schirallicpa

I printed everything I could.  Wage and income doesn't have it listed. 

So- I mentioned this in a response on another person's post.  My client's refund was partially taken to pay for tax and penalty on a 2019 assessment.  The TP had omitted income from withdrawal from an IRA retirement account.  Per the CP notice, TP reported 0 and IRS shows 17000.  However, the TP had not received a 1099R (that he's aware of). And the wage and income transcript does not list this income either. So how does the IRS come up with this?  

I asked the TP if he remembers taking a withdrawal and he thinks he did.  Typical TP didn't know it was taxable and didn't think about it when tax time came and didn't think twice about not getting a 1099R.  

Do I have any leg to stand on with the transcript not showing a 1099R income?  

Meanwhile I have asked him to reach out to that bank and ask for a copy of the old 1099.  So good luck with that, right?

I'm currently on the phone with PPL for a reduction in a 2023 refund for a 2019 additional assessment.  My client never got the CP letter since his wife is in the army and they move quite frequently.  His address on record was/is his dads and apparently his dad didn't take notice of any IRS letters.  I'm not sure if I will be able to do anything for him.  

Learned a lesson though - I'm getting 2848 for all my clients in the military so I can get the correspondence. 

This has been a long season.  And not so much because of the tax work but because of LIFE kind of getting the best of me.  My mother fell and went into nursing home in January.  She basically got stuck in there too long and got worse.  My daughter was quite sick and taking priority over my mother.  My mother died in March.  Had to take off time for that and dealing with my estranged brother. My daughter had a very traumatic break up in March and had to move out of her apartment and back in with us, and continues to have her other problems going on.  Being at the office was a better choice half the time this year, but I'm telling you, these family things have got me worn out.  And just for kicks - we added 2 puppies to the family in January.  Frankie and Louie. (Shih-tzus.  And anybody that has little dogs knows - they tend not to potty train too fast.)  (I will have to update my avatar when I have a free moment.  That was my little guy Vinny who passed last August.)  I'm ready to do NOTHING for a few days.  Hopeful anyway.

Started to set up a Sch C (single member LLC) and then thought - no he's got real estate rentals here.  But he is also selling real estate.  This combo cannot be too unusual.  Do I just use both forms?  

Kinda like ironing shirts ahead of time, I try to keep positive that I will hit the lottery and never need ATX nor ironed shirts again. 

ahhhh  Thank you thank you thank you 

This is a first - I have a return that changed after the PDF attachment was attached.  How do I remove it to attach the revised PDF?

I have quite a few clients that use direct debit.  Never had any problems. They like better because they don't have to remember to do it.

I'm thankful for this forum.  Sometimes you just need to talk things out.  My dogs aren't very good at tax stuff.  Although they do like to take the paper roll  hanging to the floor from the calulator.

In the real world men make agreements to pay in round dollars.  So - on a 2 million dollar sale of assets, my client is receiving 48000 per year for 4 years, and then will receive the remaining 1808000.  The seller and buyer are both reducing the debt by the 48000.  

Then the IRS says - no - that includes some amount of interest.

So - I feel like I need to reduce the principle being applied to the 6252 and report some interest.  But is that common?   

I inherited this one, and the previous preparer did not recognize any interest.   I'm in the woulda, shoulda, coulda mode.

I'm in a rural area.  I get farmers coming in with their dirty boots and the place smells like manure for days.  I used to have a client that smoked a lot but reading this post, I don't think I have anyone that smokes now.  Maybe they all vape now so I don't smell so it.  

I agree to some extent.  It was not a partnership in legal terms and the second guy (now buyer) was on wage and was placed on checking account as any other business would have a second person on the account.  So only in the first few months of 2023 did this idea of selling come into play.  Bring in the lawyer, and we "sell the LLC".  Which it is a sale of assets. 

Buyer and seller are friends.  Seller over years had buyer's name on joint business account.  No stealing.  Seller actually still has access to bank and can see what's going on.  All on the up and up.  They've been keeping track of the money/draws/equity.  I got hung up on the seller still getting a draw each week.  But I think this chat has helped me understand that that was still his money to draw.  And we have an accounting at date of sale of equity and we keep a separate account for his draws.  

This tax season just seems a little sticky, doesn't it?

He did not close account.  New owner had held it with him jointly for years.  So it was easier for sales tax, payroll and all the other EFTs to continue.  

Yes - sale of assets.

The books are kept in QB and reconciled regularly.  Payroll is thru Paychex.  I think the bookkeeping is in pretty good shape. 

LLC is held as sole proprietorship.  Sept 1 the LLC was sold to another proprietor.  (To me, they should have been an S-corp and made the transition easier, but there was a lawyer involved that told them to stay an LLC and just sell the LLC.) So far that works fine.........but.........the 1st SP continues to take money on a weekly basis September thru December.  Prior to this sale, I would have considered it as a draw.  He's an SP.  He can take all the money his wants, right?  I had run estimates on all this in September and it didn't occur to me that he would still be taking this money or that it may or may not still be his taking from the equity.  The business is profitable and would have "retained earnings" of a sizable amount if it were a S-corp.  He insists (of course) that this is still his equity that he is taking.  (On top of a weekly payment on the sale) and is arguing with me that it should not be construed as income to him.  I'm thinking it is taxable income.  

Love to hear your input.  

Override.  For some reason PA returns in the system got more complicated a couple of years ago.  I feel like PA used to be a breeze to do, but now you have to search thru worksheets.  So, when the system ain't working smoothly this time of year, override in PA!

I did reboot last night.  And, well - it worked today.  (Not last night when I was panicking.) Thank you Mr. Slippery Pencil!

I am having trouble rolling over some returns and I get a notice that rollover failed due to a communication error.  Does anyone know how to remedy this little hic-cup?

On 3/23/2024 at 10:43 PM, Sara EA said:

Ahem, I take offense at the title "You Guys."  Many posters here are not guys.  Did you only want the guys to answer?Now that I've moved to the South, I've taken a liking to the term y'all.  It's gender neutral, respectful to both old and young, and sounds friendly.  I used to think it was slang until I read some linguists' take on it and I'm now with them.

wow

Not sure how I did that twice.  But certainly an indication of the day I am having

Just did a 2020 and 2021.   I feel like there may be need for extra $omething $omething for that.  Just wondering how you guys feel.  (Had to remember all that coronavirus stuff too.)

yes

I just can't figure out how to make the return work.  Taxpayer is non-resident and has small wage and withholding from MT.  Pulling my hair out.  Things are not filling in.  I feel like I need to override the whole thing.  Yes - I have set up as NR in main info tab and page 1 of the MT return shows NR box ticked.  From there how do I tell it what my NR wages are so that it is flowing thru?

Ohhh noooo - don't leave me flailing on my own......

Already on extension.  I can handle that part.