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This is specifically covered in the 8867 instructions for line 9 where it says this:

I started collecting DL information last year too. Now I have to remember to look at those expiration dates and update my files as needed.

No, payroll to a related party can't be accrued. It's covered in sec 267. They are deductible in the year paid. Code sec is 267 that puts limits on related party transactions and converts those transactions to a cash basis so to match the transaction in the same reporting period as the cash basis owner. A quote taken from another source: "The related party rules under IRC S. 267 require the matching of income and deductions arising from transactions between related parties. Related parties include individuals owning more than 50% in value of the outstanding stock of the company. The law requires that even if all events have occurred to fix the liability and the economic performance rules are met, the deduction may not be claimed until the year in which the related party recognizes the income. Thus, in the instance of a bonus payment to a greater than 50% shareholder, the amounts will not be deductible by the company until the period in which the income is recognized by the shareholder."

OK, no one spoke up to keep either of the old ones pinned and this topic has had close to 100 views, so now the only one that will stay pinned is the new one for tips and tricks.

Thank you, Eric!

Hmm, sorry that link works for me. I converted it to a pdf. See if that works for you.Tangible Property Regulations Flowchart 1 - is_tax_1015_tars_flowchart1.pdf

I'm simply thinking of unpinning the post, not deleting it. The post would still be found by performing a simple search of our site.

The dollar limit of $2500 is the least of the tests though. Are you sure that it meets one of the tests for being a betterment, adaptation or restoration and is not simply a repair? http://rsmus.com/pdf_download/is_tax_1015_tars_flowchart1.pdf

No problem, and I appreciate everyone's input here so don't be sorry or embarrassed at all.

This is a C corp so no K-1. Also 1099Bs are issued for broker and barter transactions and that would not be appropriate either.

I unpinned the one on state EINs. I'm really more concerned about the repair reg post that is 2 years old now and was prior to the most recent changes in threshold. I'm not referring to it at all but that doesn't mean others aren't still.

Is anyone still referring to the repair reg pinned post? Is anyone referring at all to the one on state EINs? I'd like to unpin these if they are no longer being used. There is a new one for posting tips, tricks and workarounds as they are discovered in using the 2016 software.

Please use this topic for posting tips, tricks and workarounds. I'd suggest that we use either a larger font, caps, bold, or a bright color to make the subject of the tip stand out in case a discussion ensues within this thread, something like I've done above.

I'll start a topic for tips and tricks and pin it for us. I'm going to suggest that the subject of the tip be made larger and in bold so that they stand out and aren't lost if a discussion ensues within the thread. How's that?

I also e-filed one individual, and have our own individual return input completed. I'm waiting on our 1099-SA forms. I did e-file the C corp return for my own business last night too. None of my clients have all of their documentation yet so I'll have a couple more weeks before the onslaught.

Hair samples for DNA and test the children too. That will be the required documentation for the 8867!

Here's what's happened, and I hate when attorneys give this advice. Attorney told the client to just not pay the state franchise tax or any licenses any more and let the corporation go into default, notify all agencies, and that they did not need to go through a formal liquidation. Owners distributed the remaining cash and an automobile. So how should this be reported? Wouldn't what Ron was saying be the proper way then, to report all as ordinary/QDI dividends up to the amount of retained earnings except for the $10K that is a return of capital? ETA - I do have the auto distrib'd at FMV with that gain recorded in the corp.

Yes, it's a pilot program between the IRS and several payroll companies to combat identity theft. https://tax.thomsonreuters.com/media-resources/news-media-resources/checkpoint-news/daily-newsstand/irs-continuing-to-expand-w-2-verification-code-program/

Yes, trying to zero out. Don't I include that $10K in the total liquidating distributions so that they report the total as proceeds on their stock redemption and claim the $10K basis they have in the stock? Don't the liquidating distributions tie in to M-2?

Thanks for the chocolate and the help!

You know, it's the first corp of the year and I forgot that I have the software set to not autobalance the Sch L so it didn't fill in retained earnings. I just went back in and entered the negative $10K in Sch L for the unapprop R.E, and then Drake filled out the M-2 including line 8. I don't know why it wouldn't complete the M-2 because of that, but now it's filling in those lines. I guess that was my whole problem, because the program was leaving lines blank and not completing the math. Now Sch L shows $10K in common stock and negative $10K in r.e.

I have probably the stupidest and easiest of questions and am having a total mental block. One of my C corps sold its business in an asset sale and is filing its final return. The balance sheet should be zeroed out. The distributions have been made and when I enter those on Sch M-2, it ends up with a negative balance of $10K on line 8, and is exactly equal to the amount of common stock. So at this point the only 2 things on this balance sheet are $10K of common stock and negative retained earnings of $10K. Am I not thinking clearly about this. I need more, much more, sleep and a whole lot of chocolate. What the heck am I doing wrong? I think I need to fill out the M-1 and M-2 because the company's revenues from operations before the sale were ~ $300K. Is that correct also? Told you these were stupid and easy. Please send chocolate ASAP!

Catherine, if you have a client with a large number of forms to file, do you e-file most and then paper file the ones with the missing info? Do you attach the affidavit?

https://www.irs.gov/individuals/international-taxpayers/filing-forms-w-2-and-1042-s-without-payee-tins Paper file with the affidavit attached and payer should keep documentation that shows it exercised due diligence in trying to ascertain the TIN and other information, otherwise IRS can assess the penalty. Does not getting the required information also open up the possibility that the IRS will try to collect the 28% wtihholding from the payer that should have been withheld because of not having a W-9 from the payee at the time payment was made?

I agree with John and Jack that it's too soon to know when this will be put into effect. We can suggest extensions for those clients that may be affected.