Lion EA

+ 2 CEs of Ethics EVERY year for EAs. But I hear that the OPR or whichever department renews our EA designation is understanding about illness (COVID seems to be reasonable cause for most things) and one-time errors -- if you contact them and make-up any shortage immediately. Also, if you're an NAEA member, you need 30 CEs per year, IIRC.

Happy, Healthy New Year!

The IRS hasn't announced yet. They just announced biz e-filing for 12 January, and that's been as early as the 1st week, has the shortest shut-down. A wild guess would put 1040 e-filing at least a week later. I have seen professional organizations guess 20 January and even 28 January. Maybe IRS is holding its breath to see if any more laws are voted on! You'll see the date in all your tax newsletters the minute it's announced.

Issue Number: IR-2022-226 Inside This Issue Note: This is updated to include the correct notice. IRS announces delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K WASHINGTON — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021. As part of this, the IRS released guidance today outlining that calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third-party settlement organizations (TPSOs) including Venmo, PayPal and CashApp that would have generated Form 1099-Ks for taxpayers. “The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan,” said Acting IRS Commissioner Doug O’Donnell. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes. The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements.” The American Rescue Plan of 2021 changed the reporting threshold for TPSOs. The new threshold for business transactions is $600 per year; changed from the previous threshold of more than 200 transactions per year, exceeding an aggregate amount of $20,000. The law is not intended to track personal transactions such as sharing the cost of a car ride or meal, birthday or holiday gifts, or paying a family member or another for a household bill. Under the law, beginning Jan. 1, 2023, a TPSO is required to report third-party network transactions paid in 2022 with any participating payee that exceed a minimum threshold of $600 in aggregate payments, regardless of the number of transactions. TPSOs report these transactions by providing individual payee’s an IRS Form 1099K, Payment Card and Third-Party Network Transactions. The transition period described in Notice 2023-10, delays the reporting of transactions in excess of $600 to transactions that occur after calendar year 2022. The transition period is intended to facilitate an orderly transition for TPSO tax compliance, as well as individual payee compliance with income tax reporting. A participating payee, in the case of a third-party network transaction, is any person who accepts payment from a third-party settlement organization for a business transaction. The change under the law is hugely important because tax compliance is higher when amounts are subject to information reporting, like the Form 1099-K. However, the IRS noted it must be managed carefully to help ensure that 1099-Ks are only issued to taxpayers who should receive them. In addition, it’s important that taxpayers understand what to do as a result of this reporting, and tax preparers and software providers have the information they need to assist taxpayers. Additional details on the delay will be available in the near future along with additional information to help taxpayers and the industry. For taxpayers who may have already received a 1099-K as a result of the statutory changes, the IRS is working rapidly to provide instructions and clarity so that taxpayers understand what to do. The IRS also noted that the existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect.

Use saline eye drops, such as Refresh, many, many times per day. Eye doctor also has me on Restasis morning and night. The blue-light-blocking multi-focus glasses help a lot. And, close your eyes frequently during the day. Cataract surgery was a huge blessing. I was reading a restaurant menu after my first eye was done; something I couldn't do before with dim restaurant lighting and tiny fancy fonts on the menu. Hubby said I was just showing off!! I had both eyes done during December 2019.

https://www.journalofaccountancy.com/issues/2016/oct/taxes-for-gamblers.html https://www.cpapracticeadvisor.com/2015/07/16/taxpayer-fails-to-hit-jackpot-as-professional-gambler/19245/ https://www.cpajournal.com/2019/12/24/taxation-of-gambling-income/ Also, look up this Advice Memorandum because it has links to several court cases: IRS Advice Memorandum, Professional Gambler's Wagering Losses and Business Expenses AM 2008-013 December 10, 2008 Code Sec. 165 Code Sec. 162 Internal Revenue Service: Chief Counsel: Advice Memoranda: Professional gambler: Wagering losses: Business expenses.– Office of Chief Counsel Internal Revenue Service Memorandum Number: AM2008-013 Release Date: 12/19/2008 CC:ITA:B01 - JGMEEKS POSTN-139898-08 UILC: 165.08-00, 162.00-00 date: December 10, 2008 to: Sara M. Coe Deputy Division Counsel (Small Business/Self-Employed) from: George J. Blaine Associate Chief Counsel (Income Tax & Accounting) subject: Professional Gambler's Wagering Losses and Business Expenses This Generic Legal Advice responds to your request for assistance about a recurring issue in litigation. This advice may not be used or cited as precedent.

Thank you, all. And, thank you for the above, which I remembered but could not find. Where did you get that cite?

