Lion EA

Even decades ago at HRB Premium, my top day was 10 returns. 4-8 more common. 4 as the years went by, because none of my clients had financial lives that got LESS complicated. Now it seems to take 3 days for any return. Even the college kids of clients work in MA while at school, self-employed Schedule C at home in CT, and commute to NYC for an internship, then dabble in crypto (find out what "earn" means on her statement), has a K-1 from the trust her grandparents set up for her, and got her first installment on the Fulbright, oh and her FTC is over $300 so Form 1116, and unemployment; more fun trying to make her parent's health insurance policy that she's on (CT employer of parent) fit on her MA return. I can't read the required but teeny tiny DCN number on her NY driver's license that she texted me a picture; took two tries to get her to send the back side with the DCN and more tries to get readable texts. Taking her phone calls when she gets stuck paying 1Q2022 ES online to MA, where I have only two clients so have to look up the process again. If she wants a paper copy, there's printing/collating/packaging/mailing 150 pages. 20 of those easy returns take way more than 24 hours, so there's no sleeping at night or any other time! Extensions are my business model. I can make more money in 10 months than I can in the 2 or fewer months with corrected consolidated 1099s still arriving and Letters 6419 and 6475 still arriving and Forms SSA-1099 still arriving. My hold stack is huge! Besides, all my clients are in DisneyWorld or Costa Rica or someplace on spring break where they can't get me their missing documents until after 17 April.

I've been keeping them for my records, with any other due diligence. This is a one-year pass. The Schedules K-2/K-3 for S-Corps will be released by the IRS something like 22 June.

Been there, done that.

I don't use ATX, but can you enter via a Form 1098-C to make it flow? https://www.irs.gov/pub/irs-pdf/p4303.pdf

All I got last week was, "When will you finish my return?" I've written tons of emails re my backlog/why my backlog and haven't even started extensions yet. But more aware clients send me the WSJ/NYT articles about the IRS backlogs. And, I just got my first of this year "I'll pay a little more if you're able to get it done without filing an extension." I'm charging more this year anyway, hers is not an expensive return, so I don't think I could charge enough to make it worthwhile to move her up in my queue and end up losing another client - forever - farther down in my queue who gets tired of waiting. She did send me her fiance (how do you get the ' over the e?) with a new Covid biz who I told he's going on extension. Maybe between the two of them, I can charge enough...

No repayment re EIP. Lots of double-dipping scenarios for EIP. (ACTC does have repayment on the return, except for lower incomes qualifying for repayment protection.) Did child get RRC1 and RRC2 on his 2020 return? If not, and if he was NOT qualified to be claimed by his parents, you can amend 2020. And, now RRC3 on his 2021 return?

I would file. IRS computer may not note more than the proceeds. And, filing starts the SOL.

PTP K-1s are know for having all types of income/expenses; could it have flowed from a K-1?

By the way, is this thread really about entering Forms 1099-DIV like OP asked?

Both!

How many people get a job in their preferred field right out of college? Daughter wanted to get into nonprofits and now does develop the international seminars for a professional society of international studies academics. But she started in a nursery school and did a lot of diaper changing while job hunting. Good for your client's son for working for a few months and not just sitting in mom's basement watching Wayne's World. I'd put it on Schedule C.

It doesn't sound like a hobby. If your client thinks he should be an employee, there are things you and he can do. But if he wants to continue working as is, then Schedule C. It also doesn't sound like he's in a Specified Service Trade or Business: https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs Q5. What is a qualified trade or business? A5. A qualified trade or business is any section 162 trade or business, with three exceptions: A trade or business conducted by a C corporation. The trade or business of performing services as an employee. For taxpayers with taxable income that exceeds the threshold amount, specified service trades or businesses (SSTBs). An SSTB is a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading or dealing in certain assets, or any trade or business where the principal asset is the reputation or skill of one or more of its employees or owners. The principal asset of a trade or business is the reputation or skill of its employees or owners if the trade or business consists of the receipt of income from endorsing products or services, the use of an individual's image, likeness, voice, or other symbols associated with the individual's identity, or appearances at events or on radio, television, or other media formats. The SSTB exception does not apply for taxpayers with taxable income at or below the threshold amount and is phased in for taxpayers with taxable income within the phase-in range. For taxpayers with taxable income above the phase-in range, no deduction is permitted with respect to any SSTB.

