Please refer to the November 2022 Newsletter for the first portion of the Q & A. 


How do other professionals handle privacy papers for tax prep?  We have 3 sheets where we require a signature from the client. What do others require regarding signatures?

  1. Gramm-leach Bliley privacy act notice.
  2. Taxpayer statement stating they received a copy and they have provided all the information; they have adequate records, and everything has been reported.
  3. Our duties as a tax preparer which includes our fees, how long they should keep their records, e-filing and they have received a copy of their return.

Do you have them sign just one time for all 6 pages or sign their name on each page?  Do you have both spouses sign?


We have a client who is a United States citizen but works 12 months of the year in England.  He is self-employed in England. Is the income he earned in England subject to self-employment tax in the US?



If a client opens a new business in Ohio and registers with the Secretary of State, is the client responsible for registering with the Feds as well?


Larry, can you provide the name and contact info for the service you mentioned in reaching out to the Service by phone?


Deceased client was discovered to be victim of scam of $100,000 of retirement distributions.  Theft loss deductions gone for 2021 is there any recourse for deduction?


Does it look like student loan cancellation will be taxable on the state return?

Arkansas, Indiana, Minnesota, Mississippi, North Carolina, and Wisconsin may tax this issue.

Once the debt is forgiven, please contact your state on the tax situation.


When taking substantially equal periodic payments from a retirement account/plan, can you switch one time from RMD to amortization?

No, see the discussion below.  IRS Notice 2022-6 January 18, 2022.

The RMD method is the easiest to calculate but generally provides the smallest annual payout among the three approved methods. Once selected, you cannot change to one of the other two methods.


Required Minimum Distribution (RMD) Method – Payments are calculated in the same manner as lifetime RMDs; thus, payments fluctuate from year to year. This method requires an account owner to use one of the tables provided by the IRS, which include “Single Life Expectancy,” “Uniform Life Expectancy,” and “Joint Life and Last Survivor Expectancy” tables. Payments fluctuate yearly since distributions are recalculated annually using updated life expectancy factors and account values. The RMD method is the easiest to calculate but generally provides the smallest annual payout among the three approved methods. Once selected, you cannot change to one of the other two methods.

  1. Amortization Method – Unlike the RMD method, § 72(t) payments determine using the amortization or annuitization methods remain the same annually. Payments made using the amortization method are determined by amortizing an individual’s balance over several years (based on their life expectancy using an IRS approved table) and a “reasonable” interest rate.
  2. Annuity Method – This method is like the amortization method in that it uses an interest rate and life expectancy, but it also introduces a mortality table prescribed by regulations to pay out the IRA account as if it were an annuity. Like the amortization method, the annual payout is fixed at the time distributions commence and does not vary from year to year.

Payments are calculated by dividing the account balance by an annuity factor beginning at the individual’s age and continuing for the life of the individual. The annuity factor is derived using mortality rates set forth in Treas. Reg. § 1.401(a)(9)-9(e) of the Income Tax Regulations and a reasonable interest rate. Under this method (like the amortization method,) payments remain fixed, and you can switch to the RMD method after the first year.

Once selected, an individual can make a one-time switch from the amortization or annuitization method and change to the RMD method. In other words, an individual who begins their § 72(t) payment schedule using either the amortization or annuitization method can make a one-time switch to the RMD method. However, there is no possibility to revert back to their original method) for the remainder of the § 72(t) schedule.


Did you write the Virtual Tax Book?  I’ve got the 2020 book.  Does the newer book have significant changes?


What if you have a roof replaced due to hail damage which is only partially damaged?


Since crypto value changes on a real time basis at what point is the valuation established when making a payment, when purchased or when paid?

The interest then becomes the basis for selling that crypto, correct?


Is the Form 8300 requirement for receipts of crypto effective for transactions starting 1/1/23?


When re-purposing the building, do you continue to depreciate the old building use, or do you add the leftover depreciation to the new basis?


With regards to the Employee Retention Credit, should you amend the past returns or claim the income in the current year?


Does the RMD chart on page 84 NOT apply to IRA’s since they are not ‘qualified plans’?


