BulldogTom

We will see how it shakes out. Almost sounds too good to be true. I hope it is as advertised. Tom Longview, TX

If they applied for and received a tax ID number, I would. IRS might want to know why you got a number and never filed a return, and if they ask, you are going to have to spend time on the account anyway. Tom Longview, TX

I have this discussion with every new client, and then again when it comes up and they forgot the speech the first time. I will provide YOU with any tax documents I have, and YOU can forward them to whoever YOU want. I don't give nothin' to no one except YOU unless I am required by law to do so. Tom Longview, TX

Can you charge your time if you are subpoenaed to testify? If a judge orders you to testify you have to .... right? How would you be able to charge the client for that compelled testimony? Unless you volunteered to testify...which I don't think you would want to do. Would you? I don't think your E&O carrier would appreciate it if you volunteered to be deposed. Tom Longview, TX

I just looked at my bookshelf out of curiosity and I have 2015 to 2021. I probably should get rid of a couple years. Every once in a blue moon you get a non-filer who might have some situation that you need to look up the rules for that year. Tom Longview, TX

I wish I had the same faith in our government institutions that you do, but I just don't see the IRS taking on HRB and Meta. I guess I am just jaded at this point. However, I did contact both my Senators via their website and let them know about this. Tom Longview, TX

Exactly. What Judy says. There is a confirmation hearing coming up for a new IRS Commissioner. Perhaps we should send an email to our Senators and ask them to ask the new commissioner designate about this situation and his plans about it moving forward. If IRS lets them get away with this, we will have no good reason to try to persuade our clients that their personal data included in their tax return is safe with the IRS. Tom Longview, TX

Wow. I went out and read the whole article. Wow....just wow! Tom Longview, TX

Yeah....ummm....when exactly? Tom Longview, TX

That makes a lot of sense to me. Tom Longview, TX

I wish I was working as hard as you. I need to pick up new clients if I am going to make my "retirement" work. I have always had a day job and worked the tax business on the side, hoping the day would come that I could just do tax work. The day has come, but I need to expand the business to continue this lifestyle. I have about 2 years of savings cushion to get the practice to the point that it provides the income I need. I thought I had more time, but inflation has changed the calculation a little bit. We love Texas too! We live in the piney woods forest in NE TX. It is so beautiful. Wish I had made the move sooner. Not to get political, but the environment here is so much better than where we were. You don't realize what you are putting up with until you get out from under it. If you are ever coming through this area to pick up cars (closer to Shreveport LA, just off Interstate 20) stop in. Would love to host you. Tom Longview, TX

It is only $200 on the card, and the estate does not need the money. The daughter (sole beneficiary who has had POA since her father started declining about 2 years ago) asked if she should keep or send back. I don't think she needs to send back for the reasons I stated above: it was processed by the state at the end of October and the mail just got to her. I think once the state determined he was eligible, which he was on the processing date, the funds belong to him, therefore part of his estate. @ILLMAS There is no issue with the family priorities. Daughter is the only living relative, and she was just trying to make sure she was doing what was right. Tom Longview, TX

Client passed on Thursday. On Friday, he received in the mail his debit card for the California Middle Class Relief payment. My thinking is that the funds on the card are part of his estate, as he was alive when CA processed it, and his executor can activate and draw the funds from the card. Went online to look for a FAQ but did not find anything on the FTB website covering this. Is my logic sound? Tom Longview, TX

Ah, I misunderstood your meaning. I did my "required" CPE over the summer in Las Vegas. I will have 2 update classes, 1 in December and another in January. So now my question is - "What took you so long?" lol Tom Longview, TX

@mcb39 Just curious. Why would you finish your classes this early? I always wait until late December or early January to take my refresher courses. In "normal" years past, I wanted to make sure I had any last minute changes, especially in "lame duck" congressional years (reps who don't have to face the voters again seem to be willing to work across the isle on controversial votes). If the "tea leaves" are correct, the new House may have new leadership and the current House may want to get a few more bills passed before that change takes place. Don't take this a criticism, I'm just bored on a rainy day and thinking out loud on the forum. Tom Longview, TX

