ILLMAS

I have client that issued a 1099 to an S-Corp to a vendor, the vendor preparer entered the withholdings on line 23a of the 1120S, what is the proper line on entering the backup withholdings on a 1120S (a first for me)?

Thanks

Call the number on the notice and you will be relieved to find out there is no limit of time, I wonder why your client hasn't told you that.

Help, TP is a resident of IN, but goes to school and works in OH (non-resident), how can I get the tax paid to OH to flow into IN (or credited)?

Thanks

I don't dabble in bitcoins but this article came out yesterday:  https://www.bbc.com/news/world-latin-america-57398274

I could see business reporting more income and the government benefiting from it, think of the era before 1099-K's.  Today a business will get a letter, please explain to us why your reported income is less than the 1099-K....   

1 hour ago, Randall said:

I couldn't last thru this 'acting' thing.  But I get the point.  I was wondering what kind of record reporting you could get from Venmo.

And yet people think the actor Rebel Wilson is funny   As far as I know Venmo and other cash apps are untraceable and like bitcoins, give it some time and the IRS would get to it. 

Youtube the following video made by a CPA:  The Problem With Venmo And Your Taxes

I have a client that would like to file their 2020 Sch C jointly (husband and wife business), do I have to split the amounts and report on each on a Sch-C or do I have to click on a box on ATX?

Thanks

^^ Same thing happened to one of my clients, the payroll company transposed the daughters middle two numbers, the IRS sent a letter to the real SS# which in turned called my client and left a threating voicemail.  My client asked me to call the lady and she was accusing my clients daughter of fraud, identity theft and the that local authorities were notified etc...  that we were going hear from her lawyer, once we got to the bottom of it, the payroll company corrected the W-2 and lady was happy it was just an error and not identify theft.

Super weird, but how was it traced back to him if the SS# used doesn't even belong to him?  

“Hispanic illegal with no tax ID of any kind who of course files no taxes likely working for cash.”  I would be more careful, your clients daughter might see this a racial stereotype.

Thanks, one more question, do I have to sum up the decrease in tax per page and put the amount on line 29?

Does anyone here have guidance on filing out the form 1139 for a 5 year carryback?  The current form only has columns for three years and I cannot seem to find an example.

Thanks

On 5/21/2021 at 8:37 PM, Terry D said:

I looked for reviews of the PassKey courses and didn’t really find any. Pricing sounds good but is it comparable or close to Gleim?

I started with Gleim, the review materials are fine, I just thought the chapter and exam questions were confusing and I was bombing every exam, I joined the Facebook EA exam group and someone that was having the same issue as me suggested Passkey.  Unfortunately Passkey was not online back when I used it and I had to buy the exam question book separately for each section, my confidence level went up after I started acing (everything is in paper, so you need grade yourself ) every single exam.  And as I mentioned before, the EA exam questions are identical to Passkey.

Congratulations   

I recommend Passkey, the study questions are almost exact as the EA exam and it’s less expensive.

Has anybody called and asked for it to be waived?

I can decide between Cancun or Puerto Vallarta in July.

16 hours ago, RitaB said:

Yes, that was my first thought, too, and Sch E income can be Qualified Business Income, and that's not earnings for this purpose, so my second thought may just be a rabbit hole.  I'm so tired.  There was a knock on my door 45 seconds after I got home last night, and it was my butt.

This remind me of a song that came out when I was in high school lol  

Thanks, new twist from yesterday.

First year building depreciation, Pro Series depreciated the building for 11.5 months, the $2,000 he wants to add back is for the .5 month.  Did a a quick research and the 11.5 months seems to be correct per IRS pub., his adjustment is now in 2020 to correct the AAA to $33,000.  I still think this is wrong, your take?

thanks

Can someone tell which is the correct retained earnings, I am disagreeing with another accountant:

Depreciation per books $50,000

Depreciation per Tax $48,000

Profit per Books $31,000

Profit per Tax $31,000 + $2,000 (Diff. between books vs tax) = $33,000

Retained earrings per books matches tax return $31,000

M-1

Profit/(loss) per books $31,000 matches my RE

Add difference between books vs tax $2,000

= $33,000

M-2

Ending balance = $31,000 Claims this should be $33,00

The other accountant claims the ending retained earnings should be $33,000 and I say no, it should be $31,000 because the balance sheet is prepared per books not tax, like most I am burnt out and I just want to make sure we don't need to amend 2019 1120S.  I prepared a fake return to show the numbers, he wants to propose an adjustment in 2020 for $2,000 so the retained earnings per tax adds $2,000 to 2020 RE.

I don't know if your client is lucky, but our state has not returned calls for weeks for people who were victims of identify theft.

I know for a W-2, ATX requires for the preparer to enter the SSN the person is using, however the return is filed with the ITIN, I believe it's the same issue he is having.

Marco

I think he is referring to ITIN number.

Play a joke on the agent when the waive the penalty that you are just pennies away from becoming a millionaire, this really to happened to a tax preparer that increased their fees like by $5.  His client complaint that they didn’t pay this fee the prior year and why the increase bla bla.... the preparer said fine you can pay the same as last year, his client in turn said, I am saving as much as I can, I am just pennies away from becoming a millionaire  

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