BulldogTom

8 minutes ago, joanmcq said:

I rolled over last quarter's 941 but hadn't checked the box saying last quarter was complete.  So when I go to efile the new quarter, I get a error message saying that  'efiling is not available for any of the forms included in this return'.  I check the Knowledge Base and it says I'm getting the message because I didn't check the ' complete' box.  So I check the box.  Still won't efile.  Delete the return and roll it over again.  It won't efile.  Create a brand new return.  It won't efile.  does any one have any ideas before I stick the return in the mail?

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 

1 hour ago, Medlin Software, Dennis said:

 a power strip for "$9.99" (if that is the case).

The power "wart".  It is generally an AC/DC converter, going from AC to what seems now to usually be 19v DC. 

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

On 5/16/2023 at 8:05 PM, mcb39 said:

I was plugged into a surge protector.

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

1 hour ago, Randall said:

We called it 'ticking and checking'.

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

Tom
Longview, TX

You may be able to call a new vendor who is approved by VA, ask them to give you a deal on 2022 software so you can evaluate it and send these returns.   They may even have a conversion tool that will bring all your ATX files into their software.   Most sales people would love to get another sale on software that is not really in demand anymore.   I am assuming you have about 3 months to get all of this completed and while it is not ideal, you do have time to check out  what may become your new software product.

This really sucks - I would drop ATX and find a new provider if I was in your shoes.

Tom
Longview, TX

48 minutes ago, Randall said:

I began to feel uneasy about the whole auditing function. 

Maybe I'm just old and jaded.  If I sound cynical, that's because I am.

When I was in college I worked for a CPA.   The Audit report said what the client paid for it to say, the higher the fee, the more items were passed on.   As a 3rd year accounting student I could see what was going on.   That is when I found the EA designation and decided the CPA route was not for me.   

Old, Jaded & Cynical.   Sounds like a 80s rock band on their 2023 world tour.

Tom
Longview, TX

45 minutes ago, cbslee said:

Tom, you must have too much time on your hands to thinking about this

The only reason it came up was Spidell sent me an email with a 4 minute primer on the topic.   It is not as in depth as it will be at their update seminars, but it was a good overview of what to expect coming down the pipeline. 

@cbsleeI am thinking about packing for our vacation more than I am thinking about this issue.

Tom
Longview, TX

1 hour ago, jklcpa said:

Thanks @Lion EA.  I can now see why this is being put into effect and that this may be put on tax preparers to file these reports.

Not to derail this topic, but I will say though that as tax preparers, we should not be "forming companies with the Sec of State for [your] clients" as you said.  At least in my state, that would be considered practicing law and also most likely would not be covered under tax preparers' typical malpractice policies.  If anyone here is doing this, you may want to check with your insurance carrier about your current risk exposure.

I agree about forming companies with the SOS.   Not for me to do.   I just ask for the proof of filing, articles, EIN, etc.   

However, since this is an IRS reporting requirement, and we do IRS STUFF with our clients, I think they are going to want us to do the reporting for them, very much like our clients wanted us to do the FINCEN reporting.   Where do we draw the line in what we do for our clients?

Tom
Longview, TX

48 minutes ago, Slippery Pencil said:

The bill says "relationship".  Are you wondering if both spouses have to be listed for a solely owned entity of one spouse?  Or if two siblings have to be listed if their joint ownership exceeds 25%?

Adult child with a minority interest (less than  25%) of the company but the parents own more than 25%....

Tom
Longview, TX

@cbslee  Nope, there is not an IRS form for it.  It will be an online portal (Like FinCen?).   Corporations forming in 2024 must report within 30 days of formation.   Existing corporations must report by 1/1/2025.   Responsible Parties (25% owners and board members) must be listed with current residence address and picture ID uploaded (Like ID.me?).   Any changes to the information must be updated within 30 days of the change.   Penalty for non-compliance is $500 per day.

Tom
Longview, TX

9 minutes ago, Max W said:

I think an amended, or corrected. return is in order - but is should be paper filed with an explanation of what happened, the two 1099-R's and the closing  brokerage stmt.    The pertinent information on the docs should be circled in red with a letter notation ( A, B, C etc) and spelled out in the explanation.

What you want to do is to lay it out so it makes the reviewer's job the easiest possible.

You remind me of the first CPA I worked for.   "Explain it so a 3 year old can understand".

Tom
Longview, TX

I am looking forward to hearing more about this when I do my CPE this year.  I still don't know if a related party is considered to have 25% ownership - anyone know that answer?

