Farmer pays for meals provided to non-employee workers to keep them at the work site? Is this deductible and at 50%?
Asked during Sep 15, Sep 17 seminar sessions.
Fall 2026 attendee resource
Seminar questions and answers
Browse questions from the Fall 2026 seminars by topic, or search for a phrase, form, or tax issue. Related attendee questions are grouped with each response.
- 88
- grouped topics
- 143
- attendee questions
- 18
- responses to be updated
Using this Q&A
Responses reflect the seminar discussion and may be updated as speaker review is completed. This material is general education, not individualized tax advice. Confirm current law and guidance before acting.
11 responses under review7 responses forthcoming
88 of 88 topics · 143 questions
Fall 2026 Q&A
Business and entity questions
17 topicsCan a self-employed person take a meal deduction when attending a seminar or convention if there is no overnight stay?
Seminar response
Meals at a business meeting or conference are 50% deductible in 2026, as long as the meeting has a clear business purpose and isn’t primarily social. The IRS includes meals “during or directly associated with the active conduct of a trade or business” in the deductible category.A conference registration fee that bundles meals is fully deductible at the registration cost, because you’re not separately paying for them. If you buy meals a la carte at a conference (the working lunch you grab at the hotel restaurant), those are 50% deductible like any other business meal. The line, again, lives in the documentation.
Asked during Sep 17 seminar sessions.
IF there is a Trump $5K limit per child SS#, how does the employer know that the limit has been met & gifts the $2,500? What happens?
Seminar response
Answer 1: They do not know, that is the responsibility of the owner of the account to monitor. The owner of the account must check with the employer if they will participate in the plan and then limit the total contribution to $5.000 for 2026. Employer $2,500, parents or grandparents $2,500.
Asked during Sep 17 seminar sessions.
What about a weekly meal where 2 S-Corp owners from the 2 locations of the business meet to discuss business finances & other issues?
Seminar response
Most business meals qualify for a 50% deduction when they meet IRS requirements for business purpose and documentation. The Tax Cuts and Jobs Act maintained this deduction category while eliminating entertainment deductions entirely.Expenses qualifying for 50% deduction include: Meals with customers, clients, or employees during business discussions Meals during business travel away from your tax home Taxes and tips related to deductible business meals Room rental for dinner meetings when business discussion occurs Food and beverages at business conventions or seminars Meals during late-night work sessions with employees.The business discussion requirement means substantive conversation about business matters must occur during, immediately before, or immediately after the meal. General relationship building without specific business content does not satisfy this requirement. Documentation requirements for the 50% deduction include: Amount of the expense Date the expense was incurred Place where the meal occurred Business purpose of the expense Business relationship of the people involved
Asked during Sep 17 seminar sessions.
What are decentralized finance transactions?
Seminar response
Room rental for dinner meetings when business discussion occurs
Correct
Mistake #5 Duplicate deductions. Reimbursing employees for meals they charged on company credit cards creates duplicate deductions. Reconcile reimbursement records against company charges monthly.
Asked during Sep 17, Sep 22, Sep 30 seminar sessions.
What happens if the Trump account contributions from multiple sources exceeds $5,000 in a single year? Who corrects it? Where does the excess go? Additionally who is defined as the "owner" with authority over the account?
Seminar response
They do not know, that is the responsibility of the owner of the account to monitor. The owner of the account must check with the employer if they will participate in the plan and then limit the total contribution to $5.000 for 2026. Employer $2,500, parents or grandparents $2,500.
Correct
Not sure what to address
Asked during Sep 17, Sep 24 seminar sessions.
What if the business has closed and final return filed when ERC refund is received
Seminar response
Addresses this privitely
Meals during business travel away from your tax home
Asked during Sep 17 seminar sessions.
You listed several transaction types that need not be reported. Can you give definitions of them?
Current response · under review
Taxes and tips related to deductible business meals
Asked during Sep 17, Sep 24 seminar sessions.
CAN AN OWNER ALSO AN EMPLOYEE DO SAME FOR THEIR CHILD(REN)?
