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    http://www.grant-financial.com & www.constitutiondecoded.com
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    competitive target shooting, fiddle playing (Scottish style), dancing, gardening, reading

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  1. Send in the "agree in part" and send in any specific schedule (such as C, with auto worksheet, overall tax calculation too maybe) that supports the disagreements. Nothing else; don't send a 1040X or even a full amended 1040. Because what Tom warns of is real. Give them enough information so that the only sensible action for them is to agree with you, but not enough that a new-hire ninny could make worse trouble.
  2. For missed rental depreciation, it's really NOT that bad. I just did one this year and it's mostly annoying persnickety checkboxes, a bunch of meaningless-but-required attachments, a couple of lines to fill in, and a reason (t/p didn't know; came for help, we're fixing it). PM me if you want gory details.
  3. They're going to roll them out in batches, so as not to overwhelm their own phone systems. (And ours!)
  4. Thanks to all. True, FBAR is FinCen not Treasury but back when they had their voluntary disclosure program, "compliance" was six years for that. Client has not finished the research so I've still got some time to dither.
  5. Client's spouse has had a couple of foreign accounts, always well under the limits for FBAR filings. However in reviewing some old records they were going to shred, he discovered that back in 2011 it's possible that one account went over the limit for less than a week. He will have to dig out old conversion rates and the detailed history of the account to see if it happened, or didn't quite happen, or just looked like it might have happened. Anyone know where I can look up whether or not FinCen wants a 12 year old FBAR filing and if so doing would open up a bigger can of worms?
  6. At least you are confused at a Higher Level and about More Important Things? (or not)
  7. Catherine

