|
Amazing.  The 1099 is to uncover the tax fraud they've been committing. It will force them to report it in their taxes as income, hopefully triggering an audit. This was big kid lawyer territory years ago.
|
#
?
Aug 1, 2021 21:40
|
|
|
|
| # ? May 10, 2024 02:32 |
|
|
 @ the passive-aggressive accounting revenge
|
|
#
?
Aug 1, 2021 21:44
|
|
|
You need a lawyer, not an accountant.
|
|
#
?
Aug 2, 2021 00:07
|
|
|
PatMarshall posted:You need a lawyer, not an accountant. Absolutely this.
|
|
#
?
Aug 2, 2021 00:14
|
|
|
I submitted my taxes before the "your first $10,200 of UI income is not taxed" was passed and ended up paying taxes on it (even though I specifically requested the taxes be taken out as I received the UI - but anyways). I got a notice dated June 14th that I was now due a federal refund on them to the amount of $942, and that I'd be seeing a cheque in 2-3 weeks. It's now been... longer than that and I haven't received anything. I keep trying to call them but can never get through due to high call volume, they just hang up on me. I've gotten through to them once, on July 20th. The woman told me the cheque was mailed on June 7th and if I didn't get it the next week to call back so she can trace it. It can't be tracked through the "where's my refund?" tracker because it's not part of my regular return. Is there anything I can do? Or do I just keep trying to call and hope to get through eventually?
|
|
#
?
Aug 2, 2021 15:18
|
|
|
Night Danger Moose posted:The woman told me the cheque was mailed on June 7th and if I didn't get it the next week to call back so she can trace it. It can't be tracked through the "where's my refund?" tracker because it's not part of my regular return. Is there anything I can do? Or do I just keep trying to call and hope to get through eventually? The assistor you spoke to previously should have verified that the address the IRS has on file for you is correct. If it needs to be updated and that hasn't been done yet then when you call back make sure you have a copy of your tax return and the supporting documents (W2s, etc) because they may need to ask some additional security questions to make that change and those questions would come from the return. Unfortunately in this case there's nothing you can do other than call back if you haven't received the check within the given time frame.
|
|
#
?
Aug 2, 2021 16:34
|
|
|
Oh both sides have lawyers. Mr Hatfield often forwards me the email s from his lawyer and CPA, relevant story the first CPA's report was lacking as I understand it the CPA just checked paper invoices against the QB files. The 2nd CPA did a very good report where he basically listed out "over drawn distributions and personal expenses" oddly this isnt fraud but legal its viewed as a loan that has to be paid back. Then some drama happened with that CPA, and now he s hired a some big name firm to generate a 3rd report. So basically there will be 3 experts to back up his claim. And I am not seeking legal advice on behalf of anyone, this is comedy forum after all. Emphases here is that I am not familiar with 1099 as it relates to a partnership. after all McCoy is entitled to 30% of the partnership profits. So would a 1099 just get thrown in a trash can or would it create real issues. Again this is for my own interest I m not about to tell a man what to do based on what this forum says I basically grew up around these two families and provided an extra set of hands on their properties in the summer or when they would have to do a rather busy turn etc. There is a gently caress ton of drama here which I most likely wont be able to write up in a entertaining fashion. The super short version is that two families did business for decades then the elders start to pass, and now their kids have decided they want to unwind things. One felt that a proper appraisal and cpa audit were best so no one could claim tom foolery later. the other well yelled about avoid social security tax and how his capital accounts were over drawn, then the legal threats, the finger pointing oh and a great saga about stealing utilities to grow weed. I did pay 200 for a 30 minute consultation with a lawyer since I got a depo notice. I was told rule 1) tell the truth dont spine a story for what ever reason (help or hurt) a made up story will fall apart in court. The other was the answers are "yes/no/I dont know/I dont remember" and then something about hersay. Since the elder in the family passsed away there is no point in me talking about what the dead man told me, because its loving hersay.
|
|
#
?
Aug 2, 2021 17:39
|
|
|
I love it. The 1099 is because they aren't actually taking loans in they don't do the accounting for it and pay it back. This is them spite saying "play dumb games with the bank account? Guess what it's income not a loan." This means that they have to talk to the IRS in some way - either pay the taxes on it (marginal + self employment tax, plus state, easily $30k) or telling them on a sworn statement it's untrue. If they do the latter this becomes a criminal issue for SOMEONE if no one backs down and says "oops, wrong form! Accounting is hard!" or pays the taxes. If they continue to be obstinate it will eventually hopefully get them audited where they can explain why all of the comingling of assets were actually business expenses or loans from the partnership. One assumes that they are bad at tax fraud and won't have backing documentation for this stuff. (Logs of business use for the gas for example.) Any experienced investigator will see straight through a log they generated just now to cover years of expenses. Then again this is complicated rich people problems and the IRS is broke. 
|
|
#
?