How many years do we have to retain printed client tax returns?


What is the best way to get the FMV for inherited items you want to sell years later?


We have heard locally from wind turbine operators that some of the Federal Renewable credits may be “Transferrable”.  Have you guys heard anything about this?

I mean transferrable similar to Iowa’s Wind Tax Credits under § 476C where they could be transferred or sold to outside individuals/businesses.


A farmer uses a cheaper old truck for a lot of farm work/travel.   Since part of mileage is allocated to depreciation could there ever be an issue where the deemed depreciation exceeds the value of the asset if the truck were ever to be sold and how would the recapture of that deemed depreciation in excess of purchase price be handled?


Do we have to file any form or election with the IRS to do the swap to RMD payments?  Change of method, etc.?


To utilize the larger de minimis amounts there needs to be certain things in writing ahead of time, right?  Otherwise, you are capped at lower amounts, correct??

Or has that requirement gone away?

For some reason I was thinking it also had a written policy portion required.


Would simply re-grading be allowed to be capitalized or would it actually be forced to be increased basis in the land itself and not allowed as a deduction?


Are a Non-Fungible Token (NFT) going to fall under the “Digital Asset” category?


Form 1099-MISC is used to report certain payments you receive from a business other than nonemployee compensation. You may receive one or more 1099-MISC forms reporting payments made to you during the year.

Form 1099-MISC is often used to report income the client earned from participating in crypto activities like staking, earning rewards or even as a promotional incentive from a broker or crypto exchange.

Even if you do not receive a 1099-MISC from the entity which provided you a payment, you still need to report this income on your tax return.

How do I report my cryptocurrency trading on my taxes?

As this asset class has grown in acceptance, many platforms and exchanges have made it easier to report your cryptocurrency transactions.

You might receive Form 1099-B from your trading platform for capital asset transactions including those from crypto. Regardless of whether or not you received a 1099-B form, you generally need to enter the information from the sale or exchange of all assets on Schedule D. You can use Form 8949 if you need to provide additional information for, or make adjustments to, the transactions that were reported on your 1099-B forms. You will also need to use Form 8949 to report capital transactions that were not reported to you on 1099-B forms. If more convenient, you can report all of your transactions on Form 8949 even if they do not need to be adjusted. Sometimes it is easier to put everything on the Form 8949.

If you are using Form 8949, you first separate your transactions by the holding period for each asset you sold and then into relevant subcategories relating to basis reporting or if the transactions were not reported on Form 1099-B. Assets you held for a year or less typically fall under short-term capital gains or losses and those you held for longer than a year are counted as long-term capital gains and losses.

After entering the necessary transactions on Form 8949, you then transfer the information to Schedule D. Schedule D is used to report and reconcile the different types of gains and losses and determine the amount of your taxable gains, deductible losses, and amount to be carried over to the next year. The information from Schedule D is then transferred to Form 1040.

How do I report my cryptocurrency earnings and rewards on my taxes?

After calculating all of your capital gains or losses on Schedule D, you need to report any cryptocurrency income from non-trade or exchange related activities that you’ve received during the course of the tax year. This can be from services performed as an independent contractor, rewards received from a crypto exchange or brokerage, income earned through mining cryptocurrency, and more.

If you were working in the crypto industry as a self-employed person, then you would typically report your income and expenses on Schedule C. This form has areas for reporting income received, various types of qualified business expenses that you can deduct and adding everything up to find the net income or loss from your work.

You will need to add up all of the self-employment compensation from the crypto work and enter that as income on Schedule C, Part I. This section has you list all the income of the business and calculate gross income.

Part II is used to report all of the business expenses and subtract them from gross income to determine net profit or loss. If you have expenses that do not seem to fit into one of the categories provided on the form, you can create your own category and list it with the amount in Part V, Other Expenses.

Several of the fields found on Schedule C may not apply to your work. You do not need to complete every field on the form.

