jklcpa

I can only speak about my state's requirements for formation, and corporations and LLCs incorporated here in DE must designate a registered agent, either themselves or hire an attorney or other agency that represents/handles the legal matters on behalf of these entities. These attorneys or agencies file the annual franchise tax with the state SOS here that keeps the companies in good standing and this new FinCen reporting seems to be similar to me and should be handled by either these corporate clients or their registered agents, not by me. I'm with Catherine, and I've submitted 8938s for several years for exactly one client in my entire career. He also needed FBAR filings that he did himself as I wasn't going to be responsible for that or having to sign up for yet another government agency's filing access for only one client. He moved recently and changed to a more local preparer, so I no longer have that worry anyway. There are the separate agencies that we deal with such as the SSA for filing W-2s that are still tax forms, or some of us utilizing the directly filing of 1099s through the IRS FIRE system, but those are all tax prep-related forms being filed. As I stated above, I think this is beyond the scope of tax preparation, and this is one more reason that I'm closer to the end of my career than the beginning of it.

Thanks @Lion EA. I can now see why this is being put into effect and that this may be put on tax preparers to file these reports. Not to derail this topic, but I will say though that as tax preparers, we should not be "forming companies with the Sec of State for [your] clients" as you said. At least in my state, that would be considered practicing law and also most likely would not be covered under tax preparers' typical malpractice policies. If anyone here is doing this, you may want to check with your insurance carrier about your current risk exposure.

Thanks for the link to the bill. It passed the House and latest action in the Senate was in the fall of 2019. I'm not going to worry until it passes, at least not at this time.

Not that it means anything, but I haven't heard about this. Do you have something authoritative to share on this? The definition for responsible party is here at this IRS page, and is currently also found in the instructions to form SS-4.

Mine won't either. I believe it's an internal hardware issue.

Thank you.all. I did tell her to talk to the bank to see if the deposit could be rerouted. I haven't heard back if that is possible.

The passive activity loss in the current year or the suspended passive losses from prior years CAN offset the gain on sale if it comes from a passive activity. It must be a complete disposition that creates that gain, and it should all be handled through form 8582. Sorry I can't help with your input as you know I do not use ATX any more.

Affects PA state return only. Client called and said her checking account was hacked into and recommended opening a new account to change account number. Anyone know if it is possible to change the account for DD after the fact, or how long PA is taking to issue refunds? Returns were filed on 4/11, so not long ago.

Expenses for repairs and renovations prior to being placed in service must be capitalized and depreciated. IRS Reg. § 1.263(a)-2(d)(1)). Repair expenses after being placed in service must follow the repair regs, and Abby Normal's second link takes you to the IRS page as a starting point. I agree with Margaret that you should segregate as much as possible because there may be some items may have shorter lives (such as kitchen appliances) vs improvements or items considered part of the building that are depreciated over longer lives.

Haha, I'm sitting in a line right now at motor vehicle waiting to get a car inspected. Not much fun! I did something yesterday though that I'm very happy about. I made my final mortgage payment.

6 That's the time frame in which the ERO has to notify the taxpayer if the rejection error cannot be rectified. That's from pub 1345.

This whole topic from April 2022 has a discussion that may help you make sense of the 1250 gain and how to best explain it to your client. Edited - don't know why it started with my post from that earlier topic, maybe where I left my screen. Interestingly, this one was also started by Christian.

I'm with Robbie about trying to finish by the April filing deadline. My workload has diminished with clients' business retirements and a few moving away, and because I'd hardly been able to take on new work with the increasing demands of mom's care over the last 5 years. I worked long and odd hours to complete all but one client. That one person is always late and involves a personal, 2 partnerships, and a fiscal year C corp that is now late beyond its expired extension. *sigh* some are never able to be trained or changed.

If the basis was NOT reported to IRS, then you would enter the basis at DOD from your worksheet. No code or adjustment is needed in this case. If the basis WAS reported to IRS, then enter the basis shown on the 1099B and enter code "B" in col (f) and enter the adjustment to basis in col (g). Code "B" is for incorrect basis reported to IRS. For either case, use "inherited" for date acquired and all of those sales will all be considered long-term.

I am missing a few 1099s for the one I'm asking for, but if I used that method then and using the information I do have so far, the tax reported on 4868 would be substantially understated b/c the client took an additional ~ $133K out of his IRA in 2022 without notifying me and didn't pay any of the quarterly estimates I'd set up. He did withhold federal tax @ 20% but is in the highest bracket.

For those of you that file extensions with a taxes owed but no payment with the 4868, do you show the the actual projected figures and tax due not being paid, or do you show the tax and the total of withholding and estimates as the same amounts so that the math comes to the zero payment?

I do as BrewOne by using the 8878 only with electronic funds transfer.

Per 4868 instructions, IRS considers that if at least 90% of tax is paid in by that extension date and if tax bal due is paid when return is filed, then that constitutes reasonable cause for not paying with the extension and late payment penalty won't be assessed. Sorry on my phone and having trouble going back and forth to the docs.

I looked at ChatGPT's site for a few minutes and have been receiving emails from it ever since then... without giving it my addy.

I've done this many times over the years too and never had an extension deemed invalid either. Obviously anecdotal.

Would any of them know the difference?

Donated today!

Direct pay also puts the responsibility for payment back on the taxpayer instead of the preparer.

Yes, from the "Setup" drop down menu: Choose Communications Editor,then on the left side, click the + to the left of Federal Return Paragraphs that will open up all the available places you are able to modify. Double click on Federal Balance Due paragraph, and more options will appear to the right side, On the right side, click the + next to Federal Results Section if it isn't already expanded Doubleclick the selection that says "Federal Balance Due Paragraph" and the editor will open the editor where you will be able to modify any of the payment option paragraphs that Drake uses.

Done! Thanks for the reminder.