JohnH

I’ve been using ID.me with no problems. The only hitch is that you have to scroll down to click a “Continue” button which appears off the bottom of the screen after selecting a rather large box for text or email. (It defaults to text). I dont think they used the available real estate very efficiently. Have probably used it a dozen times since this MFA business began.

I think this was your operative comment: —-> “client cannot find paperwork to determine which and how much payroll was used for PPP…<— That’s my signal to hand everything back to the client and say “Let me know when you find it. Otherwise I can’t help with this issue. “

I was interested in the answers to this question because I had a similar situation about 8 years ago. It was nice to get confirmation that my handling of the step up in basis was correct. Lately I've been playing around with ChatGPT. Out of curiosity, I decided today to submit a slight variation of the original question to ChatGPT just to see what it would respond. (I simply said that the property was fully depreciated when the spouse died in order to simplify the question a bit). In case anyone is interested, here is the reply from ChatGPT. ---> When a person inherits a rental property, the tax treatment of the property's depreciation depends on several factors, including the tax basis of the property and whether it was held in a single-owner or joint ownership situation. Here are some key points to consider: Step-up in Basis: When someone inherits a property, the tax basis of the property is typically "stepped up" to its fair market value as of the date of the decedent's death. This means the beneficiary's new tax basis for the property is the fair market value on the date of death, not the original cost of the property. Single Ownership: If the spouse owned the rental property in their name alone and the property's basis is stepped up to its fair market value upon their death, the surviving spouse can start depreciating the property again based on the new stepped-up basis. The depreciation is calculated over the useful life of the property, which is determined by the IRS based on the property type (residential, commercial, etc.). Joint Ownership: If the rental property was owned jointly with the spouse, the basis adjustment upon the death of one spouse depends on the ownership structure. In a joint tenancy with the right of survivorship or tenancy by the entirety, the surviving spouse typically receives a full step-up in basis for their share of the property. The surviving spouse can start depreciating their share of the property based on the new stepped-up basis. <--- It ended with a boilerplate statement to consult your tax pro, etc. All in all, I'm awarding ChatGPT an A+ on this one.

And eventually everything purchased before 2011 will be inherited (with basis step-up). So there's that....

The MFA code is sent to the phone of the person signing in through ID.me or Login.gov prior to gaining access for purposes of logging into EFTPS. The entire process is designed to identify the individual signing in to EFTPS. It's easy to understand if you just sign in to an EFTPS account a few times. But the first thing you must have is a validated Login.gov or ID.me account. That's the key to the whole process.

Bart: If you have any clients for whom you enter the EFTPS info, you can log into each one individually with the same ID.me or Login.gov account. You'll just have to add the MFA step before accessing the EFTPS login for each client. Not really a big deal, PROVIDED you have a Login.gov or ID.me account already set up. But for those clients who do their own EFTPS, they need a "heads up" email, text, or phone call. Each of those clients needs to register with Login.gov or ID.me before attempting their next EFTPS transaction. (They can also do at payroll tax deposit by phone, but I'm betting the phone lines will be jammed since so many people didn't know this was coming.)

I would do some cursory research to find out if JohnH had access to any piece of paperwork that might get us started on a basis reconstruction. It might take some effort on his part, but that’s on him. If he came up with something then I’d try to do a basis reconstruction if there were sufficient info. I’d also make it clear to the lazy bum that it’s going to cost him a lot for the research. If there’s absolutely nothing he can obtain then I’d tell him we’re going to have to go with a cost basis of -0-, which might cost him a lot of tax, especially if he actually had a loss due to reinvested CG and dividends. Either way, he’s going to pay. But he can afford it - he has an extra $15k (unless he’s already blown it on a boat, motorcycle, cruise, etc)

The existing login information for EFTPS still works as usual. The only difference is that you can't get access to EFTPS login until you identify yourself with ID.me or Login.gov. They just want to know who is logging into EFTPS before granting you access. As long as you have ID.me or Login.gov, you're fine. If you don't have one of those, then you'll need to sign up for one or the other of them before you try to access EFTPS at any time in the future.

I decided to compare the two, but as it turns out I already had a Login.gov account which I had forgotten about. (Probably used it a long time ago to correspond with the Veterans Administration) So I was not able to get the experience of setting up a Login.gov account to find out how it works compared to the ID.me process. But the experience is about the same with respect to signing in to EFTPS once one has either credential. One article I read stated that ID.me is a bit easier to set up, but it requires facial recognition, whereas Login.gov does not. However, the article went on to say this makes the Login.gov process a bit more tedious. Judy makes a very good case for adding this level of security - things which I had not really thought about. I'm coming around to the concept; just would have liked a little more lead time or provided some sort of phase-in.