Use crypto tax forms to report your crypto transactions

When accounting for your crypto taxes, make sure you file your taxes with the appropriate forms. When you dispose of the crypto by trading, exchanging, or spending it, you’ll need to report these transactions on Form 1040, Schedule D. You may also need to report this activity on Form 8949 in the event information reported on Forms 1099-B needs to be reconciled with the amounts reported on your Schedule D.

If you earned income as a freelancer or through other crypto-related activity, you may receive Forms 1099-MISC or 1099-NEC. Even if you do not receive 1099s from crypto exchanges, brokers or other companies who paid you for crypto activities, you will need to report this income on the tax return.

The IRS has stepped up enforcement of crypto tax enforcement, so you should make sure you accurately calculate and report all taxable crypto activities.

You are probably right.  The brokerage firms has the expanded Form 1099-B where they report all types of income items associated with investments (i.e., interest, dividends, capital gains and losses, foreign tax withholding associated with interest and dividends, etc.).


Is the grandparents scam a deductible loss on Schedule D. Loss is $14,000.

If it is a theft – no deduction anywhere on the return is currently allowed.  Suspended from 2018 thru 2025.


What is an acceptable reason to get the late filing relief when doing an S Corp Election?

This is a hard one to answer as it depends on the facts and circumstances surrounding the election. I have included a summary of the Revenue Procedure.  If IRS has accepted the S Corporation returns for several years and then suddenly the module will not accept the e-filing as the designation dropped off – it happens – then I have been successful in getting the S Corporation election reinstated.

Have all the shareholders reported income?

How was it reported?

Did the client qualify for the election?

Was it due to practitioner error?

Misunderstanding between shareholders?

Lack of communication or understanding among shareholders.

Rev. Proc. 2013-30 facilitates the grant of relief to late-filing entities by consolidating numerous other revenue procedures into one revenue procedure and extending relief in certain circumstances. This procedure provides guidance for relief for late:

Generally, the relief under the revenue procedure can be granted when the entity fails to qualify solely because it failed to file the appropriate election under Subchapter S timely with the applicable IRS Campus and all returns reported income consistently as if the election was in effect. For purposes of this guidance, the “effective date” is the date the election is intended to be effective and cannot be more than 3 years and 75 days from the date relief is requested.

The following requirements must be met to qualify for late S corporation election relief by a corporation or entity classified as a corporation:

In addition, if the electing entity is requesting a late corporate classification election to be effective on the same date that the S corporation election was intended to be effective, the requesting entity must also meet the following additional requirements:

If the entity qualifies and files timely in accordance with Rev. Proc. 2013-30, the Campus can grant late election relief.  If the entity does not qualify under the provisions of the Revenue Procedure, its only recourse is to request a private letter ruling.

Exception to the 3 Years and 75 Days Rule

Certain entities can qualify for the exception to the 3 years and 75-day rule when:

Although this exception exists, it is unlikely many situations will qualify since the current system is set up to notify the corporation of the problem with its filing requirement when the return rejects in processing. It could apply to a case where it did not go through normal processing.


Can you discuss getting client consents when buying and selling a CPA firm, consent forms to transfer the client’s financial information when buying and selling a CPA practice.

This is cover under Treas. Reg. 1.7216. Below is a standard statement that should be used in notifying clients of the sale.

You are not required to complete this form. If we obtain your signature on this form by conditioning our services on your consent, your consent will not be valid. If you agree to the disclosure of your tax return and other financial information, your consent is valid for the amount of time that you specify. If you do not specify the duration of your consent, your consent is valid for one year.


I’m receiving many partnerships K-1’s that state that the entity is not subject to § 163(j).  Then, in the footnotes, they give you an amount for business interest expense and annual gross receipts for the last 3 years.  Do I have to enter any of this in Form 8990?


Partnership Schedule K-1 Box W.  The description is for the former 2% miscellaneous deductions.  Do I have to enter these amounts anywhere?  Do you reduce the ordinary income as shown on Line 1 ordinary income?


I had an attorney turn down a potential new C-Corp Client looking to start a Meta related business.  The corporation will have foreign partners.  The attorney turned down the work citing concerns of lack of knowledge with SEC rules and risk with private companies.  Are you seeing attorneys advise SEC representation with private corporation clients??


