BulldogTom

@Bart You are very wise. Tom Longview, TX

Just out of curiosity (not trying to be combative) - if the partnership can be created by a handshake and no docs, why can't they say that when they shook hands Partner A was a limited partner and Partner B was a general partner? If a handshake agreement is good enough to create a partnership, why can't the terms also be unwritten but understood? If they memorialized the agreement now with the intentions that they had at the time of the handshake, would you consider that to be a valid partnership agreement? Tom Longview, TX

Totally agree with the first sentence. I am not sure about the second sentence. I think you have to do a lot more discovery to come to the correct answer. Is this the only time this TP ever entered a JV to build a spec home. What was his intention when he purchased the property. How long after the purchase until he made the agreement to contribute the land to the JV. When you say he "buys real estate or puts up $" I get leary of the taxpayer's intent. But if the answers to your discovery come out the right way, I could be comfortable saying TP A just turned a cap gain on his investment. Tom Longview

The agent I spoke to said she was able to pull the "amended Q2" return and sent it for reprocessing as the Q3 original. Hopefully they will. She did not ask for a refiling. She said it was a common error and they know how to fix it. As soon as they reprocess that return as an original, timely filed return, and then match the payments up, it will be correct. I may be dealing with this for a while, and since it WAS my fault, I won't bitch about it. Nice to know I am not the only one to make that mistake. Thank you @jklcpa for making me feel like I am in good company. Tom Longview, TX

When I sent in my 2021 Q3 941 for my own business, I neglected to change the quarter in the top right. It was marked as Q2 incorrectly (what a dufus mistake!). I got a letter from the IRS last week saying they received my inquiry and they would be processing the changes to my return and in the future I need to file a 941X. The next day I got another letter saying I have a refund coming. The IRS processed my Q3 return as an amended 941? Is that what they are supposed to do? Did they treat it like a superseding return? I got through to the service today and it will be corrected and filed as the original Q3 return. I need to return the check they are sending (they can't stop it from going out) and eventually everything will be fine. I am sure there will be additional letters before it all catches up, but I am also sure it will all be adjusted eventually. Tom Longview, TX

From the 541 Instructions: C. Who Must File Do not file Form 541 if there are no California fiduciaries, California noncontingent beneficiaries, or California sourced income. Nonresidents or Part-year Residents. See the instructions for Schedule G, California Source Income and Deduction Apportionment, on page 15. Also, get FTB Pub. 1100, Taxation of Nonresidents and Individuals Who Change Residency. Decedent’s Estate. The fiduciary (or one of the fiduciaries) must file Form 541 for a decedent’s estate if any of the following apply: Gross income for the taxable year of more than $10,000 (regardless of the amount of net income) Net income for the taxable year of more than $1,000 An alternative minimum tax liability Tom Longview, TX

Is the client a victim of ID theft? Tom Longview, TX

It is not for the broker to do anything with the penalty. The taxpayer is supposed to assess on their personal tax return. The Taxpayer needs to direct the broker to calculate and distribute the 2021 RMD. The taxpayer needs to direct the broker to calculate and distribute before the end of the year the 2022 RMD. The broker needs to follow the taxpayer's instructions and then issue the 2022 1099R showing the total of both distributions. Then the Taxpayer comes to the preparer, who requests the waiver on the 2021 return indicating that the corrective distribution was taken in 2022 and will be included in income on the 2022 return. Tom Longview, TX

Please keep this thread going as you go through the process. I am interested to see how hard it is and what value it provides. Tom Longview TX

OK, that is just too .... too.... something retentive. Tom Longview, TX

Been try to get through for 2 days. Finally got a call back appointment. Answered the phone, accepted the call, only to have the computer hang up on me. GRRRRRRRR at IRS.....GRRRRRRR at ENQ Tom Longview, TX

Thanks to all. Very informative. Tom Longview, TX

I was reading an article about a company called Private Internet Access. Apparently this is a new VPN service that is now available and provides complete privacy on the web. Should we be connecting to the internet through a VPN like PIA or NordVPN or some other one like that? Can I access all my websites (especially this one), banks, credit cards, etc.? Will it interfere with ATX or QB. I just feel like everything I do on my computer is exposed to someone and I don't really know how to stop it. Thanks for indulging my ignorance. Tom Longview, TX

I only roll a return when the paperwork comes in. You can then sort by "Not Rolled Over" to see the clients that have not come in yet. I pull the folder for the client when their paperwork comes in and put it in a file holder/organizer on the bookcase shelf. I can see my backlog every time I look over my computer screen. When the return is done, It moves to a different shelf while waiting for acks and ERO signatures. Then it goes back into the filing cabinet. In ATX, when the return is accepted, we change the status to complete and filter them out so we don't see those returns anymore. My practice is small enough that this works for me. Tom Longview, TX

Reduces SE tax. Tom Longview, TX

I personally don't do R&D credits. Too much work, too long of a tail, not enough time to keep up on the education needed, not enough experience, not enough clients who qualify to keep me sharp at it. I refer them out. Tom Longview, TX

I have not used Lacerte, but from my understanding, you will be losing a lot of bells and whistles. But getting away from Intuit can't be a bad thing. ATX user since 2000. Tom Longview, TX

OP says there is no cash to pay SH #4. I think the other shareholders need to put some cash back in the company so it can be distributed to SH #4. SH #1-3 can loan the company the cash (with a note, interest, payment schedule) to make the distribution to SH #4 if that is how they want to go about it, but SH #4 needs to be caught up quickly. Tom Longview, TX

That is a very good article. Tom Longview, TX

@Max WCan you create an LLC using the same name? "Sentimental Corp" becomes "Sentimental LLC"? Not sure if it would fly, but if there is no one to object it might go through. Just a thought. It would save a ton of tax, penalties and tax prep fees for them. Tom Longview, TX

Ouch....This is one that could take up most of your summer and fall. Are you sure the corp was operating from 2012 until date of death? If so, I think you have a bigger issue than the depreciation schedules. Do you have income statements for all those years? If not, the books need to be produced (can you get bank statements for the years in question?). It may be that you can work out a deal with the IRS, but if it is a CA Corp, I don't think you are going to get out of all of the minimum corp franchise fees for all those years, and CA penalties. If the corp was operating and did not file, there is a big mess to fix. And the Corp has to be collapsed with the CA SOS to stop the fees from continuing to accumulate. Good luck my friend. I hope the kids have the resources to pay for the clean up of the mess their folks left them. Tom Longview, TX

I have no idea. My last 4 or 5 POAs were sent in, waited 3-5 weeks after faxing to call, and none of them were registered. The PPL agent then took the POA while on the phone. They sometimes say they will enter into the system, other times they don't mention it. I have not called back on any of them after getting through to PPL, but I suspect they are not registered because I am not getting notifications for those clients. Tom Longview, TX

Yes, but it does not solve the problem... Max needs to know if depreciation was properly taken on the assets in the past (to correct if not done) and how much tax depreciation to take on the current and next returns. Without the detail schedules of the assets you can't be sure you have an accurate return. Tom Longview, TX

Did you get the depreciation schedules from the last return filed? If not, did you get more than just the last return filed? Can you see when they stopped taking depreciation expense? Could be the assets were listed property with a business use limitation on them and the depreciable years are up? Tom Longview, TX

UPDATE: Issue resolved. Taxpayer got her refund yesterday. No notice or letter from IRS as to why the delay, just sent the money to her account. Tom Longview, TX