ILLMAS

I remember back in 2005 a new client asked if we offered that protection, because HR Block offered it to them and that they pay any additional tax I have always wondered how that worked for them

Does is it at least have Windows 11?

This the time you tell the client to lawyer up, I would not touch it.

On 10/8/2021 at 11:16 AM, michaelmars said:

If not forgiven in 2020 then its a liability.

as of 12/31/20 yes.

Here is Chris' email: [email protected]  I am sure he willing to help out, very nice and knowledgeable person.

https://chrisbirdseminars.com/about

I attend a tax training every year and the presenter raves about the app coinbase:

https://youtu.be/4-qvFIosxt4

brother HL-L6200dw under $200 last a couple of years only but very inexpensive to replace.

https://www.vallartaeats.com/history-of-the-taco/

It would be nice if the IRS did a similar line like they did for unemployment first $10,200.

What is the contra account for the PPP loan liability forgiven in 2021?

Thanks

How likely would the state of CA waive a penalty?  Thought NOL was enough to cover the tax and that was not the case.

Thanks

IDOR will allow you set up an account for a business or personal, can you make various payments online, I use if for most of my business clients.  It's very simple to register and it's free, the only issue I see, if you schedule a payment for a certain day, it takes up 2-5 days for them to withdrawal the amount, but they still give you credit for the scheduled day.  

https://tenor.com/bcOpx.gif

I just spent an hour writing a letter to the IRS and going to post office for my personal tax return, I would be lying if I'm expecting them to drop everything to adjust my account, but I will cross my fingers. 

FYI - The IRS has not processed all of the 1099s for 2019 yet.  I received a notice that they don’t have any records of my withholding and now I owe a ton One of my client is going through the same, one of their contractors had withholding and they received a notice, called with a POA on behalf of my client and their contractor, IRS has no record of 1099s on file for 2019 and 2020, they were backlogged etc….  So be ready for calls from clients 

IL S-Corp does business in CA, shareholders are considered to be NR, who has to be pay the tax, the shareholders or the business?  

Thanks

Cash basis TP finds heavy duty equipment for his clients, in December 2020 he received a large payment for some equipment, the seller was closed for the holidays and was not able to bill or ship the product until January 2021.  In a normal situation, TP will receive the payment, wires it to the seller (less a commission), arranges for freight and the transaction is completed within a couple of days (independently of how long it will take to ship and arrive); deferred revenue comes to mind, but they are on the cash basis, what do you recommend in this situation?

Thanks

Does your client have any subcontractors?  Most likely its for testing for independent contractor status.

Scenario:  Business stopped operating in 2019 but didn't close until 2021 because they were waiting to collect some outstanding AR's.  

12/31/20

BS

Cash             $20,000

Total Assets $20,000

Common Stock $500

Retained Earnings $19,500

Total Laib. & Equity $20,000

P&L

Sales        $18,000

Expenses $0

Profit       $18,000

12/31/21 will have no activity

Tax return is prepared on the cash basis and the business has a NOL of +30,000 so there is no tax due.  To close out the bank account and distribute the funds,  would it be safe to pay dividends of $19,500 to the owner and $500 of capital gains?  

Thanks

Do you have threshold as to when to carryback a loss for a corporation?  

47 minutes ago, BulldogTom said:

We are well past the statute of limitations on this return.   Why are you looking at this?

Assuming I got this from a client in the current year, I would probably recalc the W2 for correct box 1, 3 & 5 amounts, enter the W2 I just calculated into ATX with the corrected box marked in the W2 entry screen, and e-file that sucker with the letter attached.   At audit I would argue that the letter constitutes a correction to the W2.   It gives me something to stand on to justify the way I filed the return. 

Going any other way means adding adjustments with statements to multiple lines of the return.   Without a correct W2, there is no way they are going to refund the excess SS and medicare withheld.   By correcting the W2, that is the only item affected and only one item to fight with the IRS about.    

JMHO

Tom
Sparks, NV

That was just a sample letter I found online, however it's the exact letter my client received for 2020, since it's considered a government job there is no social security but there is Medicare, and the excludable amount is being taxed for for Medicare.  

I will be around your area next week, taking a brief vacation to Vegas.

Please see link for an exact copy of the letter (not my clients):  https://dqjghx1vau0u.cloudfront.net/uploads/assets/30690/original.pdf?1454507714

Per letter received to be attached to tax return:

The amount identified below as EXCLUDABLE COMPENSATION is in lieu of workmans compensation and is excludable from income as per IRS Technical Advice Memorandum TR 32-153-91.

The form then shows the gross amount of W-2 wages he received while injured, which is included in box 1 of the W-2; it then shows the amount that should be deducted as excludable.

How does one report excludable compensation in ATX?  

Thanks

Update, I was reviewing the paper copy of the return I kept to compare against ATX to make sure I didn't manually remove the $10,200, like magic the return now has the addback of UCE, I prepared the return close to the May 17 deadline.