Lion EA

My memory is fried, but wasn't there someone going for confirmation who owed taxes and gave the TurboTax defense that he didn't know he had to pay SE tax as an embassy employee?! Not that that helps you figure out how to make it work in your software.

Include the reject...

I love how the IRS tells us to round to the nearest dollar, but the IRS doesn't round, it truncates. And, sometimes computes the pennies instead of either rounding or truncating. Then, our clients think we did something wrong!

Thank you, Eric and Judy!

The Federal Trade Commission FTC.gov also has a page on ID Theft. And, IRS.gov has a page on ID Theft. I highly recommend credit freezes.

I began with this board, actually the predecessor to this board, when I was at HRB and we used ATX for entity returns. I continued here when I went out on my own, but I ended up purchasing ProSystem fx. I knew these people, knew their expertise and helpfulness and humor. I learn a lot about tax law here and choose to stay.

No. You do not pay back the credit. You receive the credit. Form 941 is a reconciliation form. Your deposits are on the schedule determined by amounts, etc. If holding your deposits and reconciling on 941 doesn't get your full credit, then use 7200. If you already made deposits instead of holding them, use 7200. Read the instructions to 7200 and the revised 941. Form7200 is to keep more money in your business to pay those employees. You do not pay it back. It's not a loan; it's a credit.

I don't do payroll so really don't know. But it seems that the credit could be larger than current deposits or what will be reconciled on the next Form 941; that reconciling on 941 just means you don't owe with that form or owe penalties for not depositing on schedule. If you need the credit, you don't want to wait another three months or six or... I guess I can see using Form 7200 to get the credit refunded faster. Especially if you've been depositing with every payroll until you realized you were eligible for the credit and now need to get those deposits refunded. Maybe. I have only one client with employees, and he was using Paychex before he became my client. So, I have no reason to understand new payroll credits, except to remind my client to discuss them with Paychex. If you have clients with employees, I suggest you take a couple classes on ERC and the sick & family leave tax credits.

Whatever works to make it e-file and not sit with 30 million unprocessed returns. As long as you're comfortable that she is a Rep/can sign and receive refund, do whatever it takes not to paper file. (Like answering NO to the cryptocurrency question even though your client DID "...receive...otherwise acquire..." crypto.)

I don't know, but I think you're both correct. From memory, from classes, and from not-recent experiences, the injured spouse form gets her back her own withholding if due her as part of the joint refund. Gets her what would be hers if filing separately without having to use the less beneficial MFS tax rates. As a quick check, if your software does a down & dirty MFJ vs MFS comparison, look at her column and you'll probably see $0 after standard/itemized deductions, with all the credits in his column. As Gail said, she didn't support their children or pay the household expenses.

Are you saying they never lived anyplace other than NC?

Boo! Didn't Catherine have some success e-filing this, posted in a previous thread?

Try it with 2b blank.

If she was under 24 and was a full-time student for any part of five months, she's a dependent: https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent The deal breaker can be the support test: did the child pay for more than half of her own support?

Oregon has their own licensing. Does your software give a choice, such as out-of-state preparer? Or, fewer than 10 returns? Or, does Oregon except EAs/CPAs/attorneys? Or,...?

I have a couple clients who come in every three years. Luckily, they came in prior to the pandemic, or else some of their returns would be sitting with millions of other returns. And, a woman who'd been out of the country, house broken into, severe illness, and eye surgery so she can see again now brought in some old years. I'm holding the ones that need paper filing. 29 million!

You answered your own question with the link you quoted. The depreciation is taxed at a maximum of 25%, for as much of the depreciation as created a gain. Your other capital gain, in your case, is taxed at long-term capital gain. Follow the flow on the forms to see how it works in your case.

You know her situation best, along with her, of course. But the way you explain it, it sounds like the same business, business expansion, new location. By the way, was she affected economically by Covid? Would she qualify to spread her distribution income over three years and avoid the 10% penalty?

Mine changed when my wallet was stolen and I had to get a new DL. I have about one client/year who lost their license and got a new #. This year was more.

Went crazy with a young son of a new client. Had his SS card, so couldn't understand what was wrong. Mom called. Son had two middle names, but SSA used one of his middle names as his last name.

The SSN is matched against the first four (?) letters of the last name. So, shorten the first name or use initials. (Might be more to it for dependents, such as birthdates.) You need to review at least one prior return anyway for carryovers, etc., so definitely do what ILLMAS said.

But all my NY commuters are required to have DLs to e-file, so CT requires me to re-confirm it each year. Yeah, they ask for all this stuff to CYA when we're the ones that know whether a client is new to us or known for decades. It's as much a waste of time as all those codes I have to get on my cell and enter all day long, even though it's just me in my home office in a locked house on a desktop system that'd be hard to lug away. I agree, just because they can.

I think it's a CT requirement. If I hadn't had to check with my clients this year, I would've missed at least two who had their wallets/purses stolen and got new DLs with new #s and dates and a whole bunch of clients who didn't realize that 2021 is their renewal year until I brought it up. But I think it's a pain. CT, CA, and a list of other states also require me to confirm address &/or contact information every year. My generic Have you moved? is a good starting point, but I have to ask more questions each year.

When paying by check, your client is sending a check with the magnetic information for his bank routing and account numbers on it, as well as his signature, and probably even his branch's name and address printed on it. I'd be more worried about thieves who steal mail they know contains checks, "washing" the checks, and using them to steal everything from bank accounts.

Did you try printing just one page? (I once went crazy trying to print when the problem was a stray code on a random page; I could print pages before and after and noted the erroneous page.) Or, a selection? I like the idea of Save As with a new name, and then trying the new file.