Seminar response
Correct
Answer 1: To the employee who has a child that meet the qualifications. The employer must have a plan and it is considered a Section 125 issue.
Asked during Sep 22 seminar sessions.
are you saying that itins can't get the tip deduction?
Seminar response
They are eligible for the tip deduction if they qualify. Many times that have to be leagally here in the US and have the right to work at this specific business based on ICE documents
Asked during Sep 22 seminar sessions.
so contributions to trump accounts don't create basis, and they are not deductible either?
Current response · under review
Contributions during growth period from Pilot program contributions, ‘qualified general contributions’ and §128 employer contributions do not create basis in a Trump account. Contributions from other sources during growth period create basis in Trump Account
Asked during Sep 22 seminar sessions.
what happens if you buy a vehicle and use if for 100 business, and you want a different vehicle later for business, and transfer the first vehicle 2 years later to personal, is there an issue with that? there is no recaptue for bonus
Seminar response
Hunting and fishing trips
Asked during Sep 22 seminar sessions.
what is considered guaranteed payments to partners? if a partner just takes a distibution what determines if that is a guaranteed payment? does it have to be done on a regular basis? are their rules to that? does a partner have to take a guaranteed payment?
Seminar response
Guaranteed payments to partners are fixed compensation provided to partners for services or capital, independent of the partnership's income, and have specific tax implications. Guaranteed payments are essentially salaries for partners in a partnership, made regardless of the partnership's profitability.
Asked during Sep 22 seminar sessions.
Does the new AEP apply to 1065, 1120S, 1041 returns also?
Seminar response
The new Automatic Exemption from Penalty (AEP) does not apply to Forms 1065, 1120S, or 1041. It specifically covers Forms 1040, 1065, 1120, 940, 941, 943, 944, 945, and CT-1 for eligible returns starting from the 2025 tax year and 2026 quarterly returns. Answer recorded is incorrect.
That is correct.
Asked during Sep 24, Sep 30 seminar sessions.
Last year, I had a client that gifted their [acreage removed] farm and acreage to their 3 children. Parents are still farming and living in the house. Someone told me the children will have to report rent income even though the parents didn't pay it. Is that correct?
Seminar response
This needs to be addressed by Michael or Larry
Unsure of question
Asked during Sep 24 seminar sessions.
If a sole shareholder of an S corp that is a SSTB doesn't take a wage, but instead receives a 1099 payable to his schedule C--would you consider the amount paid to the schedule C not eligible for 199A since the employee did not take wage compensation?
Seminar response
First the sharholder needs to take a reasonable wage. Income is being nominee to the Schedule C - there are specific issues where that is allowed, which are very hard to meet. Expenses would stay with the S-Corp and would not be allowed on the Scheule C as the S corporation paid them. Lost an audit on this issue.
Asked during Sep 30 seminar sessions.
full deduction for residual soil fertility deduction on farmland purchase?
Seminar response
Correct
Asked during Sep 30 seminar sessions.
Fall 2026 Q&A
Changes in the Gambling Rules
2 topicsAre gambling losses reported on Sch A or has that changed?
Seminar response
Gambling losses are still reported on the Schedule A but losses are now limited to 90% of losses.
Correct
Yes
Asked during Sep 15, Sep 17, Sep 30 seminar sessions.
With these gambling limitations are they continuing with the "Session" rules in regards to losses that will be allowed or have those fallen to the wayside?
Seminar response
Yes without proof of losses the whole $8,000 would be taxable.
They are still allowed but documenstation is the key.
Asked during Sep 15, Sep 30 seminar sessions.
Fall 2026 Q&A
Estate, gift, and trust questions
1 topicWould real estate holdings trigger Form 8938? Say couple of rental units in Rome?
