Catherine

Most of the clients I've had in assisted living get a letter from the facility annually that states "32% of our charges are considered medical assistance" or "$1,312/mo is the assistance fee" or something similar. Sometimes the letter has to be requested.

What Max W said - there is NO LIMIT for total due on an OIC. There is a limit for automatic full-pay installment agreements. Those are not OICs. Form 656 but the return must be filed & processed. You cannot file an OIC on tax that has not been assessed. I don't know of any state that does not also have an OIC-equivalent program. Names vary. Get federal OIC in process before state OIC; that way they allow 100% of state tax assessed as a legitimate claim. If there is a state OIC there's no tax claim. If there is a state payment plan underway then it's "only" a monthly expense.

Hokey Pokey You put your right BOI in you take your right BOI out, your put your right BOI in, and you shake it all about!

Latest on the rules. Link, then text. https://tinyurl.com/xdstkvmz FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies Immediate Release March 21, 2025 WASHINGTON––Consistent with the U.S. Department of the Treasury’s March 2, 2025 announcement, the Financial Crimes Enforcement Network (FinCEN) is issuing an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act. In that interim final rule, FinCEN revises the definition of “reporting company” in its implementing regulations to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly known as “foreign reporting companies”). FinCEN also exempts entities previously known as “domestic reporting companies” from BOI reporting requirements. Thus, through this interim final rule, all entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners will be exempt from the requirement to report BOI to FinCEN. Foreign entities that meet the new definition of a “reporting company” and do not qualify for an exemption from the reporting requirements must report their BOI to FinCEN under new deadlines, detailed below. These foreign entities, however, will not be required to report any U.S. persons as beneficial owners, and U.S. persons will not be required to report BOI with respect to any such entity for which they are a beneficial owner. Upon the publication of the interim final rule, the following deadlines apply for foreign entities that are reporting companies: Reporting companies registered to do business in the United States before the date of publication of the IFR must file BOI reports no later than 30 days from that date. Reporting companies registered to do business in the United States on or after the date of publication of the IFR have 30 calendar days to file an initial BOI report after receiving notice that their registration is effective. FinCEN is accepting comments on this interim final rule and intends to finalize the rule this year. ###

There is a very well-known phenomenon where an obvious solution hides - very cleverly and thoroughly - until one gives up an asks here on the forum. At which point it jumps out just as a colleague reports that hiding place/location. I think we have all been bitten over the years! Heck, I've used this to my own advantage by posting a query in the hopes of flushing out my prey.

Maybe this is where the separate thread here on the forum that mentioned this article on scam theft losses could be of use. https://www.taxnotes.com/featured-news/tax-pros-welcome-clarity-scam-theft-loss/2025/03/14/7rnbr

You log in to your preparer account at the IRS and there is an opt-out checkbox somewhere. I forget the details, though.

Unless such a notice comes directly through the software itself while it is actively in use, tread carefully!

When the amounts are this small, I tell the client to run any IRS letter by me first, to make sure it's correct. Then I can confirm for them to pay the additional tax requested. Way easier than amending, and the letters only come through about half the time. According to Eric Green (TaxRepNetwork; he has lots of contacts in the agency) they are concentrating enforcement in areas where they get a bigger bang for their effort-buck. The folks who owe $600, not $6. The non-filers with W2s in the 100's of thousands, not 24k.

Do you really want to face trying to respond to a letter in the summer of 2026? When all you need do now is file? And who knows how many computers will need to be pacified before you can talk to a person? Do it the hard way, and make it easy on yourself and your client.

No clue, but will follow this thread as I have a farm (not in TN) that may need something similar. They're going to be on extension, so I wasn't worried about it all quite yet.

One of the worst things about tax season is the overlap with Lent. Now I want chocolate...

Obviously it has to be excluded, because having a fraudulent transaction canceled does not result in cancellation of debt income. Sure, use that line, but perhaps also the 8275 (is that the right form number?) - taxpayer disclosure information, anyway - where you put the facts of the case. But maybe worth checking with whatever attorney dealt with the purchase cancellation to get chapter & verse of state law to support the taxpayer's claim.

I had someone call today, looking for help in how to look up whether a particular local charity has filed a public charity report on the state Attorney General's site. As if I knew in the first place, give a bleeping hoot in the second, and third would do such work for a stranger for no fee at any time. What gives with some people?!

I have a mail slot in my front door. I tell people, put the envelope through the mail slot. Nope! They leave it between the back door & back screen. Or between the front door & front screen. I've even heard "I couldn't because the slot was blocked" - yeah, by the @#$%$#@ lightly-rolled hand towel that's just a draft stop, that I told them to IGNORE, but instead they ignore the sticky note that says push the towel IN with your envelope. Including people I have demonstrated the towel to. Too stupid to pour sand out of a boot when directions are written on the heel, that's what they are.

At least those rip off FAST. Unless they're stapled in place.

Oh, and like that is supposed to be a good reason, Judy?

There is a difference between assisted living, residential care with medical assistance, residential care with extensive medical assistance (memory unit, etc.), and skilled nursing care required around the clock, as for someone in a coma. The last is considered 100% medical.

Mostly I have found in previous years that at best, the client gets a letter from the custodian stating "we sent $x to charity y as a QCD, as you requested." But the amount does not get included on a 1099-R, even as an addendum/detail added. Or the amount does get included in the 1099-R, and the clients then don't give any QCD info to me, and there is no adjustment made because you can't adjust something you know nothing about. This detail at the bottom was the first I'd seen, and what I needed was the referral to the special tax treatment section that I did not know about, and for which I thank Lee B.

I've added disposal fees, staple removal fees, and more. Some clients learn & clean up their acts. Others just pay. Either way, I figure it's a win. Try it! If you don't have an easy way to burn it all, as does mcb39.

None, in this instance.

No box - it was a separate sentence under all the boxes. So weird.

I wish I'd known back when Rita held that lovely get-together. I'd have done some more-careful looking in my driving around. Thanks for posting this!

Just this. Sounds really good to me today.