Lion EA

Thank you very much, Lee. I hate that we have to be so suspicious in this day and age!

I just e-file two 2023 -- yes late 2023 -- returns. First one acknowledged so far. I'd prepared them during the shut-down, so they aren't the latest versions of my software. I didn't know if they'd be accepted or if I'd have to recalculate and try again. I never try current tax year returns the first day. Seldom are all forms/schedules ready.

A client sent me an EFTPS letter suggesting he log into EFTPS.gov to check that his "tax professional" made all his tax deposits. He asks if it's legit. It looks pretty. The Department of the Treasury logo. Gives him a PIN and Your Enrollment Number. Telephone numbers. Dated 01/10/2025. Anyone else getting that letter? Have you vetted it? This client uses Paychex. (I no longer process any payroll.) I do file Forms 1099-NEC for this client, but NO withholding.

Fujitsu, any of their price ranges that fits your budget, is the workhorse of scanners. I have an old Fi-6130z, and gave away my older Fi ScanSnap to my daughter-in-law's company. CCH Scan & Flow suggested a slightly newer model scanner than the Fi-6130z, but I haven't upgraded yet. At one time, CCH could offer good prices on Fujitsu, so you might want to check with your sales rep and then compare on Amazon or whatever site.

I can't paste a link, but CPA PracticeAdvisor just announced a FREE webinar by CorpNet: S Corporation Election Considerations for Corporations and LLCs Wednesday 26 February 1:00 EDT

https://www.irs.gov/pub/irs-pdf/i2553.pdf

Just like car insurance that I hope to never use (but have used), I paid the tiny price for PP for the 23 tax year and renewed for 24 tax year. I have only 1 biz (except for trusts, that PP doesn't cover yet), so the $10 for each of my other returns is a small price to pay to sleep easier at night. I hate answering the letters, so If I can hand that off, especially when I'm busy, it's worth it. I don't have hundreds of clients, so it's a small price to pay. I've been raising my fees each year, because I was underpriced for my area. Now I can tell clients they have an added benefit in their new fee.

Would he have received $10,000 from that company if he weren't moving to be an employee? It's wages.

Maybe why this scheme appears to be overly complicated !!

Is that the code that you copied and pasted to a document? I put mine in a Notebook folder.

Circ. 230: § 10.21 Knowledge of client’s omission. A practitioner who, having been retained by a client with respect to a matter administered by the Internal Revenue Service, knows that the client has not complied with the revenue laws of the United States or has made an error in or omission from any return, document, affidavit, or other paper which the client submitted or executed under the revenue laws of the United States, must advise the client promptly of the fact of such noncompliance, error, or omission. The practitioner must advise the client of the consequences as provided under the Code and regulations of such noncompliance, error, or omission.

John Sheeley of Tax Practice Pro is a big advocate of this. I think he makes it mandatory and charges (it was $99 many years ago) for it. You could follow him on Facebook or X or where ever and see what he's advising currently. Getting ahead of a simple IRS letter, such as a CP2000, or even an audit is one big benefit.

Judy, you might have the answer!

I got it !!! He had tried all caps. He has a PO Box, but we haven't used it on his returns, so I told him not to use the PO box, to make sure it's blank. He said it's on his IRS account, so he kept trying with the PO box only and PO box w/street address, and street address only. It did finally work for him: all caps, no PO box, and I forget which browser. Yay! Thanks everyone. I learned alot.

Yes, he did. He's a very tech-savvy engineer, so he'd already tried everything I can think of. I also had a client who used it Tuesday. I told this client to try again later Thursday and again Friday morning. Is there any other way to pay online and get a confirmation? Is mailing a check his only alternative? Glad to hear it worked for you. He'll keep trying. He's better with computers and the internet than I am!

Anyone else have clients NOT being able to make a payment on DirectPay today? Very tech-savvy client is trying to pay his 2023 balance due. Used Chrome and Edge and 2 other browsers. Matched his address to his 2022 return, but also went as far back as 2019 when he moved to that address. We checked spelling, no punctuation, and used drop-down box for state. He went onto his own IRS account to see how his address appears there. He checked for stray spaces or other symbols. It tells him he can't continue until he types in his address! Any clues? Any other online possibilities to pay the IRS with a confirmation? I think EFTPS requires waiting for a PIN in the mail, right? Are his choices limited to a long wait on the phone to the IRS or mailing a check?

Well, today's IRS Newswire says Monday 29 January 2025 for individual e-file.

No qualifying dependents for HOH, right? MFS is the default; MFJ is a choice that must be made by both. Will she sign a MFJ return? Sounds like your client is MFS. Unless AL has a legal separation, maybe based on abandonment. He can afford a lawyer to explore his legal options. But, you said he will NOT divorce her.

I read that individual e-file opens 29 January 2025.

The Tables are near the back: https://www.irs.gov/publications/p590b

Just received a large paper packet in the mail from USDA re Tenure, Ownership, and Transition of Agricultural Land for some farmland I inherited in IL. Very detailed and intrusive. But I inherited the land which for a while was owned together with my cousins who live in IL and farmed the land, so I knew little except to receive my K-1. It was divided at some point, but I continue to rely on the counsel of my cousins, plus we're all old now and use sharecroppers so I get a check as well as corn and soybeans which I sell where they suggest. This "mandatory" 12-page packet with at least 3 pages of instructions will be a time suck. Worse than the short-form biz census forms, maybe about as bad as the long-form biz census which I worked on for a client a couple years ago. I wish the government would concentrate on raising income and spending less instead of making us citizens give intrusive details about our lives.

I just got out of an NAEA Update webinar with A.J. Reynolds where he touched on RMD for IRA Beneficiaries. Long answer is... https://www.irs.gov/retirement-plans/required-minimum-distributions-for-ira-beneficiaries Notice 2024-35 extends the temporary relief from RMDs for certain inherited account holders. Short answer: ROTH owners always deemed to die before the RBD, so no RMDs required in year 1-9 for beneficiary; drain account by end of year 10 (planning might suggest a lump sum is not the most tax advantaged way to distribute). Responsibility of beneficiary to take year of death RMD if not yet taken by decedent. [Note: this paragraph based upon beneficiary being a non-spouse person, and not an estate.]

Snow storm?

I'm sleep-deprived this week (medical appointments) so bow to Danrvan's clearer thinking that the client has one principal business. Is more time spent on her TN biz? Or, does the in-person OH biz have higher revenue? I don't think Margaret specified whether her client's travel to OH was primarily for business when she talked about the friends and socializing she does in OH, so I still think Margaret should ask more questions before she concludes how much of her travel/lodging to/in OH is biz related.

If it's two businesses, it's possible. Margaret needs to ask lots of questions to understand her client's business model. I don't see that all the questions about the itinerant life have to do with this client. She obviously has at least two places of business, one in TN where she does telehealth and one in OH where she sees clients in an office. Her question is if her personal rental in OH is a deduction due to being away from her office in TN. I think it rests upon if her only tax home is in TN so she's away when working (not visiting) in OH, or if her in-person biz is a separate biz in OH only, so an OH tax home for that biz.