Lion EA

2018?!

Merry Christmas!

Thank you, Elrod, for sharing.

I give a Loyal Client Discount. I list the total price and then the discount, for clients that I think were faster or easier or more organized of bring in family or...based on what I really want to charge them. During last year with the new forms and new TCJA wrinkles, I dropped a lot of Loyal Client Discounts, either lower or dropped altogether. I don't give new clients discounts. Unless they're kids (through college) of current clients. In fact, for new clients that are not referrals of good clients, I quote high.

I've used Form 8948 and included the reject notice, both attached at the front of the return. But, it's been some years ago.

I didn't raise prices nearly enough last year, so I'm raising again this year.

If your client wants to report ALL his profit in the first year, he does not have to report it as an installment sale. Haven't had that happen. Read what Gail told you about interest.

Was the property a FARM in the hands of the seller? Or, was it ONLY a personal residence? Investment/inherited property? Rental?

Thank you for sharing the sad news. I admired William. And, I remember you, too. You two go back to the days of great customer service from Caribou.

And, Judy's and Dan's great explanations will help you track that $1M from a worksheet (and any other items on that worksheet, if any) to Sch D Line 19. You're not increasing the income, but you are breaking out part of the income for potentially different tax treatment.

Yes, sanction can be used in different ways, and I guess alert can be also! (Like, alert - get ready to duck.) Actually she's a great gal, but she hasn't gotten back to me re what she needs, why, for what, etc. I'm guessing it's not for her personally, because she's in finance. But, it might be a good job lead.

They will not owe any penalty if they pay 90% of their tax liability via withholding &/or estimated tax payments or 100% of their prior year liability. Because the $10,000 withheld is greater than the prior year $8,742, they will not owe a penalty, just a boatload of taxes. And, 2020 will be a bear, needing to get the 90% right to avoid a penalty without the other safe harbor to fall back on.

A cousin asked for a recommendation of a good CPA near Philly. I asked her for more details. So, at this point, I don't know her reason or if an EA might better meet her needs or anything else at all. Just alerting Philly tax professionals that I might have a lead for you!

Have you found any court cases with facts similar to yours that allowed individuals being paid as individuals and receiving forms 1099-MISC as individuals to assign their checks to a partially owned C-corporation and receive wages from the C-corp based on a percentage of their individual IC income? As you explained, they do NOT work for the C-corp but work as ICs for a mutual client.

Good point about community property states, Judy. I'm in CT, but I have clients in CA, too.

Ah, so one can change one's beneficiary on one's IRA withOUT a signed waiver from one's spouse, yes? But, not on a SEP or SIMPLE or 401(k) or 403(b) or 457.

There's something about days of non-qualified use, but it's different if before primary residence use (or after primary residence use), so do track down the new code before you tell client.

But the "assignment" of income earned by individuals and reported in their SSNs is an issue. No matter where the checks are deposited, how can they avoid reporting Forms 1099-MISC in their own SSNs on their own Forms 1040 Schedules C or other appropriate schedules? I guess they could then pay an administrative company to provide them administrative services, such as office space, a receptionist, office equipment, phone answering, etc. But, they might be shareholders but would not be providing services to that administrative company so wouldn't be employees or receive Forms W-2, right? Have they worked with a lawyer in their state to form the corporation, write up an operating agreement, etc.? They need to have you and their lawyer and their banker and any other advisors work together with the shareholders.

There have been some court cases on S-corp shareholders trying to "assign" their personal IC income to their wholly-owned corps. Mostly losing. But a particular combination of contract between shareholder and corp has worked for certain circumstances. Search for court cases with your set of facts to see if there's a way to make it work. It will involve a lot of contracts, operating agreements, etc., if it's possible.

I have three to do who brought me their documents after 15 October. I prepared the "easy" one yesterday to get it out of the way -- but, her SS and her pension documents are missing! Mom is elderly and frail; daughter is dealing with her finances but is an artist and not computer literate. What is it about artists?! (I have a few.) I told her to telephone SSA and retirement board. (Also, missing cost basis info, but I telephoned broker.) I did tell her after 15 November she will have to decide between mailing paper returns or waiting until mid-January. Oh well, on to the next one.

I have carried E&O since I went out on my own. A couple of years ago, I added a cyber rider.

Portals are portals, to move information more securely than other options back and forth. To get verified signatures that the IRS accepts on forms such as 8879, you need something designed to the IRS specs for signatures. What all are you trying to do in one software? eSign will deliver verified signatures and it does deliver the tax returns to your clients. You can use it, at a lesser fee, to collect other signatures without verification, such as your engagement letter. But, it won't work for your clients to send their tax documents to you. FileShare will let you upload any documents to your clients, including signature pages. It will let your clients upload any documents to you. It does not verify signatures.

For esigning forms such as 8879, you need esigning with verification. Look into CCH's eSign. The license has been free with pay-per-use. Federal and all states except NY. (From what I heard last week, NY is very unlikely to accept eSign from any brand next tax season or anytime soon.)

I just returned from the CCH User Conference where someone mentioned SendSafe. I know nothing about it other than some CCH users are also using SendSafe for email. I use CCH's SiteBuilder website with FileShare included. I send tax returns and other documents with SSNs or other identifying data only via FileShare. My clients are getting better about sending me their data, signature pages, etc., via FileShare. All they have to do to receive my file is follow the link in the email they receive on my behalf from FileShare (I can edit the default email if I wish, globally or case-by-case). If it's their first time, it's follow the link and choose their own password. I've also been using CCH's eSign to send signature pages/tax return for signatures. Clients have found it easy. (Except teens without a credit history that can't pass the authentication.) NY is the only state that does not accept eSign, so I don't use it for my commuters nor NY residents. I was pleasantly surprised when my first few clients this past season, who were very non-computer literate, had their return plus I had their signature pages back in seconds. The eSign software does all the work of combining spouses' signatures into one form and returning it to me. The client doesn't have to know anything about getting their signatures back to me; no printing, signing, scanning, uploading, etc., on their part.

And, a higher partnership income subject to the partners' personal income tax rates. You'll have to run the numbers to see if there's a sweet spot. If both partners don't benefit under your plan, then how does the 5% partner's unhappiness upset the partnership or the other partner?