BulldogTom

Just before the officer makes the final ruling, ask to speak to the manager. Raise your concerns. Document the conversation and be ready to pull out the IRM at appeals if the manager will not over rule the officer. It would have been better if the taxpayer drew up a rental agreement with the girlfriend, things would have been much cleaner. I don't know how the officer can include her income in his ability to pay. Roommates don't have tax obligations to each other. His income, and his legit out of pocket expenses or the national standards, should be the only factors the officer should be considering when assessing his ability to pay. Just my humble opinion. Tom Sparks, NV

I am thinking that the omission of Spouse wages was not an oversight, but an intentional writing of the law. I think the bona fide wages paid for the employment services of a spouse might qualify. They have had some time to correct this language and have not. Has anyone gotten further with this in a CPE class or some type of authoritative pronouncements from the IRS? Tom Sparks, NV

The point is now moot. We put in an offer on a home on Thursday and the sellers accepted on Friday. Assuming the inspections don't show a problem that causes us to rescind our offer, we have bought a house. And I went to the cable company in the area and did the sign up, all the way until they asked for payment, so I am pretty sure I am going to be able to get Gig speed internet at our home. Thanks for all your help. Tom Sparks, NV

What are those? Haven't seen one in over a year. Tom Sparks, NV

Thanks Max, but that is a membership service. Tom Sparks, NV

I am looking for a website that will show me the options for high speed internet at any given location. I am looking for a new home and internet speed is a major concern. I have been looking a websites, but it seems that I have to go to one to tell me the providers available and then to each provider to find out the options. Is there a website out there that will tell me what I want to know by just typing in the address? Thanks Tom Sparks, NV

I think the essence of the deal is that Mom sold property to son for $170K. The fact that it was not completed until the sale was closed by son not withstanding. That is her transaction, basis being whatever it was in her hands to get to gain. Son Sold his property and the property acquired from mom for 610K. His basis is the DoD value + the 170K he paid mom for the other property. The proximity of the gift, the sale, and the written agreement bring me to this conclusion. Tom Sparks, NV

Congrats! You are worth a Million Bucks in my book! Seriously, don't sell yourself short, you are worth a ton to keep those clients coming back to the new owner. And keep the sale transaction separate from your work. How much they pay you for the book of business is one thing, and your services as an employee are another. Don't let them muddle the water. FYI, I pay my employee/Spouse 50% of the billing fee on all returns/bookkeeping she does. But she does other office work for me (scheduling, postal trips, office supplies, etc) so I may be high. I started her at 30% when we first started working together (I stole her from HRB) and I have increased it to where it is now over the years. If I were to start someone new, I think I would offer somewhere around 30-35% of the invoice, with the option to increase or bonus depending on the volume produced by the employee. Tom Sparks, NV

I always felt that membership on the Ways and Means Committee of the House of Representatives should be conditioned on passing the EA exam. Tom Sparks, NV

Vegas to Reno is quite a ways. Over 400 miles. I will wave to you when you get here, but the mountains may obstruct your view. ;0) Enjoy sin city. I will be there in Sept for the NATP tax seminar. It is one of the few live seminars going this year. Tom Sparks, NV

We are well past the statute of limitations on this return. Why are you looking at this? Assuming I got this from a client in the current year, I would probably recalc the W2 for correct box 1, 3 & 5 amounts, enter the W2 I just calculated into ATX with the corrected box marked in the W2 entry screen, and e-file that sucker with the letter attached. At audit I would argue that the letter constitutes a correction to the W2. It gives me something to stand on to justify the way I filed the return. Going any other way means adding adjustments with statements to multiple lines of the return. Without a correct W2, there is no way they are going to refund the excess SS and medicare withheld. By correcting the W2, that is the only item affected and only one item to fight with the IRS about. JMHO Tom Sparks, NV

What form was the compensation reported to the IRS on? Tom Sparks, NV

You may be right. But commitment and execution are two different animals. Tom Sparks, NV