Seminar response
Foreign real estate holdings, including rental units like those in Rome, do not trigger reporting on Form 8938. The IRS specifies that directly held foreign real estate is not considered a specified foreign financial asset, so it is not reportable on this form.Reporting Requirements for Foreign Real Estate Understanding the implications of foreign real estate ownership is crucial. Direct Ownership – Foreign real estate, such as rental properties, is not reportable on Form 8938. Filing Thresholds – The thresholds for reporting specified foreign financial assets differ based on filing status and residency. Income Reporting – While the property itself isn't reported, rental income may need to be declared on your tax return. FBAR Considerations – Similar to Form 8938, foreign real estate held directly is not reportable on the FBAR.https://www.irs.gov/businesses/corporations/basic-questions-and-answers-on-form-8938#overview
Yes, digital assets held outside the U.S. may be reportable on Form 8938 if they are considered specified foreign financial assets. U.S. taxpayers must report these assets if their aggregate value exceeds $50,000 at the end of the tax year or $75,000 at any time during the year.
Asked during Sep 15 seminar sessions.
Fall 2026 Q&A
IRS practice and due diligence
13 topicsHow many AEP’s are allowed per taxpayer
Seminar response
AEP is now the old First Time Penalty Abatement. Only one in a 3 year period.
No IRS will look to determine the AEP by looking back to the most recent 3 year period. If no abatement of a designated peanlty has been abated, it would mean once per 3 year period.
Answer 1: No longer an option. IRS will apply to the first time.
Asked during Sep 15, Sep 17, Sep 24 seminar sessions.
What was the name of the software AJ mentioned with a flow chart for the 8867?
A response will be added in a future update.
Asked during Sep 15 seminar sessions.
When was the last time Circular 230 was written and posted? 10 years 20 years?
Seminar response
The most recent update was 2014. It was created in the 1860's We are awaiting an update that has been in process for 10 years and is awaiting approval by IRS Counsel.
Asked during Sep 15 seminar sessions.
is there a way to challenge that
Seminar response
You can always challenge the IRS agent adjustment - you can go to appeals, but the Form 8867 states in the certification area. Copies of any documents provided by the taxpayer on which you relied to determine the taxpayer’s eligibility for the credit(s) and/or HOH filing status and to figure the amount(s) of the credit(s). You need to make copies of what you relied on.
Asked during Sep 15 seminar sessions.
Mizzou is advising clients on how to qualify for in-state tuition by saying the student needs to live in MO, work in MO, and can't be identified as a dependent on their parent's returns. This is creating an ethical problem, because the parents are still providing >50% of the support of their kid who is a full-time student and <24 yrs of age. The difference between in-state vs. out-of state tuition is significant enough that the parents are listening to Mizzou and taking the IRS risk by not claiming the dependent and the dependent is claiming themselves. When faced with the situation this past year, I required my client to fill out the IRS Dependency Online Tool & put it in my tax preparation file. However, they answered the questions, it came out that the dependent in question was not a dependent. Anything else I should be doing?
A response will be added in a future update.
Asked during Sep 17 seminar sessions.
Once you ask for an IP PIN, can you ask the IRS to stop giving you IP PIN?
Current response · under review
Yes, you may be eligible to opt-out of the IP PIN program if you voluntarily joined and have not been a victim of tax-related identity theft. To find out if you are eligible to opt-out, please log into your online account and go to the IP PIN section on the profile page. If you are unable to log into your online account, contact us at 800-908-4490 to speak with a representative about opting out of the IP PIN program.If you enrolled into the program though the one-time enrollment option, you will be opted out of the program at the end of the calendar year. If you would like to re-enroll, log into your online account and go to the IP PIN section on the profile tab.
Asked during Sep 17 seminar sessions.
So, if a person buys a second house, and gets a home equity line of credit on the first house to buy the second house, the interest is not deductible?
Seminar response
Answer 1: Under the current mortgage interest rules, the deductibility of HELOC interest depends on how the borrowed funds are used, not which property secures the loan. If you used the HELOC proceeds to acquire a second home, the debt is generally treated as home acquisition debt, and the interest can qualify as deductible mortgage interest, subject to the applicable limitations. Michael
Asked during Sep 17 seminar sessions.
the person who bought my parents home after they died message me and told me he got a notice to my Dad you passed in 2010 that his information has been compromized. Do I do anything with this?
Seminar response
Answered privately.
Asked during Sep 17 seminar sessions.
