Lion EA

And, it certainly does NOT change what our clients have to report on their tax returns -- worldwide income.

I use ProSystem fx, just had an update Sunday, but do NOT have an option to keep me authenticated. I need my iPhone stuck to my wrist like that thing the quarterbacks wear!

If he paid independent contractors for services or labor, then he should send Forms 1099-NEC on a calendar-year basis. (Other qualifiers, such as non-corporation, over $600, etc., still apply.)

Someone more tech-savvy will jump in here... I have my icon pinned to taskbar. If you want it on the desktop, I think you can just drag it and drop. Then you can move icons around to fit your needs.

If you wait for an amendment to be processed, it can be a long wait. If your client needs to make any elections that have to be made on an original, timely-filed return, you'll want to do a superseding return. Otherwise, an amended return is fine. (Your state may differ.)

You don't want to make the $1,300 go away, or zero it out, until you ask a lot of questions. How much of the $1,300 is taxable? Self-employment income? Personal sales of personal goods at a loss? Transfers from family/friends for personal activities? As Slippery said, you don't get to not report $1,300 or any amount below $5,000 (or below $600 if receiving Form 1099-NEC, for example). You report worldwide income unless the law excludes it. So you have to ask your client to break out the $1,300 into the amounts from various income categories to determine if and how much you can exclude. Each software will have different ways to enter. You know what to do with biz income. The new instructions for Schedule 1 explain about Other Income and income that can be excluded.

If they're low income to the point of EIC &/or have CTC: The Protecting Americans from Tax Hikes (PATH) Act requires the IRS to hold refunds for taxpayers who claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until after February 14, in order to prevent tax fraud. The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by March 3 if they chose direct deposit and there are no other issues with their tax return. Otherwise, you have a teaching moment about w/h and can be a hero by helping your clients get more in their take-home pay.

I've been using Zenwork Tax1099: https://www.tax1099.com/?utm_source=convertkit&utm_

Thank you very much, Lee. I hate that we have to be so suspicious in this day and age!

I just e-file two 2023 -- yes late 2023 -- returns. First one acknowledged so far. I'd prepared them during the shut-down, so they aren't the latest versions of my software. I didn't know if they'd be accepted or if I'd have to recalculate and try again. I never try current tax year returns the first day. Seldom are all forms/schedules ready.

A client sent me an EFTPS letter suggesting he log into EFTPS.gov to check that his "tax professional" made all his tax deposits. He asks if it's legit. It looks pretty. The Department of the Treasury logo. Gives him a PIN and Your Enrollment Number. Telephone numbers. Dated 01/10/2025. Anyone else getting that letter? Have you vetted it? This client uses Paychex. (I no longer process any payroll.) I do file Forms 1099-NEC for this client, but NO withholding.

Fujitsu, any of their price ranges that fits your budget, is the workhorse of scanners. I have an old Fi-6130z, and gave away my older Fi ScanSnap to my daughter-in-law's company. CCH Scan & Flow suggested a slightly newer model scanner than the Fi-6130z, but I haven't upgraded yet. At one time, CCH could offer good prices on Fujitsu, so you might want to check with your sales rep and then compare on Amazon or whatever site.

I can't paste a link, but CPA PracticeAdvisor just announced a FREE webinar by CorpNet: S Corporation Election Considerations for Corporations and LLCs Wednesday 26 February 1:00 EDT

https://www.irs.gov/pub/irs-pdf/i2553.pdf

Just like car insurance that I hope to never use (but have used), I paid the tiny price for PP for the 23 tax year and renewed for 24 tax year. I have only 1 biz (except for trusts, that PP doesn't cover yet), so the $10 for each of my other returns is a small price to pay to sleep easier at night. I hate answering the letters, so If I can hand that off, especially when I'm busy, it's worth it. I don't have hundreds of clients, so it's a small price to pay. I've been raising my fees each year, because I was underpriced for my area. Now I can tell clients they have an added benefit in their new fee.

Would he have received $10,000 from that company if he weren't moving to be an employee? It's wages.

Maybe why this scheme appears to be overly complicated !!

Is that the code that you copied and pasted to a document? I put mine in a Notebook folder.

Circ. 230: § 10.21 Knowledge of client’s omission. A practitioner who, having been retained by a client with respect to a matter administered by the Internal Revenue Service, knows that the client has not complied with the revenue laws of the United States or has made an error in or omission from any return, document, affidavit, or other paper which the client submitted or executed under the revenue laws of the United States, must advise the client promptly of the fact of such noncompliance, error, or omission. The practitioner must advise the client of the consequences as provided under the Code and regulations of such noncompliance, error, or omission.

John Sheeley of Tax Practice Pro is a big advocate of this. I think he makes it mandatory and charges (it was $99 many years ago) for it. You could follow him on Facebook or X or where ever and see what he's advising currently. Getting ahead of a simple IRS letter, such as a CP2000, or even an audit is one big benefit.

Judy, you might have the answer!

I got it !!! He had tried all caps. He has a PO Box, but we haven't used it on his returns, so I told him not to use the PO box, to make sure it's blank. He said it's on his IRS account, so he kept trying with the PO box only and PO box w/street address, and street address only. It did finally work for him: all caps, no PO box, and I forget which browser. Yay! Thanks everyone. I learned alot.

Yes, he did. He's a very tech-savvy engineer, so he'd already tried everything I can think of. I also had a client who used it Tuesday. I told this client to try again later Thursday and again Friday morning. Is there any other way to pay online and get a confirmation? Is mailing a check his only alternative? Glad to hear it worked for you. He'll keep trying. He's better with computers and the internet than I am!

Anyone else have clients NOT being able to make a payment on DirectPay today? Very tech-savvy client is trying to pay his 2023 balance due. Used Chrome and Edge and 2 other browsers. Matched his address to his 2022 return, but also went as far back as 2019 when he moved to that address. We checked spelling, no punctuation, and used drop-down box for state. He went onto his own IRS account to see how his address appears there. He checked for stray spaces or other symbols. It tells him he can't continue until he types in his address! Any clues? Any other online possibilities to pay the IRS with a confirmation? I think EFTPS requires waiting for a PIN in the mail, right? Are his choices limited to a long wait on the phone to the IRS or mailing a check?

Well, today's IRS Newswire says Monday 29 January 2025 for individual e-file.