Lion EA

Wow. I lost all my oil this (original) tax season while pulling into a client's driveway. AAA towed my car AND had me ride in the cab of the tow truck. I was at a house (OIH) only a couple of towns away from my own home and husband and second car, but the driver had me get in his truck and drove me to the dealership along with my car. Lots of things have changed since the coronavirus, so maybe this is one of them. I hope not.

When I search via Chrome, which I guess must be a Google search, the paid links show up at the top and the informational afterwards, very clearly divided. I can then start with the nonpaid results. Also, look at the actual link; does it include IRS.gov or whatever agency you expect? I have CCH's AnswerConnect set to deliver results when I Google or IE search or.... Then I get a big blue rectangle with the green logo and "Display CCH Search Results" separating the ads above from the informational links below. If I'm searching for something taxy, maybe Bonus Depreciation, I can open AnswerConnect right there and check out the CCH results from Master Tax Guide or Explanations or Laws or Regulations or Proposed Regulations or Treasury Decision or Form or Instructions or Election or Client Letter or....

Yes

Somehow Thervo put me on their list. I'm trying to lose clients by attrition and slow down and maybe even retire someday, so I would NOT have signed up for it. I received a couple of Thervo emails before I labeled it Junk. They asked me to review the potential client and make a quote. Of course, I did NOT review nor quote. I don't know if there are tax preparers out there who were quoting $45 or so. I doubt that even the unenrolled kitchen table preparers in Fairfield County, CT, and Westchester County, NY, and NYC quoted that low. But, I never looked, so don't know.

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

As they've said, start with the trust document. For what's missing from the document, state law might come into play.

The bank where you do your biz banking is the best place to start. The non-traditional lenders have seemed to be pretty speedy, too. That's firms like QuickBooks, PayPal, Square, Madison Funding, Stripe, Vine, Kabbage, etc. Ask locally at your professional organizations, Chamber of Commerce, BNI/networking club, and local businesses to see what worked for them. My bank has said they will work on a PPP loan for anyone willing to open a biz account with them. The SBA has a list of approved lenders. They also have a list of all PPP loans that you can sort by size and by lender. A quick scan suggests the large banks concentrated on large loans and the small loans were done by small state/regional banks and the non-traditional lenders. But, that's a big generalization, and you can look at it in depth yourself.

Thank goodness you've recovered, John! A dear friend now tests negative, but her three-month illness with two hospital stays plus hospice left her weak. She's still in hospice but in her own room now instead of a Covid room. They do NOT expect her to get any better or ever return home. A 19-year-old died in my tiny town, as did an infant, and several men and women my age who, as you say, were not expected to have good outcomes. A strong firefighter recovered after months from the first symptoms, but tells us he has heart and kidney (? liver?) and cognitive problems that will last his lifetime. A nurse in her 20's that I know in our local hospital recovered after two weeks and went back to work. Do NOT trust your antibodies. We don't have enough months/years of experience to see if antibodies = immunity and, if so, for how long. In fact, I also know a couple different people who are now struggling with their SECOND bout of Covid, both cases worse this time their their first time. Their doctors are unsure if they have a new case, or their old case lay dormant for some time and then resurfaced. Be grateful and be careful.

I'm very sorry. Prayers for your mother and for you and for your family. Attended a funeral last Friday. Outdoors, graveside (urn for ashes), 25 maximum allowed (by invitation of the family only), masks, six feet apart (households could stand together), contact sheets. Family gave us food and water bottles as we left instead of a reception. I missed hugging, but it was surprisingly beautiful. It was also delayed until the family was ready to venture out (one daughter was streaming it on her phone for her brother and his immediate family in FL) and our church could host an outdoor service with restrictions. More difficult when your brothers are not cooperating and the priest is scared &/or under instructions from his diocese. Another friend had a Zoom memorial service and said it was surprisingly comforting. Praying that a service will give you all some peace in these troubled times.

I give price shoppers no time at all. The most I'll say is my fees start at $500 and go up from there. Or, $750, $1,000, or $2,500 depending on what he said before I stopped him (SE and does his own bookkeeping, for example). This year, I've told a couple to make extension payments on DirectPay and contact me after 15 July. Or, I've just said that I'm not taking new clients unless they are referred by one of my good clients. Tire kickers don't get more than 30 seconds of my time.

Some scholarships say they can be used for tuition only. Some do not. Some say they can be used for tuition &/or room & board. Some colleges disburse the excess over college costs to the students. Some return the excess to the organization that issued the scholarships, based on the requirements of the scholarships. One local HS gives out scholarships to a few graduating seniors each year that are supposed to be used for books. Yes, you have to ask your clients questions.

I don't know how you do the data entry in ATX, but it IS an option. You use $4,000 as "wages" with a literal that prints "SCH" or something similar. The student pays at his lower tax rate. Then the parents can take the AOC or whichever benefit is best. If you're not seeing a diagnostic suggesting it, run the numbers to see which way is most beneficial for the family as a whole.

It was an e-newsletter I receive via email from time to time; it was sent 7 July. The header, which was a separate box and wouldn't copy, had the logo with Wolters Kluwer CCH Software News. I use ProSystem fx, so maybe I get more communication... They encourage subscriptions: "If this email was forwarded to you, and you would like to subscribe to CCH Software News announcements, subscribe here." But I can't seem to copy the link under "here" without signing in. I guess I DO get more communication... I'll try to remember to share here when I get these e-newsletters.

