Industry Discussions

You didn't get the memo?  It says right here in the Manual that IRS issues a memo.   20.1.3.2.7.1 (12-10-2013) Estimated Tax Penalty and Reasonable Cause The penalty for underpayment of estimated tax cannot be removed or waived for reasonable cause alone. The penalty for underpayment of estimated tax generally is not waived as a result of disaster. However, in the case of a federally declared disaster area, a significant fire, or a terroristic or military action "the Secretary may specify a period of up to one year that may be disregarded" in determining whether estimated tax payments were paid on time. In these cases the IRS will issue a memo with specific instructions regarding the payment of estimated tax in the affected area. Master File programming generally takes all special disaster area rules into consideration when computing the penalty for underpayment of estimated tax. Even when the taxpayer’s books and records are kept within the disaster a

I have a client who has been paid 50k (sweepstakes) description per customer. He did not receive a W2-G gambling form or 1099. I have been reading regards this casino It is overseas, and a lot of back and forth between the IRS and the casino. Where would I enter the gambling winnings if no form is issued? Winnings were sent a direct deposit to his bank account, and the loss was only 7,300.I was thinking of other income?  

I've had three 1040 clients this week tell me that they got a refund check for the underpayment penalty that was calculated on their 2023 return in ProConnect Tax.  The underpayment penalty calculations for all three of these clients appear to be correct to me (i.e. there's no reason they would be exempt from the penealty).  Is anyone else experiencing this?  Am I missing something?  Is there a glitch in the 2210 calculations in ProConnect?  

This client shows in her mother Form 1095-A as a covered individual. She is not listed as a dependent in the mother tax return. Do I have to enter the mother's 1095-A information in the daughter personal tax return?

Original minority shareholder surrendered his 20% shares on 09/22/2023 and on 09/23/2023 the company reissued the shares to Presidents wife who did not have any shares up to that point. In ProConnect, how should I report the transfer?

   Hello Forum Members,I'm currently working on a return 1120 s and have encountered a discrepancy that I'm seeking guidance on. Here are the details:Net Income: -$4951Interest: $44Tax Net Income Loss: -$7942Book Net Income Loss: -$4932Tax Book Difference: $3010Additionally, the charitable is in the NI calculation because  it is from inventory and it was retired from the books due to the donation.during. After I enter the charitable donation of 3035 it creates a discrepancy in the net income . I am unsure how to allocate it in Schedule M-1. Could someone please advise me on the correct way to allocate the charitable contribution in Schedule M-1 given these figures?Any insights or suggestions would be greatly appreciated. Thank you in advance for your assistance!

Hello - I recorded tax payments from the partnership because I use the business checking account to pay them. I debit equity as a tax estimate and credit cash. When I am calculating the M2 do I put those with the other distributions on line 6? I was researching that tax estimates are not included in the calculation of partners' capital account however if I don't include them than my balance sheet does not balance. 

I have a small non-profit that pays for sensitive medical costs. Do the donee's names and address have to be on sch O for grants given in excess of $5000? Can we use Family 1 instead of a name to protect their privacy?  Or attach a manual schedule to show the details? Feel like there is a HIPPA issue here. Thank you.

A disallowance per IRC 280A of net rental loss on rental property with -0- rental revenue.Property amounts were input with 224 days available for rent in "days rented" and 136 days of "personal use".No diagnostic was made.I removed the 224 days available for rent in "days rented" to make amount -0- but there are no changes in Lacerte income tax application revised income tax forms and original income tax return forms files; nor, a diagnostic.Should not I have a diagnostic to check IRC 280 A for rental property losses when there is no rental revenue and zero (-0-) rental days?TIA

Will ProConnect no longer be free in 2025 for the 2024 tax year?  I received an email saying that I will have to spend $99 per year (which isn't a lot, but it does affect my customers return price).  I know this price will only go up each year because this is what Intuit does with all their products.  I don't do a ton of tax business each year and I might have to consider something else to help my clients with.Please let me know.

