ILLMAS

TP home base is IL, therefore all his income should be subject to IL state tax, he needs to amend all the other state returns, get his money back and pay it to IL. Now if he had offices in the other states he filed, show proof of a business license, lease etc.... the state of IL would definitely give him credit, because that is income he earned in a different earned in a different state, the 1099 would probably show a different address.

Thanks, I did read the instructions and I called the department about the first year exemption about how to claim the exemption and they weren't very helpful, the agent I spoke basically said it's either the $800 or 8.84%, where can I make the election to waive the $800?

If a foreign corporation had no income in the state of CA but is subject to the franchise tax, does the corporation pay the minimum franchise tax or is the franchise tax based on the federal income? Thanks MAS

Try to see if you can get a blacked out copy of one of the worker amended return. I believe I wrote before about a former client that told me what another tax preparer was doing for people at his work. He asked me what I thought about it and if he should do it, I told him no, it's fraud etc.... about two year's later (he did not return as a client) out of the blue he called and thanked me, I said for what I haven't done any work for you in a while, he said no, for telling me not to amend my returns, everyone at his work got busted by the IRS, out of curiosity and I asked him who was this preparer, he gave the person location and name of business, the word Mama was part of the business name.

I'm wondering if these folks are being told they qualify for an exclusion, but the truth is their inflating their itemized deductions.

I started answering them and don't give them a chance to talk I yell "remove my number from your list!!!" they say ok we will remove it. Since the end of May I've been getting between15-20 calls to my office.

Does anybody have a telephone number to report phone scammers to the IRS?

Please post source.

Not my client, but my associates' client received an IRS notice stating they didn't report two 1099's, however they did report the income but the IRS adding it as additional income to a Sch C, I know this can be solved with a call or writing in to the IRS, but could this be the result of the issuer not submitting 1099's on time? TP didn't receive a 1099 at all from the issuer.

^^^ Good points from all, FYI I am on good terms with the ex-client, have their permission to answer any questions and provide any information necessarily for a smooth transition and I have been cooperating. I didn't give them a direct answer, I said it's hard to give an exact amount because it's been a while I haven't done work for them, and I also provided other services besides the preparation of the business tax return, but yes if they look at the accounting fees they can get an exact idea of what I billed that client for the year.

What would you say if a former tax client new preparer calls you and asks how much did you charge the client?

"If you want to quickly sell inherited real estate, the case for a 1031 exchange weakens. If your goal is to unload the property within a few months, it may not appreciate much (or at all) in that time. The taxable profit above the stepped-up basis may be small or nonexistent, so capital gains tax may not be much of a concern. If you decide to hang onto the property for a couple of years, then the case for initiating a like-kind exchange grows stronger." https://www.fergusonfinancialinc.com/

I am wondering if the notice is just informational and nothing else to do. Maybe the employer got busted for treating it's employees as subcontractors, this was very common with temp agencies.

The prior preparer was probably charging less and figures his/her return is the same and it's not that complex and expects to pay the same fees, your fees are reasonable and I would probably charge the same or more. This year I had a client ask if I was going to charge them more since last year I had increased my fees, I told them absolutely, my fee is going to be higher this year. When someone tells you "oh it's easy" or "it's similar to last year", it's best to let them know it's going to cost more this year.

I believe there is an incentive to the seller from the government in this case.

I'm helping a friend on this one, I requested a copy of the settlement statement and the seller gave the buyer a $80K closing credit, initially I had thought the buyers closing cost was $80K and the seller simply gave them the credit to bring it back to $300K contracted price, but now it seems the buyers basis is $220K or should it be $300K and report $80K as income?

I need help with accounting for this transaction, business bought a building for $300K, the seller gave them an $80K credit = $220K, I am trying to figure it out if the basis of the building should be $300K or $220K and how would I offset the $80K if the basis should be $300K? Thanks Marco

All the young whipper snappers are becoming real estate agents and make more then u$ without the stress

@JRS you are correct it was the FTB, I just got off the phone with the department and in my case the client is subject to the franchise tax for two reasons: 1. Hired a CA employee 2. One of the officer is a resident of CA Here is something to pass on to your friend: https://www.ftb.ca.gov/forms/misc/689.pdf

For those that know employment and income tax laws, a client of mine temporarily hired an employee that lived in CA, but worked for a corporation in IL, the employee requested for CA withholding and the employer went ahead and registered with EDD back in 2014 to submit payroll quarterly filings etc... Fast forward to 2017, my client received a call from the CA Department of Revenue letting them know they need to file a state corporate tax return because they registered with the state, my client disagreed and informed them they had no business in CA and only hired an employee for a couple of weeks. Would hiring employee in CA be a cause to have to file a state corporate tax return? Supposedly the agent said yes even though they had no sales in CA.

+1 I also had a person bickering about how much taxes they had to pay and this is BS and they are an employee and so on, I said fine, I'll prepare a special form to let the IRS know what's going and you might lose your job..... The person had no problem paying the tax.

Thanks everyone, lets say my gut feeling was wrong and the person intentions are good, but there is something else that threw me off, they mention that had taken off a specific day the following week and they wanted to come in and see me, but when I told them I could not accommodate them on that specific day, to my surprise they didn't counter offer another date they could come in.

Did I say the right thing? Yesterday someone called to see if can I prepare their 2016, they have prepared their return using TT in the past but were stuck when it can to depreciation. The person didn't understand how it work, the benefit, how to set it up in TT etc..., they asked if I prepared their 2016 and if I can give them a depreciation report so they can use it for future years, I responded by saying if you are just looking for someone to explain depreciation and give the tools to prepared it yourself next year then I will not be interested in preparing your tax return. They said that was not their intentions but then there is the gut feeling.

How easily would it be to inquire about a 10+ year outstanding balance with the IRS? Last time I prepared TP return was in 2005 or 2006 and there was a balance that never was paid, TP would now like to pay it with all the accumulated penalties and interest, should I call the tax practitioner line or the collections department directly?

If you have a Samsclub in your area, you could buy a good one for a cheaper price then Best Buy or Office Max.