cred65

Thanks. Would you be the Possi Galore from Goldfinger?

Is there a pub that informs the public, including tax preps where to mail a return when e-file is not an option? Pardon My Ignorance (PMI)

Done, thanks for reminder.

The basis for the shares would be the exercise price adjusted for any AMT. So you need to make the entries on F 6251 Ln 14 to determine the adjustment. A NSO (nonqualified) is added to the W-2 so it would not be applicable in this situation. You are dealing with an ISO.

Was the form he received F 3921? You should go to F 6251 Line 14 and enter the amounts on line 1 & 2.

The property was vacant and no attempt was made to rent during 2015. There are ongoing expenses; Mortgage interest, RE taxes, Depreciation, repairs. What is the proper way in ATX to defer loss? Checking box 13 "to calculate at risk limitations" works and send the loss to Form 6198. Any other suggestions? Taxpayers AGI app. $106K. TIA

You may consider a Business Bad Debt on Form 4797. Not knowing all the facts I have attached some case law of which I had sucess. Business versus nonbusiness bad debt: Dagres, 136 T.C. No. 12 Filed 3/28/2011 “Section 166 distinguishes between business bad debts and nonbusiness bad debts. Sec. 166(d); sec. 1.166-5(b ), Income Tax Regs. Business bad debts may be deducted against ordinary income and are deductible whether such debts become wholly or partially worthless during the year. Nonbusiness bad debts may be deducted only as short-term capital losses and only if the debts become wholly worthless in the year claimed. Sec. 166(d). A bad debt is characterized as business rather than nonbusiness if the debt bears a proximate relationship to the taxpayer's trade or business. Sec. 1.166-5(b ), Income Tax Regs. In determining whether such relationship exists, the proper measure is the taxpayer's dominant motivation; a significant motivation is not sufficient. The business nexus required for deducting a bad debt under section 166(a) exists where the dominant motive in incurring the debt was protecting or enhancing the taxpayer’s trade or business.” Dominant motivation is the key in determining the classification of the bad debt. If loans to the business can be documented as to keeping the business alive, this factor should serve to justify a business bad debt. “Protecting and enhancing the business” is cited in the court cases as substantial reasons. Rezazazadeh, T.C. Memo, 1996-245 file 3/28/1996 “In determining the dominant business or nonbusiness motive of a shareholder lending money to a corporation in which the shareholder is also an employee, courts look primarily to three objective factors: The amount of the loan with the taxpayer's investment in the corporation, the amount of the taxpayer's after-tax salary, and other sources of gross income available to the taxpayer at the time of the loan. United States v. Generes, supra; Scifo v. Commissioner, 68 T.C. 714, 723 (1977); Shinefeld v. Commissioner, 65 T.C. 1092 (1976). The larger the taxpayer's investment, the smaller his salary, and the larger his other sources of gross income, the more likely the courts are to find a dominant nonbusiness motive for the loan. On the other hand the more significant the after-tax salary from this business is to the overall gross income of the taxpayer and in relationship to the amount loaned to the business, the better chances for a business bad debt.”

Thanks Jack.

I would like to inquire about the rules for multiple offices and computers for ATX. I realize that this has been discussed in the past, so if someone could direct me I would appreciate it. TIA

"Have the client take the exact specs to the dealer, and get a written statement of what the dealer would pay him for it, at the time he won it. Use that to add an 'adjustment to reflect FMV' to the line 21 entries, down on the blue lines to reduce the 1099 amount. In other words, show the full 1099 amount, then 'adjust' it down. The law only requires him to report the FMV of any prize." This is from KCJ post as a reply my similar post on 02/17/09. It worked for my freeloading friend, who rewarded me with a meal at a marginally upscale restaurant over a drive thru. .

I had a similar situation a few years back. Don't remember the details but the transaction was reported net on Line 21 at the FMV. KCJ advised on the reporting. I will try to reply tomorrow with more details. Have to go to nephew's soccer match.

I have received these notices three times but when I call the tele # the message is they cannot take my call. Go figure?