I am a bit confused on the FINCEN requirement for reporting the beneficial owners. If we have a small LLC with $100,000 gross receipts and 1 employee, they need to report the ownership?

The rule will require most corporations, limited liability companies, and other entities created in or registered to do business in the United States to report information about their beneficial owners—the persons who ultimately own or control the company, to FinCEN.

The Corporate Transparency Act (CTA) establishes uniform beneficial ownership information reporting requirements for certain types of corporations, limited liability companies, and other similar entities created in or registered to do business in the United States. The CTA authorizes FinCEN to collect that information and disclose it to authorized government authorities and financial institutions, subject to effective safeguards and controls.

There is a good fact sheet that covers the key points at the website below.  I suggest you print out.


Any feeling that the RMD max distribution age will increase this year?


What page in the text is the phone number list again?


We have lots of foreign owned clients so are filing Form 5472’s each year with the Form 1120’s. Can you describe more the information needed to be filed with the FinCen?


I was reading in a tax newsletter that if you are working for a company that you are not a Paid Preparer?  Do you agree with this statement?


Your handouts state beneficial ownership needs to be reported – direct stock owners are not beneficial, correct? Beneficial is stock held through a broker.


When does the small business have to report to FINCEN? Are they ready for us to report?


When do these SEPPS take affect?  For 2022?


Does this only apply to IRAs not 401K’s?


I still have a client waiting for a refund from filing their 2020 1040-SR form. They had to paper file the return. Do others have the same problem?


Can you explain what the TCC is?


Electronic filers of Form W-2 must contact the Social Security Administration for all information, forms, and publications relating to the filing of Form W-2; visit or call 800-772-6270.


Do you have information on how to apply for the student loan forgiveness? On the student loan sites they want you to apply to put the loans all together, should we do this?? I have different loans that have different interest rates.


Are the SEP contributions allowed against self-employment income or just federal tax? Is a sole proprietor allowed a business so called deduction that the Sch C?


For cost segregation study for rental apartment units, can you take § 179 on 15 yr. property and less or just bonus on those assets?

Generally, the personal property from a cost segregation report is eligible for the § 179 expensing.  However, it may not be eligible for § 179 expensing for residential properties owned by passive taxpayers.

In the past, § 179 could not be used to deduct personal property used in residential rental property. However, the Tax Cuts and Jobs Act eliminated this restriction starting in 2018. This means that landlords can now use § 179 to deduct the cost of personal property items they purchase for use inside rental units—for example, kitchen appliances, carpets, drapes, or blinds. For example, if you spend $3,000 for a new stove and refrigerator for a rental unit, you may deduct the entire amount that year with § 179.

You can also use § 179 to deduct property not located inside the rental buildings. This can include:

However, you can’t use § 179 to deduct the cost of:


I have a client that buys tons of stuff at sales, goodwill, auctions, and sells online via eBay.  He has so much in little things that he buys in bulk, and it is not feasible to have an inventory so can he just expense it all??

Does he have to have inventory? What happened to the rule we did not need to have inventory? Are those all reported on Schedule D then?

Do they have to create a corporation or S Corporation? Do you need an attorney for that?

Under § 471 and Regs. § 1.471-1, inventories are required to be used in a tax year in which the production, purchase, or sale of merchandise is an income-producing factor. The TCJA permitted taxpayers that meet the gross receipts test and that are not tax shelters under § 448 to be exempt from § 471 and to use either of the following methods:

It is important for small taxpayers to note that being exempted from keeping inventory under § 471 does not necessarily translate to an immediate tax write-off for all inventoriable costs.

For taxpayers that choose to use the NIMS inventory method, the final regulations clarify that even though these amounts are treated as nonincidental materials and supplies, they still retain their character as inventory. The final regulations do not change the position that inventory treated as nonincidental materials and supplies is “used and consumed” in the tax year the taxpayer provides the inventory to a customer, and costs are recovered through costs of goods sold in that year or the tax year in which the costs are paid or incurred (in accordance with the taxpayer’s method of accounting), whichever is later.

