Lee B

New clients who adopted two special needs children, ages 11 & 13, one with fetal alcohol syndrome and one who is blind. First clients I have ever had with dependents with disabilities. Do I need to aware of any other issues besides extra medical expenses ?

Yes it's deductible, Oregon has a law requiring everyone on a construction site to be covered by Workers Compensation Insurance, so every time one of my clients has a comp audit the auditor is looking for subcontractors and proof that the subcontractors have comp insurance, otherwise the General Contractor is assessed for premium to cover any sub that can't prove they have insurance.

If it's new job known to last 4 months when he was hired, I think he dead in the water.

What we have here is "a lof ifs and not enough facts"

IRS Notice 2021-23 providing guidance for 1st & 2nd quarter 2021 has been released

So is this an assignment related to a current ongoing job, or is it a new job that's 4 months long ? The IRS when it defines temporary with respect to a job, it means for an indefinite unknown period of time .

This only gets resolved between your new client and the previous accountant. Without a magic wand how do you fix this? I have a prospective new business client where they and the previous accountant aren't talking. I have the prior years tax return with the necessary information but the prior accountants work quality is questionable. What's really bothering me is the new prospective client isn't making any real effort to assist me with the transition. They have signed the necessary authorization forms and they have informed the previous accountant that I am taking over. Unfortunately now the previous accountant is so mad at my client that are providing the absolute minimum of assistance. So now I find myself in a position where my new client expects me to fix everything. I am seriously considering having a"heart to heart" talk with my new client and telling them to shape up go elsewhere.

We all wish the best for you and your husband

Pub 537

The reason is that post death wages are not subject to any employment taxes. If the W 2 shows any employment taxes withheld those taxes should be refunded.

I believe post death wages are supposed to be reported with a 1099 not a W - 2.

Remember, that's when the IRS issued Notice 2020-xx stating that while the forgiven PPP Loans were not taxable, that the expenses paid with the loan proceeds were not deductible. Since the CAA passed allowing the deduction of these expenses, this IRS Notice is null and void. Since there are no timing difference issues any more, there is no longer any reason not to leave the PPP Loans on the books, except for potential client credit rating concerns.

I believe that was the IRS position prior to the passage of the CAA just before the end of the year. What do you do if the your client doesn't qualify for 100 % forgiveness because of FTE and etc and decides to carry the unforgiven portion as a 2 or 5 year loan. I am definitely carrying these loans on my clients books until thy are officially forgiven by the SBA. My second largest client's first PPP Loan may not be forgiven until next year plus due to FTE calculations I anticipate only about 80 % of the loan may be forgiven. My client won' be deciding to repay the unforgiven portion or convert to a loan until that time which very well may be in early 2022.

Bob, it sounds like you have had a rough time in recent years. I hope you can find a way to step back from the things that are causing you aggravation and move to a place where you can find a little peace and calm.

This will be a real time saver

I don't understand what your first sentence and your last sentence means, other than "Get Lost"!

There is about $90 Billion left plus PPP Loan processing has almost ground to a halt due to the SBA's enhanced electronic screening which has now rejected about 200,000 loan applications and sent the applications back to the lenders, which requires manual intervention by the lenders for each SBA generated "error code" This has given new meaning to the phrase, "Our government at work"!

Actually, it's not that clear cut as this lengthy discussion in Forbes makes very clear: https://www.forbes.com/sites/peterjreilly/2020/08/15/irs-carves-back-tcja-inventory-relief/?sh=588a3f633bac "Section 471 materials and supplies are used or consumed in the taxable year in which the taxpayer provides the items to its customer. Inventory treated as nonincidental materials and supplies under this paragraph (b)(4) is not eligible for the de minimis safe harbor election under §1.263(a)-1(f)(2)"

Darn, I left out a word

I often find the 5 minute limit to editing my own post too short , because I left out a phrase or several words etc I think 15 minutes would much more reasonable and less frustrating

Copied from the J of A: "Under the notice, the postponement applies to any individual who files a federal individual income tax return on Form 1040, 1040-SR, 1040-NR, 1040-PR, 1040-SS, or 1040(SP) (the Form 1040 series) or has a federal tax payment reported on one of these forms that would otherwise be due April 15, 2021. The IRS says the postponement also applies to the filing of all schedules, returns, and other forms that are filed as attachments to forms in the Form 1040 series or are required to be filed by the due date of the Form 1040 series. The IRS lists as examples Schedules H and SE, as well as Forms 965-A, 3520, 5329, 5471, 8621, 8858, 8865, 8915-E, and 8938. Also, elections that are made or required to be made on a timely filed form in the Form 1040 series (or attachment to the form) will be considered timely if filed on such form or attachment, as appropriate, on or before May 17, 2021. The notice also extends the postponement to claims for credit or refund of federal income tax that absent the notice would expire on or after April 15, 2021, and before May 17, 2021 (this generally affects 2017 tax years). The notice also automatically postpones to May 17 the time for affected taxpayers to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs). The postponement also applies to the time for reporting payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. The postponement also applies to individuals who are required to file and furnish Form 5498, IRA Contribution Information; Form 5498-ESA, Coverdell ESA Contribution Information; or Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, (the Form 5498 series) that would generally be due June 1, 2021. That deadline is postponed to June 30, 2021."

Current IRS Guidance does appear to include adding back the exclusion amount to arrive at Household Income.

Interesting, I have a client who used to do the exact same thing as a side business. He didn't seem to have any problem tracking everything and giving me a year end inventory.

You can give him some assistance with guesstimating a year end inventory. If he doesn't follow through, what are you going to do,?

Since, he is not conducting like a business then it's a hobby