Aug 2, 2021 18:21
|
|
|
Wouldn’t issuing a 1099 for unreceived services artificially reduce the taxable income of the majority partner and just end up creating a whole separate mess? If it’s fraud then they need to press charges or start some sort of legal proceeding and claim the losses, otherwise it’s just a capital distribution. Idk that’s my non-accountant take.
|
|
#
?
Aug 2, 2021 19:18
|
|
|
As H110 said, the 1099 is about trying to screw the other party by making them pay taxes on the excess money they took (and perhaps generating a partnership deduction for it). When you issue a 1099 to somebody, you send a copy to the IRS so that they have that information too, and they have a computer program that matches 1099s in their system against the tax return filed that generates notices. Doing that in retaliation would complicate the fact pattern for the lawsuit and I can't imagine any lawyer thinking that is a good idea.
|
|
#
?
Aug 2, 2021 19:46
|
|
|
I mean if you cancel a debt, that's income to the party whose debt is cancelled. If party B "borrows" money from the partnership and so the partnership "cancels" that debt, guess what, it's income to party B for the year the debt is cancelled (unless certain conditions apply). 1099-C is the form used to report cancelled debt.
|
|
#
?
Aug 3, 2021 02:42
|
|
|
I finally got our return that we filed in mid March, so there's that. We had a prorated stimulus check in 2020; this triggered an automatic manual review and so there was no recourse except to wait in line. Ultimately it appears the IRS decided they owed us $100 more than our tax preparer had concluded. I first noticed that our return had gone from "accepted" to "in review" at the end of last week, and as of this morning it showed an 8/4 date for fund release, already available according to our bank. I believe this also means we're now means tested out of the $300/mo child tax credit we had only started getting, we'll see. We have two kids now, so it's either going to go to $600/mo or $0, and I believe it will be $0 based on the AGI on the return they just processed.
|
|
#
?
Aug 4, 2021 15:12
|
|
|
Cabbages and Kings posted:I finally got our return that we filed in mid March, so there's that. We had a prorated stimulus check in 2020; this triggered an automatic manual review and so there was no recourse except to wait in line.
|
|
#
?
Aug 4, 2021 16:28
|
|
|
My SO and I both paper filed around May 10. (Single, separate returns, mailed separately.) I owed money and included a paper check with my mailing which was deposited on 5/17. She is due a refund and included direct deposit information on her return, we have not received this yet. We are now in the middle of a refinance and underwriting is asking for proof that we filed for 2020. Specifically, they are asking for the canceled check for me and proof of direct deposit for her. When she checks "Where's my refund" there is no record of her return: quote:Refund Status Results When I login to the IRS portal I have a message: quote:Your 2020 Tax Return Is Not Processed She hasn't registered for an IRS portal and checked there yet, but assuming it shows the same as mine... 1. Should we be worried about either return not actually having been received, or is this just IRS backlog? 2. Is there any way to get confirmation that her return is somewhere in the queue being processed (that we could share with the bank), or anything other than a screenshot that makes it look like her return wasn't actually mailed? Edit: bonus 3rd question: The direct deposit information is for a checking account that we would like to close. Is there a way to update this with the IRS? If the account is closed will they (eventually) mail a paper check? Or do we need to keep the checking account open until the return is processed? BabyJebus fucked around with this message at 00:06 on Aug 6, 2021 |
|
#
?
Aug 5, 2021 23:48
|
|
|
BabyJebus posted:1. Should we be worried about either return not actually having been received, or is this just IRS backlog? 1. maybe 2. no 3. no
|
|
#
?
Aug 6, 2021 01:22
|
|
|
I also mailed my paper return in May and have the same website message that my return is not processed. I wonder if it's because I filed with my s/o for the first time and we messed something up. Would be nice to know if the mail was actually received. Good system.
|
|
#
?
Aug 6, 2021 01:51
|
|
|
This is why you should not paper file your return unless you absolutely have to. And if you absolutely have to, send it certified.
|
|
#
?
