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No reciprocal agreement for nonresidents selling WV property. Taxpayer will need to file a WV nonresident return that will include the cap gain on the sale of the property and will calculate the total WV tax. Then the tax withheld on the sale will be applied against that. Here is the WV code sec: https://code.wvlegislature.gov/11-11-5/ Seller or settlement agent should have filled out WV form NRSR at the time of sale which calculates the tax to be withheld from sale proceeds. This form must be attached to the WV nonres income tax form. You should check the WV IT-140 instructions as to whether paper filing is necessary, but it may be possible to attach the form as a pdf attachment. https://tax.wv.gov/Documents/Withholding/nrsr.pdf The withholding at sale is claimed on the WV nonresident income tax form. It should be entered on WV IT-140, line 15. Your client will receive credit for that withholding against their total tax, and they may owe some if the withholding wasn't enough to cover what they owe, or they will get a refund if the withholding exceeds their WV total tax before payments and credits. You should read the instructions to line 15 to make sure the appropriate federal forms go with the WV filing. This link contains the IT-140 and its instructions. https://tax.wv.gov/Documents/PIT/2024/it140.2024.pdf

You'll want to wait for someone who works with MD/WV, but I do know that most reciprocity agreements are for wages only. So, do some research on the WV website while you wait. Good luck.

Do you know if a MD resident has to pay WV taxes when selling a WV investment house? I am going to file a non-resident return and I wonder if client will get full refund. Also, I believe I will have to paper file since the document I have for the withholding looks like a sheet vs a form.

Christian, only you and your farmer can decide whether to continue reporting farm operations or not. But as for stopping depreciation? I would keep a list of such equipment (plus land and timber) at remaining value. This give you a basis on all items, and information to report on a 4797 in the event of disposal. Remember also, breeding cattle and bulls are 4797 items too, because they are depreciable. Your list should also include original value as well as undepreciated value. This will prove incredibly valuable for beneficiaries in the event the taxpayer is deceased. The market will almost always support original cost of farm equipment unless it is obsolete or in bad condition.

And no, I didn't mean to say "WASP"... But all of you know what I'm talking about anyway. The increasing talents of the identity theft pirates mean that we must jump through more hoops every year to protect ourselves (and clients) from identity theft. This year we were supposed to have a "WiSP" Written Information Security Plan. I drafted a WISP from my seminar materials. I counted on Drake to provide the machinery necessary to bring about my WISP. When I contacted them, they showed me one of those weird rectangles with all those tiny dots. My daughter calls it a "QR" or something like that. I objected to Drake, as I don't want to deal with something that I don't what is doing, and apparently this thing is supposed to suck personal data from my cell phone, which has absolutely no tax information stored in it anywhere. I asked Drake for an alternate method and they said absolutely not. And of course, they are billing for renewal with an 8% increase. And no effective response for my WISP. I feel out of touch with this whole scenario, and I'm sure there are those among you who will chime in and agree. Why can't we concentrate on becoming better tax preparers and not have to become I.T. people? For what it's worth, I also subscribe to the Elon Musk belief that we are in danger of A.I. running our entire economy and taking personal decisions from us. This post may invoke all manner of comments. I didn't engineer it that way, at least not on purpose.

My bank has that option for certain accounts, but the account holder must set up that feature, kind of like setting up the online bill pay or online banking for statements. The account I have doesn't have that feature available, and I don't have a savings account there anyway because their products aren't worth investing in.

In the days before LLCs became the darling of corporate attorneys, many corporations, even small ones, were chartered in Delaware. Attorneys were saying there were liability advantages in Delaware for corporations. From what I could see, there were no obvious tax reasons to do so. I had a couple small corporations that I filed Delaware corporate returns. As chartered in Delaware, they could not be "foreign" corporations. But when I completed the schedule for state allocations, Delaware didn't even receive any taxes. Not even a minimum. Nowadays LLCs are so much in vogue that a new "traditional" corporation is rare. Beware, in Tennessee, an LLC is taxed as a corporation, whereas a simple proprietorship has no taxes. And the TN dept of revenue is notified from our Secretary of State whenever an LLC is created.

