Lee B

"Before the House Committee on Financial Services on Tuesday, recently-appointed FTX CEO John J. Ray III gave testimony to back up comments he made to the New York Times last month about FTX being a “complete failure” the likes of which he hadn’t seen in two decades." "This one is unusual, and it’s unusual in the sense that literally there’s no recordkeeping whatsoever, the absence of recordkeeping. Employees would communicate invoicing and expenses on Slack which is essentially a way of communicating for chat rooms. They used QuickBooks, a multibillion-dollar company using QuickBooks." Sam Bankman-Fried, another misunderstood creative entrepreneur. :)

I assume if the employer has amend 941s, then the employer will also have refile W2s.

Interesting Question. I have been involved in 4 or 5 Employment Tax Audits, but I have never been on the losing side. I would assume the reclassified employee would get W 2(s) and would have to amend the Form 1040(s) and the Schedule C losing tax deductions offset by refunded SE Taxes?

Do you use zoom meetings with clients?

I just finished my annual grind of preparing the ACA Forms for my largest client. Circumstances forced me to change programs. Based on some positive online reviews, I used Tax1099.com which ended up being an exercise in frustration. Very polished website with weak inexperienced support and confusing explanations. I finally worked my way through it but it ended up taking 50 % longer than it should have. Next year I will have to find another program.

"An article in Tax Notes Today Federal reported that Ken Corbin, the IRS’s taxpayer experience officer and Wage and Investment Division Commissioner, stated that the IRS was now answering phone calls to the practitioner helpline in under 10 minutes. Mr. Corbin made this statement in a virtual event hosted by the California Society of Enrolled Agents on January 18, 2023.[1] Mr. Corbin is cited as stating that the agency is transitioning a workforce of over 12,000 employees back to answering phones.[2] The article also notes that Mr. Corbin gave some credit for the improvement to the IRS program looking to reduce the effectiveness of robocalling systems."

Whether you decide it's a 2022 credit or a 2023 credit it's 30% for either year. The words when the original installation is complete makes me choose 2022, subject to the documentation received from the installer.

I have had several clients in recent years spend money on projects because the salesperson promised them they would get a large energy tax credit. Of course when they gave me their annual tax documents they didn't have the required paperwork. When i had my clients call the company that did the work, the salesperson no longer worked there and the company didn't know what my clients were talking about.

Just looked it up. Filing time limit for SE Income is 3 years 3 months and 15 days. So the time limit for 2019 to be filed is April 15th 2023.

Are his benefits based on W 2s or is he a self employed SP or a PTS?

Oregon has had a similar program for about 4 years now called Oregon Saves. While it's a laudable idea it ignores reality. 1. Most working class families live paycheck to paycheck and don't have any extra money. 2. Most small employers are just trying to survive so they ignore the Oregon Saves program. 3. There's no enforcement so there' s no penalty for not participating.

No

Which is why, if at all possible ,I never wanted my clients present during any audit no matter what kind, Income Tax, Workers Comp, Employment Tax or Liability Insurance.

The number of states with a PTET is over 25 now. Here is a link to a recent analysis of the situation in The Tax Advisor: https://www.thetaxadviser.com/issues/2022/aug/state-pte-elections.html

Maybe the auditor is fishing to see what pops up?

Thanks, I didn't know that. It's been quite a few years since I had a client that didn't stay current with their tax payments.

This alert applies to all of the Chromium Browsers i.e., Chrome, Edge, Brave, Vivaldi and Opera. Chrome included a complete fix as part of yesterday's release of Chrome 108.

No problems but I haven't done much yet, Just finished all of my year end payroll stuff.

The daughter is apparently over 18 and now an adult. You're going to need the daughter's consent and involvement.

"If an apportioning trade or business is (1) operating as a sole proprietorship owned by a nonresident individual or (2) operating as a single-member disregarded LLC owned by a nonresident individual and therefore treated as a sole proprietorship, for income arising from activities that occur both within and outside California, the single-sales factor formula must be used to determine the California source income of the individual on Schedule R-1. For more information, see Cal. Code Regs., tit. 18 section 17951-4(c)(2). Nonresident individuals with service or intangible income from a trade or business or profession may have California source income if they have income from California as result of market assignment. See market assignment information in the General Information section, Specific Line Instructions, R&TC Section 25136, and Cal. Code Regs., tit. 18 section 25136-2, for more information." This relates to a Corporation, which is a horse of a different color.

If the IRS issued the refund how did the state take it?

There are different kinds of nexus. The one that your first post referenced is payroll related. The one most people are familiar with is sales tax nexus, which has undergone major changes in the last three years. Then there is corporate tax nexus with the apportionment factors. Finally we have state income tax nexus which we have been discussing on this thread.

Here is a lengthy analysis of the state income tax nexus situation in The Tax Advisor, dated December 1, 2022: https://www.thetaxadviser.com/issues/2022/dec/states-reactions-to-mtc-application-pl-86-272-to-internet-sales.html

In recent years, I have prepared tax returns for CA, IA, ID, MT and UT. As far as I know I will only be preparing Oregon Tax Returns this year and I plan to keep it that way.

I would also be concerned about whether your client obtained a PPP Loan during the same time frame or any of the other pandemic payroll related credits, because you can't use the same payroll dollars twice and double dip.