It's been my favorite way to e-file extensions for clients who need to pay -- have them do it themselves!

Thank you for the reminder.

I've learned how few clients have printers and almost none have scanners. They take pictures with their phone to text me. I try to get them to download the FREE Scannable app. My cell is broken, won't hold a charge, can't receive texts or anything. No time to get a new phone now. CCH's eSign has been a great tool, especially during this pandemic. But I have clients in 13 states, so virtual began before the pandemic and will last after. I do have a few older clients who to to their local Staples/office supply store to print, sign, and fax or upload back to me. Sweethearts to go to all that trouble, because it's easier for them than learning a new process.

Rettig has been adamant that the deadline is NOT being extended. It's such a waste of time to have to break stride to get extensions out. If we didn't have to compute what they owe and gather signatures for payment or talk them through DirectPay and none of the states online are that easy -- for another month (I really, really liked the 15 July deadline best) it would be heaven for me. Any preparer could close at any time. But I like to work year-round and have enough clients to do that. I barely begin personal returns when I have to switch for a month to prepare entity returns. Then try to pick up speed for one more month of personal returns. This year, there was little I could complete prior to 15 February, so really didn't get more than a couple of personal returns out for signature until after 15 March. Every. Single. Return. I started had a missing form or a glitch in that state or something I had to wait on. Put it aside. Try it again after every software update or "clarification" from the IRS or Congress. Put it aside again. When I can finally complete a return, I'm proofreading it for at least the second or third time. Huge amount of time spent on Every Single Return. Easily double. I can't charge double; although, I'm raising my rates. I read a preparer commenting that he could've gone away on vacation for all of January and all of February and still be in the same place today, not being able to complete returns until March. Think K-2/K-3 fiasco. Letters 6419 and Letter 6475 still arriving as recently as last week. Forms SSA-1099 not mailed as of 9 March. I'm still waiting on a CA form for my second client. My first client was SC and couldn't e-file until 4 March. But I have to break up this most productive month to prepare extensions.

Good price. How long have you been using it? MFA on the portal? Do your clients have any problems using the portal? Any problems verifying their identities for signatures?

Verified signatures?

I agree with Judy. Their combined cost basis the day before the property settlement due to the divorce is then her basis. She can add capital improvements after that date, of course. The $200,000 doesn't change her basis. Been there, done that.

Regular & exclusive use?

I try to print everything they'll need when I'm gone, and everything they need to understand their return. Return, 2-year comparison, depreciation schedules, filing instructions including next year ES payments, privacy statement, the sheet with next year carry forwards, my invoice, and select lists/reports/statements/worksheets but not on separate pages, saving paper. I have a lot of investors and small businesses, so lots of 8949 pages and depreciation schedules. My returns tend to be no thicker than the ones they bring me from prior preparers, unless that preparer didn't print depreciation schedules!

My software has a setting for using a font that fits, and I haven't had any rejects.

Do you have the option to use smaller fonts when needed to fit?

Thank you for sharing that. The FTC used to have a free magazine/workbook-sized book to hand out to clients with identity issues, a thorough to-do list with large print, pictures, and step-by-step instructions with links and phone numbers. That great book is now obsolete. I think they have a smaller pamphlet. And, as Slippery listed, a wealth of information on their website.

My client's Coinbase Gain/Loss report says None for Total gains/losses. She sent me that plus two .csv files that I mentioned earlier: GAINLOSSCSV which is blank except for column headings and RAWTX. She seems to have downloaded everything available from Coinbase, because she also had 5 different forms in the W-8 series that she uploaded to me! Which brings up another question: Because Coinbase had available for her download W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY, are her coins held overseas, giving her FBAR and FATCA filing obligations.