ILLMAS

I have a potential new client that formed a corporation but those not live in the US nor has a SSN or ITIN, if I were to prepare an SS4 as a third party agent, it requires to input a SSN, if I were to use mine, is there any exposure? Thanks

US person can apply for an ITIN for the spouse and file MFS at the same time, see form W-7.

They’ll come back knocking at the door for help when they start receiving notices, I was once told by a former client that I charged too much and he was going to prepare them himself, I said fine, no problem. He did call me, however I was under extreme pressure during that time I was not able to assist him with the notice he received.

Let's say XYZ is a startup company and you are consultant working a project, you invoice them $10K, and they come back and say, we are startup company and really don't have all the money to pay you, however we can pay you $500 now and give you 1,900 shares of stock at $5 (=$9,500) in XYZ. After they break you down, you say yes, whatever, and take the $9,500 worth of stock and expect to become a millionaire soon. Now, my question is, should XYZ issue a 1099 for $500 or $10,000? Thanks

Where I can find "Other Items" worksheet on the K-1 for QBI entry? , there is a note on the bottom of the K-1 worksheet however I cannot find it. Thanks

Too bad I cannot find the phone number for the Jerry Spring or Maury Povich Show to give to your client.

I am going to recommend this webinar on 199a: https://on-demand.compasstaxeducators.com/courses/sec-199a-with-final-regulations Here is what it covers and I believe you get access to Q&A recording from the live webinar. • Calculate the Sec:on 199A deduc:on for taxpayers below the taxable income thresholds. • Calculate the Sec:on 199A deduc:on for taxpayers above the taxable income thresholds. • Understand the key rules and defini:ons as outlined in the final regula:ons and how they differ from the proposed regula:ons, if applicable. • Apply the Sec:on 199A rules to a variety of taxpayer situa:ons to arrive at the correct deduc:on amount. • Understand the tax planning implica:ons of Sec:on 199A and its final regula:ons.

Just trying to get a feel of what people will be charging for QBI? a. X per hour b. $0 to $25 c. $25 to $50 d. $50 to $100 e. +$100 f. other

You might be on to something, I believe one of my client received a brokerage statement with a .64 cent 1099-Int.

A bank would normally issue a .64 cents 1099-int, it would probably be a good idea to issue one if he indeed paid interest, I would say no if the interest is being accrued and not paid.

Caller: I have a question.... Me: Let’s setup an appointment and I charge $XX, and if you become a client I will credit the payment towards your next invoice. Caller: Let me check my schedule and I will call you back. You know the rest.

Can you even file 1099’s yet? Last week it wasn’t allowing me.

Retype it like this xxx-xx-xxxx Also it sounds like you are using the tax program to create the 1099, you should be using ATX Payroll

“IRS declined to provide any further guidance on when a rental qualifies nor any bright line test - trade or business is still the standard. It specially says it will not reference 469 for 199A purposes. HOWEVER, Notice 2019-07 will provide a SAFE HARBOR: Under the proposed safe harbor, a rental real estate enterprise may be treated as a trade or business for purposes of section 199A if at least 250 hours of services are performed each taxable year with respect to the enterprise. This includes services performed by owners, employees, and independent contractors and time spent on maintenance, repairs, collection of rent, payment of expenses, provision of services to tenants, and efforts to rent the property. however a rental activity can still meet the trade or business test while not meeting the safe harbor.” Anybody know where I can find notice 2019-07?

Everytime I see a TT “a CPA has your back” commercial, I wonder if TT has the inside scope on 199a, I’m giving people the run around because I am unsure myself. “The only thing that I know, is that I know nothing”

Its odd how we have a love hate towards the IRS, we disliked them when we are on hold for up to an hour or more, or when nothing is resolved, or when you really need to talk to someone but they are closed because its a federal holiday etc... Now we really need them because it might have an impact on our revenue etc.

Quick question, I will be amending an 1120S K-1, the TP now wants for the K-1 to be issued to the trust instead of the estate, should the new K-1 have the amended K-1 checked off also? In other words, the ownership changed from 100% Estate to 100% Trust, now 0% Estate and 100% Trust both have K-1 amended checked off, just want to make sure that is correct, it's been many years since I amended a business tax return. Thanks

TP can apply for an ITIN for the wife in the mean time, see form W-7/instruction for more information.

I will just submit it once it opens.

As far as I know, you cannot efile* W-2's using ATX, only 1099's which is not available yet. You can create them in ATX, then convert them to .ASC files to upload into the social security admin. website, which require for you to register first. *Using ATX for W3/W2s does not allow you to efile them like you would a 1099, 1040 etc.... It's a different process, if you create a W3/W2 in ATX, first you need to obtain an user ID from the social security administration, once you are registered and have that number, you can go ahead and create the W3/W2s in ATX, you will click on efile, then the file will be converted into a format approved by the SSA. Finally, you will login into SSA business service online, upload the .asc format, print out your confirmation and that's it, you will only use ATX to create and print the forms. Hope this helps.

W-2's can be submitted via SSA already.

"I think it is a risky position to take. I think I will lay it out for my clients and allow them to make the choice. " Show them this before they decide: https://www.law.cornell.edu/uscode/text/26/6662 And include this if they want to take the risk: https://www.irs.gov/pub/irs-pdf/f8275r.pdf

How are you going to handle your S-corp clients that don't take a reasonable compensation or don't pay themselves for QBI purposes? I worked out three scenario: Single, Taxable income $150,000, 0 unadjusted, non-SSB Scenario 1 W-2 wages from S-corp: $50,000 K-1 profits: $100,000 QBI $20,000 Scenario 2 W-2 wages from S-corp: $0 K-1 profits: $150,000 QBI $30,000 Scenario 3 W-2 wages from S-corp: $100,000 K-1 profits: $50,000 QBI $10,000 From the three scenario, # 2 will have the best QBI, however we cannot play around with the numbers to see what gives the best result, from what I've been reading, there is a debate as to prepare the return based on what the client brings in, other are suggesting they will be declining returns with zero or unreasonable compensation, other are saying they are going to reduce the K-1 amount by reasonable wages*, and some are saying no wages or reasonable salary, prepare the return but no QBI. *Reasonable wages How much would someone in your field make? How much would you like to get paid for what you do? How much do you expect to receive from SS when you retire?

Someone in another tax forum made a reference to a court case, where a single property counted as a trade or business: https://casetext.com/case/hazard-v-commissioner-of-internal-revenue I read part of it, however it's a court case from the 40's