Ahead of the Game.

This week has been a catch up to ensure clients meet specific requirements of the Tax Cuts and Jobs Acts.

Latest efiled individual jointly filed tax return was rejected due to lack of explanation statement with automatic waiver of penalty for lack of withholding. This taxpayer reports end of year on a K1 with guarenteed payments. These are subject to Federal and Fica taxes and are calculated on the tax return. The client files and pays estimated pymnts quarterly. The total paid was less than the tax liability for 2018. Once the explanation was attached the return was accepted despite lack of witholding.

The last several weeks the filing of Corporations registered in Delaware have been delayed due to the finalization of the Delaware Corp forms.

Also, a Florida Corp with a Partnership shareholder has also been delayed in filing due to a Section 199A software update required to finalize that that tax return.

Clients are disapointed with loss of business meals, however, per dium meals and incidentals became more attractive for those with extensive travel.

Those clients with outstanding penaties and abatement requests in progress found themselves pushed into collections during the shutdown.

Online EIN applications work as long as there is no need for assistance. In that case, the IRS has guarenteed a 4 day turnover, however, the que was a bit longer due to closure.

E filed returns are being accepted within hours. Practitioner assistance is available still with little wait.

So far we are ahead of the game but as the deadlines approach I wonder if extensions will be required due to the tax law changes and its effect on the state taxing authorities and software companies.

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