Lee B

Since most of my work is monthly client writeup/payroll, I work with a lot fewer clients for which I charge more per hour than I can for tax preparation.

If all my clients had competent bookkeepers, I would make a lot less money

Assuming that the Jeep was fully depreciated at the end of 2021, it would be a wash, in which case I would remove the asset in 2022.

Excellent question, was it included in sales or was it posted to a balance sheet account?

"Intuit announced the release of a new generative AI-based operating system with custom-trained large language models that specialize in solving tax, accounting, marketing, cash flow, and personal finance challenges. Intuit GenOS, as the company is calling it, is comprised of four core components: GenStudio, a dedicated development environment allowing Intuit's developers to rapidly experiment with and refine generative AI experiences for users; GenRuntime, an intelligent layer that chooses the right large language model in real time and calls the right data access points; GenUX, a library of user-interface components and consistent user flows; and, Financial custom-trained financial LLMs that specialize in solving tax, accounting, marketing, cash flow, and personal finance challenges. They can provide actionable insights and invoke actions like contacting human experts." The CEO of Intuit announced that he thinks Intuit can grow their market share 400%

In that case I would amend.

How much of a gain are we talking about?

"Things are getting better at the Internal Revenue Service, according to National Taxpayer Advocate Erin Collins but there's still some way to go: That's reflected in some of the statistics she shared on the tax returns and correspondence that are backlogged at the agency, including at last count: 3.7 million amended returns; 6.8 million other returns that are "in suspense" — they're missing a form or a signature or are what she described as "otherwise unpostable;" and, 5.3 million pieces of correspondence. One of the things the customer service reps do in their downtime is process paper — correspondence and amended returns. If you're answering the phones 80-90% of the time, guess what you're not doing? Processing paper. And we're now back to a backlog of paper correspondence and amended returns like a year ago." Sounds like the IRS is playing "Whack a Mole"

I agree, filing a 1040X is not the correct response.

" INTU +1.28% on Tuesday announced a big push into generative artificial intelligence software, with new experiences to be added across the company’s business lines, including TurboTax, Credit Karma, QuickBooks, and Mailchimp. Intuit (ticker: INTU) CEO Sasan Goodarzi thinks this could be a game changer, one that will fulfill the company’s mission, laid out more than four years ago, to “become the financial assistant in the pocket of our customers…to help them make decisions, put more money in their pocket and help them thrive." It will be interesting to see if Intuit can filter out the creative garbage that AI creates in addition to the useful information?

"Kernersville, North Carolina: Business owner Brandon Michalak has been sentenced to 15 months in prison and ordered to pay restitution of $956,028 to the IRS. Michalak, who pleaded guilty in January, was part-owner of the metal recycling business Sarah's Recycling that specialized in the collection and bulk resale of used catalytic converters. From 2014 to 2018, he omitted $11,022,953 in sales generated by his business. Each year, Michalak reported minimal taxable income and claimed the EITC even as he led a lavish lifestyle that included home and property purchases without financing, home renovations, pool installation, jewelry purchases in cash, and at least 20 vehicle purchases for himself and family members."

I don't understand how they can make it retroactive to 2018? Are your clients going to make PTET payments this year which will then be reflected on on amended 2018 to 2022 S Corp and PTS tax returns followed by amended 2018 thru 2022 personal tax returns. First, you have already passed the date to amend 2018 and 2019 personal tax returns and receive refunds. Second, most commentary on this subject says that in order for this to work the PTET payments are useable on cash basis., not on an accrual basis.

Wow, if he upgrades 3 times before the end of the year, he could generate $30,000 in tax credits

This story gets more interesting. It turns out that Steven Schwartz did not ask ChapGPT to create the court cases. When he asked ChatGPT for court case cites, ChatGPT went ahead and created them. When you start to use ChatGPT, Open AI's disclosure is, "May occasionally create incorrect information."

"A lawyer is in trouble after admitting he used ChatGPT to help write court filings that cited six nonexistent cases invented by the artificial intelligence tool. Lawyer Steven Schwartz of the firm Levidow, Levidow, & Oberman "greatly regrets having utilized generative artificial intelligence to supplement the legal research performed herein and will never do so in the future without absolute verification of its authenticity," Schwartz wrote in an affidavit on May 24 regarding the bogus citations previously submitted in US District Court for the Southern District of New York." Unfortunately this is just the beginning. It's already hard enough to decipher what's real and what's fake!

Surveys say that the members of Gen Z don't consider being a CPA to be a desirable profession.

"The number of people taking CPA exams in 2022 was just over 67,000, down from 72,000 in 2021 and short of the institute’s forecast of 74,000, according to a note in AICPA’s annual report published this month. That was the lowest level since the beginning of records for the modern exam in 2006."

Filing a 1099 is required for payments made by a trade or business and rental property owners. Since the OP post said this was investment property I would argue that filing a 1099 is not required in this situation.

The wording is before the owner reaches 59 1/2 not the year in which the owner turns 59 1/2.

Online POAs don't jump the queue, it still will take weeks to be processed.

Basically Tax Software companies like Drake and Taxwise sell their software at a big discount to these resellers since it's additional income with no additional expenses. Any of us could sign up to be a reseller if we wanted to. Some users might change resellers for a cheaper price or better support. If you spend some time doing online searches, you will find a long list of resellers for tax software. Buyer beware!

Creators of malware will love ChatGPT

I've read several interesting articles this week: The first article said that so far ChatGPT's access to information has been limited to sources dated prior to September 2021? The second article said that programming to insure that ChatGPT is only using valid information is lagging far behind. This article claimed it was fairly easy for an outside third party to insert false information and at the same time instruct ChatGPT to treat the information inserted as being valid in order to influence answers given by ChatGPT.

"The Internal Revenue Service is expected to soon restart mailing out the automated collection notices that it paused last year while it tried to catch up on its backlog of unprocessed tax returns." "An estimated 5 million to 8 million taxpayers will begin receiving notices that they owe money to the IRS around the end of May and the beginning of June." Surprise, Surprise

"The IRS is mostly caught up now on its unprocessed returns from last year, although it recently reported that it had 4.2 million unprocessed tax returns as of May 13, including Tax Year 2022 returns, 2021 returns that need review of correction, and late-filed prior-year returns."