Lion EA

I've seen people guessing about 20-21 November... (I have a dozen returns to prepare, so am watching for that date.)

IRS Newswire Issue Number: IR-2021-212: IRS issues another 430,000 refunds for adjustments related to unemployment compensation WASHINGTON – The Internal Revenue Service recently sent approximately 430,000 refunds totaling more than $510 million to taxpayers who paid taxes on unemployment compensation excluded from income for tax year 2020. The IRS efforts to correct unemployment compensation overpayments will help most of the affected taxpayers avoid filing an amended tax return. So far, the IRS has identified over 16 million taxpayers who may be eligible for the adjustment. Some will receive refunds, while others will have the overpayment applied to taxes due or other debts. The American Rescue Plan Act (ARPA) of 2021, enacted in March, excluded the first $10,200 in unemployment compensation per taxpayer paid in 2020. The $10,200 is the amount excluded when calculating one’s adjusted gross income (AGI); it is not the amount of refund. The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000. Earlier this year, the IRS began its review of tax returns filed prior to the enactment of ARPA to identify the excludible unemployment compensation. To date, the IRS has issued over 11.7 million refunds totaling $14.4 billion. This latest batch of corrections affected over 519,000 returns, with 430,000 taxpayers receiving refunds averaging about $1,189. The review of returns and processing corrections is nearly complete as the IRS already reviewed the simplest returns and is now concentrating on more complex returns. The IRS plans to issue another batch of corrections before the end of the year. Impacted taxpayers will generally receive letters from the IRS within 30 days of the adjustment, informing them of what kind of adjustment was made (refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment. The IRS also is making corrections for Earned Income Tax Credit, Additional Child Tax Credit, American Opportunity Credit, Premium Tax Credit and Recovery Rebate Credit amounts affected by the exclusion. Most taxpayers need not take any action and there is no need to call the IRS. The IRS will be sending notices in November and December to individuals who did not claim the Earned Income Tax Credit or the Additional Child Tax Credit but may now be eligible for them. These notices are not confirmation that they are eligible for these credits and will require a response from the taxpayer if eligible rather than filing an amended return. For taxpayers who become eligible for other credits and/or deductions after the exclusion is calculated but not claimed on their original return, they must file a Form 1040-X, Amended U.S. Individual Income Tax Return, to claim any new benefits. See the 2020 Unemployment Compensation Exclusion FAQs for more information, including details on filing an amended return.

You might find it uses a different color if it has a partial match than the color it uses when it has a complete match, so you know to review that item. Find out out Paperless handles your problem.

Nope. I use CCH's Scan & Flow. It reads masked numbers and matches them to other masked numbers with the same 4 last digits and matches them to un-masked numbers with the same 4 last digits. Not a problem unless you have more than one person on a return with the same 4 last digits; then you'd have to check and assign manually. (Scan & Flow uses secondary info, such as were they both on W-2s from ABCo last year and this year, to make matches, if needed.) Demo Paperless to see how it handles your issue.

The workhorse of scanners is Fujitsu. Pick the model that has the specs that Paperless Plus requires. Do a demo of Paperless Plus to see how it works and if it works the way you work.

How much foreign tax did they pay to the foreign country on Passive category income?

We are all tax preparers on a private message board. Please contact ATX tech support or your IT support person. Read jklcpa's response to you.

Judy's knowledge and research is always top-notch. As she explained, when a PTE has an option to file a composite return on behalf of its owners &/or the owners have an option to opt-in to a composite return, there are a lot of factors to consider if your client is the company or if your client is one of the owners. And, the new and rapidly expanding into more and more states PTET, sometimes mandatory and sometimes opt-in, is just one consideration.

That article is about PTET, Pass Through Entity Tax, written shortly after IL enacted their PTET, so much of the article is from the perspective of IL's PTET. CT has had a PTET for a few years -- mandatory. NY's PTET begins in 2021 -- opt-in deadline for 2021 was 15 October 2021. There are some classes out there now; Tax Practice Pro did a live webinar that's now posted as on-demand: https://taxpracticepro.teachable.com/?page=3

23 states have or proposed PTETs: https://fgmk.com/news-resources/thought-leadership/pass-through-entity-tax-update/

I saw two different discounts offered, things like NAEA &/or NATP. One was $5 and the other was more, I think. I was sure I'd remember where to find them when I renewed, but my brain is fried. I can't find them on websites, Facebook posts, anyplace I looked. Anyone see a discount on PTIN pricing?

So, is he a bookkeeping client? S-corp tax client? Personal tax client? What kind of client is he? You might want legal advice from your E&O insurer. Or, even your own lawyer, depending on what your involvement was with this barely a client.

And, you have a conflict of interest if you advise the spouse but know of taxpayer's biz mis-dealings from your professional work for the couple, for his biz, whatever. Tell him to use his lawyer. If you agree, lawyer can hire you. Recommend a good preparer to spouse. You could work for spouse, if you are careful. I would run, not walk, away from this!

We need an incognito dope slap one to send to clients, something that looks like to us the senders but is just a neutral one on the receiver's email. You know, that dope slap that we pull back into a Hi or thumbs up to our clients!

In Pacun's example, he bought a coin with a coin. That would be a sale and a purchase, right?

As a wild guess, your $30 for register is probably earned income now. Does that mean once you report it and pay taxes on it, that your basis increases by $30? Certainly, if you sell the coin or use it to pay taxes or to buy something, it's a taxable transaction. How do you track which coins you spend, which partial coin might be left? And, your wallet registered in El Salvador, that's subject to FBAR, etc., right? I'm going to take some classes this fall...

Thank you, thank you!

I've done CT for a while now. If they've exceeded the $10,000 SALT cap, it's often worthwhile. My only NY partnership runs at a loss and never exceeds the SALT cap. However, I have a CT S-corp that does a lot of biz in NY. I don't file their personal returns to know if it's help. I guess I better contact them/other preparer now. How does a CT S-corp that files a NY return opt in? Online? A form to fill out. (In CT it's mandatory.) Just efiled my last return for the day, so need to get to these things I postponed !!

John Sheeley/Tax Practice Pro did a webinar, which he usually then uploads as an on-demand course (maybe when he comes up for air after today's deadline). He's good about including examples. https://www.bigmarker.com/tax-practice-pro-inc1/The-New-Pass-Through-Entity-Tax NY/CT-ATP's 2021 Annual Tax Update On Demand Seminar will have an hour on NY updates and an hour on CT updates (both states have a PTET) as well as 14 more hours of federal updates: https://www.nyctatp.org/event/2021-annual-tax-update-seminar/

Luckily my client's Earns are 2021 and can be pushed off a year! That gives me time to take some courses. And, to convince her to use a tracking service.

So, the Buy does or does not get reported on D/8949? Not if bought with real currency? Yes if bought with other cryptocurrency? What about the Earns? Schedule D? Or, Other Income? SE or not?

I have a coinbase report from a young client. I'm confirming that her Buys were all purchased with US$ and not another cryptocurrency. My question is about her Coinbase Earn which she says she received for agreeing to "lock up" her coins for a set time. She had about 8 like that, each in the $2.00 range. My understanding is that is earned income. So, if she received a little over $16 in coins, she has $16 Other Income? Not SE? Then she'll have $16 basis when she sells/uses those coins in the future? Trying to get a handle on this all before she uses her coins for something! Any suggestions for a tracking program for her?

I got my hopes up there for a minute!

Thank you, everyone. Love argumentative broker assistants in October!