The final regulations retain the general rule from the proposed regulations that the “used and consumed” threshold for NIMS is met only when the taxpayer sells the inventory. As such, manufacturers that convert raw materials into a work in progress or finished goods by year end but have not yet sold the inventory will not be able to deduct the costs under the final regulations.

The final regulations clarify that taxpayers may determine the amounts of the costs of inventory by using either a specific identification method, a first-in, first-out method, or an average cost method, but may not use the last-in, first-out, or any other method described in § 471 or the regulations thereunder, including the lower-of-cost-or-market methods. Furthermore, inventory treated as nonincidental materials and supplies is not eligible for the Regs. § 1.263(a)-1(f) de minimis safe-harbor election, since that election specifically scopes out inventory.

For taxpayers without an Applicable Financial Statement (AFS) that decide to follow the non-AFS § 471(c) inventory method, if a physical count is taken but not actually used to capitalize and allocate costs to inventory, then such amounts may be deductible in the year paid or incurred.

However, if a taxpayer uses a physical count to allocate costs to inventory and then makes a journal entry to expense these costs in its financial statements, this journal entry would be ignored for tax purposes, thus requiring the taxpayer to capitalize the costs in accordance with the physical count allocation.

The rules apply for tax years beginning on or after the date the final regulations were published in the Federal Register, January 5, 2021.

Now, how will IRS look at this issue in an audit.  The most important issue is the tax return must clearly reflect income and a determination of the sale of the inventory is an income producing factor. When you deduct all cost of items purchased in one year, it generally does not clearly reflect income as you have many items in inventory as yet unsold. Therefore, future years are somewhat out of sync with the correct income reporting.

It is beneficial for the client to track inventory to give themselves a better understanding of the actual cost of the items sold.  It assists with better operation of the business and future business decisions.

When determining whether they should choose to be a corporation or S Corporation, you have to be careful to not engage in the practice of law, which is typically defined by the state!

In general, the cash method of accounting cannot be used by:

However, the cash method can be used:

If they have issues with tracking inventory, choosing to be a corporation or S corporation where the client would be required to be an employee, may be an issue you need to address. As the rules for a sole proprietorship, where they can pull money out as needed, are very different with the corporation entities.


For the carry back electric car credit, what if the carryback year is above the AGI limit?

Are the limits rigid or phase-out?

I assume you were discussing the new law under the Inflation Reduction Act. Based on the limited information, no carryback provision for the credit is mentioned. This is what I have been able to find.  More guidance is expected as we move forward.

This tax credit is nonrefundable and will only offset your tax liability for a given tax year. Additionally, the tax credit does not carryover or carry forward if you do not use it in the year, you purchased the vehicle. In other words, if you did not use the part of the personal portion of the EV tax credit, then the unused credit is lost.

I have included other information available.

Clean Vehicle Credit (§ 30D)

qualified new clean vehicle, including electric vehicles, plug-in hybrids, and

hydrogen fuel cell vehicles.

minerals utilized in battery components are not extracted or processed in

the U.S. or a Free Trade Agreement country or recycled in North America.

The percentage required increases from 40% in 2024 to 80% in 2026.

or if the majority of battery components are sourced outside of North

America. The percentage increases from 50% in 2024 to 100% in 2028.

and $55,000 for other vehicles.

joint filers.

credit for manufacturers as they neared 200,000 clean vehicles sold.

would now qualify for the tax credit.

New Previously Owned Clean Vehicle Credit (§ 25E)

non-commercial vehicles, including electric vehicles and plug-in hybrids.

Credit is equal to the lesser of $4,000 or 30% of the vehicle cost.

than the year of sale.

joint filers.

New Commercial Clean Vehicle Credit (§ 45W)

$7,500 tax credit tax for the purchase of electric vehicles or other qualified

clean vehicles.

increases the credit to $40,000.

