Lee B

IRS Pub 225 Farmers Tax Guide is a good resource

I don't understand, why wouldn't you issue it.

Tax practitioner's information soon be available at IRS website The IRS alerted tax practitioners that it will soon be publishing their registration information online. The information was previously available only on a CD-ROM for a $35 fee for those who submitted a request to the IRS. The information will be available without cost. The Freedom of Information Act requires the IRS to release certain information about people who hold preparer tax identification numbers (PTINs) and enrolled agents. The information includes the PTIN holder’s name, business name, mailing address, phone number, website, email address, and professional credentials (see the IRS webpage, “FOIA Awareness for PTIN Holders”). The IRS told PTIN holders that they may now use P.O. boxes for their business mailing address. It also said that if a practitioner used a personal address instead of a business address, or used a street address instead of a P.O. box, he or she may want to change it. It also advised practitioners who receive unwanted solicitations to report the problem to the Federal Trade Commission. According to the IRS in a Jan. 26 email from the IRS Office of National Public Liaison, the Freedom of Information Improvement Act of 2016, P.L. 114-185, enacted June 30, 2016, requires agencies to “make available for public inspection in an electronic format … copies of all records … that have been requested 3 or more times.” The IRS said it is now working to implement downloadable versions of the PTIN holder and enrolled agent lists in its Electronic Reading Room on irs.gov, and that the lists will be updated twice a year and be available at no cost. The IRS will provide an update when the lists are placed on the website. —Sally P. Schreiber ([email protected]) is a JofA senior editor During a time when hackers are actively seeking practitioner's information, this helps how ??? Especially liked the advice that we might want to make sure that we change our address to a P O BOX !

Yes, ATX has the same thing.

I wouldn't charge a separate fee, but my fee to prepare these returns would be expansive, kind of like a balloon.

Based on my experience, Medlin is correct. Not a loan, not a 1099. Most likely W - 2 Wages.

I always wait until February 6th, after I have all of my Monthly and Semi-Monthly Payroll Processing completed. Many thanks to all of the volunteer guinea pigs.

That's what I have been doing for the last several years. No problems Works Great

The IRS always has a test period where providers who sign up in advance can submit returns and receive acks a few days early.

I have also Tenenz for many years. They are very reasonable, especially compared to Nelco.

Copied from Forbes: Late December’s Fleischer v Commissioner involves facts that are common among many small business service-providing taxpayers wishing to minimize self-employment liability by setting up S Corporations and funneling service income to those corporations. Unfortunately for Fleischer, the Tax Court found that he faced a sizable self-employment tax liability as it reallocated income that was reported on the S Corporation’s 1120-S to his Form 1040. The case is in the category of who is the appropriate taxpayer, an issue that sometimes gets murky when taxpayers are dealing with closely or solely-held separate entities. I will summarize and simplify the facts somewhat and hone in on why the taxpayer lost despite the plans of both a CPA and lawyer advising on his tax structure. The Facts of Fleischer: Setting up an S Corp to Avoid Self-Employment Tax Fleischer is a licensed financial consultant. Based on the advice of his CPA and lawyer, he set up an S Corporation. Fleischer was the president, secretary, treasurer and sole shareholder of the corporation. Fleischer entered into an employment agreement with the S Corporation, and pursuant to that agreement the S Corp paid him a salary in his capacity as financial advisor. In his individual capacity, Fleischer also entered into contracts with financial service companies Mass Mutual and LPL. Those contracts generated significant commissions, which Mass Mutual and LPL reported to the IRS and to Fleischer individually on various Form 1099’s over the years. The key to the employment tax savings when all works well in this structure is that the S Corp pays a salary less than the gross receipts it receives. The shareholder/employee has employment tax liability to the extent only of the wages that the S Corp pays to the shareholder/employee. Fleisher paid employment tax on his wages from the S Corp. And while Fleisher’s status as sole shareholder meant that all of the S Corp’s income would flow through to him, the nature of the income matters. Individuals who earn service income directly have to pay Social Security and Medicare taxes, which are often referred to collectively as the self-employment tax. [Note that the tax rate for Social Security taxes is 12.4% and the rate for Medicare taxes is 2.9%; for 2017 Social Security taxes are levied only on the first $127,200 while the Medicare rate applies to all service income]. If the S corporation, rather than the individual, earns that income, then the S corporation does not have a separate employment tax liability and the shareholder does not have self-employment tax liability on his share of the S corporation’s income. Fleischer’s S Corp paid him a salary of about $35,000. The net income the S Corp earned varied over the years, going as high in one year as about $150,000. When, as was the case here, the S Corp’s wages paid are less than its net service income, the shareholder/employee can potentially avoid the self-employment income tax if that income were earned directly by the shareholder/employee or the employment tax if the S Corporation does not pay a salary commensurate with the corporation’s net income. Underlying this form, however, is the IRS’s ability to allocate the income to the party who truly earns the income. In addition, the compensation the S Corporation pays to its shareholder/employee must be reasonable; if too low IRS can argue that some of the distributive share should be characterized as compensation (Peter Reilly discusses one such situation in S Corporation SE Avoidance Still a Solid Strategy). The taxpayer’s reporting of the income and the mere creation of a separate entity do not give the taxpayer unlimited discretion to treat the income in the way most favorable to the taxpayer. As an important aside, the consequences of an LLC earning service income differ from that of an S Corporation. When an LLC earns service income, the distributive share of partnership income allocated to members of an LLC is generally subject to self-employment tax. This is a key difference between S Corporations and LLCs in this context The IRS position has been pretty consistent for some years. However as a practical matter the audit rate for S Corporations has been very low, less than 1 % I believe. As a result, I think that there are probably thousands of similar S Corporation returns that have been filed who are using this exact strategy. I don't know if the IRS even has enough manpower to audit all of these returns ?

