Lion EA

Corporations also are not good entities to own real estate.

Here's what CCH emailed me 12 April 2023: CCH Software News - Individual, Partnership, Corporation, S Corporation, Fiduciary, Exempt Organization (990-T) (1040/1065/1120/1120S/1041/990) Rejected Returns/Extensions If the IRS rejects any of your returns or extensions, you are given an additional amount of time to correct and resubmit as follows: Individual - A corrected return or extension must be resubmitted no later than midnight (CDT) on Sunday, April 23, 2023, to be considered timely filed. Fiduciary, Corporation, Exempt Organization 990-T (401(a) and Other Trust) - A corrected extension must be submitted no later than midnight (CDT), five calendar days from the date of the original rejection. A corrected return must be retransmitted no later than midnight (CDT), 10 calendar days from the date of the original rejection to be considered timely filed. For Partnership returns, the following states do not conform to the IRS 10-day perfection period based on information received: Connecticut rejected returns and extensions - Connecticut allows five business days to resubmit rejected returns and extensions and obtain approval. Maryland and North Carolina rejected returns - These states allow five calendar days to resubmit rejected returns and obtain approval. New York rejected returns and extensions - New York allows seven calendar days to resubmit rejected returns and extensions and obtain approval. Pennsylvania Form PA-20S/65 and Virginia rejected returns - These states have no defined perfection period. They must be filed and approved by the due date to be considered timely. Tennessee rejected returns and extensions - Tennessee does not have a defined perfection period. They must be filed and approved by the due date to be considered timely. For Corporation and S Corporation returns, the following states do not conform to the IRS 10-day perfection period based on information received: Alaska and Alaska Consolidated rejected returns - Alaska does not have a defined perfection period for rejected returns. They must be filed and approved by the due date to be considered timely. Connecticut rejected returns and extensions - Connecticut allows five business days to resubmit rejected returns and extensions and obtain approval. Virginia and West Virginia rejected returns - These states do not have a defined perfection period for rejected returns. They must be filed and approved by the due date to be considered timely. Maryland, North Carolina, and Vermont rejected returns - These states allow five calendar days to resubmit rejected returns and obtain approval. New York rejected returns and extensions - New York allows seven calendar days to resubmit rejected returns and extensions and obtain approval. Pennsylvania rejected returns - Pennsylvania Corporation Form RCT-101 and S Corporation Form PA-20S/65 have no perfection period for rejected returns. Returns must be filed and approved by the due date to be considered timely filed. Tennessee rejected returns and extensions - Tennessee does not have a defined perfection period. Returns must be filed and approved by the due date to be considered timely. Paper Returns If the IRS rejects any of your returns or extensions, the return does not fall into an e-file mandate, and you choose to file a paper return or extension, then the deadlines are as follows: Individual and Fiduciary - A paper return or extension must be filed by the latter of the following: the due date of the return or 10 calendar days after the date the electronic portion was rejected. For example, a return rejected on Tuesday, April 18, 2023, would be due Friday, April 28, 2023, if filing by paper. Corporation and Exempt Organization 990-T(401(a) and Other Trust) - The paper return must be postmarked by the latter of the following: the due date of the return (including extensions) or 10 calendar days after the date the IRS last gave notification that the return was rejected. Tools and Resources to Help You During Tax Season Review the My Account FAQs to learn how our self-service portal can handle your account support needs. Watch an on-demand Software Support Office Hours webinar and hear directly from subject matter experts. Check out our library of Tax Talks LIVE webinars, with more topics added throughout the year. Find answers in our Knowledge Base, or visit the Wolters Kluwer Tax & Accounting Community forums to connect with peers. Contact Us online or chat with our virtual agent.

