Pacun

In DC there is a guy who paper files every return and never mentions himself on the Return. He moved to MD really closed to the DC border because DC was on his case and has been doing this for about 20 years...even after being in Jail for preparing fraudulent returns. Immigration put him in jail again for 6 months last year between June and Nov and one of the extenuating circumstances mentioned in court was the fact that he was a person of good moral character who prepared taxes for the community. When I read that he was a tax preparer I laughed because he never signs any return so there is no record he prepares return.

Why didn't you disregard instead of assuming?

No. the client needs to file, not the IRS for the clock to start running. Also, the IRS will ask clients to extend the statue of limitations by having the client sign a form. The IRS knows the rule and therefor suggest the clients to sign the extension.

The IRS has 10 years to collect any debt from tax payers when returns are filed. I have heard some tax attorneys to suggest to people not to make payments when 10 years are around the corner because after 10 years the statue of limitations kicks in and the debt is gone. So if your client will receive a huge refund this year and the statue of limitations for a debt will expire in August, since you are busy, you will put them on extension and file in October, correct?

To these type of clients, I ask them to drop off the documentation and to pay half of my fees, then I will call them if I have questions and I will call them when their taxes is ready to be reviewed and signed. When they ask me "how do I do this on TT?" I ask, "what is that?.... I use another software package so I have no idea about TT. You can call their support hot line and they will be able to help you".

You just lost 95% to the bottom line. You already have the software, the knowledge, the time, the paper, the internet access, the toner... and so and so. So almost all of what you were going to charge was going to your bottom line. You take this type of client and give them their depreciation report and they will come back next year because they will not learn how to do it because even if they understand the principle, they will not know how to input the information. In my mind, all my new clients are not coming back next year and I accept them, otherwise, I would not be in business. Comprende compadre?

I love when my clients tell me "the amount is very small". To me, 10 cents is a very small amount, but for you it might be a few thousand of dollars. I always tell my clients, give me the amount and you save the adjectives.

Trump’s Tax Plan Could Turn ‘Everyone and Their Dog’ Into an LLC (Bloomberg) - The Trump administration’s proposal to slash the tax rate on partnerships and limited liability companies could set off a stampede of individual taxpayers trying to reclassify themselves as so-called pass-through businesses... Let's say I am a schedule C person, how can became an LLC help me with the new proposed tax law? Am I missing something? Keep it in taxes, which as Jack said, it is hard.

That will be sweet if that law passes. Do you own a house? NO Do you have a letter from your church for donations? NO. "Then you will get the standard deductions... please put away that CVS bag full of receipts"

The instructions don't say anything about student loan. It only says if you are insolvent. Is he? Line 1b The insolvency exclusion doesn’t apply to any discharge that occurs in a title 11 case. It also doesn’t apply to a discharge of qualified principal residence indebtedness (see the instructions for line 1e on page 4) unless you elect to have the insolvency exclusion apply instead of the exclusion for qualified principal residence indebtedness. Check the box on line 1b if the discharge of indebtedness occurred while you were insolvent. You were insolvent to the extent that your liabilities exceeded the fair market value (FMV) of your assets immediately before the discharge. For details and a worksheet to help calculate insolvency, see Pub. 4681. Example. You were released from your obligation to pay your credit card debt in the amount of $5,000. The FMV of your total assets immediately before the discharge was $7,000 and your liabilities were $10,000. You were insolvent to the extent of $3,000 ($10,000 of total liabilities minus $7,000 of total assets). Check the box on line 1b and include $3,000 on line 2.

I have had two clients who requested refunds this year and the IRS froze those refunds until they filed missing years. I loved it because a lady said: I haven't file 2014, 2015 and 2016. I prepared them and she was getting a refund because she had a daughter a nice withholding. Two years before the baby was born she didn't file and IRS said... hold your caballos, if you don't file those years, you will not see any of the three refunds totaling 15K. Thanks to the IRS, I have two more years to prepare and more dinero to make.

See you... enjoy your vacation

So, if I give 98% to the boy who earned only 3,400, and 1 percent to the joint return and 1 percent to the other filer, I think they will not have to return anything. But, I want to do it 25% to each person so, what do I do on each of the three returns? I wish that I didn't get this return this late, because I don't feel like researching the best way of doing it.

