kathyc2

Pro has a 2 year report that I always run before even checking input. Also run 2 year for C's, E's and F's see if everything looks to be inline.

5% is still a ridiculously high number. Farms, Sch C, and rentals have very little if any matching with IRS database. I only remember one federal notice client received over the last 2 years, and that was part of the group last year that IRS admitted were sent in error. I know you think analysis is a dirty word, but if I didn't use it on returns I would have a lot more. If client had investment statement in prior year but did not provide for current year, they are asked about it. If they only give me page 1 on investment 1099 accounts, they are asked for the full tax forms. If amounts are significantly lower without a 1099B they are asked if they moved to a different brokerage. If they are at the age for RMD's and don't provide 1099R they are asked. If code W on W-2 but no 1099SA they are asked. Even if W-2 is significantly lower, they are asked. Surprisingly, some people forget a W-2. Basically, if anything is significantly different between years, I ask. If elderly people or others that get confused about investment have discrepancy I ask them to give investment adviser permission to speak with me. I required one client to set up an IRS account and print out their estimated payments as they would often have it apply to incorrect period. As far as TT simple returns not being in error, I disagree. I had one the took the amount of 401K on W2 as an IRA deduction. If they have HSA and don't input 1099SA, they are going to get a notice.

Agree with Margaret. Joint ownership is generally for unmarried couples sharing a house or for MFS.

Holy cow! That's close to 5 times national average.

They use different technology. In mild climates heat pump can replace both furnace and a/c, In colder climates a furnace is still needed. I just had one and used model numbers on invoice to check efficiency ratings on manufactures site. Then checked energystar.gov to verify efficiency ratings met the criteria. Client received 600 for furnace plus another 2,000 for heat pump.

A lot of people aren't comfortable doing electronic transactions. I've had several instances when they try to make estimated online and apply it to an incorrect period. If they want to advertise and encourage it, fine. If they want to mandate it, they aren't thinking through the consequences or letting people decide what is best for their personal situation.

Soooo many things I could say about this.....

Unless client keeps full books with balance sheet, what is being reconciled on COS? Info client provides? Does client understand how inventory and COS works? Does client take a full inventory at year end every year and provide it to preparer? If pulled for audit, you don't think IRS would want some documentation as to cost for write off? From info provided here, it doesn't pass the smell test. Simply provided some ideas to OP as how to CYA. If audited depending on facts and circumstances there may be an attempt to invoke 6694 penalties.

By documentation I was referring to documenting the cost of inventory. Unless client kept full books including balance sheet, it may be difficult. One way may be to take average purchase cost over last couple years with receipts. Say average cost was 50, which would mean 2,000 suits. If you assume hanging is six suits to a foot, that would work out to 300+ linear feet. Have client take picture to document their claim.

Zero sales and 100K loss may raise a flag. Make sure you have good documentation. If the inventory is indeed worthless, how would there be a value of donating it?

I can't see that it's passive as they are providing substantial services and don't have an investment due to not owning building.

You are probably thinking of this: https://www.irs.gov/pub/irs-drop/n-24-70.pdf

Sometimes the insurance company will use 2024 and automatically renew 2025. Make sure to tell them to check to make sure son isn't on 2025 policy.

You can't elect other income. However, it may be an advantage to not elect the full amount of 2024 farm income. What it does it take the elected amount, divide by 3 and then recalculate what the 2021, 22, and 23 tax would have been with that extra 1/3 added on to taxable income for those years. For example, say the prior 3 years taxable income was in 12% marginal rate. 2024 alone has 60K in 22% rate. That would likely be the optimal to elect. If wouldn't do you any good to shift more to prior years as that may put some or more in 22% rate in the recalculation while not taking full advantage of 2024 12% marginal rate. The calculation would then be 2024 at 12% marginal and as long as there is 20K per year in prior years room before 22% is hit, essentially all the 2024 income is taxed at 12%

Interesting. Curious where you heard that???

LOL! Way back in the day when I worked corporate, the owner of company said that to many a supplier. Best is when he said it to police department when company driver was ticketed!

I'm done playing those games. Client wants to do things through portal instead of driving close to hour to office. It went on for days to get info. First they only sent state signed form. Emailed them that I needed federal also, and to put CC info on invoice and return it if they want to pay that way. Couple days later, I get the federal form and CC number and code. Email asking which of their names in on CC and that I need expiration date. Couple days later responds that it's under his name, but still no expiration date. Finally get everything and they get an email from me that this is not working and they would be better served going somewhere else next year.

I didn't change anything. He passed in Jan 2024 so they filed jointly both 2023 and 2024 with DOD noted on returns. The notice was in her name only so somehow they must have removed him from account along with the payment. Never had that happen on similar situations before, but MI is not the primary state I file returns for.

And there's your box of rocks!

I have real concerns about SS requiring so much to be done online or in person. Local office is in a heavy traffic part of town that many seniors don't like to drive in. Some parts of country the office may be 100+ miles away. Many don't have computers or are not computer savvy. I can see business advertising to help them, for a fee of course. And I think we know that there will be offers of "help" that will be scams.

For years I've gotten a bag of Lindor truffles before the start of tax season. I know it's been a good year when there are some left after 4/15. Still a month to go and the bag is empty.

I've never had an experience this bad trying to resolve a simple issue. Couple had been filing jointly for many years. He passed in Jan 2024. MI 2023 had a small balance due of a little over $100. I set it up in software to come directly out of bank account, which it did. She said she received a notice of non-payment over the summer, called them, and mailed in the bank statement showing payment. Nothing more heard until today when she receives a demand notice of payment for 2023. I call MI to get simple issue resolved. Box was checked on MI return that state can discuss return with me. Agent says she can't see that part of return in system. So, I call widow on other line with both on speakerphone to give authorization. Wasn't enough to just give her information for identity, she also had to find his SSN. So, now she can talk w/ me about return. Puts me on hold for 10 minutes or so. Finally got it figured out that they put the payment to his SSN and with his passing widow is now primary on return and payment is floating around somewhere. It's now going to have to go through a review that can take 6 weeks. I ask her to put a hold on collections while it's being resolved. She says she can't do that. 2024 has been filed and refund is more than 2023 due. I' betting they will take 2023 balance plus penalties out of 2024 refund. Unbelievable ineptitude.

SSA recently announced recipients can no longer change bank account via phone. The stated that they can't verify identity of caller via questions. Changes need to be via myssa or going to an office. How long until IRS adopts policy that information via phone is no longer available?

If you enter month by month you will get the pink. If you just enter the total on line 33 you won't.

That makes no sense. To clarify: you enter the info on Form 1095-A. You enter annual total on line 33A, leaving 33B and 33C blank and you get errors? What do the errors say? I will clarify something I said earlier. Putting an amount in 33A will populate the 8962 form. However, it won't show as a form in use.