For the federal, your first method. And for states that will accept an e-filed extension with an unpaid balance due, the first method. Some states I file will not accept an e-filed extension with a balance due and no payment. If the client refuses to pay, I have made the extension show a zero balance due and warned the client of potential issues. Usually, for clients with balances due, I give them the links and make them e-file/e-pay or not their own extensions. And, when I have little or no info from the clients yet (and for anyone else this afternoon!) the extensions have all zeros. And the clients have warnings from me. Some will not be clients next season.

I am guessing, but an extension payment is made by 18 April 2023, so an installment agreement that extends beyond that date would NOT be an extension payment. Pay the most you can today. When filing the return, with final amounts, set up an installment agreement. You also can make "return payments" between now and then to keep paying down your expected balance due.

https://www.usps.com/manage/informed-delivery.htm

Most of the ones that owe, I made go to DirectPay and myconneCT and other state websites to pay/file their own extensions. It's faster than collecting signed 8878s. Those that probably owe but refuse to pay now, I put the tax liability I project, any withholding, balance due, and $0 payment on the 4868. However, CT won't accept a balance due extension without a payment, so I zero it out if I can't convince the client to pay, because I also don't have time to get them the forms that they'll end up not filing anyway. I do have a few that I upload the forms, and they DO mail them with payments. Really wish for automatic extensions to file. Even with teaching our clients to pay in April, we'd still save a LOT of time not generating more paperwork and more e-files.

I looked a couple times, didn't think to bookmark it or save it in any way, and have never heard from them. I wished I would hear from them, because I had to really search hard to get back to it. My first time returning, I saw the two letters (price increase, firing) it wrote for me. But the next time, I couldn't get back to that same place! After tax season. Besides, now there's something like ChatGPT4 and our search engines will be using it, and hopefully out tax software...

I've heard that it can come up during an audit, that an extension would be invalidated then if filed with zero owed or an unreasonable number. I don't know if one instance would move an auditor to then open a "preparer project" to look for more zero extensions from that same preparer. I'm filing more than I'd like to this weekend. I think I've heard back from everyone who's going to make a payment. But many more clients have asked for extensions without further response to my queries. Their numbers are not on my ceiling. I figure it's like basis -- if they didn't give me what I need, then it's zero.

Post your solution for other sleep-deprived, stressed, rushed tax pros who can't possibly remember every thing they need to remember at the exact moment they need it.

I have one client who moves back and forth from CT to OH (gets rehired by Highlights and moves for a couple years, then returns to her mother's house in CT for a couple years, rinse & repeat) and a CT kid who attended college in OH and worked a bit while in college and maybe one more. Drove me crazy!

Depending on your software, you could e-file this all along.

I sign, because my clients ask if they think my wet signature is missing! But I have my software set to print my signature, so it's always there and legal, if I forget to wet sign. The last time I checked, the IRS and all the states I prepare, accept the printed-by-software signature.

When all else fails, reboot.

You have to use Form 8949 to report the DOD cost basis to be able to show her actual gain/loss for her month of ownership. Plus, the IRS has the Form 1099-B so its computers will try to match to her return. Get the DOD values for each of the sales from her ML stock broker. In fact, have him print her gain/loss statement using the DOD cost basis for each transaction. He should upload it to a ML portal and give you access. Download it to your computer. Then you have the documentation you need to prepare her return and to include in her tax folder for her to keep. Also, save a copy of her ML gain/loss statement in your electronic file for your client, just in case she gets any IRS correspondence that you will respond to for her.

