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Terry D EA

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Everything posted by Terry D EA

  1. Mine too. That Equifax hack cost me tons of aggravation. Been frozen ever since.
  2. New client this year. Partnership that wants to elect S-Corp status. So far so good. I prepared the 2022 1065, K-1's etc and personal returns. They commended my on the job I did and want me to be their accountant/tax pro from now on. Okay, I'm still good. Last week they called and are trying to qualify to buy a new home but the lender wants to see they were making enough money being self-employed and asked me to write a letter stating they made more income than what was reported on their tax returns. No I'm not making this up. After recovering from the stupid question syndrome, I said excuse me but absolutely not!!! They tried to persuade me again with some BS logic and I quickly replied NO!! I wonder what kind of lender would accept a crap document like that??? I wanted to kindly say go to hell and go away. But instead I seized the moment they said they were okay with my answer but still wanted my assistance with the 2553 form. I told them I would email then with what they needed and what the fee would be to do so. $800.00 to $1500.00 apparently blew them away. Its been a week now and no replies. I mean really, what do some people think? What a good way to get disbarred and ruin a career.
  3. Hi Judy, I've been going back and forth with this and thanks for the clarification. From the onset, my original post was to use form 4797. All of the responses were good and some make you question what you already know. Thanks for the straightforward answer. The accountant that prepped the P&L really threw me off with the negative other expense and including the gain in other income. After I questioned this, they removed those two entries. I've read in the past were some say to correct the depreciation in the current year instead of amending. I've never been in favor of this but did question the possibility. As I said, amending the 2021 will make a small dent in an already substantial loss and of course, differences in the shareholder basis. Thanks!
  4. "But, I, like many, get bombarded with emails, sms, and phone calls offering to get me free money because of ERC." Boy if that isn't the truth. The one that called today told me they knew that because I had employees I was no doubt eligible for the credit and hadn't filed for it yet. Really!!! I don't have any employees so I strongly told them as an EA If they called me one more time, I would turn them into the IRS for grossly misrepresenting the ERC and their unmitigated attempts to defraud people just to get money. Naturally, they hung up. This is getting about as bad as the old IRS scams to threaten to arrest and throw you in jail if you didn't pay. I need to find a device that has a BS monitor to block all these calls, emails, and sms. The OIC junk is just as bad too. We have a local guy here that advertises on the radio that he is the only one who can solve your tax problems. Stating the IRS is ramping up investigations due to the hiring of 86,000 new agents which is why you need him who is a CPA, EA and who knows what else. Reminds me of the Ronnie Deutch debacle. Ya know, just work hard with a high level of integrity is all you need to succeed.
  5. Ah, Mr. Google does know almost all. Judy has the gift of the proper wording or using the right key strokes in the search box. She's found stuff for me in the past that I searched for hours trying to find. She's either got that Midas touch or I'm too dumb to ask exactly what I'm searching for
  6. Pacun, I had a similar scenario. Client made an estimated payment for 20k to be applied to the 2022 tax year in Feb 2023. The filing time was extended due to NC being claimed a disaster area due to Hurricane Ian. The IRS did not provide a means to properly route the estimated payment to the proper year becasue of the filing extension. Calling the PPL, first agent said no problem and supposedly put in motion to move the funds from 2023 to 2022. Called back 3 weeks later and was told that the PPL agents did not have authority to move the funds and that everything I was told was not true. Good thing I recorded names and agent ID's The agent went to their supervisor and after they realized this was their mistake, made an exception and correctly moved the funds. Because your client made the error, they may be less than cooperative. Be ready to apply for a refund for the overpayment for the wrong year that was used. Personally, I would require payment to help this client. It is not your error, they can pursue it themselves or pay you to do it with no guarantees. I would tell the client to get his mess straightened up, pay what is owed and then work to get the overpayment, if any, back. They may have already applied the overpayment to what he owes. If that is the case, then tell him to pay the balance and move on.
  7. The jeep was not fully depreciated which is why there is a 10K gain. I was thinking of removing the asset in the year of the sale which is July 2021. I(n doing so, there is minimal impact on an already high loss. I've already completed the tax return for 2022 and have changed everything a couple of times. Their accountant has removed the expense and income figures per my instructions. I'm now leaning on 3115 to correct the depreciation and have already removed the asset for TY 2022. We're only talking a couple hundred dollars for 5 months of depreciation.
  8. The funds were used to purchase another vehicle. Their accountant showed the gain as a negative "Other Expense" and added the gain to "Other Income". That makes everything a wash which I cannot believe is correct. I will ask the owner but I think it is a safe assumption (dangerous I know) the funds were deposited into the OP account. I know there was no dealership trade-in.
  9. That was my first thought initially. I don't see the need for a 3115 but just amend the return. Just for clarification cause I've been at this entirely too long, the sale should be reported on form 4797 correct? Or, should it go on the shareholder's K-1 form under long term gains?
