ILLMAS

Can someone share an engagement sample letter for an IRS audit. Thanks MAS

FYI TP has been referred to an attorney.

For your enjoyment:

I was a teenager back in 1992 and now have read the full story about the coffee lady, but if water boils at 100 degrees, wouldn't the water evaporate at anything above 100? For anyone that drinks coffee, when the coffee pot is on the warmer, is it bubbling?

http://www.cnbc.com/2016/05/02/starbucks-sued-for-filling-cold-drinks-with-too-much-ice.html

I have a TP that is non-resident, he does not live in the U.S. and his entry into the U.S. is for work related. He does own a rental property and declares it on his 1040NR, however he had interest income over $1,500, would he still have to fill out FBAR? I thought when one was a non resident you don't have to disclose your world wide income (including foreign bank accounts)

This story reminds me of the lady who didn't know McDonalds coffee was hot.

Can a husband or wife exclude each other in a will if there is properties involved? For example, Jane with her husband co-owned various rental properties, Jane passes away and in the will Jane leaves everything to her adult children and nothing to the husband.

Please have your mom watch this video: http://www.wrdw.com/home/headlines/12-OYS-Victim-of-tax-ID-theft-scammers-alerted-by-IRS-letter-294908731.html

I don't when was the last time I opened an email from someone I don't know, I have over 1000 emails in my inbox unread, mabye Mr. Chabo has also contacted me.

TP daycare union covers part of her health insurance and issue her a 1099 with the amount of box 7, however it's reported on line 21 as other income. IRS sent her a notice that the amount was non-employee compensation and is subject to SE taxes, can a quick phone resolve this issue?

Has anyone recommended to their client to call themselves and get back to you?

These letters are complimitary of the IRS, if your client was to call the number on the letter they say it was a mistake and that letters are sent out automatically.

Here is the partners capital account info: Beginning capital $-40,000 Capital Contributed during year $100,000 Current year decrease $-20,000 Withdrawal & Distributions $ -5,000 Ending capital $ 35,000 I know if the capital account end in negative it actually positive if I am not mistaking, in this case it's negative.

Thanks, they are going to fax over the k-1, will respond as soon as I get it. MAS

I am helping a fellow tax preparer with an issue she is encountering, her client closed the partnership (final return) and had a loss of $20K, the TP personal income was over $200K, I know the loss is limited to zero if the loss was from passive activity, but in this case it wasn't, the business is a consulting firm. Sorry for the last minute question, I am trying to think would cause for the loss to be limited to $3K only, anyone? Is it because it's a final K-1? Thanks

Happy birthday KC, enjoy your day!!

What happened to your client is so common, I had another client apply, they sent him his insurance card, received a letter stating they hadn't received his payment, sent another payment, a couple of months later same letter, ACA peeps told him they would resolve it, weeks later they drop him Who's fault was it?

TP brought in two 1099's and clearly across the form the it says "THIS FORM IS NOT REQUIRED FOR YOUR 2015 TAXES", but there was some federal withholdings, what part of the forms do I need to account for?

Since last week, I have not been able to open two returns at the same time, didn't have a problem at last year or up to recently, what gives?

LOL, I meant to say in a nut shell for my client to read, I don't want to put them sleep.

Does anyone know where I can find quick summary of how federal withholding make a difference based on the pay cycle? I have TP that gets paid monthly and the withholdings don't appear to be enough to cover TP tax liability at the end of the year, I am thinking it has to due TP gets paid monthly. MAS

TP brought in their documents and I notice their bank applied 2014 contribution to tax year 2015, do you know if it's simple fix for the bank to make the correction back to 2014? MAS

It's probably a hipster thing.

Has anyone else develop some type of sense when you see TP W-2's and right away know they are going to owe?