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ILLMAS

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Everything posted by ILLMAS

  1. Not In NY but I have had two clients recently handled back sales taxes themselves for IL, both are on payment plans.
  2. How I listed in the scenario is exactly as it appears on the bill of sale, the widgets just has that note. I am representing the buyer and the prior preparer did not prepare the form, I am redoing the books for the prior tax year since the client records needs major cleanup.
  3. Scenario TP bought an established business for $10K, bill of sale states the following: Widgets $25K estimated retail value of inventory Furniture & Equipment $10K Total sales price $10K So the TP paid $10K for a business that is worth $35K, how does one account for the $25K? Thanks
  4. Funny how people who receive more usually don't complain.
  5. How can a person be dead according to the IRS but everything is fine with SSA and was billed for a paper return the TP submitted? And they were able to open a id.me account too. Potential client wanted for me to resolve the issue but didn't like my price.
  6. Send your client one of many IRS vs real estate professionals cases
  7. Our state revamp their computer system back in 2008 or 2009 and people were receiving tax bills from the 90’s. They received so much backlash they had to waive penalties and interest.
  8. 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?
  9. 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
  10. 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
  11. What happens if the operating agreement allows for uneven distributions?
  12. Can you just elect not to populate the BS if under the threshold?
  13. 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).
  14. 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.
  15. 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?
  16. Thanks, but I would still need to enter the monthly amounts correct?
  17. 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
  18. 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.
  19. This used to work in the past, not no more.
  20. TP that no longer qualified (income went up in 2020 and 2021) for PTC, but kept the insurance for a couple months in 2021 since they were turning 65 and would be applying for Medicare. Proseries; form 8962 is giving a error that columns B and C cannot be zero, form 1095-A has info only on column A, anyone know a workaround? Thanks
  21. Last year I amended a return for a TP that wanted to include their son, I just realized I did not change the filing status from single to head of household, can I amend again to change the filing status? Son is an adult (in their 30's), TP provides all the support and son lives with TP. Thanks
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