Margaret CPA in OH

How about that phrase? Frankly, I couldn't find it just now in my quick review of Circular 230 but, in 182 pages, I could have missed it easily. What is you interpretation of that phrase? Should I have known the amount of interest without having the data in hand to prepare Form 1099? I'm not sure of the meaning of your response and would appreciate some clarification. This client's returns have been completed for over 6 weeks now and they have not yet scheduled a review and pick up time. They emailed last week that Mondays and Fridays are good but, when offered last Friday or yesterday, I received no reply at all. Their identity was compromised in February so one might think they would like to get this out of the way. I certainly want it off my desk.

I think it's about time to fire one of my clients. They are great folks but have an LLC with rental properties some of which they also sell. Year after year the transaction records fail to arrive until about March or April then generate lots of questions which take weeks to answer. As they have member loans and often put money into the LLC and pay themselves from time to time, I never can get the loan interest calculated timely for the 1099 filing. I know they have paid penalties a few times but I don't want to be held responsible when the delay isn't my fault. Are these penalties on me or the client? I can't prepare and file forms when I don't have the data. Hmmmm, retirement....

Yes, my computer is a few years old now but has been upgraded with memory and tweaked. Doug, my guy, has already said that I probably have about another year, maybe 2, left on it. I/we are holding off because I am downsizing looking at retirement just not sure when. I do expect one more computer. His comment is related to upgrading Windows, not the entire computer, in case you thought that. He's saying the same thing - no new OS on an old computer. And he is joking about the 2021 year. He likes to exaggerate at times.

Sorry, I did miss that this was not a church. You have listed some specific issues raised in Church and Clergy Tax Guide although the book does elaborate more and is more pointed to a church. The possibility of status jeopardy is indeed mentioned. Glad you are continuing to search out resources. Hope you find what you need!

I asked the guy who builds my computers about this. He said to agree to be on the list for a free code to reduce annoying reminders but don't install. "In 2021 maybe maybe maybe then we will load it. One should NEVER upgrade a perfectly fine, working PC." I have 7 Pro and always follow his guidance. He hasn't led me astray yet!

Thanks, Catherine, but the guide knows more! The ask for redirection of donations is better than returning because that can call into question the status of the church. As I indicated to the OP, there is much more to consider and too much for me to post. My mouth works faster than my fingers

I have amended returns for client from 2012, 2013, and 2014. They all relate to her home office and, among other things, erroneous depreciation. She is also currently under a payment plan for ex's debt having filed jointly in earlier years. The net of the 3 years amended is over $3000 which would help her debt quite a bit. We did send 2011 amended return by itself before SOL April 15 but she owed $3600 so paid but no response as yet from IRS. When all these amended returns and 3115 are processed, I want to see about a conference call to determine where she stands. Immediate question, though, is whether to mail 2012-2014 together with a cover letter or separately to the same address. Typically I would send separately but am uncertain now as they are interlinked and she is on a payment plan. Any wisdom to share would be much appreciated!

There are several pages in "Church and Clergy Tax Guide" that address this issue, too many to reprint here. I would be happy to read some of this to you if you like or perhaps you can access the material elsewhere. I purchase this resource as a business expense as I do have clergy clients and advise my own church. PM me if you would like to pursue this from the resource I mentioned.

Although you say that you have the problem, it must relate to the client, right? Wouldn't the client assist you by requesting the POA as that seems to be the requirement? I would think that it must relate to the client or you wouldn't need it for the client.

Thanks, Judy. The item in question is the labor to do the remodeling of the rental. There were no credit card or financing charges directly associated. The client simply had insufficient cash until the following year when another property was sold. From the Accounting Coach: Incur is... A word used by accountants to communicate that an expense has occurred and needs to be recognized on the income statement even though no payment was made. The second part of the necessary entry will be a credit to a liability account. So we now, as cash basis, define the expense as occurring when paid not when the work which gave rise to the expense actually took place. The amount of the depreciation is not even material but I don't feel confident about not doing something funky with Form 3115.

I tried to submit this just after Catherine's first post but somehow didn't get it in. Now I see that Catherine and I were on the same wavelength. If, by chance, she is affiliated with a faith group, that group may serve as a facilitator although it must be made clear that the contributions are not tax deductible as they benefit a specific person if so designated. It is possible for contributions to be made without designation but leaving to the 'church's' discretion as to whom the benefits would go. This has taken place at my church - both ways.

