Lion EA

In a course I took, the handout said Software not always capable of filing electronically – attach as .pdf Returns including a 3115 can be filed electronically, but many software packages do not have this capability and require that a .pdf copy of the Form 3115 be attached to the return. (This .pdf copy does not have to be signed. It is considered signed because it is attached to a signed return.) 2 copies must be filed – Ogden address correction A second copy must be sent by mail to Ogden (even though some software package instructions incorrectly say otherwise). That copy cannot be filed electronically...The Ogden copy must be filed no later than the date the taxpayer files the original Form 3115 with the federal income tax return.

With deferred payments (6 months?) and low interest (1%) and potential forgiveness, even for the 25% that can be non-payroll, it's a good deal to try to keep a biz afloat until people can shop and work and go out again.

I thought the reconciliation does not go below zero on the 2020 return.

Apparently the treasurer and priest and past treasurer did that this past week. That's how they were told that little Emmanuel is a trust and to use the CT Diocese as the trustee and use the CT Diocese's EIN. None of that sounds right to me.

I'm an assistant treasurer (mostly pay bills online) in my little church. Suddenly the treasurer and priest and past treasurer are emailing me as they apply for a PPP to continue to pay our part-time employees: priest, secretary, and music director (who's my hubby, so they guess I have a vested interest in getting this loan!). They want to know our ownership structure, ownership percentage, SS#s of owners, etc. We're an Episcopal church and have our own EIN for payroll. We have elected officers (Vestry), but they aren't owners. We belong to CT's Diocese (ECC) and the national church ECUSA), but they don't pay our employees; although, the Diocese does hold our real property in trust on behalf of Emmanuel. How do we answer the banks questions about ownership structure, ownership percentage and SS#s of owners? Have you dealt with this yet in practice or in webinars? The best I've found is franchises that apply under their own EIN and not as part of the parent franchisor. But, a franchise is an entity registered with its state, a partnership or corporation or even a SMLLC. What is a church to a loan officer or to the federal government?

Oh yes, Dan. These are the regs we live by now. I expect more clarifications; in fact, they promised to issue more. But, these Final Interim Regulations are it.

Yep, those two don't bar one another. Although, do you have to use different expenses, different employees to qualify? Or, to use for foregiveness? I'm just going into yet another webinar this morning. Tax Practice Pro Inc. with John Sheeley, if anyone's interested. Only $29. Biz this morning and individuals this afternoon at 2 pm EDT.

That's great. Could be the SEHI/Premium Tax Credit chapter in a tax textbook.

Bart, both what? There are half a dozen programs already, some of which are mutually exclusive. Not all are payroll based, but I think all can be used to meet payroll or provide paid time off. You have Section 7(a) traditional loan, 7(a)(36) paycheck protection loan, 7(b)(2) disaster loan, payroll tax credit in a couple different flavors, payroll tax deferral, EIDL, and more letters of the alphabet. How long does it take you to work out which is best for a client?

I love the title Interim Final. Is that an oxymoron? And, the promise to issue more guidance soon. My brain is turning to mush. I'm returning to tax prep now.

Similar. It's stored on my computer under client and year. And, the paper 2848 is in their physical file folder; I try to keep it on top, easier now that I'm not adding much paper.

Thanx, Dan. It keeps me young. Or, at least, it keeps my mind young. My body hasn't fared that well.

Did son pay for equipment when purchased? (Cash, loan, credit card, anything) Does he have receipt? Did he deduct that payment when paid? Did your client(s) ask prior preparer why equipment is on father's return?

The 2020 returns will have a credit for the appropriate amount based on 2020 taxpayer(s) and dependent(s). There'll be a subtraction of the amount of the advance check, but not below zero. Any positive result will be a refundable credit on the 2020 return.

I also have slowed down. When I complete a return but am waiting on information or even just signatures, I don't start the next return immediately. I'm still working late, because I get more done after hubby stops coming in my office as if I'm home from school or something! But, I'm sleeping a lot later in the morning. Partly by design, to take better care of myself (73 and type 2 diabetic with a husband 69 and type 2 diabetic and asthmatic) and partly because I've been hitting the alarm and going back to sleep. Of course, I'm reading everything about the new Acts and have attended about six webinars so far and have a couple on-demand that I haven't watched yet and am getting lots of phone calls and working with my church's finance committee about what program(s) would work for us. The calls have been for February 2019 through January 2020 income, payroll, rent, utilities, etc. Come on guys, it's only one month, please make the qualifying income and expenses 2019 calendar year! I have about a dozen complex returns here and some other clients I know will drop off and a few who always wait on K-1s or such that have already asked for extensions to 15 October. I also have some 1Q ES payments to recalculate for clients who've called with much lower 2020 income; a couple of those (CT-1065/CT-1120SI ES) are still due 15 April. I have all the work I could want. But, I'm not doing all the work at my usual speed.

But, you need to have filed a 2019 or 2018 return or have a Form SSA-1099 or Form RRB-1099 to get an advance direct deposit or check this year. Otherwise, taxpayers can get the credit on their 2020 income tax returns next year. Or, file a 2018 or 2019 tax return this year. I just got a call from a client who did not work at all, so wanted to know if she needs to file. I'll call her back to get her details, but she's too young for SS so must be living off savings of some sort.

No. But, there are certain programs that can block you from certain other programs. That's why you have to run the numbers for everything, to see what fits a client. Too complex and time-consuming for me during tax season!

Won't it be 4797 if they were farming with the machinery? If machinery had been depreciated on son's return, it would've had a low basis at time of sale. So, it should have a low basis. Father's basis and holding period passes to son if a gift.

Straight from the horse's mouth: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know "I need to file a tax return. How long are the economic impact payments available? For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020."

I have a banker who's gotten up to speed on the new SBA loan programs that I've recommended. Some clients have their own friendly, local banker. Their payroll company should be able to help with some of the payroll "deferral" programs. I have lots of tax returns to file.

31 December 2020.

And, the bank is trying to figure out what the SBA is thinking!

I think it's truly COGS. In going through it with a client via messaging, later the application/bank asked for rent, utilities, and payroll. But, I was just answering the questions via message that his bank asked him via telephone, so it could've lost in the translation.

Good point about the date, Max. Probably 15 July, because everything that starts with "1040" moves. But, I'd probably aim to get it in 15 April unless I found something official moving the deadline. Lloyd has time. I got a couple things off my desk that I couldn't verify postponed deadlines.

Or, free from NAEA or NATP.