User talk:Ex-IRS

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Welcome!

Hello, and welcome to TaxAlmanac! My name is Tim Doyle and I serve here in the role of TaxAlmanac Moderator. If you haven't done so already, you might want to review our Quick Start Guide to help you get oriented.

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- Tim Doyle, TaxAlmanac Moderator - Talk to me 18:26, 23 February 2007 (CST)

1099MISC

HI RUDY HOPE YOU DONT MIND ME ASKING YOU A QUESTION! I HAVE A CLIENT THAT HAD A HEART ATTACK WHILE WORKING AS A VOLUNTEER FIREMAN. PRUDENTIAL INSURANCE HAS BEEN ISSUING HIM ABOUT 2000 DOLLARS A YEAR AND PUTTING IT IN BOX 7 OF THE 1099. I HAVE REPEATEDLY SPOKEN TO THEM THAT IT IS WRONG SINCE IT OPENS A SCHEDULE C AND MY CLIENT IS RESPONSIBLE FOR FICA IF DONE THIS WAY. I CAN GET NOWHERE WITH THEM. THEY KNOW IT IS NOT WAGES, HE IS NOT A SELF EMPLOYED PERSON, AND THEREFORE SHOULD NOT HAVE TO INCLUDE THIS MONIES HERE. I TOLD THEM IF THEY STILL WANTED TO PUT IT ON A 1099, TO PUT IT IN BOX 3 AS OTHER INCOME. MY QUESTION TO YOU. WHAT CAN I DO, NOT TO MAKE MY CLIENT FILL OUT A SCHEDULE C AND PAY THE FICA? ANY HELP WOULD BE GREATLY APPRECIATED. I WILL ALSO PUT THIS OUT TO THE MEMBERS AGAIN, THANK YOU FOR YOUR TIME AND CONSIDERATION TAKE CARE MIKE

Discussion Links

Hi Rudy,

I haven't been using any of the buttons to insert links, since Tim recently added those buttons, and I learned how to add links the old way. You would add "Discussion:" (include everything between the quotation marks, as I typed it) and then the name of the thread, and include all between the double brackets. Like this: [[Discussion:1099-Misc and form 4137]]. Also, you can click "Edit this page" at the top any time to see how something was done.

Hope that helps!

Also, type four tildes to leave your signature and timestamp--the line that's displayed under this line.

Deb 20:35, 6 March 2007 (CST)

Can you look at my question on controlled groups?

I need to finish these returns this weekend and no one has responded to my question, I see you are online now so can you take a look and tell me what you think? Schedule O & Controlled groups. Thank You! Kathy

1099 misc

Hi

I found this discussion tread at

http://www.taxalmanac.org/index.php/Discussion:1099-Misc_and_form_4137

It seems not to be active so I thought I would try you directly for help.

My daughter is a college student. The first three months of 2006 she worked for a company that considered her an employee and withheld the proper amount of taxes on about $6000 of wages.

She also worked in her home for a for a business that formats textbooks so they can translated into Braille. She was paid per page formatted. She received a 1099-misc for work she did during 2006 she earned a little over $5000.

As a student should she list this as "other" income or as SE income? If she lists this as "other" she gets a $500 refund and if she lists it as SE income she owes $300.

From reading all the posts it seems to be a murky subject so I would appreciate any help.

Brian B

i recently decided to invest into a business that had a good product but the marketing of the product was not good. in time, the business has not been very good and i have received no compensation for my investment and i have come to find out he was behind on his bills and so forth. he used most of my money to pay his past due bills before i actually invested into his company. now, he will not return my emails or anything, so i suppose i have a non business bad debt. there was no repayment plan, i just expected when profits were made in the future that i would get a return on my investment, which will not happen. he was a friend of mine but turned out to be a scammer i believe. can i write this off as short term capital loss on schedule d? thanks a lot. alan pursley

Howdy

I enjoyed your recent discussion on SPIFFS and appreciated the expertise. I was a missionary for my church down in McAllen and I love the Rio Grande area, the people, and especially the food. Best of luck on your new tax practice!

Eric ekurla@gmail.com

Rudy, you're my new tax hero! That's cool that you stood your ground against the so-called "kinder and gentler" IRS, had I been in your shoes I would have gone to every single media outlet with names in hand and made a real stink, but I'm definitely glad you did what you did, hope things are going great and I applaud you once again for being out of the IRS.

