jklcpa

That lengthy discussion is here with which credits would have been allowed with SSN, ITIN, or ATIN. I don't think it would work because the SSN is supposed to have been received in order to claim these credits, but does the client have proof of when application for the SSN was made and can prove that the delay was the government?

State's treasurer helped a Nigerian prince that turned out to be a real thing.

Anti-virus program posts have been moved to a separate topic.

Pleae try to stay on topic to the OP. Any derailinig posts will be removed. Thanks.

Agree with the others above. It's reported as a sale of home with foreclosure and possible component that is ordinary income for the amount of debt forgiven. If memory serves, it is in pub 523 for the home sale with foreclosure and the worksheet in pub 4681 that Lee referenced above.

I think its because att email is hosted by yahoo. "Hosted" may be the wrong terminology, but if you are being redirected there, did you try signing out of that and then signing in to your att email again?

I agree with Lee to check for adware or malware. I am frequently signed in to Google, also use Firefox, and I do not have these pop up problems. Here is a setting that you should check in Firefox that may help. In the upper right corner click on the three bars ( the hamburger ) and then choose "Settings." Next, at left, choose "Privacy & Security" and then scroll down until you see the section for "Permissions." There is a check box in the permissions section that you can check to block all pop ups or list exceptions to that absolute blocking. It looks like this:

Assuming the client didn't elect out of installment sale reporting, please see IRS Pub 537 for installment sale reporting where price has been reduced. You will have a recalculation of the gross profit. There is also a section in the pub that deals with repossessions and recalculating those amounts and how to report that portion of the transaction going forward.

Two screen shots:

Have you actually tracked E&P each year and know what the accumulated E&P is? Dividends are first paid out of current and accumulated earnings and profits. Current year E&P are considered first and are determined at the close of the current year. Any distribution that exceeds the total of current and accum E&P is a return of capital and reduces shareholder's basis. Anything in excess of that is taxed as cap gain. https://answerconnect.cch.com/topic/46dee5267c6b1000a17990b11c18cbab013/earnings-and-profits-limitation-for-dividends

Marilyn, I'm sorry about the worsening of your eyesight. You clearly still enjoy the work and have a level of care and concern for your clients and your trainee that many in business lack. Your client base is stable and large enough to have substantial value, so perhaps now is a good time to reevaluate your plan while you have time to implement some changes so that you remain in the controlling position "for [when] whatever comes." Our core group here has been around here for many years and are possibly seeing a future that includes retirement, but I wonder how many of us truly have a clear and workable plan in place. I've been out of the office recently and am late to the party, so I've tried to filter through to boil down to focus on some of the issues, some of the conflict, and the questions it raises that more than a few of us possibly should consider for our own practices. The trainee: very knowledgeable, could be successful, stagnant, complacent, no preparations to take over or move on. Your practice: 279 clients this year, a mixed practice including many Sch Cs, no payroll or other entities. RTRP, office in home. Comments you've made about the plan: Previously set at 80, will be 85 soon, still like the work, ~five years preparing [the trainee], not going to hand it over on a platter, made things too easy for her, clients would go with her willingly, preparing for whatever comes, will never willingly walk away until I have to. I don't expect answers, but the questions and considerations that immediately came to mind are below. Certainly there are more - * With your having exceeded the original age 80 goal, have you set a new age goalpost? * How does "will never willingly walk away until I have to" jive with a clear plan of succession for any new owner? * How would you handle a transition period to any new owner considering you operate from home? * Have you actually discussed terms of a buyout with your trainee? * Does she think she can wait you out and step in with little to no investment other than the time she has already put in? Did she sign a non-compete agreement? * Is it possible that her complacency or apprehension stems from perceived or real conflicts or difficulties in future? : your shifting retirement age goal; relocating out of your home office; fears of being a business owner, financial commitment, client retention, proficiency or personal insecurities, of failure in general. * Does the trainee truly have the desire and motivation to be a sole business owner in this line of work? Some of the best employees or most technically proficient aren't cut out to be business owners. Have you thought about possibly shifting to a sale/merger with a firm or someone other than your trainee that may be a better solution work-wise and financially for both you and your trainee? It would allow you to move the practice out of your home and possibly scale back on hours or hands-on work as the load shifts to others while being a familiar face to clients in the transition. It may also provide continued employment for your trainee if seen as a valued employee also known by your clients, and a solution that the trainee may be more comfortable with as well. Sorry this is so long. It isn't an easy business to be in and is being made more difficult every day with the added challenges of health, aging, technology, security, ever changing tax laws, and long hours. I wish you well in going forward.