CCH Software News - Individual, Partnership, Corporation, S Corporation, Fiduciary, Exempt Organizations (1040/1065/1120/1120S/1041/990) Deadline Information Dear CCH Customer: Please read the following carefully as it contains helpful information regarding the upcoming filing deadline. Customers who plan to submit returns or extensions for electronic filing should be aware of the deadlines below to ensure timely filing. CCH must process your returns or extensions before midnight (CDT) on Wednesday, July 15, 2020. However, due to the time involved in transmitting to the IRS during times of higher volume, we recommend that you release your returns for transmission no later than 9:00 PM CDT on Wednesday, July 15, 2020. Important: Linked state returns are not transmitted until the IRS acknowledgement is returned for the federal return. Because certain states no longer honor the vendor timestamp as the state transmission time, we further recommend that you release your state returns for transmission separately from the federal return, particularly if you are not going to be able to get the full return filed by 9:00 PM CDT. This allows the state return to transmit without the return of the federal acknowledgement. The easiest way to submit the state return separately from the federal return is to uncheck the federal return on the export window. 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 Monday, July 20, 2020, to be considered timely filed. Fiduciary, Corporation, and Exempt Organizations - 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 and Massachusetts rejected returns and extensions - These states allow 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 and Massachusetts Composite rejected returns and extensions - These states allow 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. For Exempt Organization returns, the following states do not conform to the IRS 10-day perfection period based on information received: New York rejected returns and extensions - New York allows seven calendar days to resubmit rejected returns and extensions and obtain approval. Virginia rejected returns - Virginia does not have a defined perfection period for rejected returns. They 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 Wednesday, July 15, 2020, would be due Saturday, July 25, 2020, if filing by paper. Corporation - 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. Sincerely, Wolters Kluwer Tax & Accounting, North America Did you know that you can view and pay your invoices and statements online? We’ve made it easier to view and pay your invoices and statements online. Learn more about My Account, ACH and EasyPay. Find answers in our Knowledge Base, or visit the Wolters Kluwer Tax & Accounting Community forums to connect with professionals like you. You can also Contact Us online.

It's taxable in both states. File a non-resident state return where he earned the fishing money for all earnings sourced to that state. File a resident state return with his worldwide income, but take a credit for taxes paid to the other state.

Vodka Slurpee, hold the Slurpee

I think we need a do-over for 2020.

I think NY is the most aggressive, along with CA maybe! That settles it. NY resident. No DC-sourced income. Wow, the only one in the family with only one state this year. 2018 he moved from NJ to NY and then entered law school; the rest of his family has CT, NY, UT, and CO. Dad's still missing a W-2 and one of the trusts is missing a consolidated 1099, but now I'm one step closer to completing returns for this family. Anyone disagree with NY resident with no DC-sourced income? Love you all. Stay well.

His W-2 is from Adobe in NY where he worked as a paid intern for the summer. His 2018 residency had been NY. NY is going to say he's still a resident, because he didn't "stick the landing," establish residency in any other state. He rented an apartment in DC for more than half the year -- in order to go to Georgetown law school. After graduation, he returned to his parents' home in CT and married. The virus hit, so he's not taken a job anyplace, but his prospects are in NY, perhaps back with Adobe. I know how aggressive NY is regarding its residents and know NY will want to tax him on all his 2019 passive income as a resident. His only earned income is NY-sourced. My question is -- how aggressive is DC? I don't have any practical experience with DC. Does DC think he's a resident because he was a grad student for more than half the year? Do students need to file PY DC returns? $34,000 W-2 from NY plus $3,100 D&I plus $28,000 CG, but $60,000 tuition. Using NY rates vs. DC rates, I'd rather have him a DC resident, but NY will still tax him on the $34,000 (and 1/3 of the investment income if a NY PY). If DC is as aggressive as NY, then for 2020 both states will be chasing him to say he didn't leave, especially if he's still at his parents' house and not his own residence! I want to do this right and be able to convince the son I'm doing it right (at least three lawyers in the family now). I know what NY says about a resident out of NY for college. I don't know if DC has tried to claim 30-year-old grad students as residents and if they've prevailed. What would you do if you know both NY and DC? What would you do working with the type of family that you know you need to justify how you prepared the returns? Pacun: he earned his law degree at Georgetown.

OK, information continues to dribble in for this whole family (two trusts, two grown sons, and parents, with everyone of them spending time in two or more states). Son remembered he has a W-2 from working in NY during the summer. He was in law school at Georgetown in the spring and fall. In 2018, he was a NY resident, and in 2020, he's a CT resident. NY considers you a resident until you establish residency in another state, and college is their very definition of temporary absence. Son let his NY apartment go, but his only earned income in 2019 was in NY (maybe commuted in from CT with his father or stayed with girlfriend/fiance in NY). He has a lot of investment income (old trust from his grandparents) so DC would tax about 9/12 of that if he's a PY or FY DC resident. But, I'm thinking he's really still a NY resident with a temporary absence for law school. Agree or disagree? It's a good thing these folks are really nice, because this year they're a mess!

IRS.gov Get Your Refund Status

Prayers for your mom and you and her whole medical team and your whole family. The next time someone else is with her, file all 80 extensions in one big batch to take 15 July off the table. If you complete 1 or 8 or 80, that's great. But, you don't have to complete any this month. Go talk to your mother &/or hold her hand.

Thank you, Pacun. That's helpful.

If taking the lesser of the three, and it's less than the HA, then the SE tax is lower than it could've been, too. The excess HA moves over to wages and is taxed for income tax purposes only and not for SE tax.