BulldogTom

You dodged a bullet. You must be living a good life. Tom Longview, TX

24 years in business as a part time gig for my spouse and I. 100+ returns complete this year, 9 on extension (most ever extensions for us), lost about 20 clients due to the move from CA to TX. Finally get to give this a go full time next year as I am not working a day job anymore. I "retired" to the tax business in February and I hope to expand it next year. Will start some local advertising late this summer and into the early part of next year. Would like to double revenue next year. We will see how it goes. Anyone going to NATP Taxposium in July? PM me and we can meet up at Caesars. It is nice to meet people from the board in person. Tom Longview, TX

First Time Abatement of the penalty? Tom Longview, TX

Curious, why are you sending both of them together? Shouldn't the LLC, even if disregarded, go by itself? Tom Longview, TX

Hope you are correct. Sounds right, but I have not seen this before. Tom Longview, TX

Thanks Deb. Tom Longview, TX

You are very appreciated Judy. You are more amazing than Spider Man. Congrats on finishing early. Enjoy the time off. Tom Longview, TX

Thanks Robbie. Good to know I am not seeing it for just my clients. I swear it was like 1-2 hours for acks at the beginning of the year, and now it is like 24-36 hours. Really strange, because I am still getting Fed Acks in 1-3 hours for the most part. Tom Longview, TX

CA is normally very quick to ack, but over the last couple of days I have been waiting over a day for my acks. Is it just me? Tom Longview, TX

If you are licensed to practice, I would take a POA and then call PPL. Seems awful fishy that they would set up an appointment for a call on the first contact letter. I would think that the normal process would be to send a letter asking for the returns to be filed or to respond with a reason they have not been filed. But these are not "normal" times. Tom Longview, TX

Taping 6 of them together because my QuatroPro spreadsheet was so large and there was no way to "shrink to fit" on that program and printer combination. 2 pages wide and 3 pages long. Tom Longview, CA

When I look at the certificate that they sent me in 1999, signed by the IRS Director of Practice, it only has 5 digits. It is the one that hangs on the wall in my office. For the last 23 years they have been able to identify me by those 5 digits. Along with the PTIN they require me to have to e-file, they know who I am. They are just being lazy. Tom Longview, TX

Get the excess contributions out of the account before you file the return. Tom Longview, CA

Just another way for the IRS to not do their job. Anything to make it harder to communicate with a live person at the IRS seems to be their policy. They definitely never wanted to talk to taxpayers, and now they don't want to talk to us. In the old days, they would claim the fax machine ran out of paper. Then it was that they did not get the forms. Not picking up the phone (which has been their favorite tactic since the pandemic started) is starting to become a political liability, so they needed a new reason to not talk to us. So now it will be that they can't read the three leading zeros that they never used before to keep us from representing our clients before them. Tom Longview, TX

Follow @joanmcq's advice. It is solid. CA residency is established when you Domicile in the State, which means you leave your former home and plop down in CA with no immediate intention of returning to where you came from. If he intends to stay in CA, he will became resident at the point he made that decision. She will be a non-resident until she becomes domiciled in CA. Tom Longview, TX

Even if it takes 6 years to get the 4th year completed (not uncommon). I often advise parents of children going into Community College to "wait and see" on the first year of schooling. See if the kid sticks it out and what school they end up transferring to. In my experience, most kids who transfer out of a CC to a University take more than 8 semesters to get their degree. You only get AOTC in 4 of the years. Tom Longview, TX

I wish I had clients who cared about me as much as yours care about you.... Tom Longview, TX

IRS.gov has a list. Google "EV Cars IRS Credit" and it will come up on the search. Tom Longview, CA

Did you figure it out @Catherine? I read the instructions for the form and my head started swimming. I think I understand the concept (if a business has a loss that was driven by a lot of interest, the deduction on the interest will be limited) but not the application to a partner. The K-1 Box 1 has a loss of 6,800 and Box 20 Code N statement has 3,000 of Business Interest Expense and 14,000 of Adjusted Taxable Income. I think you start by filling in Schedule A on page 3 of the form, putting 3K in column C and 14K in column F. The 3K then transfer to page 1, Section I, line 3 and 14K transfers to Section II, line 14. And when I get that done, I show on page 2 that I have a 3K allowable deduction that I have no idea where to put on the 1040. Did you do better than I did? Tom Longview, tX

Several years ago, my main tax work day was Saturday. I could schedule 5-6 appointments in the office and knock them all out if the client had all their documents. I allocated 1 hour for each return with a break between every 2 to catch up on efile, phone calls, email, etc. Can't do that any more. Tom Longview, TX

Look at the 8990. The K-1 Entity had Excess Business Interest Expense and were limited. The partner needs to fill the 8990. I am not sure exactly how to make it flow through to the partner, but I will be working on this as well today. Time to pull out the books and see what I can find. Tom Longview, TX

Client got the 1098C from the charity, when you fill in the boxes, everything flows perfectly in ATX. Attached the 1098C to the return and I think I am good. Waiting for another unrelated piece of info from the client and I should be able to efile this return tonight. Thanks for all your responses. Tom Longview, TX

In ATX, very bottom of the K-1 entry form, way down below the §199 information entry. Tom Longview, TX

I was not being defensive, no apology needed. If it was not someone I knew, I would question it too. I was just explaining why this particular vehicle appreciated in value. Tom Longview, TX

Problem is the charity did not give him a 1098C. It is a normal donation receipt like you get from Goodwill or Salvation Army. And it is not signed. I went to the Master Tax Guide and I am coming up with the need for a 1098C from the charity (or a substantially similar document with all the required information that is on a 1098C). Also, as soon as I hit the drop down for vehicle on the 8283, ATX pulled in a 8453 with the box checked for a 1098C. I think I remember that you have to attach or send the 1098C in the mail to the IRS. Need to dig some more on the exact procedures for claiming the donation. As to the value, the client is a retired mechanic and he still likes to tinker with cars in his garage. He bought it for $2900 and put about $400 in parts into it. Used it as a daily driver for a while until he gave it to the charity down the street. The valuation does not bother me, because I know he is a really good mechanic. I am certain he would not have given them the car if it was not mechanically reliable. Tom Longview, TX