Doesn't most tax software uses the investment income entered elsewhere to determine EIC eligibility ?
Seminar response
Yes
Totally disagree with this issue
Use Form 886 - and the information should be specific enough to make the conclusion of whether an individual is entitilerd to the credits and due diligence requirements of the Form 8867.
Asked during Sep 22, Sep 30 seminar sessions.
I have a backup withholding question regarding 1099 nec individuals. what happens if you have a client that has gotten irs notices to withhold federal withholding on 1099 income....by the time they get this, those people are not longer working for the client? am I supposed to withhold back up federal withholding on every 1099 person or only the ones that the IRS says don't match??
Seminar response
No not on everyone. Once they are people are no longer working for the client h
Asked during Sep 22 seminar sessions.
IF CLIENT MAKES A SERIES OF SMALL DONATIONS LESS THAN $250 CAN THEY STILL GET CHARITY CONTRIBUTION DEDUCTION?
Current response · under review
Yes, but need documentation oif IRS were to audit.
Correct
Absolutely.
Asked during Sep 22, Sep 24, Sep 30 seminar sessions.
I have a young client with a simple tax return - took a large tip exclusion which was disclosed on the W-2...due a $10K refund filed in February....no responses from IRS via Form 911....etc. Any Suggestions?
Seminar response
Generally refunds over $10,000 are subject to review. It may be in the audit cycle.
Asked during Sep 24 seminar sessions.
Is it true that IRS debt automatically goes away after 10 years? Also, does IRS debit go on your credit report?
Seminar response
Correct
Asked during Sep 30 seminar sessions.
Fall 2026 Q&A
New Limitations and Exemptions
3 topicsAre QCDs subject to the new contribution floor of Sch A?
Seminar response
NO
Asked during Sep 15 seminar sessions.
Can you do a QCD on an IRA that you inherited?
Seminar response
Michael is correct
Asked during Sep 15 seminar sessions.
medical marijuana with state licensed medical medical marijuana states deductions can be claimed on schedule A - not a business return????
Seminar response
With the change in the Department of Justice white paper, medical marijuana - a perscription must be presented and kept on file- then an Indidvaul can claim as a medical expense on Sch A. Section 280A is the section of the IRC that does not allow expenses to be taken, except for the cost of goods sold. With the DOJ only those expenses related to the sale of the perscription of the marijuana is allowed to take expenses above an beyond the Cost of Goods Sold. I have advised my businesses that call me to keep 3 separate records, one for medical marijuana with the perscription in file, one for CBD which has special reules, and one for recreational marijuana. CBD and Recreational marijuana can only take the Cost of Goods Sold and no other expenses. DOJ is studing these two and no other expenses are allowed at this time beyond COGS. .
Asked during Sep 15 seminar sessions.
Fall 2026 Q&A
Other OBBA Planning – Auto Loan Interest, Tips, Overtime, etc.
1 topicWhat if you are self employed and no 1099 is reved
Seminar response
Regardless of the receipt of a 1099 income is still taxable. Aas the self-employed individual they are required to keep records of income and expenses. Both need to be reported based on books and records. The fact they did not receive a 1099 does not make the income not taxable.
Basically that responsibility lies with the person or coampny that employed them for the self-employed job. Issueing themselves a 1099 is not recommended.
No
Correct
That is correct.
Report somewhere on the tax return - maybe add to Sch c because the tips are subject to SE tax. You cannot use Form 4127 as it relates to employees generally. State it separatly on the Schedule C
Asked during Sep 15, Sep 24 seminar sessions.
Fall 2026 Q&A
Other tax questions – topic review
37 topicsAre they going to require online payments for tax due for 2026?
Seminar response
Not that I am aware of as it relates to Fomr 1040. We will know more once filing season dates are announced.
Asked during Sep 15 seminar sessions.
Do all clients need an online account to access records? I find this the most difficult situation for helping the client.
Seminar response
For the client to access records thay need to have an account.
Asked during Sep 15 seminar sessions.
How long do you take to complete an individuals return and at what cost (ballpark)
Seminar response
That depends on the specifics necessary to complete the return.