This is going to be an epic fail by the IRS. The security protocols will make it unusable. The IRS has a hard enough time giving access to the data in a taxpayers account to the taxpayer, let alone trying to link an outside party to the account as well. With the password change requirements and the 2FA that will be required, it is never going to happen. In my opinion, this will last until the first taxpayer complains to their congressman about it. Tom Sparks, NV

It is close. I have a sadistic daydream that Bill Gates is in purgatory and he needs to remember every single password he ever created to get out, and his version of microsoft operating system crashes every time when he gets about 95% through the list. Control + Alt + Delete and start over dude! I know I should not wish this on anybody, but I can't help it. Tom Sparks, NV

Did you fill in the information on the taxpayer field for date of death? I have never had one reject when the date of death field is filled in. Tom Sparks, NV

Another Wrinkle. TP has qualified under physical presence test, but looks like he will qualify under bona fide residence in country B. Getting married (US citizen), buying a house in country B and planning to stay for the long haul. Never had a change in status like this before. I am starting to get lost in the publications. I am sure this has happened before and the IRS knows what to expect, but now I am thinking that the return needs to be extended until the TP lives in Country B for a full tax year, which means we would file the return for 2021 in 2023, and he would have to pay the interest on the amount due, or he could file the 2021 return by the due date, pay the taxes on the foreign income from 2021, and then amend in 2023 when he qualifies as a bona fide resident. I hope someone chimes in as well. My eyes are glazing over reading the pubs and regulations. Tom Sparks, NV

Can someone check me on this. Taxpayer is out of country for last 7 years. Has qualified for physical presence test every year. He is transitioning from his job in Country A, coming to the US and staying for approximately 2 months, then leaving to Country B to start his new, permanent job. I believe he is qualified for the FEIE for the wages earned in both countries (assuming he actually stays in Country B for the required 330 days). This would be subject to the maximum exclusion amount of course. Any income paid to him from Country A employer while he is in the US is not eligible - Correct? The income has to be paid to him while overseas - Correct? Example - During Jan-July of 2021, Taxpayer is paid $60K while in country A, $20K while in the US from Aug-Sep of 2021 (severance and final pay), and then earns 20K from Oct-Dec while working in Country B. The exclusion would be $80K and there is no exclusion for the $20K he was paid while present in the US. Do I have this correct? Thanks Tom Sparks, NV

I don't think you can split the building. I think there is an 80% test on gross revenue that determines the depreciable character of the building. If 80% of the gross revenue is not from the apartments, the property is 39 yr commercial. I think you would have had to segregate it in the year placed in service to get the 2 parts separated and I think that horse has left the barn. Not for sure how you calc the depreciation, but I think you just change it to 39 yr property, accumulated stays the same, and the date placed in service stays the same. You just take the smaller amount in the year of change. Not researched, please don't rely on just this. But take a look at §168 code and regulations. I am sure they will outline how to do this. It has to have happened before and they would have written rules about it. I would start with the Master Tax Guide and work from there. Tom Modesto, CA

Fresno State. Tom Modesto, CA

My wonderful wife has finished my new quilt. It is on a King Size bed in the picture. My wife is the bomb. Tom Modesto, CA

Wonder if a shield would protect me. Probably if it was 5'1" in size, then Catherine would not be able to shoot over it....Just saying. Good thing you are on the other coast. Tom Modesto, CA

Good to know. I was going to file my return this weekend. Tom Modesto, CA

I have 11 sets, 2 per page, Red copy A, Copy B, Copy C and Copy 2. I also have the red copy 1096's from 2018 if you need a few of those. So if you have less than 22 payees, I can get these to you. PM me with your address and I will get them in the mail 2 you tomorrow USPS 2 day mail. Tom Modesto, CA

How many do you need? I can check my supply cabinet tonight. I think I have a few in there. Tom Modesto, CA