BulldogTom

You have asked the greatest question in financial planning. I have a Christian financial series that I teach (drawn mostly from Ron Blue and Larry Burkett books) and I always ask the question "How does the story end for you? We all die, what do you want the people at your funeral to say about your life?" So, what do you want to do that work kept you from doing. Is there a cause you wish you had been more involved in? Is there a hobby that you really want to pursue more? Is there a place you want to see or an event you want to experience? When you answer those questions, you can start planning for your post work life. You can start looking at what resources you will have to pursue those opportunities. Good Luck. Tom Longview, TX

Putting the employee vs contractor conversation aside... even though I think it is the most important issue for the mom and son -- For the presentation of the financials to back up the tax return, I would have an expense account for the fuels and insurance costs and an offsetting expense account called reimbursed costs from customer to zero out the amounts. This is what the taxpayer presented, this is what the accounting records should show. I think you open a can of worms when you mess with the 1099NEC and it does not match what was sent to the IRS. Did mom also help pay for the truck? Please say no. Going forward, there are a lot of issues to work out. Hopefully you can get them on the right track. Tom Longview, TX

i got my he's and her's mixed up.....sorry Tom Longview, TX

Why do they go on HER return when they were deposited to an account that he owns? I think you are overthinking this. He received the money, the Fiduciary indicated they were paid to him and issued the 1099Rs to him. The 1099R shows a tax withholding reducing the money that was paid to him. Put it on his return, claim the withholding, and if the IRS questions, show them the 1099R. Tom Longview, TX

Another option is to put a Tax Matters Representative form in front of them and make them designate the TMR. Both must sign. No tax work until the letter is signed by both. Don't get into the middle of their dispute. Tom Longview, TX

I don't think so, as you never borrowed anything from them. I would consider it a refund of prep fees and not send a 1099 at all....unless you are pissed at the client and want to mess with them as they go out the door. JMHO. Tom Longview, TX

You don't have to be stoned to want your commute shortened by having all green lights on your way to work.... Not that I have the skill to do that, but this is one very useful feature of the tool. Tom Longview, TX

Can she afford the tax bill? Does she still have an income? If she can't work and is living off savings, you may be able to get her into currently uncollectible due to severe financial hardship. If she can pay the tax bill, have her pay that but not the penalty, but you need to request the abatement right away. Communication with the IRS is key. Tom Longview, TX

Double check that the Schedule SE has been in her SSN. Other than that I don't think it is an issue. Tom Longview, TX

A "you-all" is a trailer Californians haul their stuff to Texas and Florida in. Y'all is how you spell and say the word ..... Look at me, a Texan for less than 2 years and schoolin' y'all on y'all's grammer. Tom Longview, TX

All states, individual and business including payroll with unlimited e-file. Getting price increases every year. Still not terrible for the product you get. Customer Support ain't what it used to be, but compared to other industries it is on par or slightly better, just not as sharp, attentive or quick as the team from Caribou used to be. Tom Longview, TX

There are so many variables that conversion decisions are just speculative in my opinion. There are some circumstances when it makes a lot of sense (i.e. one off business loss that drives income negative, so you have room to covert for free) but if you are looking at a linear income stream, you are just making educated guesses about tax rates, inflation rates and investment growth rates. Any of these items can make the best thought out projection look silly a couple of years from now. Tom Longview, TX

Back 20 years ago when we had competent IRS processing agents and an effective PPL, I would have agreed with you. I would rather get a Notice of Deficiency and file a tax court petition than to send in a tax form that I don't want them to process... Tom Longview, TX

Isn't there a spot on the response form for "agree in part"? What I would do if it was my client is prepare the X to calculate the amount due. Send in the amount you calculated with the response form and an explanation of what you calculated. Don't send in the X as it will cross paths with collections. You may have to wait for the final assessment to appeal if they don't accept your explanation. Get your POA in as soon as you can (make sure you mark the box to be copied on correspondence) and attach the signed copy of it to your response form when you send it in. Others may disagree with this approach, but I think it is quicker than mucking up the works with an X. They are waiting for a response, not an amended return. Tom Longview, TX

@GLGACCT If I could bother you for one more question? How do I show the amount paid with the originally filed return. I keep going in circles in my mind on how to make that happen (I know, small mind, small circles). Thanks for your help. It is very much appreciated. Tom Longview, TX

It will be interesting to see if Intuit can filter out the creative garbage that our CLIENTS create so we can get useful information from QB..... Tom Longview, TX

Thank you! Paper file or try to e-file? Tom Longview, TX

We made a Boo-Boo on our client's NJ Non-Resident return for 2021 and just discovered the mistake when we were filing the 2022 return. Can anyone give me a few tips on Amending? Looks like I have to use a NJ 1040X as I don't see an NR that I can amend. Can I e-file it or is it better to mail in with the attachments? Client is a CA resident who has an interest in a partnership from NJ. We made an error on the NJ K-1 entry screen. Thanks in advance. Tom Longview, TX

I noticed that as well. You have to manually check the input form for the interest rate. I have found in many cases the software has not updated the current quarter. Tom Longview, TX

Out of state preparer penalties will also be low hanging fruit for the FTB. You must know all the CA rules, including those that apply to you. Adding penalties to the tax bill of out of state accountants (who don't vote in CA) may make the collections worth the effort. Tom Longview, TX

Could it be because ATX efile is down for maintenance this weekend? Or are you getting the error when you try to create the efile? Tom Longview, TX

It is a $9.99 power strip. Gives me 6 outlets for my 10 key, computer speakers, etc. The non-essential stuff that I don't plug into the battery backup. Thanks for the info. Makes sense that I need a converter, just never thought it through. Tom Longview, TX

Interesting. I have a Dell laptop and when I plug the computer in to a surge protector, I get a warning about my power supply. When I plug into the wall outlet, there is no warning. I wonder if there is some kind of surge protection built into our power cords and when you put a second surge protector on it it messes with the current. (I never understood why I needed that black box on the cord). Just a tech ignorant accountant talking out loud. Tom Longview, TX

https://go.spidell.com/e/837113/ellpublishing-SCM-05-14-23-mp3/5v69lx/1493174511?h=Uz1dPLaqv038i0ytdEaOrGEVqizKc5zWaPMIrY6Ucy4 Not sure if I did this link correctly. Towards the end of this 5 minute audio, an accountant was held to owe penalties for failure to know the CA requirements. FTB is looking at the 1099s from clients to their Sole Proprietor accountants in other states to see if they are filing NR returns. Tom Longview, TX

We called it "ticked and tied". Everything that tied out to the source documents was tick marked on the trial balance. Tom Longview, TX