BulldogTom

Oil rich areas West Texas and Eastern New Mexico. Northwestern Nevada is barren north of Reno (pretty, but not very populated) and except for weed growers, I don't know who is getting rich up there. Wyoming has some cattle and the price of beef is high right now, but ranching does not normally produce consistent high income (because they always need new trucks!). Curious indeed. Tom Longview, TX

EAs left out? Not surprised, most politicians can't spell EA, let alone describe our licensure. Tom Longview, TX

What is the reason for wanting to change the tax structure? Strictly tax savings? SEHI Deduction is the same as SP or S Corp. Tax Rates don't change. Is she looking to manipulate by paying a low salary and taking large distributions? Lots of people think that is how to beat the SE tax. Tom Longview, TX

I made my own as well. Took it from the IRS prototype, changed it to meet my needs, and then made my employee/spouse read and sign it. Scanned copy in the folder somewhere - Where did I put that? Oh well, like all the 8879s that I sign that the IRS has never asked to see, I am sure I could do a search of my documents and find it if I need to. Tom Longview, TX

No Cash Receipts. Everything on a 1099NEC. Contracted with a local govt agency to provide after school care. Profits did not justify the effort, so they did not renew the contract and closed the business mid-year. I am not worried about the audit. What I thought was most interesting is the wording of the letter. "If we do not receive a response, we will not process your return." Since when does the IRS have the choice to "not process" a timely filed return? I understand they can audit, they can delay the payment of refund while under examination, etc. But to flat out say they will not process the return because they want more info blows my mind. BTW - we got the response to the client today and they are uploading to the new portal thingy the IRS rolled out a while ago. I am interested to see how this works out, if it actually gets what they want to who wants it via their upload tool. Tom Longview, TX

Cattle prices are up right now. This may be less of an issue until the prices come down. But on the other hand, feed and fertilizer are up as well. Tom Longview, TX

Client got a letter from the IRS that needs to be responded to in 20 days. The letter is dated 4/7/2024. I got the letter today.... The letter asks for "Any Supporting Documents Verifying Income". The client has a Sch. C with 500K of gross income and a loss on the bottom line. At least I did not get it after it was too late to respond. I am blessed that my clients are so thoughtful. 20 days to respond, 20 weeks to get a response back. Anyone taking the under on getting a response before 20 weeks? Tom Longview, TX

@mcb39I am with @Abby Normal on this. You are doing way too much work. I have extensions every year and I have no issue with efiling the extension and then working on the return and when I have everything, efiling the return. Something is not working for you the way ATX works for me...... Tom Longview, TX

^^^^^^ What @GLGACCT said. Double check that your efile manager does not show a rejection for the extension. If it does, call support. If not, you are good and the error is just telling you that you revised the return and saved it when you have an accepted efile. Tom Longview, TX

Wow that is weird. Not sure what to say. All my CA returns filed on the 14th and 15th were Ack'd by the end of the day on the 15th. Tom Longview, TX

If you think the client is lying, then by all means you should decline. That is your call not mine. I don't think a behemoth of a truck is preposterous for a ranch. 2 tons of feed in a trailer going up hill....on the freeway....at 70 mph. It takes a truck. A man sized, full power, get through the mud truck. I just wish we could plug in an app like the insurance companies do and at the end of they year it would spit out a mileage log so we don't have to guess where it was parked and driven. Maybe the next Acting Commissioner (fifth, sixth...I lost count) can make a rule that they have to have that device to get a mileage deduction... how cool would that be? Pipe dreaming Tom Longview, TX

I think she is saying they got the credit 10 years ago and stopped making the annual payment on their tax returns and now want to pay what they owe. @Catherine is asking if the 5405 is still a valid form for this and if there is a penalty or interest that needs to be calculated when they pay back the remaining balance due. The following commentary is about why the IRS did not follow up after all this time if they missed the repayment. At least that is how I read the OP. Tom Longview, TX

They started slowing down on Monday. Seems to be slow but all eventually ack'd. Tom Longview, TX

much easier. Thanks Tom Longview, TX

Yeah, I know it is April 14th, don't hate me, just ignore if you are up to your eyeballs right now. I have this client who wants to maximize his retirement contributions. Successful business, just him, net income always in the 200K plus range. Says his retirement provider will not allow him to make contributions after the end of the year (I have no idea why). So I made him a SEP Calculator a couple years ago. Worked great. Now he is switching to a Solo 401K and wants another calculator. So I just made one. Only 2 entries needed - Income from Sch C and Employee Contributions (highlighted cells). Anyone want to try and break this thing and tell me why it doesn't work? Thanks in Advance. Tom Longview, TX Solo 401K limit calculator.xlsx