Talking with TaxSpeaker (Video 103)
1. Has the deadline passed to file an amendment to a 2016 return that was timely filed? I am not sure if any of the 2020 deadline extensions apply to amending returns.
2. Bob-Thanks for the work you do. Quick questions Clients advisors made a $66,000 profit in 2019 trading Sec 1256 contracts (covered calls). and charged him roughly $305,000 in interest and fees. I am being told $500 can be allocated to interest. Client is not a professional trader. Any way I can deduct the fees?
3. I just signed up for the PPP Loan Forgiveness Webinar on the 17th. We have this debate going on in our office about the whole thing of the loan forgiveness not being taxable and then the IRS comes out and says, the loan forgiveness may not be taxable but what ever expenses the loan was spent on is not deductible. I was told that they were going to address that in the bill the President is supposed to sign this weekend.
4. I'm getting conflicting information on who can contribute and deduct the amount for an HSA. Insurance companies have a different approach to who's eligible. What are the IRS requirements for contributing to an HSA and can they contribute if they purchase a health insurance program that is not an "HSA" program?
5. How do I justify fee increases, with the economy so bad….This regards my monthly bookkeeping customers who need an increase
6. Do you know if there is a level of service a CPA can provide to a client where we provide them with financial reports that aren’t subject to peer review?
7. On the 3 year deferred taxing of the IRA or pension distributions – are they taxed at the rate in the year that they will be reported on the return or at 2020 tax rates when they actually received the distribution? We are getting conflicting information on this.
8. I watched your June 2nd questions. We need clarification on gross wages for our clients. You said employers cannot claim the employees part of the health insurance deduction on our calculations. But aren’t these deductions part of the their gross wages. Is the “gross wage” figure used before health insurance or retirement deductions.
9. He has one employee. On April 9 she was in a car accident (not her fault) and her vehicle was totaled. The other driver was distracted (maybe due to worrying about Covid related things, maybe not). She received $12000 from insurance for her totaled vehicle. Due to the scarcity of vehicles (Prius) from all the COvid problems – the only Prius she could find with the same year and same mileage as hers was $23000. My client needed her to come to work as she is an integral part of his business. He ended up paying the difference of $11000 so she could have a vehicle to get to work. Would this qualify for the disaster relief payments?
10. For the Employee Retention Credit, assuming the business did not receive a PPP loan, had less than 100 full-time employees, and was at least partially closed due to a governmental order: do all wages paid during the quarter count for the credit or only wages paid during the time of the partial suspension of business?
11. I have seen several engagement letters floating around calling the completion of the PPP loan forgiveness documents an “agreed-upon procedures” engagement. Would this then become an item subject to peer review? I have pruned my practice and no longer offer services subject to peer review and am hoping this is not a pothole to fall into.
12. If, in gratitude for performing some rite, the rabbi receives an amount, put into his “discretionary fund” at the synagogue, used for things like people coming to him, in need of money for food, is that subject to SE?
13. If church erroneously pays the clergy’s FICA/medicare, I understand that it gets added to box one wages. How does it affect SE tax calculation?
14. My client is a licensed plumber with 60 employees on Oahu and Maui. The plumbers use company vans to drive to and from their jobs. This client is in the process of applying for PPP loan forgiveness. Does the cost of fuel qualifies as a "utility" payment?
15. Are we prohibited from charging our clients for the PPP loan forgiveness application as well as the initial loan application? The law says at 1102(a)(2)(36)(P)(ii) "An agent that assists an eligible recipient to prepare an application for a covered loan may not collect a fee …” I was under the impression the PPP loan forgiveness application falls under this definition. Your thoughts on this matter are much appreciated – thank you so much for all you do!