1. When amending a personal tax return's filing status from MFJ to MFS, is the deadline the original due date or the extended due date?
2. I am stumped. We use UltraTax. I have a tax return. Schedule C income of $16,652 and schedule E income from an LLC for rental real estate of $42,516. AGI is $59,168. The SE deduction is $1,177. The taxpayer had health insurance through the exchange. The enrollment premiums were $7,923. They had a credit of $4,955 which they repaid in full on the originally filed return. On the originally filed return, there is a self-employed health insurance deduction of $7,923. Recently, the taxpayer told me they made $2,000 deductible IRA contributions. I went in to amend the return to ad the $2,000 IRA contribution. With this contribution, UltraTax is now only allowing a self-employed health deduction of $4,721 but the taxpayer is still repaying the full $4,955 of advance credit. It seems to me that the self-employed health deduction should still be the $7,923. What am I missing? I am trying to figure out why the health care deduction is reduced and there is a balance due on the amended return after including the IRA deduction.
3. We are considering outsourcing some bookkeeping data entry and tax returns to GKM. There seems to be some discussions that if they log into our system, software, and we house the data, you don’t have to disclose to client. We are looking for your recommendation or thoughts on this but also where on your website we could find some examples or information. We couldn’t find exact information. Seems to be differences of opinions on this. Thank you for your assistance.
4. Why is it not acceptable for guaranteed payments to a partner to be shown on a w-2? I thought that the IRS would like it more that the withholding is being paid in every pay period. If a partner does pay guaranteed payments on a W-2, are there any penalties if the client is caught? (or will the IRS just tell him to stop?)
5. IF AN LLC WAS FORMED IN 2016 AND FILED AS A PARTNERSHIP FOR 2016-2018, IS A NEW ID# REQUIRED IF THEY DECIDE TO ELECT S CORP STATUS? WHEN DOES THE S CORP OFFICIALLY START, AFTER FILING 2553? THANKS
6. I attended a tax seminar with Bob Jennings and made mention of a website that you can list your availability and an hourly rate and accounting firms can outsource work to you. I wanted to find out if you have that website available?
7. I have an ongoing advisory engagement with my client that involves assisting the client in preparing an internal plan for growth and improving profits. Part of this plan includes financial statement projections for monitoring its internal performance. The assumptions for the projections will be determined by the client and I will utilize the software to assist in the creation of the forecast and help monitor ongoing performance. It’s actually outsourced CFO services. What reporting language is required for these projections—if any?
8. With the way the IRS requires high education institutions report the “actual payments received” versus the actual cost of the education on from 1098T, when filling out American Opportunity Education Credit does it really make sense that we need to reduce box 1 “actual payments receive” by box 5 “scholarships/grants” when they have nothing to do with the reported “payment amount”? The education costs have been reduced by the scholarship/grants already. Seems like a double deduction?
9. Received a letter (collection attempt) from third party collection agency claiming to be working on behalf of IRS. -The letter said they were just that, a 3rd party collection agency, and it provided the Taxpayer name, tax year for debt, and amount alleged owed. The letter said that the money should be sent to the IRS KCSC, so I don’t doubt it’s voracity. What I’m wondering though is, don’t I need an original, wet signature authorization to even accept this 3rd party communication. I believe I have an obligation to return it to them stating that I can neither confirm or deny a relationship with the party mentioned and that I cannot accept the collection letter. To me, not returning it suggests that I am accepting it, and intimating that they are my client. In the end, I see this as an illegal disclosure to a third party, and a violation of “Fair Credit”. Any advice/comment/recommendation for a therapist?
10. I have a sinking feeling I know the answer, but I’d like to be sure. I have a client, a partnership, that is a partner in a couple of other partnerships. Each investment partnership is listing about 30 QBI activities. My client has a 0.06% interest in one investment and a 33% interest in the second. Do I need to list each of the 30 activities from each partnership on my clients’ return and, on the K, -1 of the 12 owners of my client partnership?