Lee B

Yeah, I have noticed that on the OSCPA Discussion Board that some members are using Perplexity AI to answer other members questions.

If you want to dive into the details, there was a discussion about this topic started by schirallicpa on March 14th.

The exception to this would be when you accrue post liquidation expenses, for example legal and accounting fees.

Just took a webinar on BOI Reporting. Ownership is just one of the qualifiers. Someone or some group of people have substantial control and decision making authority.

I'm set up as an S Corporation so I have to file.

"Recently, a FinCEN representative acknowledged that only about 20% of the millions of businesses that need to report have filed. " With everyone waiting to file, their website may get overwhelmed and crash. Calling their help line may end up being an exercise in frustration. I guess I better file before Thanksgiving

You're the only one who knows the answer to this question

I have money in a savings account that is currently earning 4.0 %

"D.13. Who is the beneficial owner of a homeowners association? A homeowners association (HOA) that meets the reporting company definition and does not qualify for any exemptions must report its beneficial owner(s). A beneficial owner is any individual who, directly or indirectly, exercises substantial control over a reporting company, or owns or controls at least 25 percent of the ownership interests of a reporting company. There may be instances in which no individuals own or control at least 25 percent of the ownership interests of an HOA that is a reporting company. However, FinCEN expects that at least one individual exercises substantial control over each reporting company. Individuals who meet one of the following criteria are considered to exercise substantial control over the HOA: • the individual is a senior officer; • the individual has authority to appoint or remove certain officers or a majority of directors of the HOA; • the individual is an important decision-maker; or • the individual has any other form of substantial control over the HOA. [Issued April 18, 2024] " Be careful. under this FAQ any other senior officer would be a beneficial owner . For example: A Treasurer or Secretary.

Unless the deceased taxpayer had no assets at the time of death, isn't whoever was the fiduciary for his estate responsible for paying any taxes due before any distributions are made to the beneficiaries?

They have violated the law, they may not be subject to the penalty,

FAQ K.2 "As specified in the Corporate Transparency Act, a person who WILLFULLY violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. However, this civil penalty amount is adjusted annually for inflation. As of the time of publication of this FAQ, this amount is $591. A person who willfully violates the BOI reporting requirements may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information. [Updated April 18, 2024] " Emphasis added to "willfully"

I have several clients who are still working, drawing a salary and dividends as business owners plus SS, who have no need for their RMDs. If their retirements funds were in IRAs they could use QCDs, but when their retirement funds are in SIMPLE plans or 401 k s then they end up receiving taxable income they don't need or want.

Not all banks will accept a SSN to open a business account.

Frankly, I disagree with that advice. It would be very easy to list a number of examples where that would be a bad idea. Would you really want to go forward with the old EIN under new ownership with the linked history in the IRS and state Dept of Revenue databases?

Does or will either SMLLC have employees?

My client is the owner who is still working and making active contributions to her SIMPLE account so that won't work.

Interesting, I have a client with an active SIMPLE. The fiduciary for the plan is RBC whose local advisor is telling my client that she can take QCD s?

My understanding is that the use of QCDs is limited to IRAs. All of my clients who have retirement plans have SIMPLE Plans. I believe these plans are all SIMPLE 401 k s which I assume are not eligible for the use of QCDs? I wonder if SIMPLE IRA Plans are eligible for the use of QCDs?

If I understand this correctly, Automatic Enrollment is required for new 401 k and 403 b plans which were created after 12/29/22. It can be added to the plan documents of older plans but is not required?

Marilyn, your level of determination and willingness to push yourself is life lesson for all of us. Good Luck and I wish you the best of tax seasons.

Reading your post was like the script for a True Detective plot

Actually the big problem here is that you and your client will have to respond to what his employer does or doesn't do. As both Tom and Dennis have pointed out, the proceeds are more than likely W-2 wages which would be the IRS position in this situation. Will his employer at some point issue a W-2 or a 1099 or even issue anything is the big question?

Bonnie, what you have endured the last several years is mind boggling. I wish you and your family the very best.

In this situation, a Certified Financial Planner would be very helpful.