Slippery Pencil

You'll need to wait until an executor or personal rep is appointed and then deal with that person. She is the surviving spouse, but I'm not sure how that matters to you. Some of the same questions are dealt with in this current thread

Is it connected to a battery backup and functional or will it only be functional after the electric company hooks it up to the grid after the permit is issued?

They also claim they've caught up on the tax return backlog, yet my clients are still receiving the "we need an additional 60 days" letter every two months regarding their 2020 returns. I got through to the irs in about 10 minutes three times one day last week. Every time they put me on hold to get the faxed POA, I was disconnected when they picked up the line again (which for some reason it took 10 minutes to pick up the POA off the fax machine). The third agent told me they were having a problem with the phone system where it would disconnect everyone they put on hold. So yes, they're picking up the phone quicker, but I'd take their report with a grain of salt. Then there's also the fact that they're spending all this money just to get back to the shitty service level of 2020 and not making any actual improvements.

April 2021, client filed her 2020 1040. August 2021, client receives CP10 stating irs changed return and overpayment applied to 2021 was reduced from $14K to $7K. Other than a vague statement about charitable contributions, the CP10 doesn't state what the changes were or why changes were made. No calculations of the changes were included with the notice. If I recalculate her return limiting charitable contributions to 60% of her AGI instead of the 100% allowed by the CARES act, I get close to the numbers on the CP10. August 2021, I write the irs asking for details as to what they changed on the return and why. I also stated the limit on charitable deduction was calculated correctly according to the CARES act and included the limitation worksheet that was also included with the original return. So far, the client has received 4 letters stating the irs needs 60 more days to reply to our inquiry. So last week I got a POA from her and called the irs. Got through fairly easily but the agent disconnected me after getting the POA off the fax machine. Called back, again getting through fairly easily and again getting disconnected about 10 minutes after the agent put me on hold to get the POA off the fax machine. Called a third time. Got through fairly easily. Agent asked if I had POA. Told her I've faxed it twice today but the agents disconnected me. She states, "we're having a problem where the phone system disconnects everyone we put on hold". I respond, "have you considered not putting people on hold?" while refraining from telling her what I really think and wondering why it would take until 3pm to figure out you have this problem. An hour on the phone with the lady and I can't get her to agree that if the irs changed a return, then it's ridiculous that the irs needs any time, much less 16 months, to tell the taxpayer what the changes were and why the return was changed. She has no way to figure out what the changes were but tells me, "it looks like a letter went out yesterday requesting 60 more days to investigate the matter and you need to wait to receive a response".

It's wrong if payment was made via credit/debit card.

There's so much free CPE available that years ago I took over 80 hours one year. 40 for the current year, 40 to carry over into the next year. I've taken at least 40 each year since then so I still have the 40 carryover. If I suffer a minor tragedy and am unable to take CPE for a year, I'm still good to go.

Many email apps have a setting to display or not display images. If you have your account set to not display images, most email apps will put a message like this at the top of the page. Not all emails with images have tracking pixels. There are browser add ons that will detect and block tracking pixels.

I know nothing about charitable foundations, but I'm sure you can't just set up a charity overnight. It takes months to get a 1023 processed. Charitable donations aren't a deduction on Sch C or 1120S. So no, that would not reduce Sch C or S-Corp income to $20K. According to https://www.irs.gov/charities-non-profits/private-foundations/excess-business-holdings-of-private-foundation-defined, a charitable foundation can't own more than 20% of a business.

The OP said, "struggling with keeping insurance coverage", which could mean all sorts of things not just affordability.

How many years of prior Master Tax Guides or TaxBooks do you keep? I'm cleaning out the house & office and I have the last 25 MTG and a few TaxBooks on the shelf. 20 years ago I actually used the current or previous year a few times but now I rarely even use the current version. I feel I should keep the most recent 3 or possibly 7 years. Doubt I'll even use those but can't imagine too many scenarios where I'd use anything past that.

Trader Joe's 1lb bag of frozen Brussels sprouts were $1 a year ago. Today they were $1.50. So I'm guessing a 50% increase would be fair.

Seems more a reason to never use Intuit, TaxAct, TaxSlayer, & Block since they're the ones illegally selling client data.

Premium Tax Credit? Exception to not claim it?

Revocable Grantor Trusts don't have EINs. They obtain an ein when it becomes irrevocable upon death of the grantor.