The bank or credit union has the option of doing so. If this had happened to me at my credit union, they would have automatically covered from savings. Ironically enough, "Bob" has the same credit union that I have. Go figure.

I find the request for "Income Verification" very strange. What's the point?

After income verification, they will want expense verification. Better have your client get everything ready. 4 or 5 letters and two years later it will be resolved.

Entered the amount rolled over in the rollover box on the 1099R screen.

Just need to know how to enter data so that the early withdrawal penalty doesn't get triggered.

I have used the upload toll before and it worked fine.

You already received the best answer is to have client use IRS' Direct Pay. About the above statement, don't ever assume that a bank or credit union offers overdraft protection or that the account is of the type that even has that set up.

@Pacun and everyone, I fixed the link so that it now goes to the official IRS page for direct pay.

You'll be lucky if it's just one. I usually get 2 or 3 of those notices before the IRS actually handles the problem. Sometimes it drags on so long that I forget what the issue was.

No Cash Receipts. Everything on a 1099NEC. Contracted with a local govt agency to provide after school care. Profits did not justify the effort, so they did not renew the contract and closed the business mid-year. I am not worried about the audit. What I thought was most interesting is the wording of the letter. "If we do not receive a response, we will not process your return." Since when does the IRS have the choice to "not process" a timely filed return? I understand they can audit, they can delay the payment of refund while under examination, etc. But to flat out say they will not process the return because they want more info blows my mind. BTW - we got the response to the client today and they are uploading to the new portal thingy the IRS rolled out a while ago. I am interested to see how this works out, if it actually gets what they want to who wants it via their upload tool. Tom Longview, TX

You'll get a response stating they need more time to respond.

https://www.irs.gov/payments/direct-pay-with-bank-account

I learned about the Wayfair case a couple of years ago and many states are going after businesses to see what they can collect.

Attorney should get 1099. IN GENERAL, the part for services provided to your client should be on NEC box 1. The settlement portion should be on the MISC, box 10. The amount to include will depend on how the check was made out. My basic understanding is that if the check was paid to only one attorney, then obviously that attorney gets the 1099 for full amount. If one check is paid to co-payees, I think they each get a 1099 for the full amount. If attorney gets money and part is for co-counsel, then attorney gets 1099 with full amount, and they issue a 1099 for amount they paid co-counsel, but again, that depends on who check is made payable to. There is also the issue on what type of settlement the payment is for. Example, as the article below explains, payments for personal injuries don't require 1099s to the injured party but will be issued to the attorney, depending on how the check is made out. I'd suggest start your reading with the article below from the ABA that is written in more layman's language and is informative before going to the 1099 instructions for preparation, and then the code . The 1099 instructions do reference the applicable code sections. Also, perhaps a separate post would be better for what portions of these payments are deductible by your client. Slippery Pencil is correct that attorneys are an exception to the corporate rule. They get 1099s regardless. Anyway, here is the ABA article to start with: https://www.americanbar.org/groups/business_law/resources/business-law-today/2020-february/irs-form-1099-rules-for-settlements-and-legal-fees/

Entity type doesn't matter for lawyer 1099s.

NY and CT have long battled over who gets to tax the mega incomes of big shots who live in one state and work in the other. For remote workers, NY has a "for the convenience of the employer" test, meaning if you work for a NY firm from your home in another state, you can only avoid NY tax if your employer requires that you work from home. After this passed, CT instituted the same rule for residents of NY (but no other state). I have a client who works for a NY firm from his CT home for her convenience, so she's taxed in NY except paid time off, which is taxed in CT. No kidding.

I wonder why they want to verify income? What kind of business is this? Do they have cash receipts?

You can always ask for more time to complete your response. IRS really does want to work with you, and I've never had them deny such a request. Of course that was when they still had employees....