BulldogTom

Be careful that your client is not getting into a partnership with their renter. If they are sharing income and expenses, it sounds a lot like your client is putting in land and the "renter" is putting in labor to produce a crop that each will then share the profits from. That looks a lot like a partnership. If that is what they are wanting to do, that is fine, but there are tax/legal implications to consider. Tom Longview, TX

The estate should have an appraised value for the property at DOD, and if you are lucky, it will break out the land from the improvements. If the estate did not do an appraisal, or if they did but did not break out the irrigation improvements, then it would be best practice for your clients to have an appraisal done when they get the property. If they have to get an appraisal done, it would be a good idea to show the appraiser the valuation at DOD so everything matches up. I believe the irrigation improvements will be 15 year property, but watch for anything that can be segregated out that is less than 15 year property. There may not be any, but you could potentially accelerate some of the assets if they are a different class. Tom Longview, TX

Another Random Thought....these fractional CFO companies may have to be included on the reports as CFO's are explicitly included in the section on persons having significant control over the company. And the "catch all" provision states that the work you do is determinative of the requirements for reporting, not the title. So a CFO cannot have their title changed to "Finance Manager" just to escape the reporting requirements. I wonder when FinCEN is going to start auditing the reports, if they ever do? Tom Longview, TX

I agree that the plain reading of the guide seems to exclude C&Fs. It appears that the trigger for most of our clients is a formation document filed with the SOS of the state in which they are formed. Just a random thought, companies that form after 1/1/24 have to include the "applicant". Lawyers and Public Accounting Firms who set up these entities are going to have to be included on the report as the "applicant"? But Law Firms and Public Accounting Firms are exempted from the reporting requirements. I wonder how that is going to play out? Tom Longview, TX

I downloaded the guide and it is pretty well written for a government document. Cleared a lot of my questions up. Notice that there is a "Catch All" for each class of reportable persons...very slippery when a $500 per day penalty is on the line. I sent a .pdf copy to all my clients who have LLCs, Corps & Partnerships. Told them I can't do the reporting for them but as a courtesy I was providing the guide to let them know about their requirements. Tom Longview, TX

Love that song. Tom Longview, TX

Wow....they finally put their foot down. I applaud them. Wait for the news to find 2 or 3 people who are legitimately claiming the credit and now have to wait months to get the funds. They will start crying on TV that their business will be shut down if they don't get the money and in an election year, no politician wants voters crying on TV that their business is closing because of the IRS. Just my cynical take on the situation. Tom Longview, TX

Smokey and the Bandit? Tom Longview, TX

I don't think so. It is not listed in the instructions for the form for types of income to include in investment income. Tom Longview, TX

I remember something about them, but I am not going to show my ignorance by telling you what I think I know. Can someone explain to me in 4-5 sentences what a QSUB is and how it is taxed and its relationship to the parent and the parent's taxation. I plan to read up on this when I get some time, but I don't have a lot of time right now. Thanks Tom Longview, TX

Catherine, I think the TP would have CA source income and required to file a 540NR. Where are you showing him domiciled during that period? You may be able to wipe a big portion of the income from CA because if he was "traveling for business at a temporary worksite" and returned to his domicile, he can take, for CA purposes, the unreimbursed travel expenses (Air BnB, meals, transportation, etc). CA never conformed to the 2017 tax law changes related to unreimbursed employee expenses. Take a look at how he was paid. If any portion was considered a scholarship, it would be excluded to the extent of tuition, fees and materials. Tom Longview, TX

Make sure to keep your eyes down or you will look right over the top of her...... Love ya @Catherine but you are short! Tom Longview, TX

I am just the opposite, I have noticed in the last month fewer spam robocalls. Less than a dozen in the last month....used to be a couple a day every day. But the election season is coming up so it will be ramping up again. Tom Longview, TX

That is what I am thinking. I can export to excel, combine duplicates and import into something that will prepare the 1099s from a .csv file. I found something online called Track1099 by Avalara that seems like it will do the trick. $2.99 per form for the first 15, $2.19 for the next 150 forms. All versions of 1099s. I just watched their promo video on how to do the import. Seems straightforward enough. Anyone ever use this Avalara product? Tom Longview, TX

I know. But that ain't what happened. At least I am not dealing with this in January..... Tom Longview, TX

Long story, not enough space to tell the whole thing. This is just 1 of the headaches. Taxpayer has split his business into 2 separate companies in QBO, but they are still actually both 1 company under 1 EIN. They have common Subcontractors. To file their 1099s, they will need to export the data from both QBO copies, combine, and import into a 1099 software package to print and efile the forms. Any recommendations for a package that will allow upload of a .csv or excel spreadsheet so the staff does not have to enter each payee individually? Thanks in advance. Tom Longview, TX

@Sara EA that comment was made with a lot of sarcasm, I was taking a jab at cbslee. You have to go to the other thread where he was defending the IRS for backdating material to get what I was doing on this thread. To his credit, he apologized for the comments on the other thread. Tom Longview, TX

Don't you find it troubling that one little mistake by HRB is being used as a broad brush to paint the entire company? I would think you wouldn't appreciate that. Or is it only the IRS that gets a pass from you when they do unethical things? Tom Longview, TX

cbslee is easily offended when you question the ethics of the IRS, but if they ever have a data breach, he will be posting about it for weeks. Tom Longview, TX

I consider myself a Management Accountant. I love putting processes and procedures into place so the owners and management get their KPIs reported timely and accurately so they can be acted upon before there no chance to change the operational outcome. The GAAP and Tax Reporting are important, but profits and cash flow rule the business world. Tom Longview, TX

Back in the day, when the PPL was fully staffed, I used to get great service from the IRS employees. They would listen, tell you what they could and could not due, and what the next steps would be to resolve the taxpayer's issue. Many times, they would be able to take a faxed document and close the issue over the phone. It has been a minute since that happened.... Tom Longview, TX

What a sad state of affairs when a government employee doing their job is something we take notice of because it is so unusual... Tom Longview, TX

Did you have to register or go through IDme to do the upload? Tom Longview, TX

@jklcpa No, I don't think I have to make an adjustment for what did not happen just because it could have. If I did, I would have to recompute every return between 2008 and 2021 to determine the tax effect and bring every one of those adjustments into 2022. I don't think the Rev Procedures and Regulations prescribe that intense of an analysis. I think the intent is to take the adjustment for the item in a vacuum in the year you file the 3115. Anyone disagree? I am not sure, but I hope I am right because I don't have enough summer left to complete this return if I have to re-do every return. Tom Longview, TX

Yeah, I keep getting this nagging feeling that I need to see the detail for every return from 2008.... Tom Longview, TX