Tax Talk

Hi, I filed a joint return with a non resident spouse. The federal return was successfully processed and issued a temporary ITIN. The state return is looking for a permanent ITIN. The taxpayer won’t be filing anymore tax returns, so what’s the best way to get an ITIN at this point?The W7 needs to be attached to a tax return. Do I do an amended return with no changes but note it’s to file the W7? Thank you

Does it seem that lately the IRS email subscriptions, say the Newswire, seem more as cheerleader messages for DJT.  “Following the passage of President Donald J. Trump’s landmark Working Families Tax Cuts”, or about the SSA commissioner who is donating to the Trump Accounts.  Guess their purpose now is to buy a lot of chapstick.

It has come to my attention that derogatory comments have been directed at me by Intuit employees in an area of this website to which I am denied access.  If others could pass those along to me, I would appreciate it.  It should not be that difficult to figure out my address, either on a0l or g00gle .

From recent draft.  How much due dilIgenCE is expected from us on this one?   

IRS opened the 2027 PTIN renewal season.  I like to renew soon as I can so not missed.  All set for 2027.  

Client is a full time SC resident, working for an airline in NY., client has been on SSDI all of 2025 and hasn’t worked for two years. For  2025 client received a W-2  showing federal and NY state income only. Social security issued form SSA-1098  We approached payroll and they have not responded, my question  can I filed just showing the SSA income and ignore the W-2 and deal  with it if they send a letter, or wait to see if payroll corrects with another W-2.

I have a business client who has a partnership and usually files his return with me, his business is based in Congo, Africa. He commented to me that he is going to be receiving a bank transfer of a large amount of money (about $10 million) to his company bank account, this is due to some punitive damage compensation. I asked him for more information regarding the compensation, his main question was how this would affect his business tax return, because he is aware that he must report this. 

Proseries

I have a New client that has an S-Corp that has not been profitable. He started it in 2019 and then Covid and he never paid attention to it until recently. We recently filed 7 years of returns, and he has been hit with multiple penalties.. Upwards of $7K..  Has anyone had any experience with requesting for a reduced amount? is there any forgiveness I’m missing?

Hoping there is someone out there smarter than me in this area, becasue this is my first AirBNB business.I have a client that bought a small home with acreage attached to it 2 years ago.  The house was in sad shape - no real floor for example.  They began to renovate it, then once they had it completed, they began to build their dream home on the acreage next to it, and completed the new home last year.  They finally decided to turn the original home into an AirBNB. So here is the nitty gritty.  They purchased the home for $190 (deleting zeros for expediency).  The improvements they added before they moved in and while they were living in it BEFORE they decided what they were going to do with it total $237.  When they did an appraisal last year, the property appraised for $290, with the land being $35 of that value.  Once they decided it would be an AirBNB, they also made improvements and purchases for which I’ve accounted for on the return.  But what do I do with the improvements that

From the Washington Sun:Trump administration officials are preparing to launch an AI-driven website as a clearinghouse for Americans to get services from the federal government. The functions being discussed for the new website include allowing Americans to obtain and renew their passports and file taxes for free on a simple digital portal.The website, dubbed America.gov, is still in planning stages, according to six current and former U.S. officials familiar with the matter. A multi-agency launch is tentatively planned for the end of September, one current official said, cautioning the timing could slide. Several prominent former members of Elon Musk’s Department of Government Efficiency, installed in key roles across government, are involved with the effort.Some of the features under deliberation would mark a dramatic reversal for the Trump White House.  The Trump administration last year killed a program launched by the Biden administration that allowed some Americans to file their

In 2025 the estate had expenses for Property taxes of $3,000 and some postage expense.  No income was received and in 2025 there were no distributions.  Is a 1041 required to be filed?  If not required to be filed, should I file one anyway?

S Corp installment sale - for part of the sale.  I allocated the selling price to the different classes of assets do I have to do the 6252 for each asset class or is there a way to bulk the SP and the principal payments received to 1 asset class?

Client uses a cabin for 20 days in the year and lets caretaker use it all other days in return for some maintence work valued at $2800. She says days rented are 345. In this case all losses are allowed because personal use is less than 10% of days rented. But since the ‘rent’' is below market, the limitation should apply. I can't seem to force the loss limitation and don't want to change the usage days client gave me or claim the activity has no risk, the only two ways I can see to force the loss limitation. Any ideas??

