ILLMAS

"I found the authority in the regs several years ago." Thanks good, to know. TP will be issuing a new check to the state and have the IRS apply the credit to his 2014 tax return. MAS

IRS cashes check payable to the Illinois Department of Revenue, how does this happen? Short-story: TP mixed up mailing envelopes and sent the IRS payment to the state of IL, the state payment to the IRS. The state called the TP to let them know of the error, they even mailed out the checks to the IRS, but the IRS cashed the IL checks.

Good point, I will reread the letter, maybe that is the cause. thanks

I am helping out a fellow accountant respond to a notice one of her clients received, here is the issue, her client received a notice from the state of NM stating that the TP failed to report a 1099 for $15K for 2012. However when I take a look at the federal return the net profit ($12K) of the $15K is reported on the federal tax return and is reflected on the AGI which flows to NM. The notice simply states you didn't report the $15K and here is your tax, both her and I feel this is a mistake, anyone that has experience in NM chime in? Thanks MAS

Me neither, I would not sweat it. I have seen a few 1099s and 1099r notices only.

TP closed his used car dealer due to lack of sales, part of the inventory was sold for scrap metal and another portion was given up as as loan repayment to a family member. Truthfully nothing is in writing as in regards to the loans, TP was happy to close the business and pass the remaining inventory to a family member. The loans do appear on the books, but the loan balance is greater then the cars given up, currently the loans are $150K and estimated value of the cars is $40K. Family member is going to lose close to $110K, which he loan from his construction business. This sounds like a bad soap opera, but it is what it is. TP family construction business is now out of $110K, it's a long shot, but can the construction company who made the loans directly to the car dealer take a loss on the uncollected loan? Thanks MAS

http://www.irs.gov/pub/irs-utl/VTA_2011-08_Cash_for_Keys_Program.pdf

http://apps.irs.gov/app/vita/content/15/15_02_010.jsp?level=basic

FYI No Estate in this case

I was caught off guard with the following scenario: TP mother became ill, a week before her passing, all the son/daughter(s) and through an attorney removed the mother from the deed from 5 properties she owned and includes the 5 siblings to co-own each property. To me this doesn't sound like an inheritance, it's more like a gift. Do you think they did the right thing or will this cause a tax consequence for each sibling? Thanks MAS

A $308K payment bounced.

Has anyone been successful for a penalty abatement for a non-sufficient fund penalty from the IRS? My associate client failed to transfer the money and didn't realize it until the IRS notice came in, the penalty is close to $7K MAS

I double checked the notice and they did receive form 1095-A, but not the 1040 or form 8962. I tried calling the number on the notice and after about an hour on hold the called just dropped

I have never seen or heard of a tanning bed model, but its never too late.

My client received a notice that he did not file his 2014 return and they need form 8962 to reconcile it to form 1095-A, did anyone else client received this notice? I doubled checked and the form was included and it was efiled and accepted back in April 2015.

Thanks, this was my fear.

Let's say a 501(3)c was randomly selected for a compliance audit and does not have some important documents like articles of incorporation (never filed), would this be enough to remove the status?

I have no fb friends

http://www.cnn.com/2015/06/25/politics/supreme-court-ruling-obamacare/index.html

Oy vey, it sounds like TP is in an industry that you need to keep people happy if you want work. TP gave a couple of gifts ranging from $25 to $1,500 and did not provide a 1099, TP is under the microscope for another business he owned a couple of years ago, would it be wise not to deduct the gifts and just pay the tax since he did not comply with the gift requirement? Thanks MAS

He should just buy it and use it if it makes him feel better but I don't think it's ordinary or necessary for a business deduction. But it's a good question.

Client faxed over a CB148B yesterday, no one has requested a change of business address, but I did notice the street name was missing some letters, maybe it was a computer glitch???? I just prepared a 8822-B using what the IRS has on file now as the old mailing address, and used the complete spelling on new address.

TP borrowed close to $225K from his C-corp business, I really see it impossible for the TP to pay it back, TP bought two personal properties with that money, what options would you recommend? 1. Pay it back and pay the corp interest (my first choice) 2. Reclassify the loan as wages to TP 3. Report as dividends (first year the business has had a huge profit) 4. Let the corporation pay income tax on the $225k Or what you recommend to the TP. Thanks MAS

Openoffice is like excel and word, I have used it before.

Thanks, I will download and give it a try. MAS