ILLMAS

19 minutes ago, cbslee said:

What does the Penalty Letter say?

Civil Penalty for 2019 but makes no reference to any forms.

Client received a hefty penalty for payroll/1099 related forms for 2019, I called the IRS and the agent mentioned that she does not see specifically on what is being charged.  She mentioned it could be when 941’s don’t match W2’s etc…, but we are not convinced since everything was filed and we are thinking the problem might be coming from the 1099s.  Back in 2021 one of their independent contractors was not getting credit for federal withholding on a 1099 and my client asked if I can assist them with the issue because they wanted to keep the business relationship, with POA I called and found out the IRS had no records of the 1099.  Then I found out the IRS never received 2019 and 2020 1099’s for the main client, at that time we believed the IRS had not yet processed them because of the pandemic back log of returns and forms, so we resubmit them.  Just curious if someone else has encountered this?  

TP graduated college in May 2022

1098-T as follows:

Box 1 26,000
Scholarships 20,000

TP only paid $4000 out of pocket, TP qualifies for AOC on the $4K.

TP in July starts a fellowship (non education related) and earns $20,000 and receives a 1099NEC.

In the past the $20,000 would go on 1040 line 1 SCH, but now it should appear Sch 1 line r.

My question is do I have to mix the 1098-T with the 1099 to show the $20,000 on line r and the TP loses the AOC credit for the $4,000?  

Thanks

Some tax preparers are using something called ChatGPT to help them write professional emails or text responses.  

I do have a client that needs to use the most current desktop subscription version because they process payroll via QB, but if a company doesn't run payroll, pre 2021 desktop version should still work.  FYI the subscription version is exactly as the desktop version and I don't think it's cloud based.  There are third party companies that run the desktop version on a cloud.

Here is a good read, our office currently working with a specialist on nexus and it’s very interesting how some states are coming after business:

https://answerconnect.cch.com/topic/b43988327c6c1000a1f2d8d385ad169407/income-tax-nexus#:~:text=States cannot just impose income,physical presence is not needed.

Most likely the extension will not accepted as an 1120S, I recommend paper filing the extension.

Ask to speak to their manager, think of it as a second opinion.

Look up source of income for online sales.

If a TP is barely filing their 2017 and 2018, 2017 has a balance due and 2018 has a refund large enough to cover the 2017 tax liability, would the IRS offset each other by any chance?   I am aware the statue of limitation expired for 2018 for a refund.

Please add my fee to your fees for reading this and as the young whipper snappers say now a days, have TT help you.

Someone shared this information in another group I participate, they added a note on line 17, Sch K - Other Items.  

It should apply to both.

See pages 13-15 for example:  https://www.irs.gov/pub/irs-utl/2018ntf-pros-and-cons-of-full-expensing-and-section-179.pdf

Good question, I have a client that reimburses the full amount when volunteering directly for events, passing out flyers, surveys etc….

Can someone guide me to the right publication or point me to a good source?  Zero activity corporation had a loan forgiven and in 202X it will be the only reportable non business related income on the tax return.  I am trying to determine if the available NOL can be used against the COD.

Thanks

Can one use form 9465 to setup a payment plan for an 1120?  My first time creating one for a business.

Thanks

Has anybody ever encountered a situation like this?  Agent is requesting book vs tax reconciliation work paper from the tax preparer when the only reconciling item is depreciation.  The financials used to prepare the tax return is a mirror copy of tax return.  

Have you called ATX for technical support by any chance?

Imagine if employers pushed to be allowed to give negative references to equal the playing field.  

If one already have 10 Pro and want to upgrade to 11 Pro for free, do you automatically get the Pro version?

58 minutes ago, schirallicpa said:

I have purchased a new pc.  

I downloaded ATX 2021 from the website.

I exported my clients from my old PC

I imported my clients to the new PC.

I have no assets in my returns.

I am very grumpy now.

As much as people complain about apple, apple upgrades to new devices is so much easier.  I've been frogging around all morning.

 

 

Contact ATX, you should be okay.

If you want to see something scary try this, with your smartphone being closed, the say any of the following words:

Thinning hair

cellulitis 

receding hairline

Then open Facebook and you’ll  start seeing ads for hair transplant, cosmetic surgery etc..

Exactly, I prepared the prior year but the TP did not have Health insurance via the exchange. 

2 minutes ago, kathyc2 said:

If one of the spouses qualifies as HOH you don't need to worry about the domestic abuse exception.  I would just use the normal due diligence for HOH. 

Sorry it's MFS, not HOH.