Roberts

To make an election (after the first year), you may file the election at any point from the first day of your preceding tax year up to two months and 15 days after the start of the applicable tax year. 2022 is the first year you could elect to be an 1120-s IMO. Why do you think they'd be better off as an s-corp?

A chromebook and a laptop are not the same thing.

With my laptop I have a 23" monitor connected, via USB I have a hub splitter to add a wireless mouse, keyboard and numeric pad (each uses a USB dongle instead of using straight bluetooth). My laptop screen is my secondary screen. The laptop is locked in my desk if I'm not taking it home so somebody can't just walk off with it. I went with laptops about 18 or 19 years ago. Can't imagine going back.

I just made a list of all the programs I have on this computer that I'd need to download. 23 programs. The biggest thing was that I printed off the server instructions for my email. Every time I have to install that - it takes me a few hours to figure it all out. Why did I never print it out before?

I do these things myself and just thinking about it overwhelms me a little. Maybe I should make a list. Data files I have everything backed up in real time on two other laptops and every other Friday I back them up on a USB drive.

Thanks for the heads up! Done.

Isn't an HVAC / heat pump considered 27.5 years depreciation?

MFS makes good sense. I know he set his business up as an S-corp and she wasn't an owner. Innocent Spouse time limits are essentially limited to collection timelines. They voided the 2 year rule several years ago. I'll probably skip telling him about MFS - not my business. Whoever turned him in has likely already done a whistle blower with the IRS.

I'm not really sure how many times I need to say he's not a tax client.

Oh he has an attorney and I haven't been hired. I'm just wondering.

This is a first for us. He was indicted, arrested and I'm confident he will be going to federal prison (he tried to explain to me that it will "only" be 5-10 years). He paid illegal kickbacks which he took as a business deduction so once the courts declare those payments illegal, will the IRS automatically audit him? He'll owe about $8m (I'm guessing) and has assets of about $4m which is mostly in retirement accounts which will trigger another tax bill he can't pay. Even if they lowered his amount owed to $3m, he'll owe $750k+ in taxes on any audit. Other question! I've never done an innocent spouse case, would that apply to his retirement plan early withdrawals to pay his fines that are now taxable? 75% of his assets are in retirement accounts so when he is forced to withdraw it to pay his restitution, that's now taxable. Does innocent spouse get her a way to avoid it? I'm thinking that wouldn't apply and she'd be on the hook. (I think innocent spouse would avoid the audit trigger mentioned above but maybe not the retirement plan distributions?) He's barely a client so I didn't do his taxes.

You can refill laser printer cartridges also. That's what everyone buys when they buy refurbished - $13 per cartridge for me because I don't want the mess. Your printer does 15ppm, my cheap laser does 30ppm. For client presentations, laser will look far more crisp than inkjet and if they set a soda on the page, it's all a big fuzzy mess that can't be read.

Get laser and make sure it has generic refilled cartridges online to buy. IMO Brother is an excellent brand and can be had very cheaply. They are all very similar. If you want to go ultra fast, you'll pay for that and HP is probably the way to go. I just purchased a mobile printer / scanner for a few clients I service on-site.

Completely unrelated but interesting case: https://www.propublica.org/article/lord-of-the-roths-how-tech-mogul-peter-thiel-turned-a-retirement-account-for-the-middle-class-into-a-5-billion-dollar-tax-free-piggy-bank Summary: Guy who founds Paypal (before it went public) is given stock with an ultra low cost basis as part of his salary contract. The cost basis is deemed $1,700 so he puts the shares into his Roth IRA. The company goes public shortly after that and those shares are worth well over $100m. He does this multiple times with different companies and his Roth IRA is now worth $5 Billion which he'll never pay $1 in tax on if he holds off on withdrawing. Yes it's all strictly prohibited but the IRS never audited him. You would think a $1,700 Roth value going up 9 figures in one year might draw an audit flag. First, he was a principal in the company so that's a violation. Second, he contributed stock and not cash which is prohibited. Third he valued the shares at far below market value and the IPO disclosures of the firm outline they were below market value.

Client had a significant refund which we applied to next year. Client gets a letter stating part of it was taken and paid to the state for an outstanding tax bill from 2019. I know there was no tax due. Spent WAY too much time trying to figure it all out. Client gets mad that I haven't done enough. State hangs up on my 3-4x and one lady informs me they didn't pay estimated taxes we claimed (the estimated tax is paid by her IRA so we know it was paid). Check comes from the state for the amount the IRS gave them with no explanation. When I ask the state again they finally admit there was no outstanding balance and no clue why the IRS sent them the money. Rep can't explain why I was lied to repeatedly.