I have a couple clients who text me pics. Even if the pic is readable, I have to figure out how to save it, usually email it to myself and then save in the client's file on my computer. Time wasted on an extra step or two. Usually the pics are NOT readable. Even the email attachments, if not .pdfs, are odd, such as just one quarter of the page. "But I sent it to you." ScanStraight is a creation of Jason Staats who's a tax preparer. I haven't tried it out, but I did download it at his opening discount price. Jason's heavy into AI. I think ScanStraight's strength is that if you get a bunch of pics from a client, you can "fix" them all at once. I think you move them all into one folder in ScanStraight and then process the whole folder. Scannable is by Evernote so if you use Evernote (which I don't) it's there for you. Save to Evernote or camera roll. Send via email or Share by all the usuals: Message, Mail, Notes, Copy, HP ePrint, Files, Open in..., or your favorite printer app. It's great at cleaning up photos, turns those gray backgrounds white, smooths out folds and creases, makes "stretched" areas readable, finds the document when you're the photographer. I think I said I've used it to take a photo of the messy attachment on my monitor to get something readable and worth saving without having to print to paper. Scannable's a one-at-time thing, where ScanStraight will do one or batches at a time. Hubby teaches piano and has a lawyer student who travels a lot and uses Scannable to send and receive documents when on the road. Hubby downloaded it (it's FREE) and uses it to send music back and forth to his students. It was very handy while he taught remotely during the thick of Covid, but even now he has kids that forget their music or need something new right this minute. He told me about Scannable, so I use it and try to get my clients to use it. The newer iPhones (mine is an old iPhone 6+ or something) do a good job without an app.

Has he had the same insurance company the whole time? I had to look in the bound books at the town clerk's office for information about my house built in 1961, but amazing detail was there! There's the microfiche at the library for local newspaper reports of real estate transactions about his duplex or similar buildings at a similar time. He just needs to get close enough for government work with a $45,000 purchase price.

I use and recommend the free Scannable app. I try to convince my clients to use it. When they don't, I can use it to scan my monitor with their unreadable jpeg image so Scannable can clean it up. Jason Staats soft-launched at $20 (it might be $40 now) ScanStraight: New Launch I soft-launched a new app over the weekend, ScanStraight. It's steeply discounted for the next week while it's in early access, but essentially converts terrible smartphone document pics into tidied-up scans. Imo this ought to be in the toolbelt of every firm admin. https://scanstraight.com

You probably want to contact ATX Technical Support first thing Tuesday morning. This is a privately-run community for tax preparers, some of whom use ATX in their practices. Maybe an ATX user has encountered your problem and has a solution, but reach out directly to ATX. There's also an ATX-sponsored chat that might provide technical help.

I was going to mention the land vs building value being higher for land here in the northeast. Does he have an insurance contract from his first full year of ownership, because only the building would burn and not the land. You might be able to infer the ratio from that plus his purchase price.

Extensions are our friends!

Oh, thanks, I don't use ATX, so data entry is different. And, I just found the latest (I think) IRS notice that states the only CA counties NOT qualified are Lassen, Modoc, and Shasta. Now I need to check addresses of my clients. Happy Easter/Passover/Ramadan/Spring/Tax Season!

What "main form"? Are you talking about when you file their Form 1040? Or, are you filing extension Forms 4868? I thought we did NOT have to file Forms 4868 for our CA clients (except in about 3 counties). And, while I'm typing, what are the three (?) counties that do NOT get automatic extensions?

eSign uses questions to verify ID. For my colleagues that use Verifyle, they create their own method and document it in Verifyle.

My question is why isn't the actual payment (was it $100,000?) divided proportionately into the various categories for the year of that payment? In other words, no extra "income" tacked onto a return when that "income" is over and above what was actually received in that year. I haven't done a sale in ages and do remember something about gain due to depreciation in the first year, but your research re non-compete payments and the comments here don't lead to any special timing on the non-compete total.

I use CCH's eSign and even my elderly clients manage. Those that do everything on their phone, can eSign on their phone or computer or tablet or... The price has gone up to $5 per a set of returns (H/W for IRS, CT, NY, & CA is $5; S with IRS & CT is $5). That's fine for me with a few complex returns and not a lot of simple returns (I have NO simple returns!). Anything to save me time. Little children don't have the financial footprint to pass the KB ID verification, but from HS through old age, my clients use it. Whatever program you choose for electronic signing will save you time collecting verified signatures.