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KOTEX GOD OF BLOOD posted:Oh, my sweet summer child. So none of those things actually happened? Everything is A-okay at the IRS and they aren't working off of a mid-60s system? Strange that so many sources keep reporting on the very same things and they are either misquoting or outright lying about what IRS commissioners like Mark Everson have said about completely wasting billions of dollars on failed upgrade attempts. Must be a conspiracy.
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May 9, 2022 15:13
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I mailed an extension request in April because for some reason I couldn't e-file it. Is there any way to check if it was received without being on hold 2 hours? I should've sent it with tracking, I know.
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May 10, 2022 21:54
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dpkg chopra posted:I mailed an extension request in April because for some reason I couldn't e-file it.
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May 10, 2022 22:05
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Peyote Panda posted:Go to IRS.GOV and under the "Get my tax record" option, and order a 2021 account transcript. You can get immediately online if you're able to set up an account on the site otherwise you can have one mailed to you assuming you haven't moved since you last filed a return (it automatically goes to whatever address the IRS has on file). If your extension has been approved you'll see it listed on the account transcript as a Transaction Code 460. Thanks a million, it was there. The payment is also reflected so all should be good.
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May 11, 2022 19:16
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The treasury cashed my check yesterday and I can finally stop worrying if it was lost or I was going to accidentally draw my account under the value. First class mail really is amazing!
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May 11, 2022 21:25
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H110Hawk posted:The treasury cashed my check yesterday and I can finally stop worrying if it was lost or I was going to accidentally draw my account under the value. First class mail really is amazing! You wrote a check? And put it in the mail? You know you can pay the IRS electronically right? The ACH bank transfer is fast and has no surcharge.
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May 11, 2022 21:48
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SamDabbers posted:You wrote a check? And put it in the mail? You know you can pay the IRS electronically right? The ACH bank transfer is fast and has no surcharge. H110Hawk posted:I just got back from the post office as well because turns out I owe significantly more than is in my checking account right now between state and federal, so I just floated uncle sam a check while the money moves from the brokerage account. Did my CA payment online because it exceeded the threshold where I could mail it in, their system finalization page is overloaded and times out but the payment setup does not! Printed the timeout screen for the reference number, then 30 minutes later got 2 email confirmations for payments with different confirmation numbers. The cancellation hotline is overloaded and just tells you try again a different day.  I was glad he got it to me while the post office was still open and I didn't have to drive all over creation for one of those late night line up post offices to get it post marked.
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May 11, 2022 22:00
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Kiting checks is illegal.
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May 11, 2022 22:12
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withak posted:Kiting checks is illegal. lol whoops this is basically how I got through my 20s
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May 12, 2022 06:12
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withak posted:Kiting checks is illegal. This made me curious so I looked it up, and in most states kiting is only a crime if there is an element of fraud. If you expect the check to clear by the time the other party attempts to cash it, that's a defense against the fraud element.
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May 12, 2022 07:16
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Jesus, I had an awkward call. My boss doesn't touch corporate taxes. I do. But her child has a corporation and he was having trouble. The guy is nice and is doing me a big favor so I said I'd help free of charge. Oooof. Big reminder why some accountants do businesses and some don't. She wanted to help her son by doing it herself but there is a reason only I do corporates here. I don't want to go too into detail, but some fine points for everyone: 1) If you move your business over state lines, register it in the new state before beginning business. Every state has a process and you want records. 2) Seperately record income earned between the states. Otherwise, one state may come back to gently caress with you later and the entire thing falls apart 7 years later. 3) Keep official records where employees work, even if they work from home. If you have an employee who works from home in one state but their office is in another state, that other state may have the right to tax that income and failure to get that right is a headache for everyone. 4) Always file a corporate tax return for every state you earn income, not just where you are headquarted. And if you more your headquarters, make sure to file the state tax return for that new state. 5) Just hire a corporate accountant. For the love of God.
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May 12, 2022 21:25
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Yep, learn your nexus rules people!
