Lee B

The official date is October 14, 2025.

Her loss may deductible as a fraudulent investment scheme if it qualifies under the safe harbor as defined by Rev Proc 2009-20 as modified by Rev Proc 2011-58. This is not something that I have used so any further research is up to you.

All you can do is calmly explain the situation and tell her to be patient. Telling her it's a mess doesn't help.

In my previous experience with ATX that usually means that one of the ATX state forms in your client's tax return does not meet the state specifications. Go back and reload forms for this client than recreate the efile and resubmit.

Once the IRS has finished recalculating returns and issuing refunds, I assume the IRS will provide guidance regarding those returns that fell through the cracks, which will probably be early fall. All we call we can do is wait.

No, 4th quarter would be due Feb 28th instead of Jan 15th

Well, if we are going to be logical about this, then I would pick dates when very few other taxes are due, because in my state all of the quarterly state and local taxes are due on the last day of the month following the end of a calendar quarter. Therefore I would pick May 31st, August 31st, November 30th and February 28th for quarterly estimated income tax payments.

"Congress introduced bipartisan legislation aimed at changing the estimated tax payment deadlines to a uniform, quarterly schedule. Rep. Debbie Lesko, R-Arizona, and Bradley Schneider, D-Illinois, introduced the Tax Deadline Simplification Act on Tuesday. The legislation would set the estimated tax installment deadlines to 15 days after the end of each quarter, moving the deadlines to Jan. 15, April 15, July 15, and Oct. 15. It would affect individual taxpayers, small businesses, estates, and trusts." This makes a lot of sense!

"Because the gross rental income test is “for the taxable year”, the 80% test needs to be calculated annually. The difference in depreciation rates for residential rental property vs. nonresidential real property can be considerable. If a change in use results in a shorter recovery period and/or a depreciation method that is more accelerated than the method used before the change in use, the taxpayer has two options: The taxpayer can compute the depreciation allowance using the shorter and/or more accelerated depreciation method in the year the change in use occurred, or The taxpayer may elect to continue determining the depreciation allowance as though the change in use had not occurred. These options provide a planning opportunity to suit a taxpayer’s need for larger or smaller depreciation deductions. For example, a taxpayer with excess net operating loss carryovers might not be able to use the maximum depreciation deductions permitted and may want to use the longer, less accelerated depreciation method. On the other hand, if a change in use results in a longer recovery period and/or less accelerated depreciation method than before the change in use, the taxpayer must compute the depreciation allowance using the longer and/or less accelerated depreciation method in the year the change in use occurred. A change in computing the depreciation allowance in the year of change for property subject to Regs. Sec. 1.168(i)-4 is not a change in method of accounting under Sec. 446(e). A taxpayer needs only to complete Form 4562, Depreciation and Amortization, in the year of change. However, the regulations under Secs. 446(e) and 481 apply if the taxpayer does not account for the depreciation allowance in the manner set forth by Regs. Sec. 1.168(i)-4 or revokes the election to disregard the change in use. If Secs. 446(e) and 481 do apply, the taxpayer should file a Form 3115, Application for Change in Account Method, to request an automatic change. Property affected by the change-in-use regulations is not eligible for bonus depreciation deductions in the year of change, Sec. 179 depreciation (which allows you to expense certain depreciable business assets and is generally not applicable to residential and nonresidential property), or Sec. 1400L (tax benefits for New York Liberty Zone property). Additionally, for purposes of determining whether the mid-quarter convention applies to other MACRS property placed in service during the year, the change-in-use property is not taken into account."

New penalty content landing page on IRS.gov: In an effort to provide you with additional penalty guidance to share with your clients, the IRS has redesigned and expanded the penalty guidance content available on IRS.gov. Visit the Penalties web page for information related to many common penalties. https://www.irs.gov/payments/penalties

Although what the details of "payment did not go through" may make a difference.

Your client received an automated response. Chances are good of getting this reversed.

"The IRS reported a “level of service” on its accounts management phone lines of 15%, but only 7% of taxpayer calls actually reached a telephone assistor. On the “1040” line, which is the most frequently called IRS toll-free number, taxpayers made about 85 million calls, but only 3% actually reached a telephone assistor. “When so few callers can get through to a telephone assistor, problems remain unsolved and taxpayer frustration mounts,” Collins wrote."