My client is a chiropractor. She travels to her doctor once a week and says it is for her physical well being related to being a chiropractor. Would this be a business deduction because its related to her profession? I know that mental therapy can be deducted but what about regular doctor visits and mileage for those visits. HELP Please

In 2023 taxpayer moved into rental home.  Home rented since 2017.  ZERO days rented in 2023 (proseries is giving an error on Schedule E saying must be at least 15 days rented - so I presume I'll have to delete the Sch E).  183 days as Primary Residence in 2023.  When 7/1/23 is entered as a "disposition date" depreciation still calculates. When entered as 1/1/23 depreciation calculates for 1 day.  No box to check to state "converted rental to primary" (like turbo tax does).  Where do I / how do I enter correctly?ANDIs depreciation recapture due on sale OR on conversaion to primary?Thankyou! 

Issue: Deceased person usually takes Trad IRA RMD in October. IRA Owner dies before instructing bank to issue RMD. Multiple beneficiaries attempt to submit paperwork to three separate IRA custodians to issue RMD before the end of year, but are unable to complete paperwork in time. 1) There is no exception on Form 5329. 2) There is no regulation (I can find) that covers this circumstance though this can't be the first time this has happened. Q: Is there an administrative procedure that allows for a waiver of the 50% penalty when this happens? I assume the penalty must be paid before the waiver is requested.

I have a client who is getting  $1,112 a month in welfare for the wife, husband and child.  The wife received a W2 for $3,000 with no federal withholding.  Should I file a joint tax return and claim the child?  Will filing the tax return affect their welfare.  They are living with the wife's family and they are not claiming them as dependent.Than

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The taxpayer is the only owner of an S Corp. His spouse works part time for this S Corp and receives W-2, but is not a shareholder of this S Corp. The health insurance deduction is limited to the income from S Corp subject to Social Security and Medicare Tax. The taxpayer's W-2 is $15,000 and spouse's W-2 is $5,000, and their health insurance premium is $28,000. What would be their self-employed health insurance deduction?

What tax form do I use to disposition a home that was sold in a trust on a 1041?  8949?

Can I apply for a payment plan with the IRS for a client thru proconnect and if not will the IRS let me do this on behalf of a client?

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I own a single member S corp.  I am also a 50% partnership in a partnership.  I'm uncertain to record the K-1 data from the partnership on my S corp 1120s.  The k-1 only has a net loss on line 1 for this year.

From Politico: If it seems like you’re not getting a tax refund like you used to, you’re not alone. The share of taxpayers who get money back at tax time is slowly and, a little mysteriously, shrinking. At the same time, the number of people having to cut a check to the government has been rising. The number of refunds so far this year is down by 3.3 percent, according to the latest IRS statistics that came out before Monday’s filing deadline. It was down last year too, and the year before that. https://www.politico.com/news/2024/04/15/tax-fewer-people-getting-refunds-00152248 

Hi Intuit community,My clients own two rental properties and I have an Schedule E's for each. They will be itemizing. They submitted their vehicle registration, where do I enter it? I am familiar with this an Schedules C's but these clients only have Schedule E's.  Thank you!

Client has a 3-unit property that he reports on Schedule E. In 2023, two of his tenants were approved under the Asylum Seekers Emergency Rental Assistance Program. My client (the landlord) received these payments in 2023. Where do I report the payments on client's tax return? Is this reportable under IRS 1040 and IL1040? Please advise.  Lastly, he also has an Airbnb in TN and in FL. Do I also have to file taxes in each of those states even if it was a net loss?

I have an odd question. I filed a 1065 for my LLC but filed my 1040 with Schedule C rather today. I know you can cancel a filing so what do I do? Just not worry about it?

Hi Intuit Community,A client decided to rent out a room in his home starting January 2024 (this is a long-term rental not AirBnB), and the tenant gave him the first-month rent in December 2023. I read everywhere that it needs to be reported in 2023. But how does he?How does he declare that on his taxes?  Does he need to create a Schedule E? What about depreciation? The room became available for use in January, not December. Thank you for your support!