Asked during Sep 15 seminar sessions.
When did head of household but not claiming the dependent stop being used?
Seminar response
Correct
Asked during Sep 15, Sep 17 seminar sessions.
Would it be a good idea for spouses who had their spouse die to automatically fie a 706?
Current response · under review
Yes, the portabily election can be valuable down the road.
Asked during Sep 15 seminar sessions.
Would you recommend taking previous year's owed by pay periods in year?
A response will be added in a future update.
Asked during Sep 15 seminar sessions.
Are airdrops taxable.?
Current response · under review
Correct
Asked during Sep 17, Sep 22 seminar sessions.
How do you get a IP Pen when the person filing the tax return is a POA for their parent that is in a nursing home?
Seminar response
If your adjusted gross income is below $84,000 for individuals or $168,000 for married filing joint, you can submit Form 15227, Application for an Identity Protection Personal Identification Number online.
Correct
Asked during Sep 17, Sep 30 seminar sessions.
Is home equity line of credit interest not deductible on Schedule A?
Current response · under review
Answer 1: Depends on what the home equity line of credit was used for. If it was for home improvements, then the interest association with the HELOC would be deductible on Schedule A. For any other purposes, NOT DEDUCTIBLE ... Michael
Asked during Sep 17 seminar sessions.
On Page 237 shows $100,000 stock gift to niece Amy Zee. But on Page 239 shows $20000 gifted to Andrea Zee. Typo?
Seminar response
Michael was to correct this issue.
Asked during Sep 17 seminar sessions.
Will a Trump account be automatically set up in the hospital when the baby is born, or do the parents have to go set up the Trump accounts on their own for the newborn baby - so they can get the $1,000 initial contribution from the pilot program?
Seminar response
Parents must use Fomr 4547 to set up the account.
Correct
Asked during Sep 17, Sep 22 seminar sessions.
Would this include Student Loan Debt
Seminar response
Student laon interest is still a deductible amount up to $2,500. If you are asking about a line of credit secured by the home - that would not be dedutibl eas it was not used to Buy, Build or Improve.
Asked during Sep 17 seminar sessions.
CONFUSED ARE WILLIAM AND SAMUEL THE SAME PERSON IN THAT LAST EXAMPLE?
Seminar response
Yes
Asked during Sep 22 seminar sessions.
Can the IP PIN be found in ID.me?
Current response · under review
ID me is a verification of identiy that we must go through to enable the application for the IP PIN. It is not the IP PIN.
Asked during Sep 22 seminar sessions.
Can you allocate O/H costs for R & D Cr?
Seminar response
overhead (OH) costs can be allocated to research and development (R&D) activities, including for tax credits. This allocation typically involves identifying and distributing indirect costs associated with R&D projects, ensuring compliance with relevant accounting standards and tax regulations. These include utilities, rent, and administrative salaries that support R&D activities.
Asked during Sep 22 seminar sessions.
Does not include agriculture or does include agriculture? I am reading ONLY agriculture and the other production item listed.
Seminar response
Correct
Asked during Sep 22 seminar sessions.
How does the Healthcare Premium tax credit effect an individual who got married in August 2026? Will this create a tax liability because household income increased in 3rd qtr of the year or is there an exemption for certain circumstances?
Seminar response
Correct
Asked during Sep 22 seminar sessions.
IS THE CLEARING LEVEL FOR ATTORNEYS 2000 OR ANYTHING PAID TO THEM GETS ISSUED?
Seminar response
For examples and exceptions relating to payments to attorneys, see Regulations section 1.6045-5.
Adresses above
Asked during Sep 22 seminar sessions.
If they are over 400% of the poverty line, do they have to pay the premium tax credit back?
Seminar response
Yes
Asked during Sep 22 seminar sessions.
are you saying that mortgage insurance premium we can take now?
Seminar response
Yes starting in 2026.
Asked during Sep 22 seminar sessions.
didn't there use to be no phase out for qbi? if it wasn't an sstb?
Seminar response
There has always been phaseouts for QBI
Correct
Asked during Sep 22, Sep 30 seminar sessions.
for those snacks does that include coffee in the office??
