mcbreck

Can you pull the transcript? I get hand written 1099-nec's all the time from clients. Never had a hand written K-1 but it isn't prohibited. My guess is she produced the tax return themselves?

Received! Weird when a company calls before 8am.

Thanks for the update. I buy from a reseller and they remotely install it on my laptop. Guessing I'll get it later this week but never really know when they will call.

I use LibreOffice and have for over 10 years, used to use OpenOffice but when they announced it would no longer be updated I made the switch. They are both open source programs and based upon an old Sun Microsystem program. I just use the Writer and Calc programs which open Word and Excel files but it has a database and other programs included. Years ago on an MS Office upgrade they wouldn't allow you to open certain file types - LibreOffice would do it so I made the switch. Also, Libre will open .numbers files I believe in case a client is using Apple. LibreOffice does everything I want except customized labels on pie-charts. I like to be able to manually move the label and it use a line to direct to the wedge - Libre doesn't allow that. I find it FAR superior to Google Sheets but my wife uses Sheets and says it's better than it used to be.

From an attorney I spoke to about this YEARS ago, as long as you explain to the client their obligation within the IRS rules and explain to them the penalties and interest which could be applied, you weren't willfully negligent (document it). I couldn't tell you if that's true as I'm not with the IRS but I recall it with Circular 230 that notifying them of their obligations and penalties is a big deal in your liability. I'm lucky because all my 1120S corps show a loss and I'm doubting the IRS is going after them. I've had them in the past and when I harped on their obligations, they left for a preparer who was less worried about it. I realize people would throw a fit but 1120S tax rules need to change. They are just ripe for abuse.

I didn't like this version but it IS very scary what's going to be coming down the pike in the future. They can generate fake photos, fake videos, fake interviews using AI to discredit a person. Instagram has entire pages of AI generated models for whatever you are interested in looking at. Very freaky when you consider political or economic events in the future. Imagine if someone goes massively short a particular stock using options and then releases a fake interview of the CEO making horrific claims. William Randolph Hearst supposedly said "You furnish the pictures and I’ll furnish the war." AI can easily furnish all the evidence you need.

Thanks- I'll research 645 election! I'm completely unfamiliar with it, thanks.

A new client has been brought to me and I'm confused on how best to go about it. Client died in 2020, everything he owned was immediately moved to a Trust with an EIN, cost basis all adjusted. CPA then had a meltdown and demanded they file an Estate return using the EIN and filing on a fiscal basis. The CPA just stopped communicating with the attorney and beneficiary and there were errors in the tax return. This is likely going on for about 20 years so nobody wants this to continue on a fiscal basis. I'm filing a 3 month tax return to get it to the fiscal year and then we'll shift to the trust return and continue using the same EIN. Think that would be a major problem? Do I need to inform the IRS? It doesn't change any tax bill because everything was being distributed to a single beneficiary and she reported the income. Or should I just do a correct trust return for 3 months?

Just logged in, 8 digits and went fine. Since you have to log in with ID.me or another method, not seeing the point of additional security on the password.

Every like-kind exchange plan that comes to me I tell them to hire a real estate attorney to facilitate the transaction and make sure it is done within the IRS guidelines. That small fee always kills it. I'm no expert on that stuff and there are a ton of maneuvers to make in a timely manner for it to qualify and I'm not taking that liability. When I went through the EA training, their definition of "like-kind" property was very different from what people use today.

Do you handle much representation? I'm currently doing my securities CE via FINRA due next October. Tax CE is done before vacation after tax season.

Does anyone automatically do a 2848 for each client with the 3 future years so that you can talk to the IRS about their issues in the future? Every three years everyone could just sign a new form. How about the 8821, do you automatically have clients sign that form each year so you can get the transcripts when/ if you need it? I've seen that preparers do the 2848, charge a fee every three years to update the paperwork and then they can always talk with the IRS about a client's situation.