Will you be filing these for your Corps?  I plan to stay as far away as possible.   $500 per day penalties is too much liability for me to take on.

Tom
Longview, TX

Fake News or Conspiracy theory alert....I have no proof for what I am about to say.

I would guess that Microsoft knows that a lot of people (like me) do not upgrade their OS, they get a new computer with the new OS pre-loaded.   Could it be that they are trying to get more new computers out there so they can pre-load with Edge and the new AI Bing and add the new AI features to their Office suites?   Also, I have heard they are not selling the Office Suite as a product any more, only as a subscription, so if you are updating your OS and getting a new machine, you would also have to move to their subscription model for Office products?   More recurring revenue to impress Wall Street?

Just me thinking about how I think the mega tech companies are looking to get more and more of our hard earned money.

Tom
Longview, TX

16 hours ago, Acctgirl said:

Am I the only one doing an S-Corp return for a client who made the PTE California payments and now struggling with ATX not having form 3804? Do we have to do this manually? Thanks

I only have a couple of CA S-Corps and Partnerships, and none of them are making the PTET election.  None of my Shareholders or Partners that I don't prepare the entity return have given me anything related to PTET either.   I am sure at some point it will come up.  Can you elaborate on what the issues are with the forms and entry?   I would like to learn from your struggles if you don't mind posting a little about the issues? 

Tom
Longview, TX

Where is she domiciled?   If MA, I would file just to start the statute.  Why put a potential complication out there for her in the future.   

Just my 2 cents.

Tom
Longview, TX

14 minutes ago, Catherine said:

You're way ahead of me, @jasdlm because I haven't a clue what a Section 897 Dividend is and would have to look it up if I ever saw one. Thirty years of doing tax returns and not something I have ever run into.

What Catherine said.   I am waiting for someone to post what the heck that is....just have not had the time or the inclination to look it up myself.

Tom
Longview, TX

3 minutes ago, giogis245 said:

they renovated them completely,    new furances, kitchens, floorings, lighting, paint, bathrooms 

That sounds like improvements, depreciated over 27.5 years for residential rental property.   The post implies that they did the work before they rented out the property, which makes me feel more strongly that is part of the acquisition cost and depreciated over the life of the building.   

Tom
Longview, TX

7 hours ago, joanmcq said:

In Atx you can put INHERITED in date acquired field and it forces LT treatment too..

I didn't know that....

Thanks

Tom
Longview, TX

Taxpayer had a tool shed built for his construction business.   Pretty big, but not the size of a garage, more like the size of a shipping container.   100% business use.   I am trying to set it up in fixed assets and I don't know what the life is.   My first reaction was 39 year commercial.   But that seems silly for a 10K building, but it may be correct.   I see 20 year and 15 year options, but I am not sure that is correct.   Any help appreciated.

Tom
Longview, TX

2 hours ago, jklcpa said:

For either case, use "inherited" for date acquired and all of those sales will all be considered long-term.

In ATX, it would actually be "Transaction Type" of "Inherited" that you select to get you the "Long Term" tax treatment.   The date acquired and the date sold will be the actual date you inherited and the date sold.   Transaction type overrides date input in ATX.  

It may be different in Drake or other software.

Tom
Longview, TX

It is not an initial return, we e-filed last year, which was the first year.  The 7004 says it is for tax year 2022.   I have reviewed everything on the form and I can't see anything I have done wrong.   That is why I am thinking it relates to the 8832 issue from 2021, like they are not recognizing the LLC as a corp in the IRS computers.

Tom
Longview, TX

This Corp was established last year.   LLC filing as a C Corp.   Got a letter from the IRS about 2 months ago that the return electronically filed last year could not be processed because the 8832 was not included with initial return.   Had the client re-submit the 8832.   Trying to file the 7004 for 2022 and I get this error that I think is related to the 8832 not being processed yet by the service.

F7004-904-01Federal Extension Form 7004, the tax year ending date ('TaxPeriodEndDt' specified in the Return Header) must match the data in the e-file database unless one of the checkboxes in Line 5b - "Initial Return", "Final Return" or "Consolidated return to be filed" is checked.

Is there some way to fix this?   Client needs to make a 10K estimate payment.   Can I have them mail in the 7004 with a check and hope it all works out by the time I file the return?

Thanks

Tom
Longview, TX

How is it there are six shots left?   Or is that the second bottle?

Tom
Longview, TX

I see it now, depreciation taken over what would be allowed under straight line depreciation.   

Thanks @kathyc2

Tom
Longview, TX