Seminar response
Yes
Yes the 50% now applies
Correct
Asked during Sep 22, Sep 24 seminar sessions.
i have a client that did work with another individual and bought equipment together. they each took their share of income and expenses, they mainly had a joint bank account to be able to pay for these things. he is 4 years behind as this individual would not give him this information. he finally was able to get bank statements for 2023 and on. The information he gave him, does not match the bank statements at all nor has my client ever taken a distrbution, we found out the other individual has taken out 98000 for himself in the past 3 years. Is my client liable to claim income he never received nor does it even exist any more?
Seminar response
Income is based on the filing of Form K-1 if that person had some income they must declare it. If the K-1 shows income it will still be taxable.
Asked during Sep 22 seminar sessions.
where do you enter the cogs expenses for a hobby?
Seminar response
Correct
Food is purchased separately from entertainment
Asked during Sep 22 seminar sessions.
A land owner collects rent for pasture land. This year he sold off timber that a logger agreed to pay $100,000--half in 2026 and the other half in 2027. The timber will not be harvested until final payment is made. How much of the $100,000 is taxable in 2026?
A response will be added in a future update.
Asked during Sep 24 seminar sessions.
For Auto Interest deduction. Does a lease buyout at the end of the lease term of an auto originally leased as a New Vehicle qualify for the Auto Interest Deduction?
Seminar response
Correct
Asked during Sep 24 seminar sessions.
How about if the employees were charged an amount for meals in the office such as $5 a month for a lunch club?
Seminar response
Correct
Asked during Sep 24 seminar sessions.
I thought that gifting of an asset was either fmv or basis, which ever is lower?
Seminar response
correct
Asked during Sep 24 seminar sessions.
Is an investment in a Bitcoin ETF considered an investment in a digital asset?
Seminar response
Correct
Asked during Sep 24 seminar sessions.
What was that name of the firm you outsource your R&D credit work?
Seminar response
Correct - https://tri-merit.com/
Asked during Sep 24 seminar sessions.
Amish still exempt?
Seminar response
Common mistakes that trigger audits
Asked during Sep 30 seminar sessions.
Are Trump accounts available to all children or just new borns
Seminar response
The additional $1,000 only applies to children born in 2025-2028.
Asked during Sep 30 seminar sessions.
Can you tell me what to do when you submit a 4547 and didn’t check box 7 to qualify and want to receive contribution? Says not to submit a 1040x return.
Seminar response
The only way I am aware of is to submit a new Form 4547 just to select box 7 for children born in 2025-2028.
Asked during Sep 30 seminar sessions.
If the parents claim the student, but the grandparents paid the tuition, the education credit can be claimed by the parents, correct?
Current response · under review
This is correct - I addressed this in the session but I gave the wrong answer - my bad.
Asked during Sep 30 seminar sessions.
Is it easier to get Appraisals done with more "Established" Digital assets like Bitcoin or is it just difficult throughout??
Seminar response
Just plain difficult
Asked during Sep 30 seminar sessions.
Isn't it still beneficial to get a 1098-T to confirm full time student status for Dependent purposes even if no AOTC?
Seminar response
Yes
Asked during Sep 30 seminar sessions.
Spouse in jail for 8 years. Cannot afford divorce. Single or MFS?
Seminar response
Yesbut the must meet the Head of Houseold rules.
Asked during Sep 30 seminar sessions.
Fall 2026 Q&A
Retirement and beneficiary questions
10 topicsWHEN DOES TEN YEAR PEIOD START?
A response will be added in a future update.
Asked during Sep 15, Sep 22 seminar sessions.
Is a RMD required if the employee has not yet retired and working full time, even if the employee is well over the age. Like in his 80s.
Seminar response
Michael's answer is correct
Asked during Sep 15 seminar sessions.
Are tax prepares actually responsible for directing clients on RMD rules? Isn't this on the financial advisors who invest IRAs to advise clients & beneficiaries on the rules?
Seminar response
Correct
Asked during Sep 17, Sep 24 seminar sessions.