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May 12, 2022 22:55
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A head's up for preparers/anyone who got a W2 in 2020 .! Remember that galaxy brained idea to defer Social Security withholding in 2020 to help out people making ends meet? The one that made no loving sense because the big economic issue was a lot of people not having jobs so a temporary deferral of something they weren't paying didn't do dick for them and the few who "benefited" from it at that time got jacked for the payback in 2021? Well now that the payback's done the corrected 2020 W2s to show the proper SSA withholding are being churned out so you might get a lot of questions about amended 2020 returns. An amended return may not be necessary depending on the circumstances. Per the IRS guidance on this topic: quote:Instructions for Employees
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May 14, 2022 22:24
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This is bad. One of my biggest clients made a commin mistake. They rolled over a traditional to a roth and assumed they didn't have to report it because they paid tax already. The guy implied it might have been as high as 900k rolled over. Jesus christ, he made the most money he did in 10 years this year. The bill is going to be insane.
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May 20, 2022 21:01
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Maybe he can retroactively get married and fix it a little.
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May 20, 2022 21:23
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Covok posted:This is bad. One of my biggest clients made a commin mistake. They rolled over a traditional to a roth and assumed they didn't have to report it because they paid tax already. The guy implied it might have been as high as 900k rolled over. Jesus christ, he made the most money he did in 10 years this year. The bill is going to be insane. This happened this year? Or a rollover that happened a few years ago? His bill is what it is, hopefully he caught it and not the IRS maybe you can get lucky and avoid penalties. The "good" news is as long as he's had that ROTH account for 5 years he can take money back out to pay his bill!
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May 20, 2022 21:40
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Epi Lepi posted:This happened this year? Or a rollover that happened a few years ago? His bill is what it is, hopefully he caught it and not the IRS maybe you can get lucky and avoid penalties. The "good" news is as long as he's had that ROTH account for 5 years he can take money back out to pay his bill! It was this year and it was a rollover of over 1 million dollars. The guy already paid 280k and owes another 200k now. The penalties just from 4/18 to today is almost 2k. The guy has money but this is a nasty suprise. We are lucky he got the notification of the 5498 today and I asked if he made any contributions since he's new and I didn't even know he had an account.
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May 20, 2022 21:49
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So... What is the exact rule with turning a traditional into a Roth again?
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May 20, 2022 22:02
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KillHour posted:So... What is the exact rule with turning a traditional into a Roth again? When you take out money from a traditional, such as in a rollover, it becomes taxable income in that year. If you rollover say 1.036 million, it's as if you made 1.036 million of income that year. This does not occur when rolling over from a traditional to a traditional such as a 401k to an IRA. It only occurs with ROTHs because they are post tax and tax on contributions are paid when contributing the income.
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May 20, 2022 22:48
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Covok posted:When you take out money from a traditional, such as in a rollover, it becomes taxable income in that year. If you rollover say 1.036 million, it's as if you made 1.036 million of income that year. That doesn't count for a backdoor because the contributions in the same year offset it, right? What happens if you have a traditional IRA that you already paid tax on (because you make too much to claim the deductions, presumably)? Would that be basis offsetting it or? I feel like I know this but every time I hear a story like that I get nervous again. KillHour fucked around with this message at 22:54 on May 20, 2022 |
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May 20, 2022 22:52
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Usually money in a traditional IRA is "pre-tax" money because it was rolled over from a 401k or a deduction was taken for the contribution. Converting that to Roth is a taxable event and the amount is treated as income. There can also be "post-tax" money in a traditional IRA which, if rolled over, wouldn't be income. Usually this would be for a backdoor Roth.
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May 20, 2022 23:01
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That's what I thought. Thanks.
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May 20, 2022 23:03
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I already checked with his adviser. None of the contributions were done with post tax money. Guy owes another 200k after the 280k he already withheld. The guy did it because fox news told him Biden was coming after his money. The guy halved his wife's retirement account to stop *checks notes* Joe Biden, a man whose economic policy is basically conservative, from stealing his wealth.