From The National Tax Advocate Blog: :Backlog of 35 Million Tax Returns That Require Manual Processing As of the end the 2021 filing season, the IRS had a backlog of about 35 million tax returns that require manual processing, meaning employee involvement is generally required before a return can advance to the next stage in the processing pipeline. The backlog includes about 16.8 million paper tax returns waiting to be processed; about 15.8 million returns suspended during processing that require further review; and about 2.7 million amended returns awaiting processing. In contrast to this filing season, in 2018 and 2019, pre-pandemic years, the IRS had a backlog of 7.4 million and 10.7 million returns, respectively, awaiting manual review at the close of the filing season. Of the 15.8 million returns suspended during processing, most were sent to the “Error Resolution System” for further review of specific items. Two of the most common items were “recovery rebate credit” (RRC) claims and Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) “lookback” claims. Although the majority of eligible taxpayers received their EIPs quickly and seamlessly, millions of eligible taxpayers had not received payment as of the beginning of the 2021 filing season. Taxpayers who had not received the full amount of EIP to which they were entitled were instructed to claim the missing funds as an RRC on their 2020 returns. The IRS had to manually verify many of these claims to ensure the amounts were correct. In addition, the IRS had to manually verify returns where the taxpayer elected to use 2019 earnings to claim the EITC or the ACTC. Because of changes to the tax law that took place late in 2020, the IRS did not have time to adjust its systems for the 2021 filing season to allow 2019 earnings to be systemically verified. The IRS Error Resolution System holds these returns in suspense until an employee can manually review the return and verify the RRC claimed on the return or the 2019 earnings for EITC and ACTC lookback claims." The Commissioner testified to Congress that all tax returns received during 2020 have been processed.

The general rule is that unless it specifically excluded from taxable income then it is taxable. Perhaps your state excluded it from state taxable income?

"When To File File Form 1040-X only after you have filed your original return. Generally, for a credit or refund, you must file Form 1040-X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. If you filed your original return early (for example, March 1 for a calendar year return), your return is considered filed on the due date (generally April 15). However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it July 1, your return is considered filed on July 1. The time limit for filing Form 1040-X can be suspended for certain people who are physically or mentally unable to manage their financial affairs. For details, see Pub. 556, Examination of Returns, Appeal Rights, and Claims for Refund."

I have taken 5 or 6 of these free IRS CPE classes over the last several years. The quality of them varies quite a bit. I took one recently about the new Tax Pro Online system which is supposed to roll out next month. It was subpar and not well done. The documentation was just a bunch of screen shots which were mostly unreadable due to tiny little print. On a scale of 1 to 5, I would rate it a 2. On the other hand, last August, I took an intermediate level class on Partnership Basis which was excellent and covered the subject in depth. Frankly it was the best class I have ever taken covering this topic and I learned a lot! I guess I can't complain too much since they were free.

Well I guess this will depend on your payroll software provider. Payroll Relief, which I use for my 2 largest clients says they will not have the updated 941 available until the week of July 12th. Medlin, which I use for all of my smaller clients just made the updated form available this morning.

The IRS just released a new draft version of Form 941 yesterday which is effective 6/21. The final version will not be available until July 12th or later, after which software providers will finalize the necessary changes.

There are other reasons for having an EIN for a SP. Some financial institutions require an EIN before they will open a business checking account. Some owners want an EIN so that they won't have to disclose their SSN for identity security reasons.

TBD

You are correct, I have never used abbreviations so I guess I will have to adapt. IRS Standard Address Abbreviations The following standard address abbreviations should always be used, unless the word is being used as a proper name. https://www.irs.gov/irm/part3/irm_03-024-037#idm139976714724816

https://www.irsmind.com/

Late last week I took a free IRS online CPE class about the new Tax Pro Online System which the IRS will be rolling out next month. The Tax Pro Online System will require both the Tax Professional and their client to have active "Secure Access" accounts set up. A very key issue is that you and your client have to both be using the same address which has to be an exact match with the address in the IRS database. Using abbreviations like St, Ln or Dr won't work.

I have a "secure access" account set up where you can pull up your own transcript which I did yesterday. While the transcript shows all 3 EIP rebates being paid, it doesn't show the date or how the payments were made.