Can you use Donors Advise funds in lieu of charitable contributions, from my IRA
Current response · under review
Correct
Asked during Sep 17 seminar sessions.
I am afraid I did not understand the Ghost Rule. Could you please elaborate?
Seminar response
The ghost life expectancy rule lets you stretch required withdrawals from an inherited IRA over the deceased owner’s remaining life expectancy when the owner died on or after their required beginning date and named a non-person beneficiary, such as an estate or charity. This rule matters because it can be either a gift or a trap, depending on the owner’s age at death. When an older person leaves an IRA to a non-person beneficiary, the “ghost” stretch may be shorter than the popular 10-year rule, forcing larger taxable withdrawals sooner. When a younger person dies, the same rule can stretch payouts well past 10 years, easing the tax hit.
Asked during Sep 17, Sep 24 seminar sessions.
When an eligible designated beneficiary reaches age 21, are RMD's based on decedent's age or beneficiary's age?
Seminar response
Correct
If we are talking about Trump Accounts - the guardian, then the parent and then grandparents so check to make sure the parent of guardian does not open an account.
Asked during Sep 17, Sep 22, Sep 24, Sep 30 seminar sessions.
DEFINED BENEFIT PLANS ARE NOT RMD REQUIRED? iS THAT SAME AS CASH BALANCE PLAN?
Seminar response
Defined Benefit Plans are generally not subject to RMD until theparticipate reaches retirment age. However cash balance plans, which are a type of defined benefit plan, do have RMD requirements for vested amounts once the reciepant reaches a certain age.
Correct, but look at question 107
Asked during Sep 22 seminar sessions.
so if the beneficiaries of roth iras are subject to rmd rules, they are still not taxable to the beneficiary right?
A response will be added in a future update.
Asked during Sep 22 seminar sessions.
what would be considered a non-qualified distribution from an inherited roth ira?
Seminar response
Correct
Asked during Sep 22, Sep 24 seminar sessions.
If you already have a roth ira and have met the 5 year holding period. Now you way to convert a traditional ira into a roth, does a new holding period start or because you have a existing roth, no new 5 year holdong period applies?
A response will be added in a future update.
Asked during Sep 30 seminar sessions.
Fall 2026 Q&A
Review Form W-4 Planning
2 topicsDoes the amount to $2000 from $600 apply to 1099 NEC? I thought this was going to $2500.
Seminar response
The $2,000 dees apply to the 1099 NEC and to some areas of the 1099 Misc. Maybe Congress considered a higher amount but the bill signed into law only states $2,000.
$600.00 amount has to do with income. It does not apply to the withholding amount. Form 945 please review the instruction under Purpose of the Fomr 945 and Who must file.
That is correct, but still requires a W-2 if the $2,000 is met and this is a narrow exception, see https://www.cpehours.com/downloads/fall-2026/w2-issue.pdf
Asked during Sep 15 seminar sessions.
What do you think of having married couples who both work mark as single?
Seminar response
I assume you are asking a question about the Fomr W-4. If that is correct, there is nothing wrong with selecting single status as that would be the maximum to withhold.
Every portal is different. Best way to assist is to have them come to your office and get the facts to assist with filling out the Fomr W-4
Asked during Sep 15 seminar sessions.
Fall 2026 Q&A
Wages, withholding, and information reporting
2 topicsAs the professional tax preparer, isn't it part of our job to to tax planning, tax minimization strategies, and to adjust W-4s? Wouldn't a clearly written tax projection engagement letter signed by the client should safeguard the service?
Seminar response
Answer 1: I would advise a separate engagement letter that states the information the client provided and how the determination was made. I would have them sign. I have received calls over the years about losing clients, or clients who have sued or threated to sue. Protect yourself with an engagement letter.
Asked during Sep 17 seminar sessions.
How will we know if the tips are "voluntary" vs "assessed"? What do you suggest for supporting documents?
Current response · under review
Also we have to have good faith that the W-2 is correct.
Answer 1: Information the taxpayer provided and a list of issues you addressed. Date, who provided the info etc
Asked during Sep 17 seminar sessions.