Slippery Pencil

Final instructions for K-2 & K-3 were issued the last two weeks of December. https://www.irs.gov/instructions/i1065s23#en_US_2022_publink1000107247 3. Partner notification. With respect to a partnership that satisfies criteria 1 and 2, partners receive a notification from the partnership at the latest when the partnership furnishes the Schedule K-1 to the partner. The notice can be provided as an attachment to the Schedule K-1. The notification must state that partners will not receive Schedule K-3 from the partnership unless the partners request the schedule. https://www.irs.gov/instructions/i1120s23#en_US_2022_publink1000102223 2. Shareholder notification. With respect to an S corporation that satisfies criterion 1, shareholders receive a notification from the S corporation at the latest when the S corporation furnishes the Schedule K-1 to the shareholder. The notice can be provided as an attachment to the Schedule K-1. The notification must state that shareholders will not receive Schedule K-3 from the S corporation unless the shareholders request the schedule. Who was the CPE provider?

Does the footnote say anything more than, "You will not receive a K2"? I don't think atx has a checkbox

It's been known almost from day one that the irs was going to issue guidance on these refunds. Why would you file returns which include uncertainties when you know the uncertainty would be resolved in a week or two? Then when the uncertainty is resolved in the manner opposite of the way you gambled, you complain about it.

This was discussed on the TaxTalk io group a couple years ago. Pretty much everyone agreed the credit was taken after the system was hooked up and functional.

ATX doesn't care. They do something like this every year. They never bring back the functionality they remove.

You'll need to wait until an executor or personal rep is appointed and then deal with that person. She is the surviving spouse, but I'm not sure how that matters to you. Some of the same questions are dealt with in this current thread

Is it connected to a battery backup and functional or will it only be functional after the electric company hooks it up to the grid after the permit is issued?

They also claim they've caught up on the tax return backlog, yet my clients are still receiving the "we need an additional 60 days" letter every two months regarding their 2020 returns. I got through to the irs in about 10 minutes three times one day last week. Every time they put me on hold to get the faxed POA, I was disconnected when they picked up the line again (which for some reason it took 10 minutes to pick up the POA off the fax machine). The third agent told me they were having a problem with the phone system where it would disconnect everyone they put on hold. So yes, they're picking up the phone quicker, but I'd take their report with a grain of salt. Then there's also the fact that they're spending all this money just to get back to the shitty service level of 2020 and not making any actual improvements.

April 2021, client filed her 2020 1040. August 2021, client receives CP10 stating irs changed return and overpayment applied to 2021 was reduced from $14K to $7K. Other than a vague statement about charitable contributions, the CP10 doesn't state what the changes were or why changes were made. No calculations of the changes were included with the notice. If I recalculate her return limiting charitable contributions to 60% of her AGI instead of the 100% allowed by the CARES act, I get close to the numbers on the CP10. August 2021, I write the irs asking for details as to what they changed on the return and why. I also stated the limit on charitable deduction was calculated correctly according to the CARES act and included the limitation worksheet that was also included with the original return. So far, the client has received 4 letters stating the irs needs 60 more days to reply to our inquiry. So last week I got a POA from her and called the irs. Got through fairly easily but the agent disconnected me after getting the POA off the fax machine. Called back, again getting through fairly easily and again getting disconnected about 10 minutes after the agent put me on hold to get the POA off the fax machine. Called a third time. Got through fairly easily. Agent asked if I had POA. Told her I've faxed it twice today but the agents disconnected me. She states, "we're having a problem where the phone system disconnects everyone we put on hold". I respond, "have you considered not putting people on hold?" while refraining from telling her what I really think and wondering why it would take until 3pm to figure out you have this problem. An hour on the phone with the lady and I can't get her to agree that if the irs changed a return, then it's ridiculous that the irs needs any time, much less 16 months, to tell the taxpayer what the changes were and why the return was changed. She has no way to figure out what the changes were but tells me, "it looks like a letter went out yesterday requesting 60 more days to investigate the matter and you need to wait to receive a response".

It's wrong if payment was made via credit/debit card.

There's so much free CPE available that years ago I took over 80 hours one year. 40 for the current year, 40 to carry over into the next year. I've taken at least 40 each year since then so I still have the 40 carryover. If I suffer a minor tragedy and am unable to take CPE for a year, I'm still good to go.

Many email apps have a setting to display or not display images. If you have your account set to not display images, most email apps will put a message like this at the top of the page. Not all emails with images have tracking pixels. There are browser add ons that will detect and block tracking pixels.

I know nothing about charitable foundations, but I'm sure you can't just set up a charity overnight. It takes months to get a 1023 processed. Charitable donations aren't a deduction on Sch C or 1120S. So no, that would not reduce Sch C or S-Corp income to $20K. According to https://www.irs.gov/charities-non-profits/private-foundations/excess-business-holdings-of-private-foundation-defined, a charitable foundation can't own more than 20% of a business.

The OP said, "struggling with keeping insurance coverage", which could mean all sorts of things not just affordability.

How many years of prior Master Tax Guides or TaxBooks do you keep? I'm cleaning out the house & office and I have the last 25 MTG and a few TaxBooks on the shelf. 20 years ago I actually used the current or previous year a few times but now I rarely even use the current version. I feel I should keep the most recent 3 or possibly 7 years. Doubt I'll even use those but can't imagine too many scenarios where I'd use anything past that.

Trader Joe's 1lb bag of frozen Brussels sprouts were $1 a year ago. Today they were $1.50. So I'm guessing a 50% increase would be fair.

Seems more a reason to never use Intuit, TaxAct, TaxSlayer, & Block since they're the ones illegally selling client data.

Premium Tax Credit? Exception to not claim it?

Revocable Grantor Trusts don't have EINs. They obtain an ein when it becomes irrevocable upon death of the grantor.

W2s & W3s can be blank ink on white paper. You can just print them from the program and file as is. You can get red forms free from the irs. You can purchase from costco.com without a membership. A 5% surcharge is added

As Lion said, partners receive K1s not 1099s. The income should be reported on the K1 as the partnership agreement states. What does the agreement state? If the agreement states "guaranteed payments of $x" then $x gets reported on the K1 as a guaranteed payment. They could talk to a lawyer about back dating a partnership agreement to claim a different income distribution percentage and no guaranteed payments, but I'm assuming legally that won't work. Ignoring the impossibility of this idea, which partner is asking to amend? Does she have the authority to do this or is she unilaterally ignoring the other partners? If her accountant is confused by guaranteed payments on a K1, she should get a new accountant.

Thus her accountant is correct, she is losing money over this; but it's because of her & her partners boneheaded business decisions, not you telling her the consequences of her actions.

Yes, a few years ago a client asked.

The business probably wasn't worth $35K to the buyer. Buyers of business don't usually pay retail for the existing inventory.

You're taking a huge step down. Why are you thinking of switching? How much are you paying for Lacerte? How many returns do you prepare?