Hi EveryoneMy client sold her rental property it has four units. She lives in one unit and has for the last 30 years.Not sure where to enter the exclusion in ProSeries for her unit this is her personal residence.Please Advise. Thank YouBarbara 

does anyone have step by step instructions on how to input the data correctly so that NY state info flows into CA sch S?  I’m not getting the correct info on ‘Sch S Thank you  Eileen

Client purchased a new  qualifying electric vehicle on 9/3/2025 from a large GM auto dealership.    Auto dealership failed to file a “time of sale report” or “clean vehicle seller report” with the IRS.  Could the seller still file the required report today?  If not, is there anything that can be done to claim the Clean vehicle credit for the qualifying vehicle purchase?  

Case: The taxpayer formed a single-member LLC (SMLLC) in Delaware and previously lived in Delaware. In early 2026, he moved to California and became a California resident. He does not want to close the Delaware SMLLC and intends to continue operating the online business and selling products through the Delaware LLC while living and working in California.My question is: What steps does the taxpayer need to take in California with respect to the Delaware SMLLC? Specifically, does the Delaware SMLLC need to register as a foreign LLC in California, and would it be subject to California's $800 annual LLC tax and any other California filing or tax requirements?Thank you so much!

2018 is no longer available in Proconnect.  Is anyone aware of any software's that will produce a 2018 return that can be paper filed?

I have a number of clients which are due large refunds.They have received NOTICE CP 05 from the IRS. They have provided their identification informat. It has been well over 60 Days but still no refund.Any idea whom I could contact ? Has anyone else experienced this issue ? Thanks,

I have a partnership business who received an ERC in the amount of $27K less fees they paid to a third party of $4K to obtain the credit. Net taxable income of $23K Here are the facts:ERC related to Qtr. 1 2021Date ERC award received September 2025Partnership sold 10/31/24 Sold book of business and telephone number to another law firm .Another fact the Partnership had a business loss in 2021 so amending would not create additional tax liability and carryforward losses through 2024 filingsThe original IRS direction was to amend the return that the ERC relates to but I am not thinking that makes much sense since the business is no longer operational and that would impact several returns to be amended for all the partners not to mention the tax year 2021 is closed for amendments. What I think is the best course of action is that the partners report on Schedule 1 of their 1040 their respective share of the ERC award offset by the expense incurred to receive the credit. I cannot find any IR

I filed a 2025 return for a married couple filing each as married filing separatelyI filed the wife with itemized deductions. I then completed the husbands with itemized  deduction information .But accidentally on April 15th I filed it with .a standard deduction.After receiving a letter disallowing from New York disallowing the inconsistency in claiming different deductions.I filed an amended Federal and New York return for the husband with the additional payment required.New York continues to claim both both husband and wife must file with the standard deduction.The wife has significant deductions and the net tax is less if they file MFS.Should I re file ?  

Fact pattern — individual taxpayer, calendar year 2025:• Sole proprietor developing a patented consumer product. Pre-revenue, no gross receipts.• Domestic R&E expenditures in 2025 (patent prosecution fees, outside CAD/design work, prototype fabrication).• The 2025 Form 1040 was timely filed by 4/15/26. No extension. The activity was not reported at all — no Schedule C, no deduction claimed.• Taxpayer now wants to elect under §174A(c) to capitalize and amortize rather than take the §174A(a) current deduction.1. Is Reg. §301.9100-2(b) relief available on these facts? The return was timely filed, but the trade or business was never reported on it. Does "timely filed its return for the year the election should have been made" carry, or does omitting the activity itself create a problem? Plan is a 1040-X adding Schedule C plus the election statement per Rev. Proc. 2025-28 §6.02, with "Filed pursuant to §301.9100-2" on the filing.2. Is §174A(c) a statutory election? §174A(c)(2) fixes the

In tax year 2023 we did a Roth IRA rollover from one brokerage to another. In 2026 we finally determined that the rollover was mis-characterized as regular IRA. I can see this on the 2023 1099-R, but it didn't occur as an issue because we have not taken any distributions from the IRA account. The current brokerage is no help sorting it out. the original rollover distribution checks also do not specify that the source was a Roth IRA account. One suggestion has been IRS form 8606 to describe any distribution as not income, but i believe the year-end 1099-R  would describe it a taxable income. Does anyone have a similar experionce? I believe the time lapse of the 3 years (2023 tax year) puts us in a bind.

TP received CP59 Notice for 2024 tax return but we have acceptance from IRS inside Lacert along with submission ID.  Do I need to call Lacert support first?