Max W

Form 5472 also has to be filed with the return. This reports ownership(s) 0f 25%, or greater. Failure to file is subject to $10,000 penalty. https://www.irs.gov/pub/irs-pdf/i5472.pdf

Happy 4th of July. The anniversary of the Declaration of Independence and the United Colonies being proclaimed the United States.

Hmmm!. Form 568 is for an LLC. For a partnership that is not an LLC, the form is 565. California has the Schedule CA, which is used for making adjustments. You should be able to do them on CA worksheet. It is triicky, so be careful.

Gee! He didn't report his SE income. Many years a go I worked for a tax officet that had about 60 clergy clients. The owner said that the clergy were the biggest violators in unreporting income and also of overstating expenses. Who would'a thought.! Guess they missed this in the Bible "Proverbs 6:16-19: “These six things the Lord hates, yes, seven are an abomination to Him: A proud look, a lying tongue, ........."

Client moved last year, CA to NY. Does NY allow moving expenses? One refernece said Yes, another only addressed reimbursements. TIA

The carry forward payment is set iin stone. There is one exception. The IRS will offset it to past taxes due. Payments made to past due years can be changed. In one case the client had to lower their balance due to $50K, to meet the Streamlined Inst. Agreement requirement. A $20K payment was made with the instructions to apply it to a certain year. The IRS applied it to a year that was about to expire. We were able to got that payment moved to an earlier year, which save the client $20K on theri tax bill.

Sole proprietor.

Client has a business under a CA SMLLC. Last year he started buying/selling stocks under same LLC. Since the LLC was set up for business and not for investment purposes, does anyone know how this could play out? I am concerned that he lose cap gains treatment.

$58,387 page 19 A, 4 https://www.pillsburylaw.com/images/content/1/2/120128.pdf

If the CA payroll exceeds $56K, then there is nexus. "The amount paid in California by the taxpayer for compensation, as defined in subdivision (c) of R&TC 25120, exceeds the lesser of $50,000[1] or 25 percent of the total compensation paid by the taxpayer. For the conditions above, the sales, property, and payroll of the taxpayer include the taxpayer's pro rata or distributive share of pass-through entities. "Pass-through entities" means partnerships, LLCs treated as partnerships, or S corporations." https://www.ftb.ca.gov/businesses/Doing-Business-in-California.shtml The original $50K in 2011 jas been indexed for inflation.

You can try the free one. I can't tell you much about it, except that you don't have to wait on hold.

My experience is that 1. sometimes they can't locate the return, in which case they will refund your money; 2. they may send the copy but some pages are missing, or some are illegibe. Their instructions state the it will be sent within 75 days. Don't count on it, especially now. AAs far as non-form pages - depreciation reports - I am pretty sure that anything filed with the return will get run trhough the copier. So, if time is not of the essence, it is probably the way to go. If that doesn't work out, you can always fall back on reconstructing it.

Tom, if you don't mind paying $49/m for this service, you can get calls through in minutes. I have two friends that can attest to this, besides myself. https://callenq.com There is a free service that will call you back when they get the IRS on the line. It is not as effective as the other. https://gethuman.com/call-back/IRS

I am not a gatekeeper, but marquiri does not appear to be a tax pro as he doesn't seem to realize that a 1099-C, being a cancellation of loan debt, beomes income to be reported on his tax return. The amount would have been the unpaid amount after the settlement. This means that the ITS is collecting from any signer on the loan. What if i there are 3 signers? Does the IRS collect 3 times for the same amount. One possible solution: If the loan is not a gov't backed loan, and he qualifies for indebteness. form 982 can be sent back with the CP2000.

The IRS has issued several cost segrgation guidelines for about 6 industries. Both Gerators and HVAC are considered 1250 (39 yr) property as they are integral to the operation of the building. There are some exceptions such as electrical equipment for powering refrigerators. https://www.irs.gov/businesses/cost-segregation-atg-chapter-7-3-industry-specific-guidance-retail-industries

You may be overly concerned about your client being levied. Levy letters are only of concern when the are the FINAL Notice of Intent to Levy. IRS letters have a code in the upper right corner. Those with CP501, CP503 and CP504 are all levy notices, but the only one that matters is the Final Notice LT11 (sometimes 1058). LT11 is the Final Notice with 30 days to respond. There is also a grace period of 10 days, but I find, in practice, it is usually several weeks.

This is not totally wrong. It does apply to partnerships under the Centalized Partnership Audit Regime. see top of page 4 https://www.irs.gov/pub/irs-pdf/i2848.pdf

Yes, definitely a CA NR return. Also, enter the former 2106 deductions as CA does not conform to TCJA and you might have more than the CA standard deduction.

Good point.

Having a 2848 on clients has its down side. You will receive a lot of meaningless mail and in the case of joint returns, duplication of each letter. If you have a secretary, it will less of a burden. But, if you are a lone wolf like me, it can be a PIA. I have one MFJ client on a installment agreement covering eight years and received 16 letters, last week.

Aren't we getting carried away here - international tax attorneys? All the IRS is interested in is getting their cut. This house or condo was purchased so a college student would have living quarters. GingerM is in AZ, so I assume her client is also. The bulk of the college students in AZ live in the Mesa, Tempe, Scottsdale area. Some properties there were going for under $50,000 not so many years ago. I would treat is any other rental.

Maybe, I didn't express this fully. He can certainly deduct the moving of his business office furniture and equipment to the new location. The personal stuff, no. Some of his equipment had to be transported in his vehicle, which is also used for business, so the mileage/gas, lodging can also be deducted.

Last year a client moved from CA to NY. He is in business as a financial consultant and thinks NY is a better location for the work he does. It seems he should be able to deduct most of his moving expenses, including meals n the road (4 days). There is one large expense I am concerned about. He had to pay broker's fees to rent an apartment. Would this be deductible? TIA

Yes, according to the court decision, the income is non-taxable, but can be included as Earned Income for both the refundable EITC and the additional (refundable) CTC. The judged ruled that an IRS notice, can not override a tax credit granted by congress. https://ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11863