  10. S-Corp client sold a 2016 Jeep in July of 2021. Lost in an email was a request for me to remove the asset which I did not. The vehicle was sold and after depreciation there is a gain. First thought was to report the sale in 2022 and report the gain on the shareholder's K-1. Not sure the best route to take. It seems to be proper to amend 2021 to reflect the sale, then all is well. Opinions.
  11. Client entered the military and was married at the time. The now ex-spouse had POA to take care of his affairs. At this point the ex-spouse refuses to cooperate. The federal return for both years in question are correct, both years contain two states. One year prepped by a pro and is correct. Still waiting on documentation from the other year from one of the states to see if the return was filed correctly or an amendment is needed. I've been looking for some relief for this guy as the ex expects him to pay all the balance due plus the penalties. I think he' stuck because of the POA. The window to change from MFJ to MFS is long gone. Opinions please.
  12. Ya know, I always wonder what people are thinking when they engage in the unscrupulous activities. Do they think they won't get caught? I guess living the good life isn't so good right now. Will the IRS ever get their money from this guy? Now I laugh, I alerted a CPA of a client of mine about miss classifying an account so there are no questions in the event of an audit. Seems really trivial compared to this. I hope this guy prepared his own tax returns and didn't take anyone else with him.
  13. I know this is an older post. Just a suggestion, if your credit is frozen with all three credit bureaus, the ID.ME process or any other process that uses credit information for verification purposes won't work. I set mine up a while back and can't remember if I had to thaw the credit or not. Again, just something to watch out for.
  14. My struggle has been with the CAF unit. I obtained a CAF number numerous years ago. I moved to SC in the fall of 2021. Changed all my addresses on everything. First 2848 I did since the move, I checked the box new address. As of yesterday, the CAF unit still has my old address. I called the EA line and they couldn't help nor could the PPS. No known numbers to contact the CAF unit. The action to take was to fax the information to the CAF unit asking them to update the address. I am not very positive this will work but we'll see. On another note, how can you find the status of a POA that was faxed? I did one yesterday online with the client and it still says pending on my end and no authorizations on the client end. In my experience, the quickest way to get the POA to the CAF is through the PPS. They don't really care for the wait time for the fax to arrive but all I can say is fix the system and make it better for all.
  15. This very issue occurred in Drake as well. At the beginning, I thought it was a Drake issue but later discovered it appears it was an IRS issue and the software vendors had to make last minute changes.
  16. Thanks, everyone. Unfortunately, the answers are good and no doubt spot on from J Stephens and Margaret, none of them made my day any easier. I moved from Ohio to NC nearly 30 years ago. Bank then, no Rita but the same crap with the cities. This return should be easy but it is the part year portion in two different cities that I don't think Drake is handling well. So, I gotta dig deeper.
  17. That is exactly what I thought. I'm going to check the rates in Drake. They have Kent at 2.25%. Kent is the city where the client lived until October. Kent is also a RITA city so am I correct that I have to do RITA as well? I put the information regarding the move on the RITA form and the result was zero.
  18. I filed a superseded return for ty 2022 with a direct debit for the balance due. So far, no problems or questions. I know this can be done in Drake and would think ATX would provide the same.
  19. Thats what I thought too and without a reference. Client inherits the property at FMV date of death. That's their basis and start over.
  20. I've been trying the same thing in Drake without success. I do know if you have a signature pad, you an sign that way. I set up the rubber stamp feature but still cannot have Drake automatically place the signature. I've dated the 8879 when preparing as well and have never been questioned. Maybe my lucky day is coming
  21. I need some assistance with preparing two cities on Ohio. Taxpayer lived in two different cities and only earned income in one. The next factor is the client is an Amazon delivery driver that delivers every day outside of the city limits of both cities. If someone could contact me to discuss this, I would appreciate it. Send me a private message with your contact info and I will reach out to you. Thanks in advance to anyone willing to give me a hand.
  22. Thanks for all the replies. I'm in agreement with the majority here. However, I can't go back as far as Tom, you got me by one year. But, I disposed of those years anyway. QB never told me that when I bought the bundle for 2021, 2022 version came free. What??? Intuit giving something free??? I couldn't believe it either. Anyway, I've gone to the 2022 desktop version and will run that forever or as long as I can. Just cause they don't support it any longer doesn't mean it won't work. I don't use QB for payroll so that is a mute point. I know Dennis will not agree with me but, let' go way back to when you bought a record or cassette tape, or 8-track for that matter. If you owned a tape player for the house and one in each car or truck you owned, you could play it in as many devices as you wanted. Even in your friends car. I know ATX used to, and Drake still does, you can install their software on as many machines as you want. We are all in business to make money but I think greed gets in the way as well.
  23. Catherine, On the "A" screen in Drake, the lower right hand of the window contains state only information. The 2106 form is highlighted in blue. When you click on the 2106 it opens and you can choose the state at the top. I would think the information should flow from there. I just saw Max basically posted the same thing.
  24. Yeah me too. Like others, I don't care as it is not enough money to worry about. However, I did not like the $149.00 or whatever it was to renew my EA. I want to know what the IRS does for EA's that whatever the service is costs that much. That fee was more than double the fee a year or two ago. My first year was $67.00.
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