and s corporations but decided this year to consolidate them all into this PTE form. It should've been named the PITA in my humble opinion.

The LLC will have to file an extension and remit the Limited Liability Entity Tax on KY Form 41A720SL. The partners will also have to file individual extensions if they are required to file in KY. The PTE form is new this year and looks worse than it is. It is due on May 17th this year (Kentucky doesn't use the March 15 deadline like the Feds).

No local return required if all you're dealing with is local income tax withholding on a W2.

Enter as interest on 1099-int worksheet

Just received this response to an email I sent to KY DOR yesterday. I think I will go ahead and make the adjustment as an addition back to AGI on Schedule M and turn loose of the ones I've been holding on to. The natives are getting restless. "RE: Income Taxes Inbox DOR WEB Response Individual Income Tax <[email protected]> 9:40 AM (8 minutes ago) to me Kentucky has not adopted legislation at this time for the $10,200 of unemployment not being taxed. If that legislation is passed, it will be posted on our website. As of now the income will need to be added to your Kentucky return as taxable on the SCH M. Thank you. XXXXXXXXX XXXXX, Section Supervisor Department of Revenue, Office of Income Taxation

I just received the following response from Kentucky DOR to an email I sent yesterday: RE: Income Taxes DOR WEB Response Individual Income Tax <[email protected]> 9:40 AM (8 minutes ago) to me Kentucky has not adopted legislation at this time for the $10,200 of unemployment not being taxed. If that legislation is passed, it will be posted on our website. As of now the income will need to be added to your Kentucky return as taxable on the SCH M. Thank you. Section Supervisor Department of Revenue, Office of Income Taxation

Client has decided to sell her principal residence to her church to be used as a parsonage. She has agreed to transfer the property to them for her basis in the home. The home has appreciated in value and is worth (she believes) $15-$20K more than her basis. I'm thinking this is a bargain sale and that she can obtain an appraisal from a qualified appraiser to substantiate the current fair market value, thereby giving rise to a charitable donation for the difference between the bargain sale amount and the FMV. Thoughts? Opinions? Am I missing something? Thanks in advance. You guys rock!

Ditto. I can't believe KY will exempt it. Just patiently (NOT!) waiting to see what happens here.

Thank you!

Thanks for the offer, Catherine. They only have wage income and no rent. They are going to file separately so only his income will be included on the MA return. I think I show their combined Federal income and AGI on page 1 though, correct?

Looking for a little direction. New clients. He is a resident of MA who is in the Army and stationed in Texas. He has a MA driver's license. She was a KY resident until the time they married in March of 2020 and still has a KY driver's license. The day after their wedding in KY she moved to Texas where he was stationed. He has a w2 from the military with MA state withholding. She has a w2 from a job in KY prior to getting married with KY state withholding and a w2 from a job in TX with no state withholding. I am thinking that I need a part year Kentucky return, nothing for Texas of course, and a Massachusetts return. Problem is he was considered a full year resident of MA and she has never lived in MA. Any idea what the proper way to handle this is? My brain is fried.

She is a performance academy student meaning that all of her course work is online and can be completed at her convenience. She doesn't have to be in school during the day.

I'm anxious to see what everyone thinks about this. I have an 18 year old senior in high school who drew $16k (yes, $16,000) in unemployment in 2020. ATX gives me the warning "Return is for a child of age 18 and investment income exceeds $2200. Form 8615 may be required if earned income is not more than half their support." Obviously, the unemployment is unearned income but it is certainly not investment income.

ATX allows the entry of bank account information but I don't believe it would be transmitted with an electronically filed return where there is no refund or balance due.

Actually they are using the old account number within the same bank, apparently. The bank has been transferring it into the correct account as a courtesy but now says they won't do it in the future. Since he hasn't filed a tax return since 2017, I still think the problem lies with SSA and that he should make sure his account information is updated with them. Yeah that's what I found too and when he did they told him to file the 1040-SR.

We live in a VERY small town. This letter is obviously legit and it doesn't ask for any information, only tells him to update his info with the IRS and doesn't tell him how to go about doing that so I'm pretty sure it's not a scam

I did not physically see the letter but I asked him to verify the amounts he received for stimulus and he said he received $1200 on the first one and $600 on the second one. He read the letter to me and the bank acknowledges that they had automatically transferred the payments from the old account to the new one but that any future payments to the old account will be rejected.

Former client called saying he received a letter from his bank saying that he needed to update his direct deposit account information with the IRS to receive future stimulus. He retired a few years ago and draws only social security benefits and accordingly, has not had to file a return since 2017. I told him I would assume that the direct deposit information the IRS has been using for stimulus payments was coming from SSA and that he should check with SSA to verify that they had the correct information (he changed banks in 2018 and remembers going online on SSA to change the info at that time but has since changed account numbers within the same bank and can't remember if he updated it again at that time). He then called back to tell me that he called the IRS and they told him to file Form 1040-SR which I can do but I still don't understand how that will update his bank account info since there will not be a refund or balance due on the return. I would assume that the bank account info would not be transmitted with the efile if there was no refund or balance due. I can paper file it with the new account info written in but I still don't think there is any guarantee it would be processed. Thoughts or ideas?

She only has a choice if she filed the election to be treated as an s-corporation. If she hasn't made the election then she would file on schedule C. Not sure about IL but KY does require an additional form (and fee - LLET Tax) to filed for the LLC.

The worksheet is the only thing I'm aware of as well. Maybe she is confused and talking about the letter(s) from the IRS that notified people of how much stimulus they were receiving an how it was being paid ???

Partnerships are not required to be registered with the secretary of state in Kentucky. But no, they did not. Basically they changed the name and adopted LLC status for liability protection and continued on business as usual. No separate books or anything of that nature. They executed everything required to form the LLC but did not do anything to dissolve the partnership.

They changed the name and ein number on all bank accounts and loans and deeded the real estate to the LLC.