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May 20, 2022 23:40
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Covok posted:I already checked with his adviser. None of the contributions were done with post tax money. Guy owes another 200k after the 280k he already withheld. So his plan to avoid having his money stolen was to hand more of it to Joe Biden himself? That's one approach, I suppose. Though if he's that paranoid there was probably no stopping him from doing that even if advised otherwise. Maybe if someone mentioned Roth IRAs are named after a senator from Delaware just like Biden, he'd probably assume that meant the scary government would get money from that even easier.
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May 21, 2022 00:19
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What would Biden even do to "go after" the money in such an account?
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May 21, 2022 02:48
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Covok posted:I already checked with his adviser. None of the contributions were done with post tax money. Guy owes another 200k after the 280k he already withheld. Amazing, love this guy. The tax equivalent of MAGA dudes who buy merch from "woke" artists in order destroy it in protest. Got a fun/clever spam email today from a "potential client." Gonna post the text here: quote:Good day, When I saw it on my phone I thought the writing was odd and I wasn't sure how they found me as I don't have a website or deliberate web presence. So scam senses were tingling and when I just went to my Gmail to copy the text into this post I saw that the email was in my promotional folder and that it was actually through Amazon Simple Email Services and not the domain it claimed to be. Be careful out there y'all. I'm betting the follow up email would have had malware disguised as prior returns or tax documents.
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May 21, 2022 02:56
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Dang that’s sneaky.
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May 21, 2022 03:27
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I wonder if there’s a way to report that to AWS.
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May 21, 2022 13:43
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raminasi posted:I wonder if there’s a way to report that to AWS. There absolutely is. Fill out their abuse form and you will start a timer on the source account which will end with it being locked out if no action is taken. They are incredibly serious about it and it's a huge PITA on the receiving end when you get bullshit reports. Make sure to dig out the full headers.
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May 21, 2022 15:19
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Discendo Vox posted:What would Biden even do to "go after" the money in such an account? The Build Back Better bill (the one Senator Manchin killed) had caps on the amount of retirement money you could have and put a stop to backdoor Roth conversions.
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May 21, 2022 17:52
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What’s the best way to estimate tax withholding for two people with no deductions (house, kids, etc) and a mess of work income and work bonuses and stock awards? I’ve been under withholding nearly 8k for the past few years, despite trying to be as conservative as possible with the W4 (both claiming zero, for example). I’m not looking for ways to lower my taxable income, just that I’m annoyed each time I need to file taxes and am getting penalties.
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May 22, 2022 01:03
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Looks like I hosed my state taxes up. And owe the state of Pennsylvania...$16 + 80 cents in penalties. 
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May 22, 2022 02:44
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PRADA SLUT posted:What’s the best way to estimate tax withholding for two people with no deductions (house, kids, etc) and a mess of work income and work bonuses and stock awards? I’ve been under withholding nearly 8k for the past few years, despite trying to be as conservative as possible with the W4 (both claiming zero, for example). Keep a running tab of your combined income, combined taxes paid to date, and true up quarterly. It's the only way. You are likely getting hit by penalties because you're required to pay quarterlies and are not doing so. If it's always $8k you can also divide it out by however many paychecks you get and add it as extra withholding. Or calculate the safe harbor amount for yourself for the year (110% of last years "Tax" line is foolproof, there are other lower amounts available though) and make sure you are on track to pay that much through quarterly true up payments.
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May 22, 2022 04:06
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It's not always $8k, but it's been somewhere in the 6-10k range. However, I just changed jobs and I'm making significantly more now, so I need to be extra on-top of the changes. FWIW, when I file taxes with software, putting only my or my spouse's information generates a cash return, but ours together generates a cash owe. I assume that's because they treat the return as one big person and the second persons money "sits on top" in a higher bracket? No house, no kids, no investment income. I'm not "doing" anything to make money other than W2 work, but my compensation is a combination of wage, cash bonuses, stock, and private equity (all of which just sits in an account somewhere, no selling). Would this be a situation that would warrant a CPA, or is it not too difficult as long as I organize it? If a CPA, how much would I expect to pay?