Aug 6, 2021 03:44
|
|
|
Dumb question before I make an estimated tax payment. On my 2020 return I carried over say $10,000 in short term capital loss on whatever worksheet that was. Now here in 2021 I've had a $15,000 short term capital gain and a $20,000 long term capital gain ($35k total, I'm making these numbers up.) Can I apply the whole carryover all at once? I'm not limited to $3k? If so, can I match tax treatments? I assume the answer to all of the above is "yes". Math: $15k STCG - $10k STCL Carryover = $5k STCG + $20k LTCG
|
|
#
?
Aug 11, 2021 16:54
|
|
|
H110Hawk posted:Dumb question before I make an estimated tax payment. On my 2020 return I carried over say $10,000 in short term capital loss on whatever worksheet that was. Now here in 2021 I've had a $15,000 short term capital gain and a $20,000 long term capital gain ($35k total, I'm making these numbers up.) Your understanding is correct. I’ll bill you the tenth of an hour later.
|
|
#
?
Aug 13, 2021 03:12
|
|
|
Ungratek posted:Your understanding is correct. I’ll bill you the tenth of an hour later. Sweet, thanks!
|
|
#
?
Aug 13, 2021 03:24
|
|
|
Can you contribute the 19500 max to an employer 401k plan and contribute to a solo 401k plan from a side llc? If so is the max for the solo different because of the other plan?
|
|
#
?
Aug 15, 2021 19:39
|
|
|
FateFree posted:Can you contribute the 19500 max to an employer 401k plan and contribute to a solo 401k plan from a side llc? If so is the max for the solo different because of the other plan? The 19,500 max is for employEE contributions across all 401k and 403b accounts. You can contribute as an employER on top of that via a match and/or your own businesses to the overall max of $58,000 all-in (so $38,500 extra). This doesn't include the catch-up contributions after a certain age. To put this into practice, you can max out the 19,500 in a main job 401k, then calculate what's coming in from a match, and then fill in the rest of the space as your own employer for a solo 401k depending on how much you earned. I'm not a finance professional or tax professional so check with one to verify if it makes sense for your situation. \/\/\/\/\/ plus what a fellow physician said just below to be more specific. Thanks! balancedbias fucked around with this message at 20:25 on Aug 15, 2021 |
|
#
?
Aug 15, 2021 19:55
|
|
|
FateFree posted:Can you contribute the 19500 max to an employer 401k plan and contribute to a solo 401k plan from a side llc? If so is the max for the solo different because of the other plan? balancedbias posted:The 19,500 max is for employEE contributions across all 401k and 403b accounts. To add to this, the maximum you can put in to the employER side of the LLC 401k is approximately 20-25% of what you make from the side gig.
|
|
#
?
Aug 15, 2021 20:04
|
|
|
The IRS sent me a letter. Apparently they owe me a $1200 refund check, which they say they sent (must have been to an old address) and it expired. I'm supposed to call them for a new one. Only: I called the number on the letter and the phone tree gave me no relevant options. I went with a non relevant option. It took me five tries of this - waiting on hold for hours and hours - until I finally got someone on the line, who said she couldn't help me because it isn't her department. So she transferred me to a different line (a number not listed on the letter I received.) I waited on hold for another 1.5 hours, then got silence, punctuated only by the distant sounds of a crying baby. I am not making this up. Every other time I have called either line, I wait on hold forever after navigating the world's most infuriating phone tree, and then get "our lines are too busy. goodbye!" and it hangs up. I tried making an appointment at the Boston IRS office but their line does the exact same thing, and you have to get an appointment to go in. Is there anything I can do? I'm considering getting a CPA or lawyer involved but I dunno if there's anything they can do, and it might also end up costing me most of that check.
|
|
#
?
Aug 15, 2021 23:43
|
|
|
KOTEX GOD OF BLOOD posted:The IRS sent me a letter. Apparently they owe me a $1200 refund check, which they say they sent (must have been to an old address) and it expired. I'm supposed to call them for a new one. Instead, if you are still eligible for that money based on your 2020 filing information, you should claim it as a Recovery Rebate Credit on your 2020 return. If you've already filed that return and claimed the credit, you should get it as part of the 2020 refund (or it'll go toward your tax balance due if you owe money). If you have already filed your return and did not claim the RRC, you should check to see if you're still eligible (you can either fill out the worksheet in the 1040 instructions or read over the eligibility rules for the RRC on IRS.GOV). If you're eligible but didn't claim it on your return and the return's already been processed, you can call to either have it corrected over the phone or file an amended return to claim the credit though with the amended returns they normally take up to 16 weeks to process and may take longer with the current on-going backlog at the submission centers. Also, as far as getting an appointment at a local office, the appointment line is open 7AM-7PM so you might have better luck getting to a live assistor if you call early or late in that timeframe. As far as getting a CPA or a lawyer, if the above is what's happening there's really no point as there's nothing they could get done any faster than you can. They'd just be charging you for taking the same steps above.
|
|
#
?