The act modified the $7,500 § 30D credit for electric vehicles in several ways. First, it changes the name of the credit to the clean vehicle credit. It also imposes a requirement that the final assembly of the vehicle must occur in North America (effective Aug. 16, 2022). The act also removes the limitation on the number of vehicles eligible for the credit, so electric vehicles purchased from manufacturers that had formerly reached their cap will now be eligible for the credit. However, there are price caps, so the credit is not allowed for cars with a manufacturer’s suggested retail price over $55,000 or for vans, SUVs, or pickup trucks with a manufacturer’s suggested retail price over $80,000.

However, the act imposes a new requirement that a percentage of critical minerals used in the car must have been extracted or processed in the United States or in a country with which the United States has a free trade agreement or recycled in North America. This requirement phases in and applies to 40% of such minerals before 2024 and to 80% after 2026. A percentage of the battery components for the vehicle must also be manufactured or assembled in North America. This requirement applies to 50% of a battery’s components before 2024 and phases in until it applies to 100% of a battery’s components after 2028.

The credit is allowed once per vehicle (and includes a requirement that the taxpayer include the vehicle identification number on the return). Also, the credit is not allowed for taxpayers whose modified adjusted gross income (MAGI) exceeds certain thresholds ($300,000 on joint returns, $225,000 for heads of household, and $150,000 for single taxpayers).

The changes to § 30D are generally effective for vehicles placed in service after Dec. 31, 2022 (the final assembly requirement, as noted, was effective when the law was enacted). The credit will expire after 2032. Taxpayers who purchased a clean vehicle or entered into a written binding contract to purchase a clean vehicle between Jan. 1 and Aug. 15, 2022, but placed it in service on or after Aug. 16, can elect to have the former Sec. 30D credit rules apply to that vehicle.

The act also creates a new credit for used clean vehicles (new § 25E). Qualified buyers can claim a credit of up to $4,000. Their MAGI must be under $150,000 on joint returns, $112,500 for heads of household, and $75,000 for single taxpayers. The sales price for the used vehicle must be $25,000 or less. The used clean vehicle credit applies to vehicles acquired after Dec. 31, 2022.

The act also creates a new credit for qualified commercial clean vehicles (new § 45W). The credit equals the lesser of 15% of the basis of the vehicle or the “incremental cost” of the vehicle. For commercial clean vehicles with no gasoline or diesel engine, the credit amount is the lesser of 30% of the basis of the vehicle or the “incremental cost.” The incremental cost is the amount the cost of the commercial clean vehicle exceeds the cost of a comparable gasoline or diesel-powered vehicle. The credit cannot exceed $7,500 for vehicles with a gross vehicle weight under 14,000 lbs. and cannot exceed $40,000 for all other vehicles. The commercial clean vehicle credit is effective for vehicles acquired after Dec. 31, 2022.

The § 30C alternative fuel vehicle refueling property credit is extended through 2032 and modified. The maximum credit is increased from $30,000 to $100,000. The changes are effective for property placed in service after Dec. 31, 2022.


Concerning a Power of Attorney, do you have to send a copy to the client?

POA after withdrawn.

No, you can just withdraw. However, I sent letter to client explaining the process and why and that they will receive something from IRS on it.

Lately, I have been reviewing my 2848’s and dropping those folks I no longer do.  Revoking is a better word; notifying both the client and the IRS.


If you had $50,000 in crypto and lost the access codes, and do you have a 50,000-capital loss?


Does a loss on crypto in an IRA considered a distribution?


We have been seeing that parents who have tried to claim the college student however they had already claimed themselves that even with amending the kids return to remove the exemption the parents return will still not thru electronically. Have you seen this?


Are you allowed to hold e-filing a return until payment is received if a client continues to pay late or pay less than charge to assist in motivating them to pay?


Meaning we could require a retainer prior to saying we’ll prepare, would that work?


What are your thoughts on ERC and qualifications.?  We represent funeral homes all across US and have done our research believing that without decline in sales they would not qualify.  However, some of our clients have been approached by 3rd parties convincing them they could qualify.  Thoughts?


Does crypto go on sch C? Including 1099-k?


Back to the CTA, is it revenue only that determines who has to comply? If so, what is the amount?

