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Above posts were moved out of another topic to keep it from derailing further.

I fixed it, I think. Your response ended up inside the quote box because that's where the cursor was when you started to type. Just click outside the box before typing and this won't happen. Remember, you also have 5 minutes to edit your post.

First, let me say that I don't have any farms or farmers, and I was going to suggest this pub 51 also. I read elsewhere that wages paid to spouse and children of the farmer are NOT included in calculating the total wages to determine whether that $20K threshold has been met. That makes sense since those wages aren't subject to it anyway. I think that pubs 51 and 225 are written for sole proprietors, not any kind of incorporated entity. My inclination is that the shareholder-owner is NOT considered a farmworker for this determination either. In a quick google, I found that some states (found MN, IL, and PA so far) have a classification and rules related to "family farm corporations" that specifically address unemployment taxes including FUTA. I've never heard of this this though, but that might be something for you to look into further. Sorry, I know that's not much help.

First 7 posts below were moved from "State Tax Aggression that were

Well, since you are new here, that means that if you read the TOU for this site then you saw that we don't help the general public here. This is up to your accountant to come up with a working program or the paper forms. Topic is now locked.

I wish you all the best for a smooth and uneventful recovery. Listen to your doctor and also take heed when your body gives signs you're pushing too far or too soon.

Over 50 posts! Beats out the topic entitled "CPE recommendations"and second only to "1040 Postcard" that takes the prize.

I was assigned a CAF and never received the # or mailing but knew that I was assigned one and handled the case successfully. When I realized I didn't have the # to put on subsequent POAs, the owner of the firm wrote directly to a specific person at the Maine IRS office and received a handwritten note back on what looks like a memo pad of ~ 5x8" with IRS letterhead (form 5260 - Quick Note) and attached to a duplicate of the printout with the tractor fed edges. I googled and it looks like this form is still in use for quick, one-page handwritten memos. Anyone else ever receive one of these? What is also strange is that it's a typical CAF of nine digits in the format xxxx-xxxxx followed by the letter 'R' that the computer systems don't need now. Anyone else have letters after theirs, and is this typical?

I quoted SaraEA to separate her post from the 11th since this part pertained to filing of returns and the other paragraph needed to stay in the topic related to allocating a % of purchase cost to land.

I took care of this, cleaned up this topic, and moved all of the posts about forcing an e-filed return to reject to gain additional time all to their own topic. Let's keep this discussion about the allocation of land. Thanks.

I didn't read the link yet, was typing this. Yes, it depends on if the preparer rectifies the errors and receives the acceptance within the 5 days perfection period, then the return is timely filed. That's why I bolded my original quote. If not, then no acceptance. It's the typical answer to many tax questions: IT DEPENDS!

I wanted to add, because I'm not sure why you asked about the safe harbor and mentioned 2016 where no tax was due and no return was filed - While it's true that "zero" prior year tax would generally allow an individual to use that figure for the Federal safe harbor method to avoid the underpayment penalty for not paying estimates, somewhere from the dark recesses of my memory tells me that a return must also have been filed for that prior year, otherwise the agency has no way to know if "zero" is correct or not. Anyway, I didn't go digging deeper into NJ law since I don't think this is why your client was charged the P&I anyway. Again, I think it's a balance due issue after the original due date in April.

Hi Patty, NJ has the safe harbor for underpayment of estimates, if that is what you were asking. Same rules as fed: pay 100% of prior (110% if AGI over 150K) or 80% of current year. Threshold to require estimates starts at having a tax liability of $400, at least that was what it was in prior years. The above is most likely NOT why your client was assessed P&I though. Below are reasons why this would happen: NJ will allow use of the Fed extension to extend NJ if no tax is due or if at least 80% of the tax liability is paid in by the April due date. If additional tax is owed above that, a NJ extension should include the payment. If enough isn't paid to reach 80% of tax liability (via w/h, ests or extension), the state can disallow the extension altogether as if it was never filed. Even if the NJ extension is acceptable to the state, NJ WILL charge P&I on ANY balance due paid after the original (not extended) due date in April. The extension form itself states this. If you want to see all of the instructions this came from and don't like the link, just google NJ-630 and look for the pdf one from www.state.nj.us/treasury/taxation: NJ is at least charging your client the late payment penalty and interest. I'm curious, if your client paid nothing with the 2017 extension or relied on the federal extension since NJs liability in 2016 was zero, is the state also charging the late filing penalties as if the return wasn't on extension?

Yes, it is. Please see the bold statement from this IRS page under the heading "Submitting a Timely Filed Return":

I'll call you both and join the club. Mine is also 6 digits with two leading 00s and then starts with a ''7". Extra olive in the martini, please.

I'm confused by the post and the calculation of the gain on the house the son was living in. Maybe I misinterpret the wording "community spouse." Is this in a community property state? If so, the house was sold after one of the spouses died, and because it was titled in joint name in a community property state, doesn't the surviving spouse get a 100% step up in basis up to the $450K appraisal value, assuming that the appraisal was within a reasonable amount of time near the date of death? I don't think there is any gain. Even if it isn't community property, the surviving spouse would get a step up of 1/2 of the ownership to the appraised value, so the basis of the survivor in a noncommunity property state would be $412.5K, and still wouldn't be a gain after considering the gift of equity. Also, with the princ residence if community property, the surviving spouse would also get a 100% step up to FMV on the principal residence too. Like the sale of the house to the son, this sale of the principal residence also took place after death of one spouse, so even if there was a gain (I don't think there is), the surviving spouse can use $500K of gain exclusion on the principal residence if all the requirements are met AND the sale took place within 2 years after the date of death.

The answer depends on if you are regulated by only the IRS as an EA or other preparer, or if you are a CPA with additional requirements by the state board, or if the state of VA also has a provision regarding tax return or workpaper retention.

Unrealized receivables are "hot assets" - This might help explain it: https://www.lexisnexis.com/legalnewsroom/tax-law/b/federaltaxation/posts/tax-issues-involving-unrealized-receivables This: https://www.cengage.com/resource_uploads/static_resources/0324304838/6668/definitions-11.html This article from The Tax Advisor talks about the impact to the partner: https://www.thetaxadviser.com/issues/2010/aug/clinic-story-08.html tTis one has a good overview too: http://irszilla.com/partnerships/payments-for-unrealized-receivables-and-inventory-items.htm

^ What Lion said. There are additional rules for the "five or more" where they could still use the mileage if they are rotated in and out of use so that no more than 4 were in use at a time. It's in the pub that covers car expenses if anyone is so inclined. Seems like a hassle and what client would have those records anyway!!!!

Once you reach five vehicles, you can't use the mileage method.

No, if you are sure that it isn't already included in the amounts in other boxes, then add another K-1 input form with the partnership's name followed by "sec 754 amort" or something similarly descriptive, and the partnership's EIN. The amount is reported as the same type of income that it offsets. Example: If the K-1 was for rental income, then enter the 754 amortization as a negative on that same input line.

^ what Lion said.

It's deductible, and if you need a cite, use reg sec 1.163-1(b) that starts off with the quote below. There is more in that section that isn't relevant to this discussion and therefore isn't quoted here. Bold is mine for emphasis.

No I can't because I have no clue what that means. When a solution doesn't exist, the person comes up with one of their own design.

... or this combo: technically I can't be in trouble because that's an Ox according to the name assigned to that animal's emoji