At the very least you need a broadly worded signed Financial Disclosure Authorization Form. If you are still uncomfortable, provide all the information to your client and let him pass it on to the third party. I had a similar situation years ago, where one of my clients was sold on a Consulting Engagement to improve his profits. The third party had their own authorization form which my client signed. I provided the information. Turned out to be a total waste of the $ 5,000 my client paid.

Re: Importing W2 info from Quickbooks Reply Quote Favorites Hi All, I am providing an UNOFFICIAL workaround for this if you would like to try it at your discretion. I was able to use it successfully. 1) Install Foxit PDF viewer. 2) Open the PDF you generated in QuickBooks. 3) Print the PDF to .xps. 4) Import the .xps created into Payroll Copied from a post by ATX Kristin ( Note use Copy A )

You do realize that dealing with divorced clients is one of the most common reasons that tax practitioners are sued ? Check with your Professional Liability Insurance Carrier.

You can't file W - 2s from Quickbooks ? I guess I am not up to speed on what the problem is ???

Why is he departing without receiving anything ? If he doesn't receive anything how is he relinquishing his ownership of the shares? If this was the final disposition of real property then of course the passive loss is released and available. I am definitely interested to see how the rules apply so this situation.

Jackson Hewitt Tax Service has opened early in 3,000 Walmart stores nationwide. Clients can get started on their taxes with their latest paystub and other income verification documents, the tax prep giant said, and can see if they qualify to receive an Express Refund Advance of up to $1,300, a no-fee, zero-percent APR loan. The amount of the advance will be deducted from refunds and reduce the amount that is paid directly to the taxpayer. Returns may be e-filed without applying for this loan. Approved clients may receive $200 on a Walmart eGift card the same day they complete their return with Jackson Hewitt. These clients will then receive any remaining loan balance when they provide their W-2 and file their return. Loans are repaid when clients receive their refunds. I am very confident that all the other fees will cover the "no fee zero percent APR loan".

Just smile and say, " I am sure the penalty will be repealed on January 20th, retroactively.

This bill was approved by the Senate Finance Committee. Apparently, has not been brought up for a vote by the full Senate, yet.

I output a pdf file of the return, then I use Adobe Standard to encrypt the file with a password.

The Senate Committee on Finance voted 26-0 in September to kill the "Stretch IRA" for non-spousal beneficiaries -- putting trillions of dollars of legacy wealth in danger of being collected by the tax man. "This is going to be big," said James Lange, a Pittsburgh-based tax accountant, attorney and author. "It's not a done deal. It's not immediately effective. But in the past when you had a 26-0 Senate vote, the legislation always became law the next year." The Senate proposal will be included in a bill called the Retirement Enhancement and Savings Act, and would require beneficiaries of an inherited IRA or other qualified retirement account to pay all taxes due on the account within five years of the owner's death. The proposed law does not apply to surviving spouses. Surviving spouses may still spread the taxes due on the account across their life span or roll the money into another retirement account.

My understanding is that the rule is "within 30 days, before and after", so I would add 1 more day to January 23rd.

Copied from the ATX Blog: The IRS is issuing this alert to warn e-Services account holders of an uptick in a previously reported scam designed to capture usernames and passwords. If you receive an unsolicited email you suspect could be a scam, please forward it unopened to [email protected]. If e-services users have already clicked on the fake logo and provided their username and password, they should contact the e-services help desk to reset their accounts. Posted 2 hours ago by Stephanie Bradford

Google "eFile status page", which is the IRS official answer to your question.

Elderly client has an older, not that desirable, timeshare that she paid $ 10,995 years ago. Now she just wants to avoid the $ 900 a year maintenance fee. The timeshare management company hasn't been helpful. She talked to several firms about donating the timeshare, but wasn't comfortable with the associated fees. Is there a way to just give the timeshare back ?