    Tax Act

    I used TaxAct well over 20 years ago, and liked it. At the time, it rapidly became too limited for me because it did not, back then, support non-resident or part-year state returns. Jumped ship for ATX, and then to Drake in 2013 during the 2012 filing season fiasco. So my information is decidedly non-current
  8. If it's a free social media "service" then it's you who is the product being sold!
  9. Hey, once you figure out how to fake "ethics" you've got it made! Which always makes me chuckle at the hours-of-ethics cpe requirements. Either you're (trying your best to be) honest and moral, or you're lying about being honest and moral.
  10. I've seen this for years, and figured it was so each spouse would know about liability - and if one took the other's letter, then they have mail fraud as well as non-payment of taxes for which to go after him/her.
  11. Yes, you can save pdf copies of all forms (individually or all at once) immediately. The fees are low - working from memory here, for years it was $3.49 to print/mail/efile and $2.99 to efile only (you get pdfs in all cases). I think it went up a bit this year due to postage cost increases - maybe $3.99 and $3.49. You don't get a 1096 for 1099 filings, but there is a W3.
  12. I worked with a CPA auditor when a company I worked for was having an audit. He most specifically did NOT want to look at any of the weird things I was seeing - refused point-blank. At that point I figured an audit was just a useless rubber-stamp paid for to put lipstick on a pig.
  13. I tried to get rid of one PITA client this year by suggesting VITA and local free-file services, telling them I had to increase my fees but they could get good service for free. Nope; they came back saying they'd rather pay me more, because they like and trust me. Ah, well.
  14. I draw the line at anything outside the tax return that has large preparer penalties attached (even when filing is done correctly based on information given by client that turns out to be incorrect). So, no FinCen 114 (FBAR) forms - just the link to the online forms, and a suggestion to print the pdf first and fill it out where one can double-check all the info before submitting. I will include 8938s in a return. I would touch exactly none of these corporate filings.
  15. These folks (Corvee) keep sending me solicitations to buy their planning software (which may be very good, but I'm not interested). But they also send me links to blog posts. This one, on GoFundMe fundraisers, may be useful as a client handout (email-out). Corvee GoFundMe article For those who won't click links, here is the text (missing all the nice formatting): Over the past decade, GoFundMe has turned into the biggest crowdfunding platform there is. Many of the fundraisers on GoFundMe are charitable in nature, so it’s natural that people would wonder: are my GoFundMe donations tax deductible? Like many questions involving taxes: it depends. If you are donating to a qualified 501(c) organization that has set up a GoFundMe page, then yes. There is a list of certified charities so donors can know if they are making a tax-deductible contribution. If it’s not a qualified 501(c), then it’s considered a personal donation and therefore is not tax deductible. Deductible Vs. Non-Deductible Donations on GoFundMe GoFundMe actually started out as CreateAFund in 2008. It later morphed into GoFundMe in 2010. As a platform to raise funds for almost any cause, GoFundMe donations are considered personal in nature, unless they’re made to a 501(c) organization that has registered on the site. All donations made to personal GoFundMe pages, as opposed to specific 501(c) charity fundraisers, are considered personal gifts — which are not guaranteed to be tax deductible. It can be confusing because you may be doing a charitable thing on GoFundMe, but just because a gift is charitable doesn’t make it automatically eligible for tax relief. Easily Save Clients Thousands in Taxes Scan client returns. Uncover savings. Export a professional tax plan. All in minutes. Request a Demo Look out for other unintended tax consequences from direct contributions to individuals. Because these gifts are not considered charitable, giving large amounts over the annual exclusion gift amount may trigger a requirement to file a form 709 and report the gift amounts. The recipient themselves will not be taxed on the money received. How it Works: GoFundMe raises money for individuals, groups of individuals or organizations. Among these, there are two types of fundraisers: a standard campaign or a Certified Charity campaign. With the standard campaigns, many GoFundMe organizers are individuals who have raised money for a cause and can deposit the money raised into their own personal bank account. While many of the personal causes are good, worthy causes, such as money raised for tuition, medical expenses, funerals, etc.,these gifts are being made to people as opposed to registered charities and as such they generally are not tax deductible. A Charity Campaign, meanwhile, collects donations that go directly to a 501(c)(3) organization. In these cases, the GoFundMe organizer doesn’t handle the money; instead, the funds are sent directly to the charity via the PayPal Giving Fund. This special fund was set up by GoFundMe to facilitate gifts to registered charities. Donors receive receipts from the PayPal Giving Fund, which allows them to claim possible tax deductions. Find More Deductions With Tax Planning Software How Giving on GoFundMe Works Donations to nonprofits are usually tax deductible. The IRS allows you to deduct up to 50% of your adjusted gross income (AGI) if the donation is made in cash, although 20% and 30% limits sometimes apply. For 2020 and 2021, the 50% limitation is suspended, allowing individuals to donate up to 100% of their AGI. Thus, giving to specific 501(c)(3) organizations on GoFundMe could prove to be a good way to reduce tax burden. Just be sure to get your receipt from the PayPal Giving Fund. Remember that personal donations (meaning direct contributions to individuals) through GoFundMe are likely not tax deductible. To claim any possible deduction, itemize deductions on your tax return using Schedule A (Form 1040). Typically, charitable donations could be eligible for deductions if they are given to: A religious organization Federal, state and local governments Certain war veterans’ groups Nonprofit schools and hospitals Charitable contributions typically not deductible include donations to: Foreign organizations Political parties, action committees (PACs) or fundraisers Individuals Foreign governments For-profit schools or hospitals Social and sports clubs Labor unions Homeowners’ associations Note that a large percentage of donations on the GoFundMe platform are to individuals, making them non-deductible. What About GoFundMe.org? There can also be donations made directly to GoFundMe.org, which is a separate entity from GoFundMe. GoFundMe.org is a 501(c)3 public charity that is independent of GoFundMe with a separate board of directors and leadership. While it works closely with GoFundMe, GoFundMe.org cannot receive payments from any GoFundMe campaign except for fundraisers for which GoFundMe.org is identified as the beneficiary. So, you can make a tax-deductible donation to GoFundMe.org that is promoted on the GoFundMe platform. The federal tax ID number of GoFundMe.org is 81-2279757. GoFundMe, however, is not a qualified 501(c)(3) charitable organization, so be sure you check before you give!
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