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May 22, 2022 05:12
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PRADA SLUT posted:It's not always $8k, but it's been somewhere in the 6-10k range. However, I just changed jobs and I'm making significantly more now, so I need to be extra on-top of the changes. FWIW, when I file taxes with software, putting only my or my spouse's information generates a cash return, but ours together generates a cash owe. I assume that's because they treat the return as one big person and the second persons money "sits on top" in a higher bracket? Definitely not something that warrants engaging a CPA. It sounds like your personal tax return is almost entirely driven by employment income. You likely just need to adjust your W-4 (theres a section that lets you take extra withholding). Generally your situation happens when one spouse makes significantly more than the other. And your commentary regarding you/your spouses income being combined is correct. Suggest projecting you and your spouses income/withholding by annualizing your last paystub. Bonuses are required to have withholding at a 22% rate, so layer that on top. Then see how your tax liability for the year shakes out based on the tax tables and compare with what is being withheld (remember to take the standard deduction). As long as you owe less than 1k or are getting a refund you are good/no penalties. As an aside - Ive also seen situations where the payroll department isnt correctly withholding on employee wages (using way older IRS tables or whatever). Depending on the sophistication of the payroll departments of your old employer vs new employer, you may have less of an issue going forward.
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May 22, 2022 14:27
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Admiral101 posted:Suggest projecting you and your spouses income/withholding by annualizing your last paystub. Bonuses are required to have withholding at a 22% rate, so layer that on top. Point of clarification here since the poster is surprised by the combined income thing - 22% withholding has nothing to do with the taxes owed on that bonus. It is taxed as income in your marginal rate no matter what, but the IRS in several instances fucks with the withholding. If you are MFJ and have an agi of $431k, then I'm going to assume that your whole bonus is actually part of the 32% bracket. This means that for a $10k bonus you need to send the IRS another 10% or $1000. Add up your total combined income and compare it to the married filing jointly tax table formula. It's like page 16. If you want to get super accurate, subtract from the total income the standard deduction (just once, $24k or whatever), and your traditional 401k deposit (combined amount of you +spouse). There now you're like 99% accurate.
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May 22, 2022 16:42
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Residency Evil posted:Looks like I hosed my state taxes up. Might want to double-check if it's something that would affect PA local tax, those guys like to put a "you screwed up" penalty on their bill that can be higher than the actual tax due. Admiral101 posted:Suggest projecting you and your spouses income/withholding by annualizing your last paystub. Bonuses are required to have withholding at a 22% rate, so layer that on top. Then see how your tax liability for the year shakes out based on the tax tables and compare with what is being withheld (remember to take the standard deduction). As long as you owe less than 1k or are getting a refund you are good/no penalties. If you have your paystubs you can also use the IRS Tax Withholding Estimator app here, it will let you double-check your withholding with an eye towards a particular refund if you like, and will even let you print out W-4s for it. Not sure if it tries to put all the extra needed withholding on the higher paying spouse or not though, may need to adjust if you want to spread any tax withholding between you two.
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May 23, 2022 18:49
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Is there any "real" consequence to continuously loving up my withholding and having to pay each year, aside from the $75 or whatever they charge me? I've always paid the missing amount on-time when I file. No payment plans, late payments, etc.
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May 23, 2022 19:05
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PRADA SLUT posted:Is there any "real" consequence to continuously loving up my withholding and having to pay each year, aside from the $75 or whatever they charge me? I've always paid the missing amount on-time when I file. No payment plans, late payments, etc. no, they’re happy to collect your interest and penalties for as long as you keep incurring them.
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May 23, 2022 19:22
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Discendo Vox posted:What would Biden even do to "go after" the money in such an account? There was talk that died on tax appreciated gains. However, it wouldn't even have affected this account. I don't know how much money I saved clients by telling them not to worry about tax bills unless they look like they're going to pass.
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May 24, 2022 17:37
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