JohnH

I decided to compare the two, but as it turns out I already had a Login.gov account which I had forgotten about. (Probably used it a long time ago to correspond with the Veterans Administration) So I was not able to get the experience of setting up a Login.gov account to find out how it works compared to the ID.me process. But the experience is about the same with respect to signing in to EFTPS once one has either credential. One article I read stated that ID.me is a bit easier to set up, but it requires facial recognition, whereas Login.gov does not. However, the article went on to say this makes the Login.gov process a bit more tedious. Judy makes a very good case for adding this level of security - things which I had not really thought about. I'm coming around to the concept; just would have liked a little more lead time or provided some sort of phase-in.

I'm definitely on board with the idea that this was poorly implemented. So on the implementation side, is there any reason to favor one method of MFA over the other? I used ID.me because I was already set up with them. I have never used Login.gov as far as I know. I'm just trying to decide which to recommend if a client asks.

You're lucky. For some people the phones may be lighting up unless the clients use a payroll service. PEO, or our good friend Dennis.

I've waived fees several time over the years when I decided it was called for, based on what I was told, what I knew, and also on my intuition. Widows, church members who fell on hard times, etc. I just always suggest that if they ever get back on their feet to make a contribution to a mission project (but not in my name, BTW). Probably have even done it a few times when I shouldn't, but I'm not losing any sleep over it. You've described a situation I'd be very likely to waive the fee. I respect your decision and I respect you for making it. Now if you can just get them to listen to your advice and file. After the assessment, they might be able to submit a penalty waiver request if they have a good filing & compliance history, and an installment agreement might be manageable. And as has been mentioned, CNC might be an option. But they need to take action. One suggestion - print out a hard copy and send it to them ready to file. That set of documents might carry more weight with them than an e-filing form. Let them know they can send it in with a token payment or even no payment. After the assessment, they might be able to submit a penalty waiver request if they have a good filing & compliance history, and an installment agreement might be manageable. And as has been mentioned, CNC might be an option. But they need to take action.

Guess how many of your clients are going to be calling you next week (semi-weekly depositors) or the 14th of next month (monthly depositors), in a panic because they suddenly can't pay their Federal Tax Deposits.

Apparently I missed the memo. I began to log in to EFTPS today and was required to log into ID.me before gaining access to EFTPS. Turns out they implemented this change yesterday (Oct 19). Was this info widely announced and I just didn’t notice it?

How many did he file? In an extreme case he might be liable for a $250 per form penalty. Knowing that, he might be incentivized to 1) pay you to get it right this year, and 2) pay you to do it right in the future.

They might say that, but their own rules say otherwise. At least that’s what I would point out to anyone who said that to me.

Even if you don’t get the green card back, the tracking can be downloaded from USPS. (Although recently I had one that the tracking did not reflect delivery but I got the green card back). Belt and suspenders - Maybe one or the other will work.

I always deferred most SocSec questions by recommending that the client go straight to SSA for answers. After I began drawing SocSec 7 years ago and navigated my own situation, I changed my policy. I now defer ALL SocSec questions by recommending that the client go straight to SSA.

My father-in-law always said the only thing he’d like to know is where he’s going to die. Then he would just be sure to never visit there.

I’ve used 1099Express for several years, filing 250-300 1099s annually Excellent product, simple Interface, great support, and reasonable pricing. Well worth checking them out. https://1099express.com

I'd run. Having compassion for their plight, nevertheless I'd still run). Even if it is possible to form an LLC in Mexico, there will likely be legal complications and reporting. In the end, when it blows up, all fingers will point back to you since you provided the advice (even if you didn't, you'll probably still be blamed).

Congratulations! Grandkids change everything.

I’d be inclined to deduct $203 as a cash deduction to Goodwill and $170 as a non-cash deduction to Goodwill. The $203 is simply a cash contribution towards the charity’s operations. But I’d let the client know the issues is unclear and let them make the final decision on the $203.

Just wrapped this one up after placing it on extension back in Apr. Had a couple of telephone conversations with the MA DOR. Nice folks - very helpful and patient as was predicted on this forum. It was pretty easy in the end using their PY/NR schedule. Had to allocate working days in MA divided by net working days everywhere. A little quirk in the MA rules required us to divide MA working days by 365 minus weekends, holidays, and even PTO days. This produced a smaller divisor (less than 260) and therefore a slightly higher MA tax liability. But the tax liability wasn’t too bad and the taxpayer got a full credit on their home state return for the MA tax paid. So it was a wash to the taxpayer, except for my extra prep time. Also had to do a little extra analysis on the work days vs travel days in MA. You don’t have to count travel days if you fly in late in the day and/or out early in the AM. Those are just travel days. But a morning arrival in MA and/or and afternoon/evening departure from MA counts as a MA work day. Thanks for all the good advice and suggestions on this thread It helped me focus on the important things

Did the Corp ever apply for any loans during its existence? The application would have included representations regarding stock ownership. Same for any personal financial statements submitted for personal loans, either jointly or individually. (Home mortgage, cars, boats, etc) Somebody (or both) had to claim ownership of the stock Also did the company ever do any government contracting or even just apply for the same? There’s always paperwork asking about percent veteran status (if either is a veteran), as well as percent woman owned.

I think the lender is just trying to make them go away without turning them down flat. So the lender makes a request they know is outrageous, knowing no accountant in their right mind would write a comfort letter like this. That way the lender gets to blame you as the one blocking the loan rather than accept responsibility for their actions. Another possibility might be that they are making more than they're reporting and you have a tax cheat for a client. I'd be inclined to tell them if they have to lie to get the loan, then that's proof they can't afford the purchase. Either they will get mad and leave you or you'll begin to cement a strong relationship based on honesty and trust in the advice you offer.

A client this stupid is never going to change. Just be glad you advised them of the penalty and they made the choice to pay less. May as well cut your losses at the outset.

I had a somewhat similar situation with a freight broker client for many years. In Quickbooks and on their financial statements, we would show gross billings and then use a contra-account to reduce gross revenue by the amount of the payments made to the carriers. The contra-account showed up as a negative revenue entry. We did this in order to have a better handle on the "true" net revenue in evaluating operations. From an accounting standpoint, this was essentially the same as having a cost of goods sold entry. But on the tax return, I would simply move the amount of the contra-account into "other expenses" for tax reporting. Operational net income was the same by either method, so the tax return agreed with the books. But I'm sure it would have required some explaining if an audit had ever come our way.

I agree. The ONLY thing to do in this situation was to file an extension. If the client refuses, I’d tell them to find another preparer. But that horse has left the barn. now you’re stuck with unraveling the mess, which could easily take months or more. Likely to be lots or unbillable (or unnecessary) time wasted on this. Hopefully you’ve learned a valuable from this mistake. Experiences like this are how one sharpens their skills.

I agree. “Brevity, paramount.”

Or worse, install the toilet paper on the roller with the edge facing the wrong way…

Everybody should know by now that running it through the bank account isn’t right. The only proper way to convert a personal expense to a business expense is to charge it to a company credit card.

An extension can easily be structured as a de facto installment payment plan for 6 months with no setup fee. The simplest way I know to do this is to file an accurate extension (with or without payment-makes no difference), and then set up a personal EFTPS account and make payments through that account, applying them to the year under extension. You have a nice, neat, accessible record of your payments to date when you file the return. Of course, interest and FTP penalty on any unpaid balance will run during the extension period, but that would happen anyhow even if a formal installment agreement were possible