Lion EA

"putting it aside for her" for 3 years? She needed to do the indirect rollover within 60 days.

Thanx, Joan. Trying to pump out one more S-corp for signatures and then have a couple extensions to file last minute. (And, all my individual clients are nagging for progress reports.) I'm more hopeful now.

1.) Is proof of mailing the same as tracking? 2.) Is this happening on e-filed RETURNS as well as e-filed EXTENSIONS for S-corps? 3.) Partnerships?

I'm working on an S-corp now and have another that'll probably need an extension. I'm hearing about this issue on all my message boards, so am worried about filing these two as either extensions or returns, plus I have a partnership extension to file. All of these businesses are decades old and all have e-filed for the whole time I prepared them and maybe longer and some have had e-filed extensions before. So if they all bounce back Monday? I really don't think I should file new 2553s. Paper file extensions? E-file C-corp extensions, if they're accepted. They're in three different states, so I'm panicking about getting them e-filed &/or postmarked by Tuesday. Can the IRS get any more broken?1

Following, because I have two S-corp extensions to file by Tuesday.

I'm old and have had other careers. Now that I have my clients trained to drop off in ways I approve (portal: yes. text: no) I keep the clients that are nice to me and raise prices for those that are not. I'm still virtual, so don't have to be nice if client's not in front of me electronically. And, I'm not nice when I have to ask more than once for missing documents.

I have NO patience. I won't start a return until I have everything from the client (or I stop when I discover docs missing and put that client on the bottom of my stack). I've had the same thing to my portal, 27 files uploaded. At least they're all in a row, so I Click on them all to download one zip to put in that client's folder on my computer. I do want to encourage portal usage, because it saves me time delivering to them as well as receiving. I do NOT accept blurry phone picks, which is why I require them to use Scannable or something similar to send a nice, flat, readable doc with a white background and all its edges in frame that I can send to their folder. I also don't accept emailed docs with only 1/4 of the doc showing and no easy way to print the full doc to their folder. (Although, another thing I like about Scannable is that IF the doc will show correctly on my screen, I can scan it with Scannable and then save or print or whatever I need; but I don't tell my clients that.) Almost none of my clients have scanners. I've scared enough of them that they drive to Staples and pay to fax me copies of their docs or snail mail or more often FedEx overnight or 2-day; the locals drop off through the mail slot in my front door. By the way, my old iPhone 6 died in January, battery won't hold a charge, and no time to get a new one. But I never texted my clients, so I don't miss it. I doubt I have more than three clients that even knew that number. (I used my cell for a few days back in 2007 or so before I got a land line into my home office.) I'm not very pleasant during tax season and don't put up with annoyances, and never put up with texts from clients except in their car telling me they're on their way to drop off !! But if you have clients that text you pictures, require them to use Scannable or a similar app.

Get her set up for 2022 ES so it doesn't happen again. You mention that she's going to pay it back over three years. Did she pay any back during 2021? Have her pay it back soon, so you can amend the prior years.

Tie breaker rules are what the IRS applies if more than one person claims the same dependent.

Oh, I move scans to my computer immediately. But, I know clients that've taken pictures on their phones to send to me (or their mortgage company or their broker or...) and never delete them. So, I use the limited-time storage to remind them to get the pictures off their phones after they've sent them where they need to be. They're the same people who don't delete emails from their phone, don't delete texts, etc.

Tell your clients to get FREE Scannable on their smart phones. It takes great pictures -- straightens, gets rid of creases and gray, etc. The free version stores documents for 30 days on your phone, so you do have to move docs to a folder on your phone, or backup to the cloud or your computer or where ever you backup, or to a folder on your computer, or send it straight to your tax preparer before you lose it.

Newest temp regs say you DO need to take annual RMDs from inherited IRAs and then the remainder by the end of year 10. Prior, but still very new, regs said take any amount(s) in any year(s) or none at all as long as entire account is emptied by the end of year 10. So, those that inherited in 2020 and 2021 may have some prior year RMDs to take. Or extend 2021 to see what happens with March's proposed change. It's so hard to keep track.

If your PTEs polled their partners or shareholders and have no requests for K-3 (or you prepare the individual returns and know), then the PTE does NOT have to prepare K-2/K-3 for 2021 only. If you DO have to prepare for one or more, extension. Sounds like we'll be preparing for all for 2022.

If he meets all the qualifications to claim himself, doesn't he meet all the qualifications to claim the RRC3? Is his income too high for the RRC3?

Lots of drop offs earlier than ever. Huge HOLD stack on my floor for missing info, waiting on IRS/software (did you read about the March change to inherited non-spousal IRAs?), or just need to re-proofread now that that last schedule/form is finally in the software. I'm buried but very, very backlogged.

If his parents (or anyone else) do NOT QUALIFY to claim him as a dependent for 2021, and he meets the other requirements, he can claim the $1,400 Recovery Rebate Credit #3 on his 2021 return. If his parents DO QUALIFY to claim him but DO NOT CLAIM him, he DOES NOT QUALIFY to receive the $1,400 RRC. Was he a student for any part of any five months in 2021?

Will his tax home be CA?

I see clients who received the substitute 1099-S with a stack of papers at closing, stuck the whole stack in a drawer, and are sure they never receive it. Of course, I report the sale.

Making a change to tax returns during tax season! Just like the federal government.

https://support.cch.com/kb/solution/sw37113?language=en_US

I am still unclear. Are you saying the estate owned the house, and the estate sold the house in 2021? Or, are you saying that the house passed to the three heirs via will in 2018, and the three heirs sold the house in 2021?

All of us here will want to pick your brain!

Yes, step-up to DOD FMV. But OP doesn't say when was DOD, how long the estate owned the house. Just that there was no activity in the estate until 2021 when the house was sold. We don't know how much appreciation since DOD.

An estate doesn't have a primary residence, so no 121 exclusion. An estate has relatively narrow tax brackets, but if the estate sold the house, then that's what it is. It does save any bad feelings due to one beneficiary being in a higher tax bracket than another beneficiary. You'll want to check the will and the laws of the state.