Lee B

You could send client # 2 a collection letter explaining that failure to pay will result in either taking them to Small Claims Court or turning them over to a collection agency. Years ago when I first started I lost $1,000 to a business client when i carried an outstanding balance due. Last time I did that. Now business clients pay me every month and tax return clients pay me when they pick up the return.

Terry, you still haven't explained what kind of tax entity your client's SMLLC will be filing?

Copied from The National Law Review: On February 18, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) released a notice that announced the following key updates: "Unless subject to a later deadline, the new deadline to file an initial, updated and/or corrected BOI report with FinCEN is now March 21, 2025. Before March 21, 2025, FinCEN may “further modify deadlines” for entities that do not pose significant national security risks. If FinCEN does so, it will provide yet another update “recognizing that reporting companies may need additional time to comply[.]” Importantly, “FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses.” This is the strongest signal yet that the current Administration will seek formal amendments to the BOI Rule, although no details regarding proposed changes have been publicly released."

Yes, I am claiming a foster child who lived with my client for 7 months during 2024. Hopefully his drug addict mother, doesn't claim him first

New update on FINCEN BOI: "With the February 18, 2025, decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.), beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) are once again back in effect. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply with their BOI reporting obligations, FinCEN is generally extending the deadline 30 calendar days from February 19, 2025, for most companies."

When was the appt and how long did they live with your clients during 2024?

In my state PTET is filed as a separate tax return and yes entering it is awkward and a pain in the butt.

In my state you file the PTET forms online via the Dept of Revenue's website instead of using my tax software.

Copied from the Journal of Accountancy: "A federal district court lifted the last remaining nationwide injunction stopping beneficial ownership information (BOI) filing requirements, but the federal enforcement agency has promised at least a 30-day delay before new filings will be required." The FINCEN website has not posted an update at this time.

The Fair Labor and Standards Act administered by the U S Dept of Labor Fact Sheet: "Employers, Including Managers and Supervisors, May Not “Keep” Tips: Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool." "A manager, supervisor or owner may keep only those tips that they receive directly from a customer for the service they directly and solely provide. For example, a restaurant manager who serves their own tables may keep their own tips from customers they served but would not be able to receive other employees’ tips by participating in a tip pool."

It depends. If the owner is a SMLLC as a disregarded entity reporting on Schedule C and working at the counter, then the owner can receive tips and report them as sales revenue. What the owner cannot do is pool all of the tips and take a share of them. All of the tips made to the employees have to go to the employees.

Yes that would be a real problem in my state!

No, the tips received by the owner should be added to the LLC's sales revenue.

I believe the prior year's recalculated credit can be recaptured on the 2024 return or reduce the education credit on the 2024 return.

The Center for Agricultural Law and Taxation is a good resource: https://www.calt.iastate.edu/

Depends on the state. In my state, I believe no tax would be due and the PTET payments would be refunded.

You can exclude ATX files from being scrutinized by Avast then you won't have to turn Avast off.

Or with your firewall or antivirus program

So do I

Windows 10 22H2 was originally released back in the fall of 2022. This is the latest revision to fix known problems of 22H2.

Your client's identity may have been used to obtain Health Care through the Marketplace by the other women. Your client may want also check her credit with Experian, Equifax and Transunion.

Or a stockholder receivable to be repaid by the H & W or which I have seen reclassified as a distribution of profits.

I would call the tax practitioner hotline, explain the situation and ask for their advice. I have had good results doing this without a POA or using my client's specific info. Good Luck

Copied from The Journal Of Accountancy: https://www.journalofaccountancy.com/news/2025/feb/boi-smith-case-fincen-motion-to-stay.html

Christian, as Lion has pointed out several times all Income is taxable unless specifically exempted by law. The $ amount of the reporting threshold whether it's $20,000, $5,000 or $600 does not determine the taxability of of your client's $1,300.