any accountants out there that i can ask a question?

[av83]

Asking for a friend:
They didn't file 2020 or 2021 taxes and back of the napkin calculation shows that they owe 8K for 2021. What would happen if they just don't file? Fines- how much? Probability?.. etc?

[Help]

Asking for a friend:
They didn't file 2020 or 2021 taxes and back of the napkin calculation shows that they owe 8K for 2021. What would happen if they just don't file? Fines- how much? Probability?.. etc?

The IRS will file a return on their behalf, called a Substitute for return (SFR). The IRS will file separately (they can’t assume that they are married), will not take any deductions aside from the standard deduction, and send you a bill. If you file now and pay you will save on the interest. They will still get penalties if they file now, but the earlier the pay the less interest they’ll be paying.

You can PM me. They might be eligible for penalty abatement.

[Mordyk]

Asking for a friend:
They didn't file 2020 or 2021 taxes and back of the napkin calculation shows that they owe 8K for 2021. What would happen if they just don't file? Fines- how much? Probability?.. etc?

Irs is the worst cash advance, loan shark, thief there is out here.   File and if it's the first time late then call and beg for penalty abatement.

[ae123]

Will the new child credit be passed before April 15th?

[CountValentine]

Is there confidentiality with CPAs like there is with lawyers?

[aygart]

Is there confidentiality with CPAs like there is with lawyers?

https://freemanlaw.com/limits-accountant-client-privilege/

Ask Trump's accountants.

[sam2015]

I have an EIN number which I have never used until this year when I opened a business checking account - I received a 1099-INT, how do I report this income? Should this be filed on a separate return or with my SSN?

[Help]

I have an EIN number which I have never used until this year when I opened a business checking account - I received a 1099-INT, how do I report this income? Should this be filed on a separate return or with my SSN?

Assuming it’s a single member LLC, report the income on your 1040 (schedule B), just like you would report interest earned under your SS#.

[Help]

Irs is the worst cash advance, loan shark, thief there is out here.   File and if it's the first time late then call and beg for penalty abatement.

I know people love to hate on the IRS. However, they are actually very reasonable, especially when compared to loan sharks. The IRS will work with you on a payment plan that is very generous, usually up to 10 years at around 8% interest. The horror stories you hear are when you bury your head in the sand and don't respond to their notices. Then, they become savages. The IRS will take away everything from you, down to the bare minimum needed to survive.

The problem is, the IRS is very patient, which makes it seem like the ostrich-in-sand method is effective. Believe me, the chickens will come home to roost.

If you have IRS problems, the best course of action is often confusing, but one thing is certain: DO NOT IGNORE THEM!"

[Izzzy]

Can any accountants tell me, if from their experience, filing an amended return (forgot one 1099INT of a few hundred bucks) increase the likelihood of an audit?

[Shmueli]

Looking for advice on saving towards purchasing a house while paying the least in capital gains tax.

I am thinking of investing a set monthly amount in index funds (as well as a few single stocks).
Once the investments have matured I will need to cash them out and put the money towards a house.

Is there any strategy to lower or prevent owing capital gains on the stocks?

I thought up a random strategy but I have no clue if it even makes sense -- Can I somehow cash out the stock investments and use that cash to purchase an investment property (avoiding capital gains somehow bec they're both investments?), refinance that property, use the refi money to purchase a house for myself, and then rent out the investment property to pay of the refi.

Or maybe simpler, take a margin loan against stocks, and use that money to buy a house and somehow have the loan get paid from the stocks which would avoid capital gains.

I have no clue if any of this makes sense, which is why I am asking for any advice or input. Thanks

[Help]

Looking for advice on saving towards purchasing a house while paying the least in capital gains tax.

I am thinking of investing a set monthly amount in index funds (as well as a few single stocks).
Once the investments have matured I will need to cash them out and put the money towards a house.

Is there any strategy to lower or prevent owing capital gains on the stocks?