Please refer to Question 34, 35, and 40. I have provided links to the current FINCEN information. As always it may not address all questions we may have.

The Corporate Transparency Act (CTA) requires “reporting companies” to file a report with the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) containing personal identifying information about the company’s beneficial owners and applicants. The information collected will be kept in a private database maintained by FinCEN with access limited to federal agencies, state agencies with a court order, and financial institutions with the consent of the company.

The details for how this reporting obligation will be implemented were left for FinCEN to provide through rulemaking. On September 29, 2022, FinCEN issued a final rule implementing the beneficial ownership (BOI) reporting requirements. The rule describes who must file a BOI report, what information must be reported, and when a report is due. The effective date for the final rule is January 1, 2024. Below is a summary of some of the major issues addressed by the final rule.

A domestic reporting company is defined as any entity that is a corporation, a limited liability company, or is created by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.

A foreign reporting company is defined as any entity that is a corporation, a limited liability company, or other entity formed under the law of a foreign country and registered to do business in any state or tribal jurisdiction by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.

There are 23 exemptions. Most are for companies that are already subject to substantial federal or state regulation under which their beneficial ownership may already be known. This includes, among others, entities that file reports with the SEC, governmental authorities, banks, credit unions, money services businesses, investment advisors, securities brokers and dealers, tax exempt entities, entities assisting tax exempt entities, insurance companies, state-licensed insurance producers, pooled investment vehicles, public utilities, inactive entities, subsidiaries of certain exempt entities, accounting firms, and large operating companies.

Information must be provided about the reporting company, its beneficial owners, and its company applicants.

  1. Information about the reporting company:

(1) its full legal name,

(2) any trade or “doing business as” names,

(3) a complete current address consisting of: (i) in the case of a reporting company with a principal place of business in the United States, the street address of the principal place of business, and (ii) in all other cases, the street address of the primary location in the United States where the reporting company conducts business,

(4) the state, tribal or foreign jurisdiction of formation,

(5) for a foreign reporting company, the state or tribal jurisdiction where the company first registers, and

(6) the IRS Taxpayer Identification Number (TIN) (including an Employer Identification Number) or where a foreign reporting company has not been issued a TIN, a tax identification number issued by a foreign jurisdiction and the name of that jurisdiction.

  1. Information about each of the individuals who are the company’s beneficial owners and applicants:

(1) full legal name,

(2) date of birth,

(3) complete current address consisting of: (i) in the case of a company applicant who forms or registers an entity in the course of the company applicant’s business, the street address of the business, or (ii) in any other case, the individual’s residential street address,

(4) unique identifying number and the issuing jurisdiction from one of the following documents: (i) a non-expired passport issued to the individual by the United States government, (ii) a non-expired identification document issued to the individual by a State, local government, or Indian tribe for the purpose of identifying the individual, (iii) a non-expired driver’s license issued to the individual by a State, or (iv) a non-expired passport issued by a foreign government to the individual, if the individual does not possess any of the other documents described, and

(5) an image of the document from which the unique identifying number was obtained.

Q55: New client needs to file 10 years of form corporate (1120) returns.  Returns all have NOLs.  Mail all together at once or file separately?


AJ, would you use a Form 8275 to clarify your position with NOLs? Wouldn’t the filing of Form 8275-R automatically be considered taking a position without substantial authority since the position taken is adverse to the Regulations?

You might be taking a stance because there is conflicting substantial authority.


Took a class from ZenTracker, who stated they can recover crypto currency from a locked account.  What do you think?


Is an 18-year-old who files their own return more likely to be able to qualify for $10,000 of student loan discharge?


Do income tax returns need to be amended when ERCs are received?

Accordingly, a similar deduction disallowance would apply under the Employee Retention Credit, such that an employer’s aggregate deductions would be reduced by the amount of the credit as result of this disallowance rule.


Are there late filing penalties for FBAR’s?


Mom formed a living trust in 2010.  Funded with all assets.  Filed no returns and reported all activity on 1040.  At death, attorney filed SS-4 with original formed date.   IRS responds with request for all past returns.  How would you handle that?