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ILLMAS

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About ILLMAS

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  1. Business has no books, business bank account is intermingled with personal expenses and I can go on and on and no personal tax return has been filed for over 5 years. Would you recommend just making the election for 2021 and reporting prior years on Sch C?
  2. New client has not filed since 2016 (business and personal), what are the chances the IRS will accept a super late S-Corp election? FYI there is reasonable cause, but I am afraid it's been too many years. Thanks
  3. Scenario: TP was let go in 2016 and sued their former employer for discrimination and won, former employer paid the following in 2018: Back wages $70,000 on a W2 Non-wages $69,000 on a 1099 Legal Fee $70,000 paid to attorney + $20,000 paid out of pocket = $90,000 Legal Expenses (Pub 529) Legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax are miscellaneous itemized deductions and are no longer deductible. You can deduct legal expenses that are related to doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business Can the legal fees paid in 2018 be deductible based on the scenario and what is on publication 529? Thanks
  4. What happens if the operating agreement allows for uneven distributions?
  5. Can you just elect not to populate the BS if under the threshold?
  6. ILLMAS

    SSA Payback

    Found this: Repayment of benefits. Any repayment of benefits you made during 2021 must be subtracted from the gross benefits you received in 2021. It doesn’t matter whether the repayment was for a benefit you received in 2021 or in an earlier year. If you repaid more than the gross benefits you received in 2021, see Repayments More Than Gross Benefits, later. Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Your repayments are shown in box 4. The amount in box 5 shows your net benefits for 2021 (box 3 minus box 4). Use the amount in box 5 to figure whether any of your benefits are taxable. Example. In 2020, you received $3,000 in social security benefits, and in 2021 you received $2,700. In March 2021, the SSA notified you that you should have received only $2,500 in benefits in 2020. During 2021, you repaid $500 to the SSA. The Form SSA-1099 you received for 2021 shows $2,700 in box 3 (gross amount) and $500 in box 4 (repayment). The amount in box 5 shows your net benefits of $2,200 ($2,700 minus $500).
  7. ILLMAS

    SSA Payback

    Interesting, TP did mention they were making monthly payments out of their pocket, so their monthly SSA is not affected at all, but you are right, I have seen SSA-1099 that are adjusted.
  8. TP received a notice from SSA informing them that because of their earnings for 2019 and 2020 they needed to repay back the full amount they received, TP didn't receive much, but can the returns be amended without a correct SSA-1099?
  9. Thanks, but I would still need to enter the monthly amounts correct?
  10. I have a client and their return was rejected because they received PTC for 2021, after speaking to them, I was told their parent claimed 100% and I cannot find an example on how to go about it on the tax payer tax return. I took a look at the IRS instructions and I cannot seem to find a solution, can someone assist me on reporting it (I get an error if I put all zeros). Thanks
  11. Look into zoom for your office needs, you can have a office line on your current smart phone, the ring tone is different so there is no way you can confuse the calls. FYI your current office phone can be ported to zoom.
  12. This used to work in the past, not no more.
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