I thought up a random strategy but I have no clue if it even makes sense -- Can I somehow cash out the stock investments and use that cash to purchase an investment property (avoiding capital gains somehow bec they're both investments?), refinance that property, use the refi money to purchase a house for myself, and then rent out the investment property to pay of the refi.

Or maybe simpler, take a margin loan against stocks, and use that money to buy a house and somehow have the loan get paid from the stocks which would avoid capital gains.

I have no clue if any of this makes sense, which is why I am asking for any advice or input. Thanks

Keep in mind: Long term capital gains have preferential tax treatment. For 2024 and you are filing jointly, if your taxable income is less than 94,050, you’ll be paying $0 tax on the gains.

[Shmueli]

Keep in mind: Long term capital gains have preferential tax treatment. For 2024 and you are filing jointly, if your taxable income is less than 94,050, you’ll be paying $0 tax on the gains.

Thanks.

This question is preparing for the future. I am planning on investing now, and cashing out in 10+ years.
I don't know what my income will be then. Is there anyway to prevent capital gains then, even if joint income is 100k+?

Technically I can worry about this down the line, but maybe there is something I can do while in the investing phase to help me..

[herb]

Thanks.

I don't know what my income will be then.

at least for now, as long as your income is below that level you should balance your account every year to raise your cost basis

[Help]

Thanks.

This question is preparing for the future. I am planning on investing now, and cashing out in 10+ years.
I don't know what my income will be then. Is there anyway to prevent capital gains then, even if joint income is 100k+?

Technically I can worry about this down the line, but maybe there is something I can do while in the investing phase to help me..

Do what @herb said, AKA tax gains harvesting.

[ushdadude]

Looking for advice on saving towards purchasing a house while paying the least in capital gains tax.

I am thinking of investing a set monthly amount in index funds (as well as a few single stocks).
Once the investments have matured I will need to cash them out and put the money towards a house.

Is there any strategy to lower or prevent owing capital gains on the stocks?

I thought up a random strategy but I have no clue if it even makes sense -- Can I somehow cash out the stock investments and use that cash to purchase an investment property (avoiding capital gains somehow bec they're both investments?), refinance that property, use the refi money to purchase a house for myself, and then rent out the investment property to pay of the refi.

Or maybe simpler, take a margin loan against stocks, and use that money to buy a house and somehow have the loan get paid from the stocks which would avoid capital gains.

I have no clue if any of this makes sense, which is why I am asking for any advice or input. Thanks

donate appreciated shares to charity and keep the cash you were going to donate

[nucheiner]

donate appreciated shares to charity and keep the cash you were going to donate

Is there a simple way to do this both for the donor and the charity? Let say with a Fidelity or Schwab account. Or is this complex.

[nucheiner]

Can any accountants tell me, if from their experience, filing an amended return (forgot one 1099INT of a few hundred bucks) increase the likelihood of an audit?

Maybe forget again. One CPA advised me against it but I don't remember the scenario. Forgetting these things is common.

[nucheiner]

I know people love to hate on the IRS. However, they are actually very reasonable, especially when compared to loan sharks. The IRS will work with you on a payment plan that is very generous, usually up to 10 years at around 8% interest. The horror stories you hear are when you bury your head in the sand and don't respond to their notices. Then, they become savages. The IRS will take away everything from you, down to the bare minimum needed to survive.

The problem is, the IRS is very patient, which makes it seem like the ostrich-in-sand method is effective. Believe me, the chickens will come home to roost.

If you have IRS problems, the best course of action is often confusing, but one thing is certain: DO NOT IGNORE THEM!"

Also, there seems to be lots of room for HUCA to some extent. Once one rep starts playing with the case you then I don't know if the next one will change anything but it seems its worth feeling the rep out to see if their likely to be nice otherwise HUCA. Seems they have lots of leeway to settle etc. Someone I know does this as a business (no, not optima).

[ushdadude]

Is there a simple way to do this both for the donor and the charity? Let say with a Fidelity or Schwab account. Or is this complex.

easiest way is to open a donor advisory fund and transfer the stocks into there