Catherine

Everything is tied to the SSN and the first FOUR letters of the surname. So chop it after the first four letters wherever it makes the most sense. Then e-file.

If you just want this to go away, while making sure the IRS has the right bank info, here's what I'd have the client do. 1. Make a $1 estimated payment using Direct Pay. 2. File a 1040-SR and claim that $1 refund with direct deposit. 3. Change the official account with the SSA, too, before the bank stops doing the "courtesy" of forwarding the funds to the right account. It will be over faster, and hurt FAR less, than being on "ignore" with the IRS for hours on end (with that gawdawful muzak in your ear) only to be told to do something similar.

Facts and circumstances. There are a lot of people who sell this stuff to get their own supplies at the discounted "wholesale" price. Then they sell some to friends and family, and once they take expenses into account, it's a loss for the year. There are a lot of people who go into it with a profit motive and take a few years to learn why everyone decries MLM schemes, and then give up as having had an expensive lesson. If she treats it as a hobby, then yes Sch C, back it out, then put the income on "the line formerly known as Line 21." Then she pays ordinary income tax on hobby income, because the expenses indeed go on Sch A except they don't usually have any effect with the new, higher, standard deduction. If she thinks it's a business that will at some point earn her a profit, then put it on Sch C and take the expenses and losses - and be prepared to demonstrate profit motive if the losses continue. I have one business client that has losses every year, and has been audited for that. I successfully defended the position - the statute says there must be a profit motive, and actions taken towards becoming profitable. The statute does not state the person needs to be competent! My client has a definite profit motive, and is merely incompetent at running a business. The agent I dealt with accepted my proofs, and accepted the "incompetence" defense with a bit of chagrin - but he accepted it. The years have borne it out; every year his overall losses are lower and I expected that 2020 would (finally!) show a profit, before the world went mad.

"When in danger, or in doubt, run in circles, scream, and shout!" Is that what you mean? At least it makes the others in your office leave you alone for a while.

Note the use of the conditional... just sayin'.

Business returns have been open for a while, so the pent-up onslaught issue doesn't apply. As I state before, I'll hold off. Just a day. It's not worth my worrying about problems at/with the IRS e-file system; I have easier ways to hurt myself.

I'm holding off. Among other reasons, I expect IRS server problems the first day and don't want clients to be in limbo, not knowing if their returns went through un-corrupted.

Many states have specific guidelines for those UI fraud issues - so be sure to look those up for your state, too.

I'll chime in too, although a lot has already been covered. Back when the FBAR was on paper, I prepared them for clients to sign and mail in. Now that they're 100% online, once I read the possible peril to *me* I figured no one would pay me enough to make it worth the risk. What I have done, after providing the online link, has been to review the preliminary (basically the paper/pdf version people fill in to be ready) and made sure boxes were checked, etc. Yes, much of the same info is needed for the 8938 - and part of the reason I "review" the FBAR form is to make sure I have all the required 8938 information (if any). As far as the "weird pension" goes, boy there is so much there. Tax treaty needs to be read, first off. Many pensions are like social security here, or defined benefit plans here, where there is no reporting requirement for FBAR purposes because the person has NO control over the funds. They show up in a bank account on some schedule. But sometimes they're more like a 401k, under some level of control, and therefore reportable. That makes "weird pension" not always an issue. I'm glad it turned out well for you in this case as they were not willing to pay your fee. But in your copious free time, read the preparer liability on the FinCen site. No way, Jose; I'm never going there.

Always, always, ALWAYS report the house sale and exclude the gain. The last thing anyone needs or wants is a nastygram from the IRS, two years post-sale, demanding tens of thousands of dollars in taxes not actually owed. The younger folks just have to change their pants before they call you, screaming or in tears or both, and I frequently wonder how many heart attacks those letters have caused in the elderly.

Y'know, sometimes the instructions HIDE the information until AFTER you ask. I think it's to keep us humble, or something.

Again, depends on the trust. If it is a grantor trust but docs were issued in trust EIN, you can put it in and back it out with "reported on t/p Form 1040; ssn xxx-xx-xxxx" or flow it through on a K-1 if the t/p is the beneficiary. I've generally done the former, with never an issue, when required.

Bingo. There's a huge difference between someone clearing the good-but-don't-fit items out of their closet and selling them on ebay or etsy and likely making nearly nothing after shipping costs and fees (and certainly not profit compared to what they paid in stores), and someone who makes a living cruising yard sales and picking up the "good stuff" to sell for profit.

Some of the states (like MA) will inquire, even if the feds don't. I've seen this. Selling personal property at a loss is not a taxable event. (If they sold at a gain, that's different.) What I have done is put it on the "other income" screen (I use Drake) description "1099-K" with a second line description "sale of personal property, no gain" with a negative number $1 LESS than the 1099-K amount. Why less? Because the detail screens don't transmit unless there is a net amount. And $1 additional income won't break anyone's tax bank.

Employers of boyfriend of the barber's cousin, and other knowledgeable tax super-experts!

We also have this requirement for the few who "forget" to pay us. Once, in over twenty years, I had a client pay for the prior year and current year, and then not return. Whatever. Her information was always a bit sloppy so it didn't hurt to see her walk away.

Welcome back!!!

Use one of the online services like eFileMyForms or Eagle or TaxAid. A couple of bucks resolves the problem; well worth your time and trouble. Add (or take out) a middle initial and send a 2nd 1099 to the person. We do that for one client; someone who sends out rent 1099s for two properties to the same woman, who wishes them to be separated for her own reasons. One goes to Mary Smith, the other goes to Mary J Smith. Boom; done.

The ones with direct deposit only noticed (maybe!) that their balance was higher than expected at some point. Checks... maybe they'd remember the amount. Debit cards, no chance.

My preferred response was always "Answer hazy; ask again later!"

I think all that transmits is the name and EIN. The rest is for your own tracking?

What's up with the EIN application tool? I've been trying off and on since last week to get an EIN for an estate. I keep getting errors we can't get that for you at this time call this number with error blah-blah. If I call the number, eventually I get a recording that there are too many calls they can't answer click. Earlier today that section was down for maintenance, so I had hopes... nope. Same error this afternoon as on Friday and Saturday and Thursday and and and. Anyone have any clues out there? It's not like we can expect any response *mailing* an SS-4 in, after all.

pronounced eep? or EEEEEEEEP!!!!!! inquiring minds want to know...

Most people can't think, most of the remainder won't think, and the small fraction who do think mostly can't do it very well. --Robert A Heinlein