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No, I think TAXMAN is asking again because of how ATX is handling these deductions, and they are NOT listed as one of the acceptable deductions allowed at 100% on the Sch A. Please see one of our earlier topics of discussion from last month linked below on ATX's handling of this that still hasn't been addressed or corrected yet:

The only way would be to adjust the scale as I described in this topic with my post of Feb 5th above. It will make everything on your desktop and in all of your apps larger though.

No payback if the stimulus check received is too high.

"The XML data has failed schema validation." What field or form is referenced, and what software are you using? It usually is because of a stray character like a space or punctuation where it isn't allowed.

What are they going to do with paper-filed 941s and people that have sent in payments by check?

Yes, if properly set up, the accounts will be inherited IRAs in their own names and the disbursement request forms will include the standard language to request or decline federal and state withholdings from the distribution.

My husband and some clients would agree and would prefer shorter answers.

Upon the death of the original owner, the designated beneficiary(ies) becomes the owner of the IRA and has the responsibility to take the RMD in the year of death if the deceased didn't do so, and the beneficiary would also have the responsibility to rectify any shortfall because of missed RMDs. Each beneficiary should take his or her share of the distributions for the shortfall as soon as possible after the shortfall becomes known, and it can be taken all as one lump sum. Prepare a schedule showing each year's RMD that the deceased should have taken and, if more than one beneficiary, show how each of the year's RMDs are split up among them. Using the appropriate year's forms, each beneficiary completes separate 5329s for each year that a shortfall occurred, and requests penalty abatement on each of those forms. Because these are for prior years, the 5329s must be filed separate from the 2019 return and must be paper-filed, e-filing not allowed. I'd file them all together with an explanation that includes the request for abatement and the schedule showing the shortfall and its allocation to each of the heirs. Going forward, each beneficiary will also follow the distribution rules for inherited IRAs by nonspouse beneficiaries of decedent that was over 70.5 years of age and dying in 2019 or earlier.

You will need the new IP PIN that the IRS would have issued this past December or early January, and that is the one that must be used for the current year and any back year returns. It isn't specific to only one tax year, it is specific to that taxpayer and his or her SSN. From IRS FAQs:

I'm not going to hold my breath waiting for that to happen; we'll probably all be retired by then. After all, how long did it take for brokers to be forced to report basis of stocks sold?

Not that any member on this site should care, H&R answered that on their site today with this page saying that some will get it that way:

The balance wasn't due until 7/15, but was that the actual date entered as the scheduled date for the withdrawal? Did you prepare her return, or did she do this herself, possibly before the dates had been extended? The reason I ask is that I received an email reminder yesterday that it was the final day to reschedule any payments that had originally be set for 4/15.

Yes, that is one line of thinking, but there is another that says it shouldn't be reported on the 4797 including the instructions to that form itself and Pub 544 that both say this: When is inventory not held for sale in the ordinary course of business? Also, I think it should be subject to S.E. tax because code sec 1402(a) defines net earnings from self-employment, and 1402(a)(3) says "(3) there shall be excluded any gain or loss… (C) from the sale, exchange, involuntary conversion, or other disposition of property if such property is neither (i) stock in trade or other property of a kind which would properly be includible in inventory if on hand at the close of the taxable year, nor (ii) property held primarily for sale to customers in the ordinary course of the trade or business.”

I was saying to report the portion of the sale proceeds that relates to the inventory on Sch C and not put it on the 4797 at all.

That rule where the rental is less than the greater of 14 days or 10% of days rented is supposed to apply only to rentals of a personal dwelling unit (second residence or vacation home), and in this case the timeshare wouldn't qualify as a second residence because the fact pattern says that the taxpayer wasn't able to use it at all last year.

I always have attached an 8594, or if that isn't available, a schedule that shows the breakdown of the sale and also a statement describing where each of the items are reported on the return. In this case, I would report the sale of the inventory as part of revenues on the Sch C, again with a schedule detailing what is included, and ending inventory would be reported as zero. In this way, there is no double reporting as Abby Normal pointed out.

Unless the corporation was a C corp at the time the stock was issued, and if it was always an S corp, that would rule out 1202.

I think the depreciation recapture that is taxed as ordinary income and unrecaptured sec 1250 are QBI, but any portion of the gain that is taxed as capital gain wouldn't be. You can take a look at the final reg that is mentioned in this post from last year on the same topic:

Use the link JohnH gave you, and then read the suggestions you got back in January from the topic linked below from when you asked for a fillable 8879. The 941 from the IRS site can become fillable also.

All of the years. Start from the beginning; it's cumulative. Not just the income side of it; deductions, 179, distributions, etc all factor in too, and all in a specific order. Here's a worksheet: http://www.thetaxbook.com/updates/TheTaxBook/Client Tax Tools/S_Corporation_Shareholders_Adjusted_Basis_Worksheet.pdf

Liquidating distribution for stock should have been reported on 1099-DIV. Was K-1 generated from a computer program? He could ask if that program generated the basis calculation. Otherwise, if he has all K-1s, recalculation basis starting from the beginning based on what he invested and adjustments for each year's activity shown on his K-1s

Mileage allowance can't be used for a car that isn't owned by the taxpayer. I'd follow the rules laid out for employer-provided car where only the value of personal use is included in compensation, not the full value of the automobile. This means that the only expense that would be deductible would be the portion of expenses paid by the taxpayer that relates to the business use. I think the only deduction here is a percentage of the gas cost.

Would 2019 show the same level of income and balance due, or is there a chance it may have a refund that you could file soon? In the press conference yesterday, it was stated that direct deposit of these funds will begin next week. I'm not sure how true that is, but it puts a new light on trying to get returns like your client's into the system sooner than later.

NO.

Grandmabee is correct. The way this actually works is that it is all accounted for and reconciled on that year's return even though the excess is paid back (or refund received) in the following year. The adjustment becomes part of the calculation for the deduction on Sch A or for SEHI. Here's how it works: the total gross premiums for that tax year are reduced by the actual PTC that is allowed as calculated on the return. not the amount of advance PTC that was claimed during the year. What that means is that if there was an excess claimed throughout the year, the premiums paid by the taxpayer out-of-pocket should have been higher, meaning that the Sch A medical deduction or SEHI are that much higher. If the return shows that the taxpayer could have utilized more APTC that results in an additional refund, then his out-of-pocket for premiums should have been lower during the year, and therefore the Sch A medical or SEHI would be that much lower. The tax program should be doing this automatically for you, but you should check to make sure this is how ATX is handling it. My program does do this automatically, but I no longer use ATX. If that isn't clear, here is an example: Total gross premiums for year: $12,000 APTC utilized throughout year: $7,000 Taxpyr prems pd during year: $5,000 If the amount of APTC used was the exact correct amount, then the taxpayer has a deduction of $5,000 for Sch A or SEHI purposes. If the taxpayer should have only used $4,000 of credit during the year causing a $3,000 payback, then the share of premiums he should have paid during the year should have been $8,000, and that amount would go to Sch A or to SEH I even though the $3,000 payback occurs in the next tax year. If the taxpayer was entitled to use $9,000 of credit and therefore has an additional refund of $2,000 on his return, that additional $2,000 effectively reduces the $5,000 of premiums paid down to $3,000, and only the $3000 is allowed as a deduction on Sch A or for SEHI.