Lee B

I used to maintain a separate system, but now I am using Drake whose depreciation system is a lot more user friendly than ATX.

Thanks for all the feedback and good ideas. In this situation, I think this is my best way forward.

sounds like an employee

Interesting, I used to be that arrangements like this were handled as reduced or free rent.

They do have hold it past 12/31

According to The Tax Book comparison chart there is no recapture of the Special Depreciation Allowance unless it's listed property whose use falls below 50%.

Sounds like the form may still be waiting for final approval?

Medicare wages in box 5 still needs to exceed the amount of the of the SEHI

Either the owner needs to repay the S Corp or as a practical matter recording them as distributions doesn't exactly meet the definition of quarterly distributions? Are there other employees?

I have thought about the "conflict of interest waiver " too. Perhaps I need to call my Professional Liability Insurance carrier.

This has been a Monthly Write Up/Payroll/Tax Returns client for 29 years. My annual fees are in the 5 digits. I have already let them know, that If I run into significant problems that they will have to find another accountant. Since the divorce became final in November, I have been taking things step by step watching for any"red flags." After giving it some thought, I have decided to ask all 3 members to sign a letter designating one of them to be the "Partnership Representative."

"A partnership must designate a partnership representative on its tax return for each taxable year unless it makes a valid election out of the centralized partnership audit regime. The designation of a partnership representative for one taxable year is effective only for that taxable year. The partnership representative must have a substantial presence in the United States." My situation makes me kinda nervous. I have a Real Estate LLC client with 3 members filing a Form 1065. Member A & B each own 40% and member C owns 20%. A and B divorced last year and now they don't talk to each other. C is their son and now he handles everything requiring communication between A and B. Up to now the former spouse B handled all the financial stuff including signing the efile authorization every year. I have obtained Authorization Letter signatures from all 3 members, but that still doesn't deal with designating a Partnership Representative. I have looked at Form 8979, but it really doesn't address this situation. Any helpful idea would be appreciated Thanks In Advance Lee

https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before

Follow up Note: Even though 1040X can be efiled, the IRS still processes each amended 1040 X manually, which will take over 5 months or more.

Years ago I had a client who was an appliance repairman. He received a 1099 Misc from Whirlpool for warranty work in the amount of $5,000. He received a computerized matching notice from the IRS saying the amount should be $50,000. To my surprise,I just sent in a simple letter explaining the correct amount was $5,000 which the IRS accepted.

While the IRS pronouncement may make practical sense, it's logical basis under tax law is questionable.

Tom, your posts are very on point! "As promised a week earlier, IRS announced late Friday afternoon, February 10, in Information Release 2023-23, its views on whether various “special payments made by 21 states in 2022″ are taxable. The announcement is a landmark “Action on Decision.” Rather than expressing its views on a court ruling, IRS simply admitted that it will go along with what TurboTax and H&R Block have been doing for weeks. Of course, that’s not what IRS said in the Notice. But it’s the only conclusion that can be drawn from the failure to cite any precedent or establish any new framework for analysis. Instead, we are told that “IRS will not challenge the taxability of payments related to general welfare and disaster relief."

The Internal Revenue Service recently suspended a half dozen of its modernization programs, including two deemed essential to its plans for replacing its aging systems, according to a new report. The report, released Tuesday by the Government Accountability Office, urged the IRS to complete its long-delayed modernization plans and fully address its cloud computing requirements. The GAO report said two of the suspended initiatives are essential to replacing the IRS's 60-year old Individual Master File system. The IMF is the authoritative data source for individual tax account data, and the IRS has been working on replacing the IMF for more than a decade. "According to officials, the suspensions were due to IRS's determination to shift resources to higher priorities; staff members working on these suspended initiatives were reassigned to other projects," said the report." It sounds like the IRS is sacrificing long term goals in order to deal with the short term problems of answering the phone and tax return processing. Gosh it would be nice if the IRS could walk and chew gum at the same time?

First I would read the IRS explanation of what a code "J" and a code "P" means and see if they make sense with respect to your client's situation.

Several years ago I had a client who did the 60 day rollover in multiple pieces (Not trustee to trustee ) The rollovers were all done within 60 days, but the stock broker receiving the rollover funds dropped the ball on the paperwork. The IRS took the position that the rollovers didn't qualify. My client was very late getting the IRS letters to me After sending in all of the documentation 3 different times, the IRS agreed to most of the rollovers but insisted that about $ 2,000 didn't qualify and was taxable, Finally I told my client that I had done everything that I could do and advised him that it was up to him to either pay the tax or to call the IRS himself. A classic case of "how not to do rollovers!

Good job on knocking down the strawmen you have created.

The exclusion you keep referring to applies to the the withholding of taxes by the Household Employer. I don't believe it absolves the employee from paying employment taxes.

Note: If the taxpayer paid more than $1,000 in any calendar quarter, then they are required to file Schedule H and pay FUTA at the 6 % rate unless SUTA has been paid.

"The Internal Revenue Service is cautioning taxpayers in states that offered special tax refunds or payments to wait to file their income tax returns until it's clear whether the money is taxable or not. The warning seems to apply mainly to California taxpayers, which offered a Middle-Class Tax Refund last year to millions of residents. Other states may be affected as well, including Colorado, Delaware, Georgia, Hawaii, Idaho, Illinois, Maine, New Mexico, South Carolina and Virginia, which sent rebates to taxpayers after they reported budget surpluses."

The OP implies that working as a nanny began in late 2022 and continued into 2023. In which case I would put the $2,000 on Schedule C. I was not aware that $2,000 could be excluded from SE Tax?