BrewOne

I haven't tried, but I have heard you could pay ATX to restore files--so I'm assuming that is what they're talking about.

I decided before the deep dive to stop ignoring a failure of my computer to load the 24H2 update for Windows 11. Ended up spending five hours with support--Microsoft eventually decided to reinstall Windows 11 on my 'puter. So glad it's not tax season--feeling better about going forward now, especially with the help here. Thanks.

I downloaded BitWarden--said it was free for only 3 days. I usually wait until mid-December to download ATX and I'll probably stick to that. And guess I'll pay for an authenticator app.

Treasury report from last week stated that 22 million taxpayers used some sort of bank product last year. I thought those days were long gone. The report also faulted the IRS for not warning taxpayers about the fees...There should be fair warning, but I think the IRS has enough to do already.

I wonder why they say that the IRS will come back online in 'early' January? Seems overly optimistic to me.

my own observation is that about 30% of taxpayers have made adequate preparations for retirement. That may be high because Tallahassee has a lot of State employees, who should appreciate those pensions with COLA's.

I assume the reason the IRS doesn't want someone filing a Schedule C to receive 1099's with an EIN on them is because there will be no tax return filed using that EIN. However, reality is that, like Randall, I don't know of any pushback from the IRS. I have academic clients who do consulting work, and the folks with the money (usually from a grant) insist they have to pay a company, not an individual. Whether it's true or not, it's easier to create an LLC. There's a chicken and egg situation in Florida (if memory serves), when you apply for an LLC you have to provide an EIN. So you have to apply for an EIN from the IRS for an LLC that doesn't exist yet.

As others pointed out, the IRS does not want single member LLC's (taxed as a sole proprietorship) to be paid under an EIN. That doesn't mean an LLC shouldn't have an EIN, only that if you are to receive a 1099-NEC, it should be under your Social Security #. I had to have an EIN to open a business checking account, I wanted an EIN to use on 1099's that I issued.

maybe because the converted amount has its own 5-year count? I don't think custodians necessarily do a good job of tracking and correctly coding Roth distributions although it's not their fault if someone moves the Roth money over to them and they take it out within 5 years.

thanks for posting. Scenario 1 is a situation I had with a client who cuts hair--she will have no pension, just an IRA (most likely less than $50k) and Social Security. A financial advisor had told her to contribute to a Roth (probably someone who thought it was always better) and I had to explain that with only a small IRA and Social Security, she probably would not be paying taxes when she retires; and even though it didn't save her much, optimally that savings could go into the IRA. There is no one size fits all.

Definitely tricky staying within bounds when giving investment advice, I usually stick to making them aware they cannot take losses in an IRA and when you have mutual funds in IRA's, you don't have to track basis, so that's a good place for them. But a lawyer talking to our local EA group brought up a different angle from the perspective of assets and legal protection. In Florida, annuities, pensions (think OJ Simpson), and IRA's are "sheltered" accounts. To him, if you want to buy an annuity, don't use IRA funds but use money from an unprotected brokerage account.

I haven't had my coffee yet, so with that proviso... Open Schedule B, and at the bottom under Pages and Worksheets, open "Line 1, Seller-Financed"

lol, just saw a post at the NAEA web board--5 year holding requirement.

you may have to use the Florida Dept of Revenue's efile program: https://www.floridarevenue.com/Forms_library/current/f1120a.pdf

I stopped awhile back, I'm approaching retirement and never could get a straight answer on record-keeping requirements. If you file for your client, you need a Form 114a filled out for your records. I always had trouble getting my Adobe version to work with theirs.

advocating for the preparation of a 706 could give the appearance of self-interest, so it is best that the decision comes from the executor, who should be informed of an estimated cost. There are not a lot of 706's filed these days and they should be prepared with the assumption that they will be audited (although that could be said for any return we prepare). funny story, in probate an executor complained to the judge of a $7,000 bill for the 706--the judge reviewed the size of the estate and changed the bill to a percentage of value, which resulted in raising it to $50,000.

d'oh.

What is the age of the taxpayer? He has passed the 5 year rule, although there might have been conversions that have a different start date. If this has been Vanguard all along, I would hazard a guess that he has not met the 59.5 rule. I think Vanguard will likely be the best source, although as Max mentioned, the 5498's will be on the transcript. With a code J, the key will be contributions (reported on Form 8606). But you'll only be able to report what can be proven. One other possibility, if the custodian changed, you can get an incorrect code on the 1099-R, because the new custodian doesn't know when the Roth was started. This is just another reminder that IRA's can be deceptively complex.

Donald, sounds to me like you are on the right track.

you need to locate the foreign income worksheet in your software, then choose between earned income and pension. You should be able to still e-file the return even without a tax i.d. number. If you try to do it from a tax form (like 1099-R), the software will demand an EIN.

this 1041 is not marked final? Off the top of my head, if final, I'd think that would release all the losses to the beneficiaries, who would then be subject to the $3,000 limit and carryover.

when you have elderly clients, just be sure and ask them (or whoever is handling their paperwork) about nursing home costs. Often for assisted living (as opposed to just a retirement home) all the costs are deductible and you can wipe out all (or most) of their taxable income. Had a client who had passed away and the daughter asked me why we didn't itemize--I had no idea $6k a month out of pocket had been paid for a memory care facility. Was able to amend but it's a mail-in return with an unknown time horizon for when the IRS will pay.

my bad, sorry. I stopped doing California returns after I was told I needed to pay them $800 per year because I operated as an LLC. Not sure if that is correct, but wasn't worth the trouble.

What a nightmare. They recently moved their headquarters: https://www.cdtfa.ca.gov/formspubs/L943.pdf

When I discovered a client's SSN was being used by an "independent contractor" for DoorDash in California, I worried that someone was impersonating him. I assumed that they required drivers to provide a license and proof of insurance to work for them. But nothing ever happened beyond the 1099-NEC that DoorDash issued. Now I suspect that all someone has to do is download the app.