Taxpayer with early-onset dementia. Spouse has POA that specifically authorizes her to sign tax returns and speak re tax matters. Will their returns be eligible for e-filing or will we have to paper file next season? Do I included a copy of the POA with the return? Or, mail it in separately in advance? Or, something else entirely? Would it be any different if they use the IRS Form 2848 to authorize the wife to sign for her impaired husband?

Get the multi-focus computer glasses, with the blue-light-blocking lenses. Foster Grant has them on sale often. I've also taken pictures with my iPhone to enlarge to see detail, or called in Hubby who always wears progressive lenses to read for me.

No and No. There are no deductions for unreimbursed employee expenses under TCJA, until it sunsets or Congress votes it down. A qualified performing artist is an entertainer/performer, such as a singer, actor, musician, or artist. See the flow chart and Line 10 instructions: https://www.irs.gov/instructions/i2106#f64188v01 Your client can work with his employer to establish an accountable plan for expense reimbursements to receive nontaxable reimbursements that will be deductible by his employer. Win-Win. Help them out by providing information. Here's one source: https://www.journalofaccountancy.com/issues/2020/feb/employee-expenses-accountable-plan.html

My clients needed to pay me over time, and had a couple clients die, so my cash flow was slowed. I did receive small PPP loans. My banker actually was the first to notice my bank balance less than prior years and contacted me to apply! Otherwise, I wouldn't have been able to renew my software at the early price.

I just tossed all my Packages X, including CT and NY versions, into recycle paper. I needed the shelf space, and those were the worst looking books. I still have TTB and others of that sort with better-looking spines!

I got the Foster Grant blue light computer glasses on sale. Reading magnification for those tiny numbers on W-2s at the bottom (1.25-1.5), computer distance in the middle, and distance at the top so I can see a client across my desk or look out my window. I don't have to take them off, can walk around in them, sometimes forget I have them on. Also have a lamp on my desk, as well as recessed lights in the ceiling, because good light helps, too. I have a pair on my desk, a pair in my briefcase for going to clients' sites, and a spare that are darker and show up well on Zoom, also. They were a real bargain on sale. Also, have an even cheaper Chinese pair on my bedside table for reading my Nook. By February, my eyes were burning. As soon as I put on the blue light multi-distance glasses, my eyes felt better. When I told my ophthalmologist, he said his own kids wear them. I did buy the three pairs I use for work from my business account as office supplies. Take good care of your eyes!

Get the blue-light-blocking computer glasses. Huge reduction in eye strain. Foster Grant has frequent sales if you don't need prescription (just reading, such as 1.50). Look for sale announcements on Facebook.

If it's his own business, then just stop selling when he's close to the income level you're aiming for. It sounds like he should be closing four times a year for his surgeries and recuperations. Take vacations when he's able; think Bucket List. Wife is bookkeeper, not car salesperson. Does he have salesmen? If so, fire them -- or greatly increase their salaries/commissions. What about a C corp, salary level that you want/need/consistent with business, hire wife as bookkeeper, C corp can pay medical without putting it on W-2 the way an S corp must?

I'm thinking 10% across the board. I may send out an email in December saying a 10% increase over 2021 return PLUS an additional cost for any new forms. I might go higher, in hopes of a few leaving me.

https://ezextension.com/ + many, many ads when you search.

Can't you e-file extensions directly on the IRS and state's sites?. (CT allows you to enter data for a 7004 on its site, free.)

I just e-filed a 7004 for a short-year partnership that ended in 2022. ProSystem fx. The Federal e-filed fine with the start and end dates entered. CT wouldn't e-file with both start and end dates in 2022 on 2021 software. I was up against the deadline, so I used 12/31/2021 for the start date and e-filed the CT extension. I may end up regretting that when I prepare the return, if the CT extension doesn't match the return to CT, but both extensions e-filed that way.

NO emailed tax documents. Upload to my portal. If they mail/drop off/fedex/etc., then when I have time (it's going to be December this year) I mail back. I might start uploading their original documents to my portal and shredding their original documents. FREE smart phone app Scannable, blue logo with a butterfly, cleans things up. I've convinced clients to use it to scan/upload documents to me.

Judy EA, hi! I was thinking it's 26 November, but wait until someone can cite the exact date.

Is he actually clergy?

I'm hoping the market bears a little less than my increase, so a few clients fire themselves. I do have a Fire list this year, also. I haven't been increasing prices enough; I haven't been firing enough. That changes this December!

Maybe they are halting dunning letters until then, but deadline and accruing P&I continue as usual.

15 years, right? https://www.irs.gov/businesses/small-businesses-self-employed/intangibles