Tax Talk

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Hello  I need some advice, I have a LLC (1 owner) last year a new accountant filed my taxes using a 1065 form and the irs sent me a paperwork that something was wrong and when I called they said that I need to file a 1120s . my company is an LLC ( 1 owner) I was always filing using an schedule C however when I asked my accountant he said that everyone was getting the form because the irs made some changes but I think he is wrong….My company have 1 owner only and I should file a schedule C , when  explained to the irs they told me to file a 1120 I don’t understand neither 😕😕 Maybe I didn’t explain it correctly. now the letter I attached say to contact them and let them know but I never did because like I mentioned above the accountant told me is ok… what should I do for this year ? Because the bank for a house loan told me that I should file 1120 to save some money instead of schedule C but the accountant is telling me that He can’t do 1120 until

Has anyone else seen one of these?  Seems to happen when paper return is filed with payment. https://procedurallytaxing.com/making-additional-work-for-yourself-and-others/

I have a client who is making  500K in Real Estate under his LLC. He is wondering if he could eliminate that gain with 500K Capital loss in stock market. 

Looking for any pointers or information from anyone who has filled out one of these forms. Thanks Sandy  

Situation -  Grantor created a living trust in 2014 and the only asset in the trust was his primary home.  He passed away in 2019 at which time the living trust became an irrevocable trust.  The Trustee sold the property in 2021.  With CA property values going crazy, there is gain above and beyond the step up value.  Questions:1.  Can the Trust get the benefit of $250k of Sec. 121 exclusion.  Some articles suggested that the exclusion is available to Trusts if it would have been available to the Grantor.  2.  If "yes" to Q1, will this be on top of the step-up?3.  Lacerte has no check boxes for sale of home and the use test on the 1041 returns like it has for the individual returns.  Any suggestions on how to put it thru the software if this is a legitimate deduction?4.  For any residual capital gains, can it be distributed to beneficiaries, or does the Trust have to pay the taxes at the highest rate.Thanks in advance for

Hello everyone! Hope someone can help me here. For a military family who's home of record is NC but moved to NY in August due to military orders, do I need to file a NY state return at all? I went blank for a minute.Service member (husband) got his w2 with NC incomeWife worked only in NC until May, no income in NYResidency dates:NC 01/01/21 - 07/31/21NY 08/01/21 - 12/31/21

I manage, and partially-own, two family S corps with 53% overlapping ownership.  The larger S corp is clearly in the real estate rental business with 30 tenants.  The other just has cash but plans to buy a rental property. Would the single-tenant S corp qualify as a business for purposes of the qualified business income deduction of section 199A?  What if it buys a NNN property, then would my involvement in the real estate business combined with the overlapping ownership put the single-tenant S corp in the real estate rental business too?  This is like driving in a blinding snowstorm.  Tax law sucks!

Client has a whatever amount with 3 dependents on her 6419 letter. Clients partner now wants to claim 1 of the dependents for their own 2021 tax return. Can i split the amounts from the letter 6419 to the clients partner? or does the client have to report the 6419 as it is and have the partner claim 1 dependent? 

My client became an execuator of a trust in Jan 2021, Grandma (grantor, she's still alive) created the trust in 1997 and was the execuator all these years until Jan 2021. My client sold the rental property in Sep 2021. What should be the basis of the rental property? is it the original purchase price plus adjustment? or stepped up FMV?

I'm not able to file the state of SC tax return efilings for 3 weeks, are there any other states that Intuit doesn't have ready for 3 weeks?

Did anyone attach the form 8915E Qualifying 2020 Disaster Retirement Distributions and Repayment?If so, will this form auto generate from 2020 to 2021? I have about three or four clients that opted to spread over 3 years and if it isn't then I will have to get the information from the 2020 return and enter on the form. ThanksSandy

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A colleague was reapplying for her efin after not using it for 3 years, and the EFIN status says EFIN dropped. Doe anyone know what that means?

Hi, Im trying to electronically file a tax return using Pro Series . On the Federal Information Worksheet , section VI is requiring a response for the Practitioner PIN Program. My taxpayer client doesn't have a pin so is it best for me to use my ERO pin or automatically generate a PIN? I used crosslink last year, this will be my first year using Pro series. Help with this matter is greatly appreciated .   

Trying to find out if seminar attended was correct regarding California form 3893. Seminar stated If paid by S-corp for 2021 the payment amount would pass through on the K-1 to shareholder as a state estimated tax payment. However, as of today I do not see amount paid on the K-1 but as an estimated tax payment for the S-corp. What say you?

I am licenses for 20 1040 returns, however when I go to print my first return  ProSeries wants to charge me $49.00.  Help.Thanks Joe 

The earned income tax credit worksheet states 2019 earned income to calculate a higher amount, but it automatically transfers over the 2020 amount.  It does allow you to manually put in the 2019.I have looked all over and cannot find the scenario that best describes my clients situation.  If the taxpayer used the 2019 income on the 2020 tax return to calculate the eitc, can it be used again for tax year 2021.

Proseries Schedule C form is not reflecting the allowed 100% restaurant meal deduction for 2021. It is still showing only the previous year's choices of 50% and 80%. Does anyone know if this form will be updated or of an allowed workaround to give clients the 100% business restaurant meal deduction?

I have read part A in Schedule 8812 and am still a bit confused. Does this mean that any client who has lived in the US for all 2021 qualifies? Or is this only for clients who travel to different countries and earn foreign income? So confused. 😭

I am working on a tax client return and see the CTC is only 1400 is this an error in the system. To my understanding, the credit should be fully refundable. The refund should be 3,000 for CTC. Or did I not understand this correctly?

Trust received income for 2020 but none was distributed.  It's my understandig the Trust pays the taxes and distributions become part of the Trust principal.  Is that correct?  Also, Trust received K1 with loss in box 1 but distributions in box 19.  Do I declare distributions only on 1041? Thank you

 can  tax payers claim his girlfriend on his tax return.

C Corporation client didn't file 2017 Form 5500 and now the penalty is nearly 12K.I have read about the VFCP. Late filing, or non-filing, of Form 5500 is not a listed fiduciary violation. Is my client ineligible to apply for the DFVCP?  Is there a provision that would allow them to participate?The benefit of the program is that paying the minimum $750 DOL penalty removes the big penalty. I hope this is true.As policy, it would be right to allow a late filer the same option to reduce a big penalty as bigger fiduciary violators get.EDIT #1: The plan sponsor also didn't file 2018 and 2019 and is subject to penalties of 2k and 70K, respectively.  That is right - SEVENTY THOUSAND.  I know that the First - Time Abatement is an option but this can be used once. So, using it to delete 12K and leaving the 70K open isn't a smart plan.#2 If you think one of the IRS debt relief or tax defense firms, I'd like your opinion.

I am having trouble with the IRS Fire system.  It was to reopen 1-5-2022 after maintenance.   I can log in (my user name qualifies under requirements) but it is very slow and at various times gives me the "Fire System Error" that an internal error has occurred and I have been logged out & to try again.   it happens over and over.  I once got as far as attempting to upload a 1099 file & thought the problem was solved, but then this same error message appeared.   I called in to the phone # provided & waited an hour, then had to leave for an appt.  Any thoughts/suggestions?