Tax Forms

Tax Forms

1023ez or 1023

Hello! I run an animal rescue and when I had the business made, it was accidentally made as a LLC. I am switching it over to a Nonprofit and I was wondering if I had to file the long form or the short for 1023. It was just transitioned at the state level as we are allowed to do that in Arizona. So I merged it basically and changed its name as that was wrong too. I have a new EIN number for it through the state and federal? So do I need to file the long 1023 form or can I do the ez? Thank you!

Tax Forms

Foreign-owned single-member LLC: do I need Form 5472?

Non-U.S. resident, 100% owner of a Mississippi single-member LLC (disregarded; no election). Tax year 2025: $0 revenue, no U.S. bank account; I paid startup/dev/software/compliance costs personally. Do I need Form 5472 + pro-forma 1120? If yes, what counts as reportable transactions, what records do you need, what’s the deadline/should I file Form 7004, and what changes once I start Stripe revenue or open a U.S. bank?

Tax Forms

W4 for new job federal form

Hi there, I started a new job and I received almost a full check and I noticed no federal taxes were taken out. I file the same way as I always have, married/filing jointly, 1 dependent at the $2000 and submit. My last position took taxes out and this job has not. My state taxes for California such as SDI, and Medicare were taken out. I’m a little confused because I’ve never had 0 on the federal portion. I claim one allowance for California as well but I know that doesn’t affect the federal.

Tax Forms

Late Filing of Form 2553 and Payroll Tax Return Concerns

I’m in the process of filing a late Form 2553, and as you know, the effective date must be retroactive to the beginning of the year. My main concern is how to handle the payroll tax returns, specifically Forms 941 and RT-6, since no wages have been paid and all returns would reflect zero liability. My question is: how would you recommend handling the 941s and RT-6 filings in this case to avoid penalties for the quarters that were missed, considering there was no payroll activity?

Tax Forms

Gift tax on donor and receiver

If a donor writes me a $900,000 check and I deposit it into my personal bank account, do neither of us need to pay taxes? Does only the donor need to file a Form 709 with the IRS because the amount is below the $13.99 million lifetime exemption, so it won’t trigger any tax for the donor? Also, since this money is not considered income for the recipient, does that mean the receiver doesn’t need to report or pay taxes on it? Additionally, for a gift of this nature, is it better to have written doc

Tax Forms

Capital gains 1041

Are capital gains due for a house sold during administration of an estate. If so how are they calculated based on date of death appraisal, selling price, abd expenses

CPA Answer:

If the decedent owned 200% of the house before the date of death, then the basis of the house will be stepped up to fair market value on the date of death. If the house was sold within a couple of months of the death, then that value can generally be used as the step up value even without the alternative valuation date. In other words, the basis is the selling price of the house. If the house was used for personal purposes, then there will be a capital loss due to the expenses of the sale, but it will be disallowed under 26 U.S. Code § 165 (c).

Answer Provided by: Hans Nelson

Tax Forms

Form 2553

Hello, my husband and I incorporated our business which is an ABA therapy clinic on 9/15/2020 and we want to be an S corp, but we didn't file form 2553 in time. We actually just started hiring people in August( took us a long time to find a building and then we had to do a build out) so we just opened our doors for business at the end of August 2021. I have filled out form 2553, stating that we didn't realize this was something we were supposed to fill out and return and I also gave them the dates that we actually started business. As of now we have clients waiting to get in here but none have actually started yet. My question is do you think this is sufficient for turning in this form late, or is there something else that I need to do? Thank you

CPA Answer:

You’re on the right track, but you need to do a little more. Please be sure to read the instructions for Form 2553.

If you are filing the Form 2553 now (not as an attachment to the Form 1120S), you must write “FILED PURSUANT TO REV. PROC. 2013-30” in the top margin of the first page of Form 2553.

For your explanation, I would not plead ignorance. IRS doesn’t take that well, as they say that everyone should read the law and be aware of the requirements. Instead, it’s better to give them a tangible reason or reasons why you did not timely file. If COVID played a role, explain that. Or, if you or someone in your family had medical issues, death, etc., explain that. I think even the narrative you explain (finding employees, finding a building, build-out, etc.) could be part of an explanation.

Also, you should mail the form certified mail with return receipt requested, to have proof that you mailed the form and that the Internal Revenue Service received it. IRS still has a backlog of several months. Plus, they are losing things. So you need to protect yourself.

Trying to think outside the box, you may ask yourself if filing the S election with an effective date back to 09/15/2020 is the best thing to do. For example, did you timely file an extension back on 03/15/21? Also, the deadline for the 2020 Form 1120S just passed on September 15, 2021. You may wish the effective date to be 01/01/21. Just something to consider – not trying to add to your stress.

As a CPA, I am available for consulting, tax preparation, bookkeeping, payroll, etc.

if you found this free advice helpful, please leave me a review, either through Google (search for Adam Dickreiter or by using the following link https://g.page/adam-dickreiter-cpa-pllc/review?gm) or through this website (CPAdirectory).

Answer Provided by: Adam Dickreiter

Form W-2

Employer Reimbursements - Accountable Plan

CPA Answer:

If you are reimbursed under an accountable plan, your employer should Not include any reimbursement in your income in box 1 of your Form W-2.
To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules.
Your expenses must have a business connection—that is, your expenses must be deductible under the rules for qualifying work-related education.
You must adequately account to your employer for your expenses within a reasonable period of time.
You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time.
If your expenses are more than your reimbursement, you can deduct your excess expenses on Form 2106.

Answer Provided by: CPAdirectory

Form W-2

Employer Reimbursements - Nonaccountable Plan

CPA Answer:

Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement.
Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. You must include them in your income.
You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.

Answer Provided by: CPAdirectory