Who are you switching to? Inquiring minds want to know..... Tom Longview, TX

Wow, sounds like Drake is going down the same road as ATX. There was a time when we talked about ATX support like it was the best, cause it was! Then it started churning through new owners and the first thing to go was customer support. Sad to hear it is happening at Drake as well. I almost pulled the trigger after 2012, but I just love the form input and bunny hop in ATX. I think I am staying with ATX unless they give me a good reason to drop them. I don't stay for any sense of loyalty or nostalgia, just a business decision on my part. Tom Longview, TX

do you think this guy is going to hurt your business if he badmouths it? Then file it. If not...send him his paperwork back with a note saying that you cannot provide services for free. Life is too short to sweat these things. Do what you want to do in your business, for reasons that you don't need to explain to anyone. Even the deadbeat kid. Tom Longview, TX

Not to make light of your question, but choice of entity and elections and state LLC laws is a full week of CPE. You asked a big question with a lot of different possible answers. Depending on where you live, LLC formation can be much more simple than Corporate formation. Compliance can be less strenuous for an LLC than a Corp. S corp advantages versus disadvantages is individual choice based on individual circumstances and financial goals. You still need to run payroll for S or C if you are an employee of the company. All the PR stuff happens unless you form a partnership and have no employees outside of the partners. Businesses with ongoing revolving credit lines will make different choices. The number of current and future owners is a consideration. There are just too many possible outcomes to make a simple statement like "you need to be an S corp because....". Tom Longview, TX

Follow up - IRS denied the EITC claim. We appealed. Just found out today that the client received their refund. If any of you find yourself in this situation, I have attached IRB 2020-14 which says the IRS will follow Feigh decision. I attached the IRB to my response letter when we disagreed with the IRS. Pretty sure that helped get this resolved. Tom Longview, TX IRB 2020-14 Feigh IHHS.pdfIRB 2020-14 Feigh IHHS.pdf

Yep, I get upset too...then I look at what I am getting, what the software does for me, and what the cost of alternatives are (not just in $$ but also in time learning the new systems) and I just swallow hard an charge my credit card. Tom

Got this from a Spidell post on LinkedIn. 2022-47: K-2/K-3 draft form instructions provide welcome filing relief October 27, 2022 The updated draft Partnership Instructions for Schedules K-2 and K-3 (Form 1065) for the 2022 taxable year provide a new domestic partnership filing exception. This is welcome relief for tax professionals working with most domestic partnerships. The exception states that a partnership is not required to complete Schedules K-2 and K-3 and file them with the IRS if: The partnership has no or limited foreign activity, which is specifically defined in the instructions and includes domestic partnerships whose only foreign activity is passive category foreign income that: Only generates $300 or less of taxes subject to the Foreign Tax Credit; and Is shown on a payee statement such as Form 1099-DIV; All partners are U.S. citizens or resident aliens, domestic decedent estates, or certain domestic trusts; The partnership sends specific notification to the partners by two months before its filing deadline, without extensions (January 15 for calendar-year partnerships); and No partners specifically request Schedule K-3 from the partnership prior to one month before the entity’s filing deadline, without extensions (February 15 for calendar-year partnerships). If the information is requested after February 15, then the partnership only has to provide the information to the requesting partner and does not have to file the K-2 and K-3 with the IRS. Note: The draft K-2/K-3 (Form 1120S) instructions have not yet been released. We assume similar relief will be provided in these draft instructions. We will issue another Flash E-mail if this is not the case. The draft Partnership Instructions for Schedules K-2 and K-3 (Form 1065) can be found at: www.irs.gov/pub/irs-dft/i1065s23–dft.pdf Tom Longview, TX

My favorite dumb blonde joke. If you are blonde, don't beat me up, it is just funny. During a recent password audit, it was found that a blonde was using the following password: "MickeyMinniePlutoHueyLouieDeweyDonaldGoofySacramento". When asked why she had such a long password, she said "Duh, you told me that it had to be at least 8 characters and include a capital." Tom Longview, TX

Client calls today and is thrilled that the IRS sent them a refund check of about 1K. For 2010! When the client came to me, they were a non-filer. We prepared all 10 years of returns the IRS wanted to get them current. IRS had an issue with a credit on the 2010 return we filed. We replied to their letter, but the client was in OIC review status so nothing happened. The OIC was accepted in 2019. I never heard back on the 2010 return, I assumed because it was applied to the balance that was wiped out by the offer. I know the client is not entitled to the cash, because all refunds for years prior to the offer should have been taken by the IRS. I hesitate to send it back, because the IRS is so screwed up right now, I think it would make matters worse. If the IRS was answering the PPL I would give them a call, but last time I had to get in touch with them, it took 3 days and 31 calls, so that is not going to happen. What would you advise the client to do? Tom Longview, TX

Well said. Tom Longview, TX