NECPA in NEBRASKA

Thanks, everyone.  I will get a POA from client for this. I've never had anyone in over 40 years have an unemployment audit. I don't know how well a correspondence audit will work, but I can ask. That would probably beat sitting in my garage. I do not want Covid again and I don't want to spread it. We were exposed to it two weeks ago, but thankfully, tested negative. 

I have a client that won the state unemployment audit lottery. I don't do any bookkeeping, but do prepare the quarterly and annual payroll reports and the 1120S. They want to look at everything for the year, which I don't think will be an issue. Is this something that I may leave up to my client or do I need to represent them. I absolutely don't know where I will find any time and I am also not allowing anyone in my home office. I don't have any of the records, except for copies of the payroll records that they give to me and the reports that I issue. I can always get the records here and tell the auditor to wait until it cools down so that my garage isn't 95 degrees. It's good enough for my clients that don't want to send me their signatures. 

Congratulations! I have no idea how much they should pay you on the East coast. 

I don't have a lot of returns anymore with dependents, but I am advising almost all of them to opt out. Several of them are divorced and it will be a nightmare when they alternate kids every year. Since many of them gave me incorrect EIP amounts, I can't imagine how they will ever know how much they received on a monthly basis. 

On 6/5/2021 at 7:43 AM, Possi said:

I'm glad I don't do payroll. ugh

I wish that I didn't do it. I hate payroll and the quarterly reports. It's way more time consuming and complicated than it used to be. As far as I can tell, none of my clients qualified for the ERC, etc. 

Congratulations, Catherine! She is beautiful! We have 5 grandkids from my step-children raning from 15 to 1. We are very blessed. My 10 year old grandson is so excited to have tax season over so that he and I can spend a day together. Andrew and Katie are hoping that we will move to Colorado in a few years so that we can be closer to them and the children that they hope to have. I am already making plans. It's so expensive to move there, but we will have to really downsize. He's already picked out what he hopes will be our neighborhood. 

10 hours ago, DANRVAN said:

Sounds like they are getting the cart ahead of the horse.

In order to file a gift return, you need legal documentation that the assets have been unconditionally transferred to the donee.

Once you have received copies of the deed...etc., there is no ethical barrier to prevent you from preparing the 709 in this case.

The client is rolling the dice against the Medicare look back period, as long as you have properly prepared the return you do not have any exposure.

I don't know what the freebie attorney was going to do. They were having trouble getting the title free and clear of the debts. The attorney wanted me to prepare the gift tax return and take the kids' value. It was an insane valuation. I am just glad to be out of it.

3 hours ago, BulldogTom said:

A gift tax return is not that hard to prepare.    At some point you should take one on.   Date of the gift, description of the gift, value of the gift and the donee.  Pretty darn simple. 

As to the potential client in question, your choice, and I think you made a good one.   But I would not be too concerned about the creditors.   You prepare the returns based on the information provided.   You are not an auditor the the IRS, nor the creditors.   If a person completes a gift, whatever their motive, there is still a tax return to be prepared and filed.   

Tom
Modesto, CA

If I weren't winding down my practice or it was just cash, I might not be worried.  After 42 tax seasons, I am thinking very seriously about getting out sooner than my previous plan of 70. We lost my mom and my husband's brother already this year. My husband's COPD is much worse after having Covid and I need to do more around the house than ever now. Life is too short and I think that I would like to enjoy the first several months in the year for a change. Once I hit full retirement age in a couple of years, I might just find something else to do that is not so stressful. My sister is a mess mentally and it is taking at least two hours every day to talk to her and calm her down. I can't wait until she gets another cat scan to see if her brain tumor is coming back. I still love my clients, but this year has been hard on them because I have had so many personal issues. 

4 hours ago, cbslee said:

You need to insist that they go to an attorney specializing in elder law. I wouldn't touch this for $ 10,000.

I know it's common practice for law firms in my area to ask CPA Firms for bids to prepare gift, estate and trust returns in situations like this.

If the attorney wants to engage you then fine, but don't put yourself on the line when it's not your area of expertise,

because inevitably down the road they are going say but the CPA said . . . . . . . . . 

Thank you! I was stunned to have this call wake me up this morning. The attorney doesn't want to touch it either. He is giving advice as a "favor". Mainly to throw me under the bus. The medical bills are old and very large. I can't imagine that they won't pursue them. I am going to tell them that they need an elder care attorney and that's not me. 

I feel better about my decision. 

4 minutes ago, Pacun said:

all gifts in the past 2 years are reconsidered and put back as income to the decedent or something like that. 

I knew that there was a clawback period for Medicaid, I don't know about regular debts. I thought that the attorney should know the legal stuff.

