Lion EA

Sorry. It was a thought. It is what it is. Ask lots of questions to understand their situation. Then stand your ground. Don't let your clients or their investment advisor push you to report anything incorrectly.

If they're not selling until 2024-25, lay out the definition of primary residence for them, and they can make it fit -- or not. They can record where they sleep each night, adjust paperwork to receive bills and statements at that address, garage their cars there for insurance, pension check and SS are probably direct deposit anyway, truly move themselves for 730 (or is is 731 when a leap year intrudes?) days out of the five years prior to the sale date. If they are using one out of two houses as their primary residence, then they should be using the address of their primary residence on their tax returns.

Had a call today with Kirstie (named after Kirstie Alley) at Protection Plus. I'm going to try it out this year. I have more complex returns but not a lot of returns; it's just me. Most of my businesses have faded away, so I'm down to one S-corporation going forward (and a couple trusts that they don't cover yet). $10 per return (and $75 for that biz return) is a very, very small price to pay to offload IRS and state letters. Billing is monthly based on returns filed that month. I have an onboarding call later this month, so will know exactly how it works then. But, if a client gets a letter, they can file a claim on the PP website or via telephone. I think I might open their PP client portal and upload their return, if they request. That request would include a 7216. And, then hope my client can upload their letter and deal with PP without me. The only information PP gathers prior to a claim is how many 2023 returns are filed under my EIN. Their ID theft restoration also applies to shareholders/partners, as well as the business return. I'd be glad to share Kirstie's email with details to anyone who wants to know more. Or, Kirstie said to contact her: Kirstie Hutchins Territory Manager VT, NH, MA, CT, RI -- but she said anyone can contact her for info Office: (866) 942-8348 ext. 3605 Direct: (336) 726-3605 Email:[email protected] Website: www.taxprotectionplus.com

Be careful if it looks like one house is their principal residence, but they told their state &/or locality that the other house qualifies for a homestead credit or senior tax relief or.... Is this a new/potential client? If so, you might want to decline if you don't feel they are giving you the whole story. If this is a continuing client, you probably have a good feel for which is their principal residence. What address was on their tax returns? Other official documents? Mailing address for important things like bills? Does their insurance company list a principal residence and a second home; an address where their cars are garaged? How far apart are their houses? Do they go to doctors, church, recreation near one house. Which house has their good furniture, artwork, photo albums, near & dear stuff? GLG gave you the code section.

I've been dealing with a letter for a client on and off for over a year, mostly hold time, waiting for the call backs that never come, etc. Yes, I could've done $500-1,000 in other returns during that time, probably 5 times that. I do NOT like to deal with letters; they break the flow of my tax preparation, have deadlines unknown until the letter arrives, etc. I have a call with Protection Plus on Friday to explore. A colleague asked me if what we provide to Protection Plus goes against our WISP and other data protections issues? Anyone know? Does PP get info upfront, when filing, or not until a letter arrives and I tell them to take it off my plate?

Is the NP paying a production company to produce a marketing tool to promote the NP or a book they own? That would be an expense, not a donation. Is the NP then selling the book? If to provide funds for the NP's mission, isn't that still allowable income? I don't think it matters that the production company is for-profit. My church hires a for-profit printer to print our letterhead and bulletin covers, all items we use in the administration of our mission. You'll want to read the TE organizational paperwork, such as Form 1023, and their bylaws, as well as the contract between the NP and the production company. Take it step by step to see if it results in any Form 990-T type business income. But that's not forbidden, it just requires tax reporting.

I'm interested, also. A rep was a vendor at a tax seminar I attended in December. It sounded interesting, so I took a brochure. I've scheduled a call with her for Thursday. I'm a sole proprietor and seeing more letters go to my clients, often just plain wrong, but requiring responses. It's just me, so finding time to handle issues is becoming a problem for me. That's why I'm going to explore Protection Plus. What do you think about them?