Aug 16, 2021 00:16
|
|
|
Thank you for this EXTREMELY helpful information. It sounds like filing an amended return is my best option. I really appreciate your help. You have saved me a ton of headache. The joke is that I'm just going to turn it around to pay off what I owe for exceeding projected income on my health plan, but whatever, I'm not gonna spend another hour on the phone about it. I'd rather get the check, cash it, and write another check, lmao. What a highly functional agency. KOTEX GOD OF BLOOD fucked around with this message at 01:58 on Aug 16, 2021 |
|
#
?
Aug 16, 2021 01:55
|
|
|
KOTEX GOD OF BLOOD posted:Thank you for this EXTREMELY helpful information. It sounds like filing an amended return is my best option. I really appreciate your help. You have saved me a ton of headache. Also, it sounds like you have or are anticipating owing a the IRS a repayment of your Advance Premium Tax Credit. If that's the case, you can note on the 1040X form that you want your refund applied as an estimated tax payment to a specific year. Refunds with a RRC have been handled inconsistently as far as the normal automatic refund offset process, but if you select it as a credit elect and say you want it applied to a specific tax year that should get it treated the way you want and save you the hassle of getting the check just to resubmit it as a payment. If you owed the APTC balance for 2020, doing it that way might even save you some money as the amended return refund would be treated as a payment made on the due date of the original return and would result in reduction of the penalties and interest based on the payment having been made on that earlier date. Peyote Panda fucked around with this message at 02:35 on Aug 16, 2021 |
|
#
?
Aug 16, 2021 02:30
|
|
|
If you are eligible to file your amended return electronically, do not file a paper amended return. The processing steps and associated delays are much greater.
|
|
#
?
Aug 16, 2021 06:04
|
|
|
so if I still havent gotten my refund, I should be gearing up for an audit right.
|
|
#
?
Aug 16, 2021 15:10
|
|
|
I finally got my refund after sending early April. Looks like there was some confusion for that line 30 (1040) about the recovery rebate. I’m pretty sure eztaxreturn was asking what I received ($1800) but it entered it as what I still need so my refund was listed $1800 too high. Probably why it took so long. The wording on some of this stuff really sucks sometimes. I assume if I got the return I don’t have to worry about a future audit or anything?
|
|
#
?
Aug 16, 2021 15:22
|
|
|
Discendo Vox posted:If you are eligible to file your amended return electronically, do not file a paper amended return. The processing steps and associated delays are much greater. Also if you did owe APTC for 2020 the IRS has now suspended repayment for 2020 only. You won't have to file an amended return for that alone if it applies in your case (the IRS is making adjustments for that automatically) but if you are filing an amended return for other reasons you can include that adjustment as well. Shageletic posted:so if I still havent gotten my refund, I should be gearing up for an audit right. You'll definitely want to make sure you have all your paperwork in order - even if there's not a full audit the processing center may ultimately need some additional information to complete processing the return - but the delay is not itself an indicator that you're going to be going through an exam. Is there anything showing on Where's My Refund?
|
|
#
?
Aug 16, 2021 17:18
|
|
|
Okay, maybe someone can explain this to me. Our AGI in 2019 was under 150k and we had one child at that time and the first COVID child tax credit payment we got was $300. This was before our 2020 return had been processed. In 2020 we had a second child and my AGI was just over 160k. The IRS just processed my return and my understanding was that I would get paid for both kids except we are over the 160k total phaseout. So, I was expecting a drop to $0. The next payment we got, was for $245. Does this make any sense? I feel like I must be missing something in the thresholds or something. edit: also the recovery act is saving us $500/month on insurance through the end of 2021 and I feel like this was not that well publicized; I had to do some minor paperwork to make it all happen, and I feel like there's probably a lot of people who are eligible for this who are not getting it because it's a slight procedural headache. If you're not on an exchange plan you have to switch to one, being the biggest obstacle. To be really clear and snarky we had been paying $1850 a month post tax for run of the mill insurance for our family and now it's "only" $1350. If I wasn't in this dumb loving situation with insurance I'd be making double mortgage payments, but here we are. Shageletic posted:so if I still havent gotten my refund, I should be gearing up for an audit right. We filed in march and just got our return. We did not get audited. We did need a manual review because of the specifics of income, stimulus payments received, and stimulus payments outstanding. After the IRS manual review our refund amount increased about $90. Cabbages and VHS fucked around with this message at 18:55 on Aug 16, 2021 |
|
#
?
