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schirallicpa

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Everything posted by schirallicpa

  1. An old client was a law firm. I did their tax return years ago. I don't even have copies of the old returns. One partner passed away years ago. The other partner is now in a nursing home after having a stroke. Her POA has learned of funds in an old bank account for the law firm. She is wanting to get those funds released but the bank is telling her the funds are now the state's. I actually found funds on the states comptrollers website for each of the partners. She has reached out to me asking what could be done to have these funds released. I feel like this is money gone, but I promised I would ask those who know more than I - my friends at the ATX forum.
  2. Thanks guys. I will tell her to find an attorney - hopefully a better one than what they started with.
  3. I must have sparked the bad tax karma devil somehow this year. I have never had so many issues. H&W have owned and operated a business since 2005 as an S corporation. They came to me in 2014 and I have prepared 2013 on. I followed what the previous CPA/Attorney had set up with the H reporting 100% ownership/shareholder. I did not look thru corporate records ever. Shame on me for assuming that the CPA/Attorney who did the corporate organization and then did the first 7 tax returns had done things correctly. But I dropped my ball on due diligence I admit. H&W are now divorcing. W has always been more involved in this business than H, but the tax return has shown H as 100% owner so he's trying to take the business in divorce. They have finally been able to get their corporate documents from the attorney (which has literally taken months. I know - why didn't the client have the corporate documents to begin with?) And the corporate documents do not assign any shares to either of them??!!!????!!! Now what? The W wants her share - which she contends that without documentation, ownership is 50/50. If a court agrees - then what do I do with years of tax returns with him as 100% owner. Last year was the first year they filed separately. I'm ready to run away.
  4. I believe the C Corp will be ineligible for installment reporting if the corp is on an accrual basis. So - the corp will take the hit, and then the owner/stockholder will take the hit. (no - not my regular client. Another tax preparer is asking for input as to how to handle.) Does the corp have to stay open to continue to collect the payments? Can the payment agreement be transferred? Or does this trigger another event somehow......?
  5. Yesterday I was asked by the notorious hair stylist type to provide a letter to the bank that they are making more money this year than what they reported last year. I asked for $1000 retainer. Didn't hear back.
  6. Have done this client for a long time. I can't even remember if her husband was still alive when I started doing the return. They have a Sch C tractor repair shop. Husband died several years ago. The EIN on the Sch C was assigned to his business. Spouse continued to run business now as her Sch C. She got a new EIN. (they have payroll) But - I have been filing this Sch C under the old EIN forever. Does it matter? I think not since the Sch C is hers and should be going to her SS.
  7. I also remember going to Dallas for work (when I did auditing in a CPA firm) and the guy at the hotel counter told us we talked just like we were from the evenin' news.
  8. Years ago I was on the phone ordering supplies. The lady at the other end guessed I was from South-western NYS. I laughed. I had not told her my address yet. Caller ID was not popular yet. (I'm dating myself.) I asked how she knew - "I'd recognize that accent anywhere." What accent! She said she was from north-western PA. I argued with her that I did not have an accent. But she did sound like she was from PA!
  9. ooohhhhhhh........ how do I elect over 4 years. And - There is actually another item on the 2021 return that was reported wrong so I do still need to amend 2021 I think. So I'm not sure how that effects the form 3115/481 situation. Also - Form 3115/481/4years will totally blow the minds of the local small town bankers.....
  10. I've been asking way too many questions lately which is a reflection of the kind of crappy returns I'm doing this summer. Client's previous tax preparer depreciated rental real estate over 16 years. PIS 06/2019. These are fairly high dollar property so accumulated is very overstated. If I fix this now, do I keep the accumulated and roll on? or do I go back and amend 2019, 2020, and 2021? Or do I make a huge add-back in 2022? Which will not fly with the bank people who will not understand. I know you-all are going to tell me to amend...... (You-all: not really southern, but occasionally talk to someone from the south.)
  11. Client had started an Pennsylvania LLC and thought it was a corp. They had filed corp tax returns for this year and last (they didn't file in 2021 and felt they needed to.) Anyway - got notices back from IRS that it's not a corp, it's an LLC. Ok - There was no activity for the 2 years - do I really need to do anything? And now they want to dissolve it. I have found a form with a $70 fee to terminate the LLC in PA.
  12. I have a client that has multiple LLCs and I have to generate a separate tax return for each LLC. I may have complained about the issue before, and can't believe that I am the only one that has more then one LLC in NYS.
  13. Client owns a rental property and refinanced a mortgage. The client had not paid 2021 or 2022 real estate taxes and those taxes were included in the closing costs. Since he already owns the property, I think these should be expensed, not capitalized and certainly not part of the amortizable closing costs. However, the client wants to show a profitable tax return. So I'm kinda thinking about this too much.
  14. I would never ever choose to be a CPA ever again. I totally regret entering and staying in this profession and would not do it again. And I will tell any young person considering accounting/CPA to get out. It is the most underrated, underpaid profession that anyone could get in to. So much stress and so much expectation in exchange for a gripe about a bill.
  15. Back to the investment people that have convinced my not so rich clients to convert all their Traditionals to Roth. In my area, most of my clients will pay higher taxes now as they are working class. And they will have less income when they retire. So whose making money on conversion transactions....
  16. Gee - just looking at Form 3115 for the first time ever myself. I will look at brasstax. I have a client changing to accrual method.
  17. Client purchased an EV earlier this year - new - and is eligible for the tax credit. However, he wants to upgrade now and get a bigger, nicer EV. He's trading in the first on the second. Can he take both credits?
  18. Of course NYS is considering it. NY would hate to miss out on another opportunity to tax us. If you caught the NBC evening news last night NYS was #2 (California #1) in most people exiting their state. Wonder why.
  19. Hate H&W partnerships. Just sayin.....
  20. We just attended the Alfred University graduation ceremony last week. My younger daughter sitting with me could not believe how few accountants were on the list of business students. And we also noticed they were all guys. In fact, the entire business school there is mostly guys. Which is the way it was when I was there. I think we squeaked out at least 12 accountants. In 1990. But I am telling kids all the time not to go into the tax business. I don't want them to have this stress.
  21. I do a handful of nonprofits, some are charities. Of course, this year the NYS Annual Filing CHAR500 is to be filed thru the online system. Sounds simple enough. My first go around with this is still in limbo because the signatures are sent to officers via docusign, and in this case the 70-something year old officer got totally confused with docusign and we can't seem to get her straightened out. The second one to set up had not set up their online account yet - cause like most NPs they have no clue. So we went to set it up and the program said that the status had been cancelled. I know for a fact that they have filed every year and they should be good. Did a look-up in the system. Turns out that the 6-digit NY registration number that they have used for the last several years is assigned to another organization. I have records back to 2014 and we have done this return for longer than that. Nobody in NYS has ever noticed. SNAFU
  22. Wonder when IRS is going to start taxing money received from GFM as taxable income. There are some out there that are living off GFM.
  23. I worked for a regional firm as auditor for a couple of years after college. (After interviewing at Pricewaterhouse, where I felt completely overwhelmed with their better than you attitude.) We had a fairly large company that we audited. They had a parent company with 4 subsidiaries. I learned how money was laundered, how profit sharing was manipulated, and how this company's employees could steal money on the lo from the company and customers, as long as it was "immaterial." My job was just to produce paper with checkmarks that indicated everything was good - or any impairment was immaterial. Their fav word.
  24. A local town had it's blue box set on fire.
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