W2s & W3s can be blank ink on white paper. You can just print them from the program and file as is. You can get red forms free from the irs. You can purchase from costco.com without a membership. A 5% surcharge is added

As Lion said, partners receive K1s not 1099s. The income should be reported on the K1 as the partnership agreement states. What does the agreement state? If the agreement states "guaranteed payments of $x" then $x gets reported on the K1 as a guaranteed payment. They could talk to a lawyer about back dating a partnership agreement to claim a different income distribution percentage and no guaranteed payments, but I'm assuming legally that won't work. Ignoring the impossibility of this idea, which partner is asking to amend? Does she have the authority to do this or is she unilaterally ignoring the other partners? If her accountant is confused by guaranteed payments on a K1, she should get a new accountant.

Thus her accountant is correct, she is losing money over this; but it's because of her & her partners boneheaded business decisions, not you telling her the consequences of her actions.

Yes, a few years ago a client asked.

The business probably wasn't worth $35K to the buyer. Buyers of business don't usually pay retail for the existing inventory.

You're taking a huge step down. Why are you thinking of switching? How much are you paying for Lacerte? How many returns do you prepare?

No efile here: "Unknown error - An error has occurred and is preventing the connectivity test from proceeding"

Turbotax software costs that much and they'd have to spend the time entering the data. Why charge less than what it would cost them to do it themselves?

I've always wondered the opposite. I can't believe how low the average is in those surveys.

I don't think this is new. For years, spam calls have registered on my caller id as numerous local business names, AT&T, names of numerous clients' employers just like when they called from their office phones (General Motors, Toyota, Lear, Siemens, etc.), individual names, Citizens Bank (where my business account is located), CSC Southfield (Southfield being the city neighboring the one I live in), various city & states, non-local business names, Americenters, and two local hospitals.

No. The education exception is for IRAs. §72(t)(2)(E) (t) 10-percent additional tax on early distributions from qualified retirement plans (1) Imposition of additional tax If any taxpayer receives any amount from a qualified retirement plan (as defined in section 4974(c)), the taxpayer's tax under this chapter for the taxable year in which such amount is received shall be increased by an amount equal to 10 percent of the portion of such amount which is includible in gross income. (2) Subsection not to apply to certain distributions Except as provided in paragraphs (3) and (4), paragraph (1) shall not apply to any of the following distributions:(A) In general Distributions which are - (i) made on or after the date on which the employee attains age 59 1/2 , (ii) made to a beneficiary (or to the estate of the employee) on or after the death of the employee, (iii) attributable to the employee's being disabled within the meaning of subsection (m)(7), (iv) part of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancies) of such employee and his designated beneficiary, (v) made to an employee after separation from service after attainment of age 55, (vi) dividends paid with respect to stock of a corporation which are described in section 404(k), or (vii) made on account of a levy under section 6331 on the qualified retirement plan. (B) Medical expenses Distributions made to the employee (other than distributions described in subparagraph (A), (C), or (D)) to the extent such distributions do not exceed the amount allowable as a deduction under section 213 to the employee for amounts paid during the taxable year for medical care (determined without regard to whether the employee itemizes deductions for such taxable year). (C) Payments to alternate payees pursuant to qualified domestic relations orders Any distribution to an alternate payee pursuant to a qualified domestic relations order (within the meaning of section 414(p)(1)). (D) Distributions to unemployed individuals for health insurance premiums(i) In general Distributions from an individual retirement plan to an individual after separation from employment - (I) if such individual has received unemployment compensation for 12 consecutive weeks under any Federal or State unemployment compensation law by reason of such separation, (II) if such distributions are made during any taxable year during which such unemployment compensation is paid or the succeeding taxable year, and (III) to the extent such distributions do not exceed the amount paid during the taxable year for insurance described in section 213(d)(1)(D) with respect to the individual and the individual's spouse and dependents (as defined in section 152). (ii) Distributions after reemployment Clause (i) shall not apply to any distribution made after the individual has been employed for at least 60 days after the separation from employment to which clause (i) applies. (iii) Self-employed individuals To the extent provided in regulations, a self-employed individual shall be treated as meeting the requirements of clause (i)(I) if, under Federal or State law, the individual would have received unemployment compensation but for the fact the individual was self-employed. (E) Distributions from individual retirement plans for higher education expenses Distributions to an individual from an individual retirement plan to the extent such distributions do not exceed the qualified higher education expenses (as defined in paragraph (7)) of the taxpayer for the taxable year. Distributions shall not be taken into account under the preceding sentence if such distributions are described in subparagraph (A), (C), or (D) or to the extent paragraph (1) does not apply to such distributions by reason of subparagraph (B). (F) Distributions from certain plans for first home purchases Distributions to an individual from an individual retirement plan which are qualified first-time homebuyer distributions (as defined in paragraph (8)). Distributions shall not be taken into account under the preceding sentence if such distributions are described in subparagraph (A), (C), (D), or (E) or to the extent paragraph (1) does not apply to such distributions by reason of subparagraph (B).