Max W

Nowhere in the instructions, the for, or tax code 6043.1 is there any mention of an LLC, so the answer to your question I would say is definitely No. It seems that the form is designed for to flesh out srock transfers and even though filing 966 is required, there is no penalty for failure to do so. I can't say how many times I've checked "Final Return" for a corp, but have yet to receive a notice from the IRS re 966. Interestingly, 6043.1 says that "...the return shall be filed with the district director for the district in which the income tax return of the corporation is filed." What this tells me is that the form is used to determine if an audit is appropriate.

Betcha' y'al think that Donut Day was something dreamt up by Krispy Kreme or some other donut company. In fact is wan't any food company, or any other business. It was the Salvation Army who 80 years ago initiated Donut Day in honor of the Doughnut Girls who served treats to our soldiers during WW1. In case anyone doesn't get the connection, the soldiers of WW1 were called Doughboys, a term that originated during then Mexican-American War of 1846. But that;s not all. There are tax implications as well as some additions to the list. To find out more, here is the article from Forbes, https://www.forbes.com/sites/kellyphillipserb/2018/06/01/free-doughnuts-and-a-side-of-sales-tax-trivia-on-national-doughnut-day/#68d8172f65c7

The Tax Book Tables are easier to use as they eliminate a step.

Why couldn't he report income on Sched D and issue nominee 1099B's to the other participants, offsetting that part on Sch D? https://www.kerezmancpa.com/2014/01/file-nominee-1099s/

GO DRAKE! Undoubtedly the best customer service of any company anywhere, not just tax software. Phone is usually answered before you hear the first ring. Friendly, helpful, knowledgeable, fast. The software has a learning curve, so get started with a free demo. Once you get the hang of it, you will find many shortcuts and features that other software does not have.

The IRS will be issuing regs to prevent states from circumventing the SALT limitation of $10,000. https://www.irs.gov/pub/irs-drop/n-18-54.pdf

There are a few things you can do and you already are doing one of them by matching invoices to 1099s. Be sure that there are no duplicate 1099's. Checking bank statement deposits - all accounts - might turn up something. Business owners often make business deposits to personal accounts. Good luck!

Roll over his. It is a lot more trouble trying to recreate her numbers and get them to match the original exactly. If she has W-2, put etc, just enter the Box 1 & 2 amts and federal and state tax withheld.. No need to input EIN's SS medicare, etc. And as you said, manually enter the EIC , the CTC and any other CCredits on the Other Tax line , 1040X. I don't know if this still works with ATX, but you could roll his over and then switch names and SSNs and make her the primary, but don't know that there is any advantage to this..

The IRS has different definitions of certain words than the rest of us, i.e. "voluntary", "random" are two. Audits are selected in two ways - one is the reported document matching process. Most of these are CP2000 audits and 1099MISC underreporting. The other way is through a program that takes all tax returns and compares them with statistical norms, and those with anomalies undergo three layers of review by personnel. The IRS is not going to waste resources on auditing a return unless they think there is a reasonable likelihood of recovering enough tax to make it worthwhile. But, there are criteria throughout the process. I guess this is what the IRS means by random.

Store credit cards (Home Depot, Macy's, etc) get a different treatment. The deduction is taken When Paid.

If the doctors can't agree on what surgery is needed and can't find the source of the pain, I would, if it were me, seek alternative sources, such as a first class chiropractor, or an acupuncturist. Physical therapy and the right exercises can also help especially if you lead a sedentary life style. Surgeons are trained for one thing -- to put you under the knife. Nearly half of back surgeries are unnecessary and even if necessary don't always relieve the pain. Many patients have to go through a second operation within 2 to 3 years. I had back pain for years which was so bad it had me screaming whenever I drove my car. A chiropractor fixed the problem in a few weeks. I would exhaust every other possibility before I would let someone operate on me. https://www.chironexus.net/2013/05/journal-of-the-american-medical-association-use-chiropractic-for-back-pain-before-resorting-to-surgery/

This is a good example of how not to run a business. No estimate, no engagement letter, no down payment. Without the first two, it will lose in any court. The reason WI got screwed by her client is that the client thought that She was being screwed. The time to agree on fees is before the work starts, not when the bill is presented.

Welcome to the H8 8283 club. One of the biggest PIA's in prepping TR's. This was brought up her about a month ago. Some preparers including myself will lump several of the receipts from the same institution together. If the IRS wanted to crack down on this, they would probably throw out 90% of the claims. I have been in some of the thrift stores and the selling prices are much lower than most people are claiming.

Is anyone familiar with this app? If so, what is your opiniion?

Burke, you bring up some good points. The executor who gave his share to his sibling is in a much higher tax bracket. However, I doubt that was a consideration. The total amount distributed was only $36K . Contingent beneficiaries only become beneficiaries if another bene dies and the former takes its place.

Another attorney who thinks he knows taxes, but doesn't know his azz from a bale of hay. The statements he has made are totally ludicrous. He may be a good trust atty, but he needs to bone up on tax law. I would ask him to back up his statements with cites from the tax code.

The survey was done by MIT and is highly questionable. They revised their results twice because their methodology was faulty. The average went from $3.35/h to $8.85/h to $10/h. The drivers that are losing money are doing it part time, or are students and most likely working at the least profitable times of the day when the rates are at their lowest. These drivers drop out of it within a few months. If this holds to Pareto's Law, approx. 20% of the drivers will produce 80% of the revenue. It is the same in other fields, sales, inventory, sports. There has been some mention of the driver being declared employees. So far, all the court tests, one federal and several states, have shot it down. Even CA has tried but the state seems to have backed off. Uber's HQ is in SF, so there could be political pressure being applied.

Many thanks for your continual efforts keeping everything up to date.

Just for curiosity, I would ask to see a copy of the return in question. The preparer could of put in "Karen's" name instead of her mom's. He could also have entered the father as the deceased. The combination of the two errors would have produced the check. Another possibility, Karen signed the return as a fiduciary on form 56.

Catherine is right. Once a return comes under audit, you can not submit an amended return. What you can do is submit the corrected forms with an explanation.

Prior to an audit, the IRS notifies the taxpayer of pending audit, tells what is being audited and sets a date for the audit. The letter is sent to the taxpayer's last known address If the client moved and didn't notify th IRS, too bad. An audit reconsideration can be submitted, which is all done through correspondence.

It doesn't seem to matter whether the SMLLC 568 is filed or not, just as long as the $800 is paid. I've had clients that came to me after not filing the 568 for several years. On checking their status with the SOS, it was always "Active". If it were a multi-member LLC, then if not filed, it would have been Suspended.

If they refuse to accept, what happens to the money? Does it get reapportioned to the other beneficiaries, or does it stay in the trust?

The main thing with a CA SMLLC is that the $800 tax is paid. If the income is over $250K, add a $900 fee. There are more levels above this. As long as the income doesn't exceed the $250K, there is no need to fill in any other information. However, if you want to do the extra work, use worksheet W. The SMLLC 568 can not be Efiled.

An audit closes 90 days after the final determination is issued. If you don't agree with the audit results, don't have your client sign off on accepting it. Did the client have any representation at the audit? If not, the audit can be reopened with an audit reconsideration after the 90 days have passed. The 90 days is to allow time to file a tax court petition.