schirallicpa

For NYS estimates I can go back into the return and create the sept and jan estimates.  (I duplicated the return first.) In this case, we didn't know there was going to be a large influx of taxable income in August.  I think I can go online and make the federal estimates for them, but if 1040ES was a separate efile to create in the software that would be helpful.

I raised prices last year and will raise again this year.  None of my software or paper product suppliers have left their fees low.  And min wage is a killer.  Last year I cut hours, but that doesn't help me much.  I end up working more myself and I can't do that either.  I live in a small low-income town in western NY and I will lose some clients.   But the population here seems to have the money to buy alcohol, drugs and cigarettes.  

I started out in tax, but was able to be part of a few audits.  Overall it is all boring to me.  The clients make it interesting.  I'm not smart enough to find something else and have done this for so long I don't think I could quit.  Clients are like gum stuck to your shoe.

Thank you everyone for creating this conversation.  I was unaware of the new reporting.  I was chastised by a local attorney for helping a client create a Corp a long time ago.  So I leave that alone.  But I did do the paperwork to create my husband's corporation several years ago.  So I will have to keep up with this reporting requirement.  

The accountant needed a credit and put it to shareholder loan.  I suspect the credit is unreported sales.  Clients always make sure they keep track of every expense they can take.  Somehow they forget to account for all the income needed to pay for it. 

OMG - it just occurred to me that we had carried back the 2020 loss - good grief.  And my client doesn't know if he got the refund from that.  Why don't clients know these things?  Anyway - now I will be pulling transcripts to see if NOL was accepted and applied and if refund was issued. We filed the 1045 in 2021.  Maybe it was destroyed???....

I'm doing amended returns for ERC credits. I reduce payroll expense for the credit coming and income goes up significantly. My client is an Scorp. He will be paying back a ton of tax on this. What kind of dumb tax game is this?  Yes - he will net ahead, but this is nuts.

I like to think I have a dumb question on here at least once every 10-14 days this year. 

Amendments to returns for ERC for 2020 and 2021 change my 100% shareholder's basis carrying forward to 2022. It does not change his taxable income for 2022.  (I do have to amend his 2020 and 2021 personal income tax returns.)

Amend or not to amend......that is the question...........

Client would have filed this in 2005.  And they can't find the paperwork now.  Can it be retrieved from the IRS somehow?

Whatever happened to all those documents destroyed by the IRS?  Was there any follow up on that?  

Husband passed in March of 2022.  She gifted her son a reportable amount of money in June 2022.  So I am filling this out as her gift individually.  But - got hung up real quick as I started to check that she was widowed on line 16.  But had skipped line 15 asking if she was married.

Hmmmmmm - apparently this gift would not have happened if husband was still alive, so is this just her gift or do I need to get his SS#.  Not sure if he can or cannot be consenting from the grave...............

Just faxed one in - I'll let you know.

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.  

Thanks guys.

I will tell her to find an attorney - hopefully a better one than what they started with.

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.

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......? 

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.

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.  

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.

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!  

Partnership

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.....

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.)

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.

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.