Max W

If there is a mortgage on the rental, the lender could call in the loan if the title is changed to the corp.

You say that you are not able to restore the old files. There are places that specialize in doing that. Unless the hard drive is badly damaged, the files written over, or the disc wiped clean, the files should still be there, even if they have been deleted.

Thanks Judy. That is exactly what I did, but it still has to be paper filed, because her SSN is missing. I typed "Not known' into that space and " Unknown" for Income. I have asked him to try to and get the SSN. The worst of it is they have a son who lives with him, but she keeps claiming him on her return. I told him what he had to do to prove the boy lives with him, but he says he doesn't want the hassle. Se la vie.

I have a couple separated for 6 years and do not communicate. Prior to the 2019 return, they could be efiled without 8958 Allocation form for comm. property states. Now, this year they can not. Drake is my software. Is Drake unique, or are any of you finding the same thing with ATX, or any of the others ?

One thing that I am 100% sure is that the checks are being processed. That was the one thing that got done during the 5 week budget shutdown and the gov't needs the money now more than ever.

The problem with APO's is that they get changed frequently and after a certain length of time they get dropped. This might be the case here. DPO's are less likely to change.

The goal here is to get the home sale closed ASAP, otherwise the buyers might walk. Finding buyers now is very difficult. In fact many buyers do walk when they find out tax liens are involved, or may want to reconsider their offer. Although, there are a few good suggestions, they would all cause a delay even under normal circumstances.

I is not always so simple. There are some special rules for name controls: The ampersand (&) and hyphen (-) are the only special characters allowed in the name control. The name control can have fewer, but no more than four characters. Spaces or blanks are not part of a name control. For example, the name control for Joe Doe Trucking is JOED. The word “The” at the beginning of your business name is not used in your name control. Blanks may be present only at the end of the name control. Do not include "dba" as part of the name control. Other entities and Foreign names have other rules. See Pub 4164, starting around page 175.

I have a client whose returns for the last 3 years have been rejected and had to be paper filed because someone had used his SSN and name on a tax return. It turns out, his father was claiming him as a dependent even though son is in his forties. I prepped his returns for a while, so it happened after that. The father is a little strange, completely paranoid. He used to carry his tax papers and computer around with him on a suitcase cart, because he told me that people go into his apartment and move things around so he couldn't find them. It was all part of a scheme by the landlord who wanted to get him to move out so the rent could be raised in rent controlled SF. This included playing loud sounds and flashing lights at night to keep him up. The next time I saw me he told me his computer had been stolen right off the cart in a supermarket.

I refer everyone to the IRS FAQ's and to the article about the delay. If they are not satisfied with these, I suggest they call their US Congressperson and US Senator. They are the ones that write the laws. https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions https://www.msn.com/en-us/money/smallbusiness/stimulus-checks-and-other-coronavirus-relief-hindered-by-dated-technology-and-rocky-government-rollout/ar-BB12NSM3?ocid=msedgdhp

The IRS has a fairly high bar to get over for a fraud claim and there needs to be solid evidence to back it up. For individual fraud cases, gross income has to exceed $200,000. For businesses, $2 Million. The whistle blower remains anonymous, but that doesn't mean the accused can't figure out who it is.

I think that adding a question is the most immediate solution, but there is no reason (except for bureaucratic inertia) that the IRS could not add a box on the 1099R showing the QCD amount and add a secondary code, as well.

Ending inventory should be 0. COGS should be $30K. The Ending inventory of $12,000 is sold along with the rest of the business. When it is sold with the sale of the business at most it is being sold at cost, but usually with a discount which the seller can play with to close the deal. Inventory is Class IV form 8594.

If you net it out, which is not proper, it won't match the the 1099. Do the Sch E. It won't take long with just a few entries and you can charge the client for it.

I misstated my previous post. I was thinking of a client I had several years ago and did not remember the details correctly. He was self-employed and used his own pick-up to make deliveries for a wholesaler. The company gave him a gas card and instead of taking the full mileage, we only took the depreciation portion.

Tax payer can take the biz mileage allowance $0.58 minus the depreciation portion $0.26 = 32 cts/mile.

I have never have had that happen in 20 years in preparing returns.

If your client is the custodial parent, no 8332 is needed as the IRS does not recognize the terms of a divorce decree (they did betw. 1984 and 2009). It is the ex, who is the Non-Custodial parent that needs the 8332 to rightfully claim the dependents. However, with or without an 8332, if both parents are trying to claim, it comes down to who files first. If your client files as HOH for 2018, the IRS will disallow the claim. Then it can be appealed by providing documents supporting custodianship - school records, doctor/dental statements & health records, landlord's written testimony. I am working a case right now with the same issues.

Most people when referring to a "new roof" are talking about the roof covering and not the roof structure. Whether the roof is a repair, or improvement might depend on the type of roof covering and whether it is replaced with something different, or better. Asphalt shingle, tar and gravel, shake/wood shingle, foam covering, slate, spanish tiles.

For those of you that prepare set up payment plans, OiC's, CNC's, the IRS updated the National Standards on March 30. There have been quite a few changes. https://www.irs.gov/businesses/small-businesses-self-employed/collection-financial-standards I don't know why it comes under small business/self-employed as it applies to everyone.

Judy, thanks for all your research. I cringe every time I see form 8889. I think it is the worst form in the entire arsenal for individual returns.

Unless the clients are over 65, there is a 20% penalty for non-medical withdrawals. HSA accounts are portable and can be used for self-employment. On the other hand, it may not be there at the end of the year, or it may be frozen. We are in totally uncharted waters now and another Lehman Bros type event could be even more devastating than before.

The tax rate for S and MFS is the same up to $306,175. So, if it is less than that and there are no credits denied for filing MFS, then I would file S. The SD vs Itemized you don't know either way. I have never seen this be an issue with the IRS and it doesn't appear to be tracked. It could possibly come up in an audit, but the way audits are conducted, it seems highly unlikely.

The IRS has said it will put up a website in a few weeks where the banking information can be provided.

I just sent a test fax to the CAF unit and it went through. I faxed a 2848 last Thursday. My concern is how long it will take to be posted.