I'm definitely on board with the idea that this was poorly implemented. So on the implementation side, is there any reason to favor one method of MFA over the other? I used ID.me because I was already set up with them. I have never used Login.gov as far as I know. I'm just trying to decide which to recommend if a client asks.

You're lucky. For some people the phones may be lighting up unless the clients use a payroll service. PEO, or our good friend Dennis.

I've waived fees several time over the years when I decided it was called for, based on what I was told, what I knew, and also on my intuition. Widows, church members who fell on hard times, etc. I just always suggest that if they ever get back on their feet to make a contribution to a mission project (but not in my name, BTW). Probably have even done it a few times when I shouldn't, but I'm not losing any sleep over it. You've described a situation I'd be very likely to waive the fee. I respect your decision and I respect you for making it. Now if you can just get them to listen to your advice and file. After the assessment, they might be able to submit a penalty waiver request if they have a good filing & compliance history, and an installment agreement might be manageable. And as has been mentioned, CNC might be an option. But they need to take action. One suggestion - print out a hard copy and send it to them ready to file. That set of documents might carry more weight with them than an e-filing form. Let them know they can send it in with a token payment or even no payment. After the assessment, they might be able to submit a penalty waiver request if they have a good filing & compliance history, and an installment agreement might be manageable. And as has been mentioned, CNC might be an option. But they need to take action.

Guess how many of your clients are going to be calling you next week (semi-weekly depositors) or the 14th of next month (monthly depositors), in a panic because they suddenly can't pay their Federal Tax Deposits.

Apparently I missed the memo. I began to log in to EFTPS today and was required to log into ID.me before gaining access to EFTPS. Turns out they implemented this change yesterday (Oct 19). Was this info widely announced and I just didn’t notice it?

How many did he file? In an extreme case he might be liable for a $250 per form penalty. Knowing that, he might be incentivized to 1) pay you to get it right this year, and 2) pay you to do it right in the future.

They might say that, but their own rules say otherwise. At least that’s what I would point out to anyone who said that to me.

Even if you don’t get the green card back, the tracking can be downloaded from USPS. (Although recently I had one that the tracking did not reflect delivery but I got the green card back). Belt and suspenders - Maybe one or the other will work.

I always deferred most SocSec questions by recommending that the client go straight to SSA for answers. After I began drawing SocSec 7 years ago and navigated my own situation, I changed my policy. I now defer ALL SocSec questions by recommending that the client go straight to SSA.

My father-in-law always said the only thing he’d like to know is where he’s going to die. Then he would just be sure to never visit there.

I’ve used 1099Express for several years, filing 250-300 1099s annually Excellent product, simple Interface, great support, and reasonable pricing. Well worth checking them out. https://1099express.com

I'd run. Having compassion for their plight, nevertheless I'd still run). Even if it is possible to form an LLC in Mexico, there will likely be legal complications and reporting. In the end, when it blows up, all fingers will point back to you since you provided the advice (even if you didn't, you'll probably still be blamed).

Congratulations! Grandkids change everything.

I’d be inclined to deduct $203 as a cash deduction to Goodwill and $170 as a non-cash deduction to Goodwill. The $203 is simply a cash contribution towards the charity’s operations. But I’d let the client know the issues is unclear and let them make the final decision on the $203.

Just wrapped this one up after placing it on extension back in Apr. Had a couple of telephone conversations with the MA DOR. Nice folks - very helpful and patient as was predicted on this forum. It was pretty easy in the end using their PY/NR schedule. Had to allocate working days in MA divided by net working days everywhere. A little quirk in the MA rules required us to divide MA working days by 365 minus weekends, holidays, and even PTO days. This produced a smaller divisor (less than 260) and therefore a slightly higher MA tax liability. But the tax liability wasn’t too bad and the taxpayer got a full credit on their home state return for the MA tax paid. So it was a wash to the taxpayer, except for my extra prep time. Also had to do a little extra analysis on the work days vs travel days in MA. You don’t have to count travel days if you fly in late in the day and/or out early in the AM. Those are just travel days. But a morning arrival in MA and/or and afternoon/evening departure from MA counts as a MA work day. Thanks for all the good advice and suggestions on this thread It helped me focus on the important things

Did the Corp ever apply for any loans during its existence? The application would have included representations regarding stock ownership. Same for any personal financial statements submitted for personal loans, either jointly or individually. (Home mortgage, cars, boats, etc) Somebody (or both) had to claim ownership of the stock Also did the company ever do any government contracting or even just apply for the same? There’s always paperwork asking about percent veteran status (if either is a veteran), as well as percent woman owned.