It depends upon the fund company and whether they used an adviser. If it was held at the fund company, they have the cost basis 99% of the time. The client needs to ask. If it's with an adviser, usually they will generate a letter with what their records say (if the adviser can't figure it out, the adviser stinks). Explain to the clients what you need, why you need it and they will almost always come up with a basis. As an adviser we occasionally have a mutual fund which doesn't have a cost basis like this, we'll get a list of all distributions (they are on the internet) and come up with a basis as best as can be determined. With mutual funds it's rare to not have at least 80% of the sale price as actual cost. Stocks (as mentioned) are a very different story. Occasionally you'll get someone with ATT stock or whatever and you have to come up with a cost basis that is a true nightmare situation. Spinoffs are horrific and you can have real difficulty figuring that out.

Just logged in after a vacation - sorry to hear this. Be sure and give yourself time to grieve as losing a pet is a true loss for many of us. My sister in law just told us yesterday one of her outdoor farm cats passed during the night. Glad I was able to pet and play with him a little last weekend - great guy and he also will be missed. They have cows and unfortunately named a few of them. BIG mistake.

I just did this and you need the 2848.

They paid all their taxes via W2 withholding versus reporting it on their tax return. While it wasn't correct, they made a good faith effort to comply and I'm guessing came VERY close to the same end result.

This is what I'd do. Reversing this will take forever, generate a huge bill for your services and end up at almost the exact same situation most likely. Tell the client that what they did was wrong and if the IRS requests information, THEN we'll fix it. It's not like they are shorting the IRS.

Seems rather rudimentary in the building of a tax collection system that someone's payments get applied to their account.

I had a client who's state pension had state tax withheld and the state demanded we provide proof via a copy of the 1099r. My 3rd party checkbox also magically disappeared for a LOT of clients on the state level. I've had two clients who's W2 state tax withheld wasn't on their transcript and again we had to provide proof. They are a couple which makes it even more weird. My state has this weird credit for food pantry donations where it is a terrific credit up to a certain yearly amount and then the credit transitions from a tax credit to an income deduction. No clue when the state has reached their yearly limit so my late filing clients usually don't get it, get an adjustment and blame me. I've have multiple clients who've received adjustment letters and then adjustments reversing the previous adjustment. I absolutely hate adjustment letters that don't give a reason for the adjustment. I roll over refunds for clients who pay estimated taxes. HATE it that clients don't tell me when they've had an adjustment and then for years they keep getting adjustment letters because every year my assumption that the amount rolled over was correct was actually wrong.

I've also noticed a significant upgrade in wait times and I've never had a real problem with IRS employees when speaking to them. Most are exceptionally nice and efficient. State Department of Revenue is a completely different mess.

One of the major problems with doing it yourself is cognitive decline as you age and risk assessment (you are correct). I got into investments in the early 90's (got my Series 6 in 1991 while in college) and it was common to see people who had 100% of their portfolio in bonds and CDs. Now it is common to find seniors with 100% of their portfolio in equities and they've never owned a bond or CD. The son in law of a client has 100% of his portfolio in gold. My brother in law has a friend who's entire retirement portfolio is in guns. He has hundreds of guns in his home and he'll sell a few every month in retirement. He told my BIL that guns NEVER go down in value so I asked what if the house burns down.....

My monitors don't typically die but they seem to become less clear. Maybe they aren't, maybe it's just my vision. We had a Dell that got really fuzzy, the LG monitors are only about 1.5 years old so we'll see.

Thanks for the heads up. I was just considering a mobile monitor so that my laptop has a 2nd monitor when I'm not in the office. Might go your route when one of these dies. Tends to be about a 3 year cycle before they really degrade.

I have a job. In fact I have about 4 jobs.... Taxes, financial planning, investments and I'm a securities principal for my firm part time.

Missouri is sending out checks without any explanation and when I call, they don't always know why the checks went out. Friend received a check in April and another in early July. A client received 2 checks and a bill asking for about 75% of them back. When I called, they really weren't sure why the checks were mailed out.