Aug 16, 2021 18:50
|
|
|
Cabbages and Kings posted:Okay, maybe someone can explain this to me.
|
|
#
?
Aug 16, 2021 19:55
|
|
|
I'm trying to figure out if, if I bought solar panels for my house, if I could get the federal tax credit for that and how. It's a nonrefundable credit, so it only pays out if you owe taxes, and I always get a refund. Is the answer to decrease the amount withheld from each of my paychecks until I owe taxes, so then the credit would pay for them? I emailed payroll today asking what options I have in terms of adjusting my W-4 but they haven't responded yet. I file single and live in NY if those are relevant.
|
|
#
?
Aug 16, 2021 20:47
|
|
|
You get a refund but I can almost guarantee you pay tax. Look at how much your actual tax is on your return, that's how much the credit will cover, increasing your refund. Any amount that's not used gets carried to the next year and so on. Example with completely made up and arbitrary numbers: You make $75K a year, have $5K in w/h and get a refund of $1K meaning your tax was $4K. You buy a $50K solar system so the credit is about $12,500. You use $4K of the credit this year, meaning you get a $5k refund this year. $8,500 gets carried to next year to go against next years taxes.
|
|
#
?
Aug 16, 2021 22:00
|
|
|
Epi Lepi posted:You get a refund but I can almost guarantee you pay tax. Look at how much your actual tax is on your return, that's how much the credit will cover, increasing your refund. Any amount that's not used gets carried to the next year and so on. That makes a lot of sense, but now I'm wondering why everything I looked up before explained it so badly. Thanks for explaining it so clearly. So looks like all I really have to do is fill out an extra form for that specific credit (a 5695) and it should spit out a number I need to put in my 1040.
|
|
#
?
Aug 16, 2021 23:21
|
|
|
I've got some ISO options I think I want to exercise this year that are currently illiquid and will be so for the foreseeable future. Right now, the company has a 409A valuation that says the value of a share of common stock is equal to the strike price of my options. I'm not going to sell the shares for a long time (3+ years). My read of Carta is that come tax time for 2021 (i.e. next year), I'll have to fill out this form which asks for the "Exercise Price per share" in box 3 and the "Fair Market Value per share on exercise date." So, ordinarily I'd say that's it, I won't owe taxes on this money because boxes 3 and 4 will match. The wrinkle is that the company is raising money right now, so one could argue that the FMV isn't from the 409A (which is still valid by the 12 month rule) but rather what investors are negotiating about right now. My understanding is that a valid 409A is a "safe harbor," and that the IRS has to prove the price I entered in box 4 is "grossly unjustified," which it obviously isn't. I want to make sure that is true. Does anyone have any experience with this?
|
|
#
?
Aug 19, 2021 01:01
|
|
|
Peyote Panda posted:
Not the last time I checked. The IRS number says its being processed.
|
|
#
?
Aug 19, 2021 12:57
|
|
|
Shageletic posted:Not the last time I checked. The IRS number says its being processed. Processed, that's a good word. What does it mean exactly? Is the check being printed as we speak, ready to be signed by Janet Yellen and sealed with a loving kiss? Does it mean that a bunch of hollow-eyed auditors are staring at it, red pens at the ready? Or is it in a big pile of papers with a sign over them that says "processing"? Or maybe it's being processed into mulch to use on the service center lawns. Who knows? The good thing, at least, is that there is a process.
|
|
#
?
Aug 19, 2021 15:11
|
|
|
|
| # ? May 10, 2024 02:32 |
|
|
sullat posted:Processed, that's a good word. What does it mean exactly? Is the check being printed as we speak, ready to be signed by Janet Yellen and sealed with a loving kiss? Does it mean that a bunch of hollow-eyed auditors are staring at it, red pens at the ready? Or is it in a big pile of papers with a sign over them that says "processing"? Or maybe it's being processed into mulch to use on the service center lawns. Who knows? The good thing, at least, is that there is a process.
|
|
#
?
Aug 19, 2021 15:40
|
|