Lee B

The key question is did they legally move and retitle the assets? The answer to this question will determine what you do If not, then the LLC is just a shell with nothing in it.

As a practitioner I would go further and give my client a copy of the IRS Identity Theft Guidelines because what our clients need to do more than just get a pin: https://www.irs.gov/pub/irs-pdf/p5027.pdf I would also give them this link to the FTC's Identity Theft Resources: https://www.consumer.ftc.gov/features/feature-0014-identity-theft

IRS FAQ regarding the 2nd Stimulus Payment dated January 19th: "Receiving My Payment Will my second Economic Impact Payment be offset if I owe a federal tax liability, have a payment agreement with the IRS, or owe other federal debts? (updated January 19, 2021) No" Apparently the right hand doesn't know what the left hand is doing?

Copied from the National Taxpayer Advocate's Blog: "Many Taxpayers May Not Receive the Full Amount of Economic Impact Payments to Which They Are Entitled, but the IRS Has the Discretion to Correct the Resulting Injustice. Since March 2020, we have watched as the IRS has worked tirelessly to issue approximately 160 million Economic Impact Payments (EIPs) in 2020 and approximately 147 million payments in January 2021 to eligible individuals, totaling over $413 billion in financial relief. However, millions of eligible individuals are still waiting to receive some or all of their EIPs and were told they would have to claim a Recovery Rebate Credit (RRC) on their 2020 individual income tax return during the upcoming filing season. A recent Treasury fact sheet estimated that “[a]s many as 8 million households may be eligible for but have not yet received payments from the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed in March.” Many more households received a portion of the EIP but not the full amount to which they were entitled. The first round of advanced payments of the RRC (known as the EIP) was worth up to $1,200 per eligible adult and up to $500 for each qualifying child (so that a married couple with two children could receive $3,400). Add to this the second round of advanced payments paid to many, but not all, eligible individuals earlier this month, worth up to $600 per eligible adult and qualifying child. Changing Treatment of Economic Impact Payments and Recovery Rebate Credits Internal Revenue Code (IRC) Section 6402 generally authorizes the IRS to reduce a taxpayer’s refund through offset to repay outstanding federal tax liabilities and requires the IRS to make offsets to satisfy past-due child support, unpaid student loans, and certain other federal and state liabilities. The CARES Act provided that EIPs and the RRC could not be offset to satisfy outstanding debts, with the exception of past-due child support. Since the passage of the CARES Act, the IRS has continued to tell taxpayers that it could not correct or issue additional EIP payments due to lack of resources and that individuals who did not receive some or all of their EIPs would need to claim an RRC when they file their 2020 tax return. The Consolidated Appropriations Act, 2021 (CCA) went a step further and protected the second round of payments from all offsets, including past-due child support. However, it limited that exception only to advance payments and retroactively revised CARES Act Section 2201(d), subjecting RRCs to regular offset rules for unpaid federal taxes and certain other debts. As a result, RRCs are treated differently from EIPs paid in advance. What this means: If you are an eligible individual who has not yet received your full EIP and you have certain outstanding debts, some or all of your unpaid stimulus payment will be withheld to offset those debts. This approach – forcing eligible individuals to forgo receiving an EIP that was exempt from offset if paid timely – is a problem the law and the IRS have created. With the change in the law made by the CCA, the rug is being pulled out from under eligible individuals with outstanding debts. Since the spring, the IRS reassured these taxpayers that if they claim the RRC when they file their 2020 returns, they will get the full amount of stimulus money they are eligible for and be made whole. Now that reassurance turns out to be inaccurate based upon the law change" If you have read this carefully, the Consolidated Appropriations Act redefined round 2 of the EIP payments to now be Recovery Rebate Credits, an advanced tax credit thus subject to being offset by back taxes. Isn't this a wonderful profession ?

When you do that it will be interesting to see how many months returns like this will be hung in"processing" status before before they are finalized?

I agree, everything belongs on the 1099 NEC. Someone needs to advise the bookkeeper not to split up everything like that, although the accounting software that I currently use would total all of the payments no matter how many accounts were debited.

The President has instructed the Treasury Dept and the IRS to immediately expedite the payment to about 8 Million taxpayers, who did not receive either the first and or the second EIP payment(s). It will be crazy trying to reconcile this activity against client questions

"As a result of the new legislation, eligible employers can now claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after December 31, 2020, through June 30, 2021. Qualified wages are limited to $10,000 per employee per calendar quarter in 2021. Thus, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $14,000 in 2021." Since the credit is limited to the employer share of social security( Gross Wages x .062) for 2 quarters, the total credit is limited for lower wage small business employers like retail and restaurants. Basically this credit will more lucrative for higher wage employers.

