ILLMAS Posted August 22, 2018 Report Share Posted August 22, 2018 I am currently attending the IRS nationwide tax forum and the presenters were saying the preparation of k-1's is probably going to be the hardest part of the tax reform and most of the room got scared. Do agree with them? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted August 22, 2018 Report Share Posted August 22, 2018 Because of 199A? Quote Link to comment Share on other sites More sharing options...
FDNY Posted August 22, 2018 Report Share Posted August 22, 2018 Wouldn’t the hard part be on taxpayer (or us) whether or not K1 income or the taxpayer qualifies for the deduction? 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted August 22, 2018 Author Report Share Posted August 22, 2018 3 hours ago, Abby Normal said: Because of 199A? Yes Quote Link to comment Share on other sites More sharing options...
Lee B Posted August 22, 2018 Report Share Posted August 22, 2018 Additional information on the K-1s will be required due to the definition of what constitutes Qualified Business Income, more than what was required for the DPAD. 3 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted August 23, 2018 Author Report Share Posted August 23, 2018 Please now add stock and debt basis worksheet to your 1120S, supposedly it’s been required since 2016, it’s in the instructions, but out of a seminar group of 500 plus people no one knew about it. This only applies in certain cases, but it will be a good idea to review the instructions. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted August 23, 2018 Report Share Posted August 23, 2018 2 hours ago, ILLMAS said: Please now add stock and debt basis worksheet to your 1120S, supposedly it’s been required since 2016, it’s in the instructions, but out of a seminar group of 500 plus people no one knew about it. This only applies in certain cases, but it will be a good idea to review the instructions. I've been doing that since 1996. 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted August 23, 2018 Author Report Share Posted August 23, 2018 3 hours ago, Abby Normal said: I've been doing that since 1996. Congrats, we needed you in the seminar. 1 2 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted August 23, 2018 Report Share Posted August 23, 2018 5 hours ago, Abby Normal said: I've been doing that since 1996. 1 hour ago, ILLMAS said: Congrats, we needed you in the seminar. We should start a separate topic on all of the things preparers don't do or don't provide to clients that cause huge messes later on. Basis issues is one that shouldn't be that difficult since the tax programs have input and worksheets for this. Another one that is missed and that is not in the tax programs is calculating accum E&P for C corps. 4 Quote Link to comment Share on other sites More sharing options...
Edsel Posted August 24, 2018 Report Share Posted August 24, 2018 7 hours ago, jklcpa said: We should start a separate topic on all of the things preparers don't do or don't provide to clients that cause huge messes later on. Basis issues is one that shouldn't be that difficult since the tax programs have input and worksheets for this. Another one that is missed and that is not in the tax programs is calculating accum E&P for C corps. I agree wholeheartedly. Basis issues are accommodated in tax software, but inadequately instructed with confusing narrative menus instead of direct entry. Basis and Capital Balances are rarely the same. Accumulated E&P is another problem. I have gone behind other preparers who have done corporate and partnership returns, and immediately see there is no balance sheet from the prior year. Regardless of how small the entity, if we do not prepare a balance sheet, together with reconciliation of taxable-to-book income, we are failing the customer. Balance sheets are promulgated by GAAP, not by taxable income, and we should be on top of this, or we need help. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted August 26, 2018 Report Share Posted August 26, 2018 On 8/24/2018 at 1:55 AM, Edsel said: Regardless of how small the entity, if we do not prepare a balance sheet, together with reconciliation of taxable-to-book income, we are failing the customer. I agree completely. One of my partners asked why I was bothering with a balance sheet for a tiny company, and told him a Reader's Digest Condensed edition of @Edsel's excellent explanation. He got it immediately and agrees. (He does them all the time, but had not had such a tiny company in-house before and knew only that it wasn't require to be sent with the return.) Quote Link to comment Share on other sites More sharing options...
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