WASHINGTON—The Internal Revenue Service is getting in on the hunt for cybercrime. The agency, which is increasingly being drawn into complex cyberprobes involving tax fraud, has set up a new criminal-investigation team of about a dozen agents. The Washington-based unit will tackle a nearly fourfold jump in identity-theft cases since 2011, many of which involve hackers stealing information in order to collect victims’ tax refunds. Virtually all of the 1,063 identify-theft cases the unit has initiated in the last fiscal year involve some digital element, according to IRS data, and many have involved sophisticated global hacking rings. Richard Weber, who heads criminal investigations at the IRS, said his team has found connections in the past several months to Nigeria, Russia and other Eastern European countries including Bulgaria, Romania, and Latvia. The IRS has traced $26 million in criminal profits to those countries, and its latest intelligence shows criminal groups stockpiling data for the 2016 tax filing season. In many of the cases, hackers steal identifying information such as Social Security numbers and pose as the victim by submitting tax returns to the IRS to collect the refund. Victims often only realize what has happened when they try to submit their tax returns and are told that a return under their Social Security number has already been submitted and paid. Taxpayers can wait months trying to get the money back. Over the past year and a half, more investigations have started leading the IRS down a digital trail, creating a need for more expertise. “That’s when we really started to look at what else do we need to do to make sure that we are investigating the cases the right way,” Mr. Weber said in an interview. The new unit, which will draw on existing computer specialists and other IRS criminal-investigation agents, comes as the agency has been experiencing cuts in its budget. The IRS has lost more than 100 agents each year without being able to replace them, reducing the 2,700-agent workforce it had in 2011 to 2,400 in February. IRS criminal agents have played a leading role in several recent cyber prosecutions, including a 2013 case against a group of men linked to the digital currency Liberty Reserve, which was allegedly used to launder $6 billion in ill-gotten gains. IRS agents created a government task force that brought together investigators from the Secret Service, Homeland Security Investigations and others agencies to pursue leads and build the case. An IRS agent was also instrumental in tracking down Ross Ulbricht, who was convicted in February in connection with running Silk Road, an online drug bazaar described by prosecutors as the most sophisticated criminal marketplace on the Internet. An IRS agent connected the dots to Mr. Ulbricht through a Google GOOGL -1.77 % search for “silk road” and “.onion”—the address for sites hosted on a hidden part of the Internet called the Tor network, according to testimony from the agent at Mr. Ulbricht’s trial. Another IRS agent was the lead investigator in a related probe of two federal agents who were originally investigating the Silk Road case, but charged in March with stealing hundreds of thousands of dollars of virtual currency through the original investigation. “Between Liberty and both Silk Road cases, and the fact that we were seeing an increase in the data breach tax-refund fraud...I decided that we should have more of a focus on cybercrimes,” Mr. Weber said. The law-enforcement arm of the IRS investigates possible tax crimes but has a broad mandate, allowing it to investigate money laundering and violations of the Bank Secrecy Act, which requires financial institutions to report suspicious client activity to U.S. authorities. Its agents have been involved in many recent big bank enforcement cases, including BNP Paribas SA BNP -3.01 % ’s $8.9 billion agreement to resolve sanctions violations last year, and Credit Suisse AG’s $2.6 billion agreement to resolve offshore tax issues. According to an IRS sampling of suspicious-activity reports that financial institutions have filed in connection with the anonymous “dark net,” 44% involve identity theft and 24% involve account takeovers. Write to Aruna Viswanatha at [email protected]

I just received an email from a high roller client on extension that the IRS has notified him that someone has attempted to file a return under his name & SS#. He spent 2 hours with IRS TAC. more to follow.

Sometimes company issue Form 3921 with details. What type of option? ISO, NQO?

Thanks gang.

Just had a young widow drop off her tax records that included SSA-1099 for each of three children with $17K in Box 5. Do I prepare a separate return for each child? TIA

Jack, sorry for your loss, but hang in.

When Graft, Avarice(SP), & Greed (GAG) are the prevailing themes of our leaders(?), the minions will follow. "HE MADE ME DO IT"

Would that be "Possi Galore" (Goldfinger)

I just came from a clients office and the accountant had this configuration on her desk. http://www.varidesk.com/stand-up-desks?gclid=CjwKEAiAveWnBRCzjqf4zpuUkGYSJABcoZbH2gFvpguzLM4V8WaWuKJabcD2Pd53fMpHdlLsP4FY8BoCTlDw_wcB

I had a similar situation in OH and was the result of identity fraud. The taxpayer should contact the feds and state. The situation is in process and County Sheriff is involved.

When was the return filed? Three years from date filed including extensions. If return filed 2/18/2012 or before I believe you are SOL.

In ATX, Elections, Deprec. and Amort at the bottom of the page there are check off options related to De Minimis Safe Harbor. Is this of any help?

In 2012 I was able to receive an unclaimed funds check from 1972. It required a bunch of evidence but it worked.