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Make sure you are familiar with Fleischer v. Commissioner, Tax Court Memo 2016-238 before you consider an S-Corp for an investment advisor. And in the case of Fleischer it came back to bite him as assignment of income to his S-Corp.

I don't answer my home phone unless I know and like the name on caller ID. I do answer my office phone, but if there's a pause before someone speaks, I set the phone down. People answer texts, but I won't use texts for tax information or any PII. I end up texting clients to check their email or my portal or to call me, depending on the issue. Or, some will answer if I tell them to expect me to call the week of May 5th, for instance. But, calling the IRS or states or large companies or insurance companies or...!!

The QR Code doesn't take you to a website. It pairs your cell with your software's MFA for one, and only one, purpose. A 6-digit number on my cell changes every 30 seconds. When I type it in the screen after the password screen as I try to open my tax prep software, my software opens. No one could open my software without my frequently-changed password AND my cell. Search and you'll find that some preparers have used an authenticator on their desktop instead of on their cell, if you don't want your cell involved. MFA is not your WISP anymore than your left sock is your entire outfit. But the MFA is one part of your WISP. I think our software companies are required to use something like these authenticators, probably to gain IRS approval of their software. So, we're going to have to get used to it. I had trouble setting mine up, even with CCH's help and my IT guy talking me through it over the phone. Tried 3 different authenticators. He stopped by my home office and had it up and running and me at ease with using it in a minute or two!

Judy is right - because I talked to Drake again today. If that QR code is supposed to take you to a website, why can't Drake simply supply a link to that website? I don't have any information on my cellphone that pertains to taxes, nor do I want any. I'm assuming an MFA - results in sending a six-digit code before electronic filing can be completed. Hence, another level of security. Those weird QR thingees are everywhere - growing like a fungus. For what it's worth - Drake and I are still at an impasse.

No one answers the phone anymore. I'm assuming it's not just me, and not just Tennessee, but everywhere. The obvious answer - corporate America does not want to pay receptionists. That occupation has as much future as the blacksmith at the livery station. Their solution is the [endless] telephone menu - if you are calling your doctor, there is for shore no answer and the first on the telephone menu - "If this is an emergency, please hang up and dial 9-1-1." I'm sick of spending 10 seconds listening to that one while I am desperate to talk to someone. Even our clients. It should not require more time to contact them or chase them down on the phone than to do their tax work. One of mine was so bad I charged a PITA fee. Another one doesn't know they have an $800 refund on an amended return and won't return my phone calls. And yes, the phone calls I do get are robocalls. I think the Federal Trade Commission could track down these cretins and prosecute them. E-mails are a good alternative, but people are giving up on them nowadays because of all the spam. So I ask this board - "Any effective methods to solve these problems?"

I was wondering. Thanks.

There are a lot of questions that need to be answered before a decision like this can be answered.

What is the reason for wanting to change the tax structure? Strictly tax savings? SEHI Deduction is the same as SP or S Corp. Tax Rates don't change. Is she looking to manipulate by paying a low salary and taking large distributions? Lots of people think that is how to beat the SE tax. Tom Longview, TX

First and foremost, she needs adequate errors and omissions insurance as well as regular business insurance, and a personal umbrella policy for however many millions makes sense. But in the past 30 years I've only done LLCs, which she could do and remain a sole proprietor. Whether it's worth electing to be an S corp is hard to say, but factors to consider are losing the home office deduction, paying for payroll processing and payroll tax returns, and paying for an S corp income tax return. With a service business, the IRS is going to want to see almost 100% of profit being taken as salary and not distributions.

Which is the preferred method? Or should we just tell her to stick to the LLC. New client. She's an investment advisor. Has operated as sole proprietor and pays se tax of 30K. She reports a lot of dividends and cap gains. Other income from her husband's pension is minimal. She absolutely should be set up as an LLC. Has it in her head that she should be an S-corp. I'm wondering if it makes more sense to go one way or the other from LLC to S-corp or just start a corp and elect S status. If anyone has a pro or con either way. Fees are not an issue.

If she received a 5447 C letter: https://www.irs.gov/individuals/understanding-your-letter-5447c

had an elderly client's daughter (not my client) call about an identity verification letter they received. Strange thing was that they owed money--I told her to be wary as I had only seen the IRS hold up refunds for identity verification, not a mail-in return that included a check. Only scenario I can think of if someone had already filed under one of their social security numbers. Has anyone else seen a taxpayer get the notice when there was no refund? [I did get a chuckle when she read off the 800 number attached to the letter, thinking I could tell her if it was an IRS number. I said if it doesn't end in 1040, I wouldn't know. And good luck with someone who still mails in their return to go online and get into their IRS account]

Another moral: always owe a little bit, so you don't have to wait for your refund...

I think we have reached the BOI status of confusion.

Had a farmer go through this two years ago and its still not finalized. Hence my post above about 2 years later. They asked for "Income Verification" only in first letter related to Schedule F. Client sent that in. Then 6 months later they wanted Schedule F "Expense Verification". Sent that in. 6 months later, they wanted copies of their Schedule C and Income/expense report related to that. Wife had small schedule C with around $1200 in income and no deductions other than some material. Well, we sent that in along with copies of all 1099's, W2's, 1098's, etc.. We mailed in everything, including hard copies of the tax return. That way they couldn't ask for anything more !!! 6 months later... they get a letter stating all is in order and a refund will be issued. 6 months later, still no refund. And it isn't much of a refund !! A few hundred !! Moral of the story.... Send them everything, including the kitchen sink !! If you give them only what they ask for, it will drag out.

Yes, I do too. They have the 1099NEC. What else do they need. I can understand expense verification and net profit. But whatever. Just answer and wait for them to followup.

I developed my WISP by asking GROK to produce one. It was excellent. I did the same as others have - edited in my specific info, tweaked a couple of items, printed it out, and filed it away.

I usually don't like to set this up too close to the filing deadline. If eary on, I do it for a few client who request it. Most of my clients are ok with refunds being directly deposited but if they owe, they choose to send a check. We'll see how it goes for next year when they put through the new requirements (or change their minds).

I'm with you two. I just copied a doc I had showing the points needed. I made a few notes, wrote my name on top and put NA in a few places. That was my WISP. Like mcb39 said, if it's not good enough for them, so be it. Hey, it's a WISP.

Thanks for all the replies.

My credit union will cover from savings, but they won't transfer online from savings more than 3 times in 30 days. So if I have made transfers online, or they have had to cover another payment, the third time that month that this happens, they will refuse the transaction. They told me it was federal law - at least the last time I tried to make too many online transfers in one month which has admittedly been several years ago.

Drake does display a QR code as a part of the proceess to set up MFA. At first I resisted it, but eventually decided to set up MFA after reading about it on this forum. Now it’s a really seamless process that I’ve become comfortable with and I feel as though I’m protecting my client data with another level of security.

I made my own as well. Took it from the IRS prototype, changed it to meet my needs, and then made my employee/spouse read and sign it. Scanned copy in the folder somewhere - Where did I put that? Oh well, like all the 8879s that I sign that the IRS has never asked to see, I am sure I could do a search of my documents and find it if I need to. Tom Longview, TX

Best I can figure, he may be referring to the one-time setup of the MFA.

I wrote my own WISP; printed it and sealed it in plastic. If it's not good enough for them, so be it. I can step aside any time they want me to. And, of course, there is that unforgiving increase in the price of the program. ATX, as well and an email every other day reminding me that I should renew before the end of May. I have not even decided yet what I am going to do about next year. Pretty soon the phone calls will start.