Lion EA

Or, your client's Congressperson.

Thank you, ladies. And, duh, when all else fails, read the instructions!

I did tell mom and daughter that I want to see her LTC contract to know what's covered (she talked as if it's NOT the per diem coverage, but need to read her contract).

I need a crash course in LTC distributions &/or links to info. I googled and am overwhelmed with the pages of links to insurance companies; I did read the info on IRS.gov which seemed very general. Client w/terminal cancer wants her grown daughter to call me ASAP with a bunch of questions. Daughter is also calling mom's financial advisor. Most topics on daughter's list I can discuss, such as IRA distributions vs capital gain sales from her taxable account.

I have clients making contributions to their LTC insurance, but haven't had anyone take distributions, yet. Taxable? Only earnings taxable? If used for medical expenses, still taxable or not? Form 1099-LTC will be received? Where do I report on tax return? Aren't there 2 kinds, such as per diem vs medical expense reimbursement? Different taxation? Like I say, a crash course/links to get me through this call where LTC distributions is just one of her list of questions. (And, some are for her FA only, such as rebalancing her portfolio.) Then when I hear all her concerns, I'll do more research. Thank you!

https://verifyle.com/Verifyle_8878-8879_compliance.pdf

After reading all that, for one of my biz clients similar to my example, from what I've seen of them in action, I'd say the H&W are but the kids are not. In another one of my biz clients, I'd say all four are. In both cases, I think the one with the ownership interest would disagree with me (for different reasons in each case). So, I really don't want to be involved in these filings. Less and less the more I read. I'm sticking to tax!

What is substantial control? For example, husband owns 80%, wife 20%, adult son 0% but VP of marketing, and high school daughter 0% but VP of finance. Both H & W are the producers of the local TV shows as well as being the on-air talent. Does only husband report? Or, some combination of 2, 3, or all 4? Would it matter if the responsibilities stayed the same, but the "kids" didn't have VP titles? Is there a difference between the kid that's over 18 and the kid that under 18? I guess I have to go read the details at the website!

Thanx, Lynn, for your post. That's what I'll send my clients, with the website in large font, bolded, and highlighted.

How do your clients verify their identity before going to the signature lines in Verifyle?

I use CCH eSign for signatures.

I use FileShare that already included as a part of my CCH SiteBuilder website.

See if your tax software or website or phone provider or other vendor you already pay for has what you need included or as a bundled (i.e. low cost) option.

I'm hoping to find something (hoping to not write something myself) that says Congress passed a Corporate Transparency law that requires certain businesses to report their Business Ownership Information on the FinCEN site. Read more about it here to see if it applies to your business... Something short and sweet that tells them to do it themselves, maybe talk to your lawyer, but this is all I know about that, so do NOT ask me any questions.

I've heard about preparers creating how-to flyers with steps, screen shots, whatever. I do NOT want to do that. 

The gist of the law is WHO are owners, not how to report on FinCEN. And, the WHO is exactly what I do NOT want to be involved in deciding. Knowing which grown kid or minor kid has a hand in your biz isn't any thing I know or have the time to know. It's up to the biz owners to self identify.

I'm decades past retirement age and have no desire to add more work, especially non-tax work.

My E&O (NAEA group policy via Calsurance) said they are NOT covering preparers for this -- at this time. They did say that IF reporting BOI becomes a core service for tax preparers in the course of their biz, that they would consider covering in the future.

From Megan Killian/NAEA: "As of right now, Calsurance will not cover this under their E&O policy, and the consensus has been that most other providers will not be either. However, I suspect that this will change over time once it is more established and it is also demonstrated that this will be a core service offered by many tax and accounting professionals."

I do NOT want to report BOI for my clients. My biggest worry is that clients will forget to notify me of changes in ownership until next tax season, missing the short deadline for reporting changes. And, create new businesses without telling me until next tax season.

I don't think I could charge enough for this. Wresting true ownership info from clients will take time. Penalties are high. I can make money by preparing taxes all year long. Why break my stride to jump out of my tax software over to FinCEN and also spend the year making sure no client has made any ownership changes?! 

I will make sure all my biz clients know about it this summer. I hope to steal a 1-pager from someone who creates a thorough how-to flyer. 

Does she qualify to be a dependent of her parents?

https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent

Both. The property was in Kentucky, so Kentucky wants their tax, probably on a NR Kentucky return. Wisconsin will tax his worldwide income while a resident, so it'll be on a PY Wisconsin return, taking a credit for taxes paid to Kentucky on that same gain from the sale. But, I don't prepare returns for either state, so can't tell you if Kentucky has a NRPY return as one return. Read the instructions on their website. Someone will jump in here who knows about a Kentucky NRPY return.

He is adorable! 

I need pictures! What is a Morkey? What do your cats think about your dog?

Use the LLC. Save the AOC for his 4 most expensive years.

I think it's for post-secondary education only, so I guess that means he has to have completed secondary ed...

Can you personalize each clay pigeon?!

I found it !!! Can't tell how full the bottle is, though (dark under your desk).

But then we're waiting on signatures to direct debit payment  to the IRS, and especially to the states where so many require payment to accept the extension. I've been sending these late ones to DirectPay and their state equivalents. Then they call/email me with questions, but I can go only so far in the states to tell them each step. I'm tired. And, cranky!

You're a natural teacher!

Wait a minute! I don't remember you under your desk with a bottle of whiskey. (Full or empty?) Was that in my handout?!

Is this a DIY project for a tax payer, or does it require an unbiased third-party cost segregator to break out the land from the fences from other land improvements to depreciate? Like getting a qualified appraiser.

Any Form W2-C exist for this employer to this employee, that used along with the W-2 you have would solve the mystery?

Yes, we held Catherine's previews at the NY/CT-ATP September Super Session last year!

Did the employee contribute his full wages to a 401(k) or 457 plan, health/dental/vision insurance, flexible spending accounts, or retirement and tax deferred savings plans? Is that even allowed?! If so, his contribution would NOT appear in Box 1 but would be taxed in Boxes 3-6.

I tell them they can lower the amount if they want, but to write it down on the list I gave them &/or make a copy.

I push DirectPay and the state equivalent, because they get instant confirmation. I tell them to save the confirmation AND to send it to me each time they pay an estimate. That way I have amounts and dates. If I haven't gotten 3 confirmations from a client by December, I remind them and adjust their 4Q amount if needed.

I also strongly suggest the 4Q be paid by 15 December (instead of 15 January the next year) so when they look for all their 2024 expenses, that 4Q shows up as 2024.

If he has a daughter who assists him, you might ask her to use DirectPay and your state equivalent. Instant confirmation.