Lion EA

When did "community" end? Several years ago, you said.

Double your fee and hope he goes away!

The IRS and some tax programs split the EIP and the RRC into two halves for the taxpayer and spouse. Is that what's happening on your client's return? Did you put zeros for the amount received for the taxpayer AND the spouse? Check for updates. Maybe delete the RRC worksheet and re-add it.

Can you enter the $ amount directly on the form (Schedule C?) and not use the Form 1099-NEC template?

Yes, the IRS allocates so the innocent spouse can receive her/his ratio of the refund.

And, THAT's why I need to raise my fees, no matter how much clients complain!

Definitely inform them that if their virtual currency is held overseas, they may have reporting requirements on their returns and separately. At my age, I have no desire for new clients so would not take on someone new with VC. I have one existing client who bought some VC last year. Didn't do anything with it during 2020. But the reports she brought me were to-date and showed she "earned" partial coins in 2021 by letting them "lock up" her VC &/or watching videos about VC. I told her that that will be income on her 2021 tax returns. And, I told her to know where her VC is "stored," because if it's overseas, she will have additional reporting requirements as her holdings grow. I also sent her information about the reporting app that her Coinbase recommends, free for a certain number of transactions and then a monthly fee. I told her she could choose any reporting service she wants or do it herself, but that I do NOT do bookkeeping.

If you're using MFS, why do you need the innocent spouse form?

https://www.irs.gov/identity-theft-fraud-scams/retrieve-your-ip-pin

Flipped property in a Schedule C is inventory.

If it came straight from the SBA (not from an SBA lender, such as a bank) it might've been the EIDL. If EIDL, but she receive only the grant part -- $1,000 per employee up to $10,000 -- it's pretty much like the PPP. If she received the loan part, also, then it's a loan on her balance sheet with interest expense on her P&L. But the SBA has lots and lots of small business loans, so ask for the loan document.

If all they did was buy virtual currency with real currency, you answer No. If the did anything at all with it, you answer Yes. Then you have to find out if they sold, exchanged, mined, received it for doing something (I have one that watched videos and earned fractional coins), spent it on goods/services, etc.

As far as I know, you're correct. Is your client a Schedule C?

CCH's more powerful (expensive) version that will do the 8615 is ProSystem fx!!

My DIL texted: With a NYS license you can buy anywhere in pa full size fireworks I think the closest from 84 area is just to take 84 all the way to the pa border. Huge firework places there

My PA kids buy in PA. They're in Starlight, PA, and I think they go to Honesdale. Some strange PA law that you can sell fireworks, but only to out-of-staters? So, my son goes with a PA summer-home owner who has out-of-state license plates on his car. They live at The Inn at Starlight Lake and set off fireworks from the dock in the middle of Starlight Lake for their restaurant and Inn guests to enjoy. I'll check with them.

I haven't used ATX in years, either. But at the very least, you can attach a .pdf. There's probably a "return notes" feature that allows you to enter your own freeform note that's transmitted with the return. Or, maybe one of the boilerplate "elections" is close to what you need, or can be edited to meet your needs. Or, a "list" that will appear behind the K-1 or whatever form, schedule, or line you want to explain. Poke around all the menus to see what can work for you. Check back on Friday when all the regulars will be around.

That's how tired I am, reading too quickly. Sorry! The list of nontaxable grants is pretty short. Hopefully someone has a good link.

NYS does NOT tax forgiven PPP loans. It will be something like Other Income - Nontaxable Income on the balance sheet and an M2 adjustment in the Other adjustments account for federal purposes. IIRC. I had only one s-corp with an EIDL grant and forgiven PPP loan, but that one is in CT only.

Why not MFJ since your client is POA for spouse?

Listen to Possi who has a lot of military clients.

Tax Practice Pro has some current on-demand webinars. One by Kathy Morgan is on Superseding returns. https://taxpracticepro.teachable.com/

I hate those that took a withdrawal from their IRA to pay their balance due and then, of course, find out the hard way what that does to their income and taxes year and want to withdraw from their IRA again until I have The Talk with them.

You do get a lower interest rate with an installment agreement, or maybe it has to include direct debit to get the lower rate.

Yes