I hate this year! I got a call this am asking me to prepare a gift tax return, because an Pro Bono attorney said that they should find a CPA to fill it out. The father just passed away and they expect the mother may soon. They are trying to avoid huge medical debts and mortgages taking the house by gifting the house to the son and sife. #1 I have never prepared a gift tax return and #2, I don't want the creditors after my insurance. I did call my insurance company and they said that they could not tell me not to prepare it because there may be liabiltiy, but said that I could use them as an excuse. It's a non-client relative, so I feel guilty. It does not seem ethical to me to try to avoid the creditors, but maybe I am just too strict. Does anyone know if this is a normal thing to do? I wish the attorney would just take care of it.

Thanks! 

If you can efile this return, I am going to cry. Every time I have one with a refund, I have to mail the damn thing. I have two sitting in a trailer waiting to be opened right now.

3 minutes ago, schirallicpa said:

I've never been so far behind.  Really trying to figure out how to make a career change!

 

After 42 years of tax seasons, I feel the same way. This has been the worst for too many reasons. I am just trying to stick it out until 65 (16 months!) so that I can get Medicare in place of ACA. I don't even know that my business is worth selling. I wish that I didn't love most of my clients, but I honestly am sick of the liability and stress of doing it on my own and feeling guilty every time I do something not work related. 

I am soo far behind, but I am trying to cut myself some slack. It has just been hitting me the past couple of days that my mom is really gone and I find myself crying at very little notice. I was very bad, but busted my butt to get out all of my estimates done by Tuesday and my husband and I flew with our son on Wednesday morning. It was very exciting, he announced that this was a special flight, because his parents were on the plane. Everyone clapped for us and we had a genuinely happy time. We came back this morning and I feel better prepared to work harder again. 

2 minutes ago, gfizer said:

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).

Thank you! I did something right. I got the LLET extended and then had them pay it and the partners filed extensions with payments. The PTE form is so many pages for a state return. I'm used to Nebraska and Iowa being so much shorter. 

Mine has been working fine all season. Maybe it has something to do with your antivirus. I am sorry that you are having these problems. This is a really crappy time to have these problems.

I've met all of them at least once. 

My Nebraska LLC client bought a commercial rental property in Kentucky. It looks like they need to file a PTE. I was really hoping to file an extension and pay up by this week to cover 2020 and 1st qtr 2021. The Federal 7004 was filed timely last month. Is it possible for the partners to file a Kentucky extension and pay or does the money have to come from the LLC? I found a form PTE in ATX and it looks like a pain. They also have Nebraska properties in the LLC. I would like to kick the broker that talked them into this. Thanks to anyone that knows anything. I am still reading instructions.

Good luck, Catherine. I know that there was no way that ATX would let me around the 1310 and it didn't matter how many or which boxes that I chose. This is such a time waster and the fact that the IRS is so far behind, just makes my clients ticked at me even though I have no control over any of it. ATX just tried to get me to add a 1310N to a surviving spouse return, but thankfully, it wasn't a red error and I could create the efile.

Bonnie

As far as I can find, Nebraska is following the IRS on the $10,200 exemption. There are no guidelines to add it back.

I am so sorry, Judy. I hope that your husband gets better very soon. I know how hard it is to have loved ones ill. You do not need the stress of these idiots. With the new 1099K rules for 2021, I think that we many of us are going to find out about previously unknown businesses and I am sure that they will be a mess that our clients will want us to straighten out. I am really glad that you have a new printer that works.

Bonnie

On 3/27/2021 at 1:17 PM, ILLMAS said:

Have them check with their bank, I have a client that pays $50 a month, however do they have large amounts in their bank account.

I know where he banks and that is not a service that they offer. Thanks.

On 3/27/2021 at 9:52 AM, cbslee said:

Bonnie,

If your client wants a online payroll program that does "everything", most functions can be run from a smartphone or tablet, has employee access thru a phone app,

take a good look at a program called "Gusto"  It's at the top or near the top of all the ratings, reviews and cost.

Thanks! That is the name of a program that I gave him after seeing it reviewed pretty highly.

It is ridiculous, first ATX rejected every option that I tried. I checked different boxes and attached PDFs. Then when it finally made it through ATX, the IRS rejected everything and ATX said that they had no idea what the error was about and to mail.

7 minutes ago, Margaret CPA in OH said:

I submitted a return with a 1310 with C, Person other than surviving spouse or court-appointed rep..  It went through just fine, refund deposited.  This was in February.

Margaret, I don't understand why mine would not go thorough. This is not the first time that this has happened with any 1310 for me. I am going to look at it again. I have checked and unchecked various boxes. It is a C with no will. Thanks!

Bonnie