I would suggest turning off your modem and rebooting with the modem turned off. That would let you know whether the problem was internet related or internal to your computer.

My understanding is that if the taxpayer passed away before January 1, 2021, then the $600 needs to be returned..

Yeah, I efiled a 2019 Form 1040 with Drake 48 hours ago and it's still setting as "pending".

Very strange, I haven't had to use 2FA even once on Drake so far. However I have been using 2 FA on my payroll and accounting software for 3 or 4 years now.

Lion, I just took a quick look at their website and while tax1099.com does offer 1099 state filing, it does not appear to me that it is an integrated option. I may be wrong, but I get the distinct impression that their 1099 state filing is a standalone addon.

If there is no combined Federal/State filing this year what difference does it make?

Many states were never included in the combined Federal/State filing. In past years,I have always had to file 1099 Misc separately to Oregon. This year I have already filed 1099 NEC with Oregon, although it's not required until next year (one year moratorium).

Perhaps my clients are more laid back here in Oregon where we have huge surpluses of Marijuana, THC and CBD. I actually did not get a single call asking about any of this stuff However, I did spend many hours assisting with PPP Loans

It will depend on the situation. If my client me gives accurate detailed info and they received the EIP up front, then no charge. If i have to do extra work then there will be an additional fee, especially if the reconciliation generates a credit on their return.

Posted on the IRS Website Friday: "Under section 206(c) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, an employer that is eligible for the employee retention credit (ERC) can claim the ERC even if the employer has received a Small Business Interruption Loan under the Paycheck Protection Program (PPP). The eligible employer can claim the ERC on any qualified wages that are not counted as payroll costs in obtaining PPP loan forgiveness. Any wages that could count toward eligibility for the ERC or PPP loan forgiveness can be applied to either of these two programs, but not both. If you received a PPP loan and included wages paid in the 2nd and/or 3rd quarter of 2020 as payroll costs in support of an application to obtain forgiveness of the loan (rather than claiming ERC for those wages), and your request for forgiveness was denied, you can claim the ERC related to those qualified wages on your 4th quarter 2020 Form 941, Employer's Quarterly Federal Tax Return. You can also report on your 4th quarter Form 941 any ERC attributable to health expenses that are qualified wages that you didn't include on your 2nd and/or 3rd quarter Form 941. If you choose to use this limited 4th quarter procedure, you should add the ERC attributable to these 2nd and/or 3rd quarter qualified wages and health expenses on line 11c or line 13d (as relevant) of your original 4th quarter Form 941 (along with any other ERC for qualified wages paid in the 4th quarter). You should also: Include the amount of these qualified wages paid during the 2nd and/or 3rd quarter (excluding health plan expenses) on line 21 of your original 4th quarter Form 941 (along with any qualified wages paid in the 4th quarter) Enter the same amount on Worksheet 1, Step 3, line 3a. Include the amount of these health plan expenses from the 2nd and/or 3rd quarter on line 22 of the 4th quarter Form 941 (along with any health expenses for the 4th quarter) Enter the same amount on Worksheet 1, Step 3, line 3b. We understand this might be difficult to implement so late in the timeframe to file your 4th quarter return. You do not have to use this limited 4th quarter procedure. You can instead choose the regular process of filing an adjusted return or claim for refund for the appropriate quarter to which the additional ERC relates using Form 941-X."

"February 22. Projected date for the IRS.gov Where's My Refund tool being updated for those claiming EITC and ACTC, also referred to as PATH Act returns. First week of March. Tax refunds begin reaching filers claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns."

Seeing all these ATX trouble posts makes me so glad I left ATX 3 tax seasons ago

I guess I have a different take on this. The amount of clothing you would have to sell at second hand prices to total over $ 12k is mind boggling, probably at least $ 40 k at retail. I think additional inquires need to be made !

Also, some of the EIP payments were sent out as Debit Cards. The recipients threw them away not recognizing what they were. The IRS supposedly will follow up when the Debit Cards expire unused. What a circus with lots of monkeys !

Yeah, yesterday I finished my most tedious task for this month, 97 Forms 1095 C delivered to my client and mailed off to the IRS.

Since I am 74 now with several health issues I deal with every day, I find all the whining and complaining from all of you 60 year old youngsters highly amusing

Take a look at the SBA PPP Loan FAQs, which I believe addresses this situation.