Bart and Tom are right. Remember you have to paper file this return

Sorry to hear Terry D. Your mother and you are on my prayers.

I know this has been discussed before so you have a link to previous, I will appreciate it your pointing me to the right direction. Parents and two children (19 and 22) got advanced payments from the exchange. Children didn't go to school full time and the 22 years old made $3,400 and the other $9,000. So all of them were under the same exchange plan and now parents have to return about 3K since they are only two on the return. How do I allocate some of the advances to the children?

I was looking for an old post and I found it. AND I WONDERED... if we can donate to this fabulous site one more time while supplies last. Thank you.

NOTHING has changed from our end, it is the same as last year. The only thing that has change is this: Last year the IRS froze refunds if ACA was not answer or if information was missing. The service sent a letter to TP and the refund was issue when the return was complete and OKed by the IRS. This year, the IRS will release refunds and then deal with ACA later. So people will get a refund and then they might send some money back. I rather my clients NOT to receive a letter from the IRS so I am with Jack and Lion and I am doing complete returns since the law has not changed.

Primary Residence doesn't need insolvency to be "not taxable" but you have to reduce the basis by that amount. When you get a 1099-C you have two choices: Taxable or not taxable. Then you have to report it on line 21 (1040) if taxable or on 982 if not taxable.

That W-2 was issued for the convenience of the employer. (I like that term). The employer is the one deducting that amount, which is not taxable to the person receiving the DD. The only place you enter this information the TP's return is when you check the box "did you have health insurance". So, I would live that W-2 out.

"Am I reading the code section 47-1808.01 correctly that given that my clients are 'consultants' getting reimbursed simply for their time, they are exempt as unincorporated businesses? If so, how do I indicate the same to DC and NOT file a DC-30" You indicate that to DC but opening, D-40 and deleting D-30. Everything should flow correctly. I hate that if you report $100 on schedule C (without any deduction) the program opens a D-30 and moves that $100 to it. There is a minimum fee of $250 for D-30 but the rules are easy to read. If you don't make more than 13K (gross), you don't report it on D-30 if you are not incorporated. Most people don't need to file D-30. I am in DC, so if you have any question, let me know. I can run some numbers for you tomorrow and tell you if your end result is accurate.

This happened to me about 3 years ago. A taxpayer left a few 3K W-2gs when I prepared his taxes. He got a letter from the IRS and he gave me the win/loss statement from the casino. This is what I did: I prepared 1040X and report all W-2g on page 1 then I went to schedule A and reported that same amount and I sent the IRS a letter from the tax payer stating: Dearisimo IRS, In response to your CP2000 letter dated September 20, 2030, enclosed please find: 1.- Form 1040X for year 2028 showing all casino winnings 2.- Win/loss statement from the casino which shows that during 2028, my losses were bigger than my winnings. In support of my 1040X, let me state that I do not play table games, I only play slot machines and those computerized machines keep accurate records of each time I make a wager and I press the spin button. If you need additional information, please do not hesitate to contact me at the address above. Sincerely, Mr. Pacun Gambler We never heard from the IRS again. Do think the IRS will challenge me in court and say.... but you could have left your card out and win big money so your statements will be inaccurate? Then the judge will look at the statistics and see that the casino always win.

Let's say that you buy a house and move in on April 15, 2010 and you live there as your primary home until April 15, 2012. Then you move out because you like Florida and you want that better weather, and on April 15th, 2015, you sell at a gain, you will be able to exclude the gain up to 250K for single. Let's say that you made 500K profit on that house, you will be able to exclude ONLY 200K. Same facts as before, except that you sold the house on April 15, 2016, so you will have a prorated exclusion. The exclusion will be something like this 500K\6\2.

This is correct. Jack, as long as the house was your primary home for 2 years (or less in this case), out of 5 years, you can get a portion of the exclusion. The rule is lived and owned it.

Imagine that the sale occurred in the US. The basis is the FMV at the time of death. Then you calculate the gain on schedule D and file 1116 to get the credit for taxes paid in Norway. Keep in mind that moving to a country doesn't mean that you are not a US citizen or Legal Permanent Resident, so FicCen might be needed.