Sincerely,

Donnie Castleman, EA, CPA Candidate, Las Vegas

Been there...know how you feel...

This Omega1911 and I know how you feel EX-IRS!!! I worked both BMF and IMF (Accounts Management Branch) and have seen first hand how politics can run rampant in the Service. In Adjustments I often called attention to cases or procedures that were just wrong, only to have a superior remind me of my job title, etc. and that someone would look into it (never to hear about whatever it was again). I too was marked for "special treatment" when it became obvious that I didn't fit in. I loved the job, learned a lot, helped literally thousands of people in my almost ten years there, but weighed against mounting work loads, long travel time to work, stress and mgmt. in-fighting I could not take it anymore. If the average individual knew how much information we had access to... there were plenty of good people there (and still are), just could not fight the red tape, management ego and the relentless stress. I spent 90% of my time in Adjustments. One year we had about 380 new hires for the season, by the time the summer rolled around there were less than 68 of us. Most quit or were fired, there were transfers, promotions (few) and a couple of Reservists leaving for overseas, but as you can see... 2004 saw me gone as well. I hope that you are successful in your practice. I can be reached dstroy21@verizon.net

Hello Ex-IRS,

Sorry to hear about your firing at the Service, hopefully you still got to keep your pension. I currently work for the Service in LMSB auditing large corporate returns. I've been thinking about opening up my own CPA firm (of course no one knows at the Service) or just sticking out until retirement (~30 yrs, only worked for the Service for 3 yrs now). I was interested in your experience of coming from the Service to start a CPA firm, was it difficult?, did you buy a practice or start from scratch? How are your hours now? As you know working at the IRS does have some benefits like 40 hr work weeks. Hope to hear from you and learn more from this great community.

BeanCounter1 15:46, 13 September 2008 (CDT)

Non-business Bad Debt

Ex-IRS, I have a question regarding your 3/4/07 response to a prior discussion, reproduced below:

"Nonbusiness bad debts are claimed in the year that they became totally worthless. If you did not include the nonbusiness bad debt on your original return and the due date has already passed, then file the claim on 1040X within 7 years from the date your original return for that year had to be filed or 2 years from the date you paid the tax, whichever is later.

All nonbusiness bad debts are short term losses claimed on Schedule D, Part 1 and are subject to the capital loss limitations.

On Schedule D, Part I, line 1, enter the name of the debtor and “statement attached” in column (a). Enter the amount of the bad debt in parentheses in column (f). Use a separate line for each bad debt.

For each bad debt, attach a statement to your return that contains: --A description of the debt, including the amount, and the date it became due, --The name of the debtor, and any business or family relationship between you and the debtor, --The efforts you made to collect the debt, and --Why you decided the debt was worthless. For example, you could show that the borrower has declared bankruptcy, or that legal action to collect would probably not result in payment of any part of the debt.

The discharged debt is clearly income to the debtor and if the debtor is an individual it should be reported on Form 1040, Line 21 (Sec. 108).

Only Federal Government agencies, financial institutions, credit unions and any organization that has a significant trade or business of which is the lending of money are required to file Form 1099-C (Sec. 6050P and T.D. 9160, final regulations on Sec. 6050P)."

My question -- does a non-business bad debt still qualify for STCL treatment if an S-Corp discharges a debt to a related party due to the fact that party filed bankruptcy? The related party would have Cancellation of Debt (COD) income and would be subject to the Exclusion of Income rules within section 108(a)(1).

Non-business Bad Debt

Sorry, I forget to sign my previous question.

H3s 14:14, 17 August 2009 (CDT)

Taxking00

Hi, I have a client that receives SPIFF's and I came across your answer to a spiff question where you referrence "The spiffs paid by the manufacturer (directly to the salesperson or paid to the dealer who then pays the salesperson) are neither wages under Sec. 3121 or self-employment income under Sec. 1402. The spiffs are merely income that is reported on Form 1040, line 21."

My question to you is, after reading through some of sec's. 3121 and 1402 can you tell me if there is a specific area that states spiffs are neither wages nor S-E income.

Thank you,

My direct email is David@taxking.com

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