Catherine

The idea was thunked up by both of them, but one was the primary person active and the other was consulting. So yes, both were involved. One will claim the whole operation as her Sch C, and the other will claim her portion of the income on her own Sch C as a consultant to the first one. Eventually (assuming it all works out the way they'd like) they will form a corporation and go on payroll. At that time, they'll need a new EIN anyhow, along with payroll processing and state reporting and all the rest. This is really for a couple of years until they decide it will make them enough money to be worth the effort to incorporate and apply for 501c3 status (you can't go from partnership to corporate 501c3 without a new EIN, so either way they're stuck with that).

Sent using the entity's EIN - but there was NO tax structure chosen at the time the EIN was assigned. So it was like a Sch C sending out 1099s. And yes, I got a retainer and did nothing until the check cleared. Although these are good clients I generally would not worry about. They got really bad advice from people who *claimed* to be specialists in non-profit law *and* taxation.

The original partnership fiscal-year return was NOT all zeros; it had fiscal-year figures. I propose to amend that return TO all zeros and calendar year (as the IRS demanded of them) and mark it both initial and final. Plus the explanatory letter - copies of the IRS letters telling them this wasn't allowed and to fix it should help. Then amend 2018 personal to include Sch C. The "consultant" is cuz instead of doing K-1s to partners they skipped that and sent 1099-MISCs to both individuals. The Sch C "partner" 1099-MISC does a circle: out as expense and back in as income; no net change. The other "partner" gets her 1099-MISC and reports on her own return. Amended 1040 also gets explanatory letters. 2019 we do it all right, from the start. Oh good; I was hoping this sounded reasonable to more than just me and my business partner.

Client and a friend created a small group and decided that they wanted to be a non-profit but weren't ready to apply for 501c3. Got an EIN but with no entity type chosen. Worked with a "fiscal sponsor" and some local agencies who all use fiscal years, so the two of them decided to be a "partnership" and use a fiscal year. Then they filed a fy p'ship return (on their own, done wrong, whatever) and NEVER (of course!) talked to us about it. Big boo-boo. Fiscal year dis-allowed, mega penalties for "late" return. They called and got the penalties reversed. THEN they called us. In looking over the mess, what they actually have is a sole prop with a consultant (the buddy). I now have a POA for the whole mess. My thought is to re-file (amend) the p'ship return as calendar year, all zeros, marked "initial" and "final" and amend the personal return to include the Sch C. Explanatory statements for both to be attached. Does this sound like it will work? It makes the most sense out of all the possibilities. The IRS would get the right tax, the mess would get extricated and fixed, and when/if they go for 501c3 they'll need a new EIN regardless of current filing method. Have I missed something blatant?

Bingo; that's the crucial part. Yes, good suits will run that $850. Custom three piece, double that price. But the thrift stores don't care, and won't charge more for a "bespoke" suit than for an off-the-rack Sears special.

I've generally used 25% for our donations. 25% of what WE paid; not what it would cost today.

Not self-employed. Not employed in the same field. Someone called him and said, "We've heard you are an expert on X; can you help us?" and it was an interesting problem. Yes he didn't even realize he was going to be paid until the project was well underway. He won't do it again; it has taken way more time than expected (even after doubling what they told him they'd need). He's an expert in the field - but it's a hobby he's been involved in for 50 years. Never a job, never self-employment, always for the love of the activity. Not run like a business. Plenty of other income. How does that factor in?

I think that comes under the heading of "good riddance!"

Client was asked to serve as an expert witness. Not something he does for profit; someone who *does* do this for profit spent some time looking for someone with skills to do some testing, and found the client. Turned out to be a lot more work than expected, so he has about $9K of expert witness income. But he is NOT in the business of providing same, and after this bout says he'll turn down any future work. I'm thinking this is NOT self-employment, as there was and is no profit motive. But all the guidance I can find is about this work FOR profit; people whose livelihood is this work. Opinions and references, anyone? Thanks!

Whew indeed! I had something similar a few years ago, except I did have originals, and only ONE form was missing. Turned out it had fallen behind the file cabinet (still don't know HOW it could have gotten there, since it should have been with its fellow forms and not on the file cabinet), and let me tell you it was FUN (not!) fishing it out. But man oh man was I frantic trying to find it. Finally remembered hearing something fall the day before but saw nothing when I looked, and started looking behind things. It's an extremely upsetting thing to happen! Glad you figured it out.

We're actually seeing more returns that do better with MFS. Younger couples with student loans, where the loan repayment amount is calculated on income, for one. Filing separately the couple has a much lower annual payment required than when they file jointly. (Yes, then they'll re-pay for longer - they can always pre-pay, and for a lot of these younger couples, cash flow is the driving force.) Older couples with medical expenses higher for one person sometimes do better MFS. Luckily with Drake it really is a click of a button (and some care, later, to make sure you are opening the right returns) to split them and get a comparison - although it's not perfect, as some of the little credits, like retirement savings credit, don't calculate properly on the one-click first pass.

Other income, not subject to self-employment tax. They don't take oddball drugs on a regular basis hoping to make a cash profit!

I was rushing and mis-spoke. I meant the same way as in by email, rather than, say, calling, or texting, or snail mail. Not by sending another group email with the same non-hidden cc's!

If you are really concerned (and the church folks don't know - by referral or other means - about the other members being clients) you could send out another email the same way, apologizing for accidentally sending a test email to a church list. That way it looks like you were trying to figure something out, using a "safe" list, and that no one else on the list is actually a client at all.

I'd pick the second way, myself. Yes, the IRS might reject something but that's always a possibility and a lot of time "rejections" are simply requests for more documentation. The way I address such issues is to send as much documentation as I can with the amended return, and include a letter or 8275 (is that the right number - taxpayer disclosure stmt form) that gives them enough information to be sure that (1) the end-effect of all the changes is CORRECT in terms of tax, (2) there are a lot more documents that could be submitted to support the return as-submitted, leading to (3) just accept this as-is 'cuz it's right and it's a LOT more work for YOU (IRS) if you don't. They're overworked; if they have a legitimate way to agree and CLOSE the issue, they'll frequently accept it.

I'll be right over!

Europeandeli dot com; it's in the post, above the picture. We buy them by the *case* - a case of six boxes lasts us a couple of months. There are also chocolate covered cherries, assortments, and milk chocolate. Direct link, for those who will click: https://europeandeli.com/products/asbach-squares-in-large-gift-box?_pos=4&_sid=a61037d45&_ss=r

I don't know the answer to your question (I use Drake) but the piece I've seen that is new this year is that entity payments can be made online at the state web site. No direct debits with tax returns, for entities, yet.

try these: Asbach luscious dark chocolate filled with brandy. Europeandeli dot com

In Drake Options, you can make the data entry field bigger. In the view/print mode, you can choose "fit width" that really increases the size of the form on-screen. Hope this helps.

Was the family ALSO on the mission trip - or hanging out vacationing? If they were doing mission work, their expenses would count.

I had to re-print and re-mail two 1099s. Sent out messages in November and December requesting address changes. So - of course! - I got two the day before yesterday. Printed them yesterday and out they went in today's mail. The W2 that needed re-printing and re-mailing was over a week ago; only one this year! Everyone else listened to the address update request, bizarrely enough.

I also only have a half-handful of returns that can claim EITC. Very thankful about that!

Rhode Island drivers are worse!

You didn't follow the instructions to sacrifice a goat when the moon is dark? That is always my last-ditch fix for stubborn printer problems.