Thanks for supporting my initial inclination although I have this nagging part of me knowing that the work was done before it was placed in service so is it something to put on 3115? Would it be different if the payment was made 6-8 months later, more than a year later? As it is for labor but goes to the building cost as a whole, is it still 27.5 years but begins the month of payment? One was paid in February, one in March of 2014 both for work done over the course of the entire year of 2013 prior to renting in December 2013. This is one case that accrual would have been nice

Client has several rental properties. One was purchased Jan. 2013, underwent extensive remodeling and finally rented in December 2013. Client had insufficient funds to pay laborers in full until February 2014. Labor to place in service should be capitalized but they are cash basis and payment was in subsequent year after placing in service. So does depreciation of that portion of building cost begin in 2014? Is this a 3115 worthy issue? Of course I began depreciating in 2013 not knowing the outstanding labor expense. Miraculously (or sheer dumb luck) it appears as though all properties have had proper depreciation and expense of supplies and repairs, etc. per new regs except for possibly this issue. I was convince this would be the end of me but not so bad - if this next year payment is managed. Any pertinent advice would be welcome! Nothing like getting the books in May....

My, possible most, E&O insurance is based on risk and income. As my business is pretty small, my insurance is $457 this year. I keep it primarily because I do several trusts and the beneficiaries just might not like the way the numbers turn out. Like others here, I do pay for any errors of mine that cause interest and/or penalties. It's in my engagement letter. If the client omits or provides incorrect information, not my fault. If I do the same (transpose numbers, wrong street address, etc.) and a penalty arises from my error, I pay. But I also point out to the client that it was their responsibility to carefully read everything on the return before approving. So far, my errors in over 20 years have amounted to less than $100 and kept the client happy that I was on their side. In 4 more years, the trusts are closed but I will definitely keep my insurance for a year or so after that. Not that I don't 'trust' the beneficiaries... My homeowner's insurance (additional business and umbrella) covers my equipment and any client issues that may arise from tripping, etc. But I have very few actual client visits. This year a 90 year old who insists on coming struggled up the steps. I told her that next year I will come to her. She knocked over my mailbox backing out 2 years ago and nearly hit the telephone pole so I don't let her back out of the drive any more!

Hmmm, Jack from Ohio, I don't understand how you could quote me on something I didn't write. The first sentence above isn't from me although the second one is. I even looked back to the original just above. Eric, how can someone quote something that wasn't originally stated?

Kyle, my rep, told me $1.50 each.

I like the idea of not paying for more licenses than you use or need. Unfortunately that isn't an option for me. I need only one but am paying for the minimum of 3 - wish I could have given them to you, jmdaviscpa! Because I have 6 trusts to do for the next 4 years plus 2 p'ships, I'm stuck with MAX again. All other combos are more expensive. And I'm really ticked about the efile fee for payroll returns now. That's another charge to remember to pass along, I guess.

Ah, if only my foot could reach that far! So to correct an efiled 1099, one must, as I did, open the original 1099 and check the corrected box. I don't see a corrected corrected box. Should I just resend the original one with the old numbers in it? No, can't do that as it has already been accepted. Maybe try to create a new one altogether? I did try that before but because all the information (EIN, SSN, etc.) was the same as one already efiled, I was scolded by the system to correct it on the originally efiled return. Any ideas on how to create another corrected box on top! Sigh... time to pack it in, I swear! And I just got off the phone with my rep and am really annoyed to have to spend money for MAX because I have 6 trusts and 2 pships which would be extra and then there is the payroll package and 'small' efile fee now plus Ohio cities package. At least I had a nice week in the mountains last week. Should have stayed!

So a client sent me figures for 1099 MISC. 4 days later a subsequent email was $20,000 higher for one recipient. I prepared corrected one and sent copy. Client has now asked why the corrected higher amount. I copied and pasted her second email in reply and got back a 'sorry about that typo.' Sooooo, is it appropriate to correct a corrected 1099 back to the original amount? Grrrr.... Who gets the low grade on this?

Third - I have the S1500 and love it! I only wish I had gotten it 2 years earlier. It's so fast and double sided and very small footprint.

Okay - I am then assuming that the option to attach a pdf appears only if the receiving agency allows them. I suppose the worst case scenario would be a denial of refund until the documents were sent. I was trying to avoid that! Thanks!

I thought of that but wasn't sure that MO had the capability of receiving scanned attachments. I don't think all states do and wanted confirmation. Have you had success with a MO attachment?

I have a MO resident client who has contributed to 529 plans for her children. The instructions say to attach statements showing the owner of the plan to substantiate the deduction. Does that mandate then paper filing the state return or is there an alternative such as the federal 8453? Thanks

It's getting better all the time! But when I went to the list of other forums, there was no indication of the ones that I had not yet read. Luckily there were just a couple as shown by the most recent dates of replies but it used to be easy to just see the bolded topics. Will that return to the others, too?

Ooh, I like the second url better as it goes directly to the login! Thanks for the shortcut. I used to know lots more in the 'old days' with dos but quickly forgot when the mouse appeared! I will try the F5 and try to remember it, too! Also, is it possible for us to reenter the signature that so many of had? I haven't tried yet, just asking.