Lee B

Copied from Accounting Today: Colorado law requires out-of-state sellers making sales to Colorado residents to report certain information to the Colorado Department of Revenue, even when the out-of-state seller does not have nexus with the state. This law was originally enacted in 2010 but was effectively on hold while the law was challenged in the courts. The court cases challenging the law have become final, and Colorado is now permitted to enforce the law as written as of July 1, 2017. The law applies to “non-collecting retailers” with total gross taxable sales to Colorado of $100,000 or more per year. “Non-collecting retailers” are out-of-state sellers who do not have physical presence in the state of Colorado, and therefore have no requirement to collect and remit sales tax on their sales to residents of that state. The law imposes three requirements on “non-collecting retailers” making sales to Colorado residents: Sending a “transactional notice” to Colorado purchasers letting them know that they may be subject to Colorado’s use tax. Sending an “annual purchase summary” to Colorado purchasers who buy more than $500 in goods from the retailer with the dates, categories, and amounts of purchases, reminding them of their obligation to pay use taxes on those purchases; and Filing an annual “customer information report” with the Colorado Department of Revenue listing their customers’ names, addresses, and total amounts spent. Penalties for failure to comply with these requirements can be significant. First that I have heard of this. If other states follow suit, this will create a whole new reporting regime. Is anyone aware of other states requiring this reporting ?

I do payroll processing and I am not aware of any laws, rules or regulations that cover this, so yes they can. The only rule my state has in this area is that your pay periods have to remain consistent i.e., you can't play games by moving the dates around. For example, I used to have a payroll client who had multiple Espresso Drive Thru s, who were paid on a biweekly basis, with the pay period running Sunday thru Saturday. However the paychecks weren't issued until the second Friday after the end of the pay period which was 13 days later, which was done consistently for almost 20 years.

I don't take credit cards, but if I did ( based on several clients very positive experience ) I would use Square.

I believe the IRS Budget has been cut for the last 5 years in a row now and now has 11,000 fewer employees, whom are mostly retiring baby boomers who were the most experienced senior employees. It likely will get much worse than it is now.

According to The Tax Book, " The transaction is treated as a sale of the property which may result in a gain or a loss, unless one of the exceptions to the inclusion of cancelled debt income applies. " Suggest you read Pub 908, Bankruptcy Tax Guide.

If there is any tax due wouldn't it be for recapture of depreciation instead of capital gain ?

"We delivered strong improvement in revenue, profit and cash flow," McKinstry said in summarizing the first half performance. Profit of about $314 million represented an increase of 33 percent over the first half of 2016. Revenue for the most recently ended period of roughly $2.57 billion rose 6 percent over last year's corresponding period. The figures were up 4 percent in constant currencies and 2 percent organically. The company reported 3-percent organic growth in its Tax & Accounting and Legal & Regulatory operation." It would appear that CCH has the cash flow to fix some of the problems at ATX, if they had the desire to do so ?

If you still haven't renewed with ATX, just was told that the Sales Reps won't be able to offer the May discount after August 31st.

If you are down to just a few returns, your lowest cost option might be Tax Act.

At this income level, you should be looking at is a custom designed pension plan.

If you haven't renewed with ATX yet, just be aware that your sales rep still has the ability to offer your the same discount that was offered to you in May. Twice in the last 5 years, I received the May discount when I renewed in November. My sales has told me that he can hold open my discount until I decide.

"On December 1, 2015, Mozilla Executive Chair Mitchell Baker announced in a company-wide memo that Thunderbird development needs to be uncoupled from Firefox. She referred to Thunderbird developers spending large efforts responding to changes to Mozilla technologies, while Firefox was paying a tax to support Thunderbird development. She also said that she does not believe Thunderbird has the potential for "industry-wide impact" that Firefox does. At the same time, it was announced that Mozilla Foundation will provide at least a temporary legal and financial home for the Thunderbird project" This is what I had read, so it's not really a Mozilla program any more.

I thought that that Mozilla had stopped supporting Thunderbird

The Internal Revenue Service, state tax agencies and the tax industry today warned tax professionals to be alert to a new phishing email scam impersonating tax software providers and attempting to steal usernames and passwords

What I find interesting is that CCH mentions improvements to Prosystem fX and to CCH Axcess and doesn't even mention anything about ATX or TaxWise. It's at the very least a curious approach to marketing and public relations.

Accounting Today has an article about "What's New for next Tax Season" There are no new enhancements listed for ATX ? Frankly, this just confirms my sense of where ATX is headed. It appears that CCH is pushing them to cut costs and send as much profit and cash upstream as possible!

I think it would be easier to deliberately terminate the S Election. Suggest you review the reasons that terminate an S Election.

Where are you going to deduct the depreciation ? What if the cow grazing never happens ?

I had a client in a very similar situation several years ago receive a state grant to reimburse him for brush control. He also received a 1099, which I reported as misc income.

Interesting, since I had just the reverse happen to a payroll client of mine who had two Schedule C businesses, a Espresso stand and a Garden Supply Store. The IRS forced to him to consolidate his payroll form submissions. I was doing payroll for the Espresso Stand and his bookkeeper was doing payroll for the Garden Store. Ended up being total mess, which dragged on for several years after the Garden Store ended up in bankruptcy.

If the FMV is 100 K and they sell it to the kids for 20 K, then they have made a gift of 80 K to their kids which would require filing a Gift Tax Return for the 80 K.

Many years ago my first job after graduating from college, was on the audit staff of a national accounting firm and I did not do any taxes. In my office the audit staff was triple the size of the tax staff and this was in a city of about 120,000.

In my experience, the IRS will not issue two EIN numbers to a sole proprietor. So you need to find out if the IRS considers the old number to still be an active number or you can apply for a new number and if the old number is still active, your application will reject. Pick your poison.

In my area, there are so many, you could go on a road trip, one free Slurpee after another. Woohoo !