I just got back to the office and was looking over this thread to make sure all of your points were answered. The PA-20S/PA-65 IS the main Pennsylvania partnership return. If you aren't signing and e-filing as a paid provider/ERO and she is mailing it in, at a minimum the filing will require: Form PA-20S/PA-65 PA Schedules RK-1s for each resident partner and NRK-1 for each nonresident partner. Like the federal, copies of these schedules are to be provided to each partner for use in preparing the individual PA return. PA-65 Schedule M - Reconciliation of Federal Income/Loss to PA Income/Loss Any other schedules that the PA20S/PA-65 line items requires, depending on activities for the year A complete copy of Federal 1065 and all of its attachments including the K-1s and 7004, if one was filed. Sch M has its own set of instructions. This form "classifies" the income for PA purposes and then after that has sections for PA adjustments for items where rules differ from the Federal. Just a couple of examples that many businesses have that differ for PA are bonus depreciation, meals & entertainment, gain on sale of an asset.... I'd suggest more closely reviewing the instructions for the PA20S/PA-65 form, especially beginning on page 5 under "What to File" and on page 7 for detailed instructions for "Assembling ..." that includes the order of attachments since this will be mailed in. You are probably familiar with the PA rule differences from the federal, especially regarding depreciation since you handled the B&B on their personal return too. Wasn't that a PA property too? If you aren't and need an additional resource, you could start with the comprehensive PA PIT Guide for Pass-Thru Entities that has the rules for depreciation, when MACRS can be used and under which rules, bonus depreciation, and sec 179 rules for PA purposes. Have I mentioned lately that I dislike PA returns?

If the ptnrship delivered the goods or provided services within the state then it was conducting business within the state, and PA wants to know that and would issue a PA business license. I think catering service and/or food and beverage is subject to PA sales tax, but check on this to be sure. Was there employee involvement, possibly working an event, or just delivery of product? Maybe not, but asking to be thorough.

The partnership should have filed a PA-65 for any year that they EITHER had PA source income or had PA resident owners for this partnership. That is fairly clear in the "Who should file" section where it seems the partnership meets both the requirement to have had activity within PA during some years AND had PA resident owners. So, if they were PA residents the entire time this partnership existed since 2012, then the partnership should have filed for all of those years and should have also included either schedule RK-1 or NRK-1 depending on PA residency status. It may or may not affect the personal return because PA rules for some deductions differ from the federal, and I am not sure how you would have addressed that without filing the PA partnership returns and allocations of income within and without. Did the partnership register with PA to do business within the state? Hopefully this isn't going to be the opening of a giant can of worms! I can tell you a horror story from my earlier days in practice, not me personally but the firm I worked for. I am also on the border of PA, just west of Wilmington, DE, and I also have clients from all the surrounding states. I'm curious how this came up. I'm sorry, is it because former DIL has a new preparer for 2023 that asked for the back year returns?

Just to be more clear, when reading the instructions for state forms such as this one, the terms "domestic" and foreign" refers to within or without of the state, not domestic or foreign in terms of the USA. Form and its instructions are all in one document. Scroll down below form and see pg 2 of instructions "Who Must File" https://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/Partnerships-S-Corps-LLCs/Documents/2022/2022_pa-20s-pa-65.pdf

Under what state laws/where was this parnership formed, actually a NY or PA partnership? It makes a difference whether or not it was a domestic partnership (formed in PA) operating bricks/mortar store solely in NY, or was a foreign partnership to PA having no income from PA sources but with PA resident owner (foreign to PA = meaning a partnership formed in another state but operating within PA).

Why does this continue to happen? Is there comingling of personal and business expenses for one or both of them being paid from the s corp? If so, advise that stop immediately. If it is really just unequal cash distributions, suggest a bookkeeping analysis shortly before year-end and settle up between the two before the year closes. Is the owner receiving the lesser amount aware to the extent he or she is being shorted? It may not be intentional to the size of the amount, but sometimes seemingly smallish differences do add up over time.

Amend; it affects each partner's basis. State that correction is to allocation of distribs only and total distributions are unchanged. You don't want rhis to be a case of inconsistent treatment by partners vs partnership.

schirallicpa, as Abby explained, you would have until the date in June 2024 to get it to the IRS. A moot point now, but IRS extended the due date of the 2020 returns for everyone to May 17, 2021, so wouldn't the 3 year portion of the rule take that to May 17, 2024 or was there additional guidance that said to use the earlier date of April? As I said, a moot point now for this case, but I'd like to know either way.

Memorial Day is to honor those that have died while serving. It should be a solemn day of remembrance, and it was once called Decoration Day for the activity of laying wreaths and flowers on the graves of those fallen soldiers. For some of us that have lost family and friends in war, this isn't a happy day. Veteran's Day is to honor all those that have served in the military.

The ones I have entered have all come forward. IIRC, this is one of the items you select to either roll forward or not when first creating the file for the year.

It depends. I believe it is included as earned income for purposes of calculating the student's standard deduction, and any amount above that is unearned and subject to the kiddie tax, that is if kiddie tax applies to this child. Check me on this though.

Probably. The amount received isn't a lot when considering cost of higher education costs today. As long as student meets the requirements for the funds to be tax free, he or she can exclude it and sounds as though it may be the case. Then for the parents, was the net amount paid after reduction for the scholarship still more than the allowed amount so that the credit claimed is still unchanged and correct? If so, then even though the amount of education expenses shown as paid was the incorrect amount, no amendment is needed. I agree with Tom that you may be overthinking this.

I don't know for sure that it wouldn't be challenged, but I would not advise the client to do this. As Marilyn said, I wouldn't want to touch this.