I use the group plan via NAEA for E&O + Cyber insurance. Check with your professional organizations for group plans designed for our industry.

Haven't tried any yet, but I think it opens the 10th.

Ask them to give you whatever they gave Paychex to prove their qualification. Or, ask them for P&Ls for all the relevant quarters. I think very few, if any, third-party ERC claim providers explained that amending the Forms 941/claiming ERC meant amending Forms 1120-S and 1040. Maybe small print someplace to CYA, but our clients only heard $$$ from claiming ERC and nothing out-of-pocket to the ERC preparers (ERC preparers kept a % of claims). Now they are angry they have to pay tax and pay for amendments.

Again, the sticky part is not reducing wages on an amended 1120-S. The sticky part is determining if your client qualified for ERC in the first place, or for that amount of ERC. If he did not, then tell him about the Voluntary Disclosure Program: https://www.irs.gov/coronavirus/employee-retention-credit-voluntary-disclosure-program#:~:text=You need to repay only,is not taxable as income. If he did qualify, then amend his 1120-S.

Did you prepare the original Forms 1120-S for those years and know that your client had the appropriate decrease in income for those quarters? Like anything else, if you know (or should have known) or have any doubts about your client qualifying for ERC, you have to ask more questions, ask for documentation, dig deeper until you're satisfied. Paychex was probably qualified to amend Forms 941 based on your client's word that his income decreased the appropriate percentages, but Paychex had no working knowledge or your client's income. The fact that you're asking suggests you're not sure you have all the facts and circumstances.

Are you familiar with the firm who generated the K-1? Or the preparer of that return? For a prospective client, I'd probably say we're not a good fit. Goodbye. For an existing client that I like and respect, I'd dig a little deeper.

Try this link: https://www.tax1099.com

https://www.tangiblevalues.com/category/w2-1099-aca-forms-envelopes-and-software/215 I've gone through QB. And, I've used a few of the services, such as tax1099.com that eFiles Forms W-2: Early Bird Sale - IRS Updates and Tax Reporting Guides, Tips 2024 (tax1099.com)

What software do you use not? ATX? Something else (many of us do but remained on this forum for the tax advise instead of the ATX advise)? Whatever it is, put your sales rep to work to get you the best price, letting him/her know that you will stay if the price is appropriate for your retirement needs. That you are demoing other software. Long time customer. Blah, blah, blah.

How about TaxWise Online? Is Wolters Kluwer involved in that?!

Thanks for the Guide. Just what I need: 57 pages! It's on my desktop to be handy. Hope someone does distill this for us. I'm really leaning toward NO new tasks that don't improve my clients' tax situations. However, I need to know what to tell them or not tell them. Maybe a 2nd page in my engagement letter for those with Schedules C and entities. By the way, do Schedules E & F count? And, I've yet to contact my E&O carrier. Probably because I'm hoping they say NO.

In the same boat, but some owe. I'm giving clients a choice between mailing now or waiting until January to e-file. HOWEVER, I'm telling them to PAY NOW via IRS's DirectPay and the state's versions, so they have immediate confirmations of their payments. I'm open to better suggestions...

The best $20 you'll ever spend: https://brasstax.com/shop/ols/products/form-3115-line-by-line-correcting-depreciation Add your cost to your invoice to your client. He should pay your $20 Research Fee.

Some forms ask for mailing address AND physical location. Has anyone seen the new BOI information required?

The University of Illinois Tax School still exists: University of Illinois Tax School - IRS-Approved Continuing Federal Tax Education

CCH's Scan & Flow. I'll be taking a webinar next month.

Isn't it 2022 software for returns beginning in 2022? (My brain's fried right now, but giving you something to research.) And, I don't use ATX, but I e-filed Form 7004 in ProSystem fx.

I use whatever the group plan is by NAEA, their E&O plus cyber rider. They've had various companies in different years, and by state. Can't remember if mine (in CT) is currently AON or Calsurance or... Check with your professional organizations for group rates for our profession.