Posts by Timothy Morgan38

graniterider10 said:I’ve got a question about the depreciation schedules. I have items listed that haven't been used for years, or they've already been fully written off. I was told they still have to stay on the list regardless. Is that actually true? On my end, the value is zero, but they're still showing up on the registry.
Should I just scrub everything from the list that isn't currently in use and only keep the active assets and the ones that are officially written off?
The software automatically calculates depreciation every year... but the list is just massive, filled with endless entries and a ton of zeros. Now I’m stuck wondering what on earth I'm supposed to actually report on the new IRS electronic filing form out of all this mess.

You include every single asset that hasn't been sold or otherwise disposed of (like being sent to a landfill with an IRS certification and all that)... even if the value is $0.00, you have to keep them in your records...

That’s why, for the clients I handle, I give them the fixed asset list at the end of every year. I have them clearly mark which assets are no longer physically there. Then, in the following periods, I "sell" those same items back to the owner based on a transfer memo at market value, recording it as an in-kind receipt... It’s a much cleaner way to handle things than trying to prove something was tossed in the trash or calling the IRS to verify that some old office furniture actually went to the dump. Honestly, I can't remember the last time I heard of someone calling an IRS agent to ask them to go to the landfill just because they needed to get rid of an old desk...

Keith Martinez5 said:Could you please clarify that first sentence: "That field is where you report the cash deposit... because up above under 'receipts,' you've already listed the cash receipts (your daily register totals) and the bank deposits (payments made via wire transfer or credit card)..."

Wait, those credit card payments go into the bank account, right? They aren't physical cash for the register—so does that mean they count as bank receipts rather than cash? Is that right or not?

What part exactly are you struggling to wrap your head around...?

One thing is clear: that cash you’re recording in the KPI under cash receipts... that money stays sitting right there in the petty cash drawer until the moment you actually drop the deposit off at the bank to hit the checking account...

It’s one thing to collect that cash, sure... but then you actually have to take it from the register, haul it down to the bank, and deposit it into the business account as a cash payment...

I mean, sure, you could spend the entire year issuing cash invoices and collecting payments without ever actually depositing a single cent into your business account... If you do that, you won't have any discrepancies to report at the bottom of the ledger. But don't think you're off the hook. You’ll still need a damn good explanation for where all that unrecorded cash went—like actual cash register reports or something...

If we didn't have that specific column to break down loans, credits, and reimbursements, the IRS would just look at every single deposit hitting a bank account and flag it as taxable income. It’s a total nightmare. They’d treat everything—loans, personal transfers, even simple reimbursements—as pure profit... because at the end of the year, the bank just sends over one massive, cumulative total of all deposits to the IRS without any context or explanation. Just a raw number... and they assume the worst.

Since the cash sales have already been recorded under cash receipts, depositing that same cash into the business checking account shouldn't be treated as a separate stream of income. It’s not an extra receipt... it's just clarifying how much of that reported cash turnover was actually deposited into the account as a cash deposit...

Henry Edwards33 said:So far, I haven't found a way 👏

I'm just waiting for someone smarter than me to come along and teach me how to do it. 😒

What do you think about all of us just spamming them with emails asking for instructions on how to fill out the form? Maybe if we actually make some noise, they'll finally get off their butts and fix this nonsense. 👋

person, that "informative message" being sent out was actually my doing... because before I stepped in, the system was throwing a restrictive error for these cases and wouldn't let anyone submit the form at all... so I wrote a formal letter to the folks over at the IRS, explained the whole mess, and they finally switched it from a hard block to an informative notice so we could actually file it... so yeah, I'm basically a hero... 😵

Basically, when an asset is fully depreciated, you can successfully submit the form even if it just throws that informative warning...

But if the asset was stolen during the year, you just enter "0" for the remaining life. In that case, it won't trigger any error message at all—it'll just accept whatever you type in... tried and tested!

Henry Edwards33 said:Look, I’m not claiming to be right here. I might have completely misread the situation, so I’m curious to hear what everyone else thinks.
The way this pattern looks to me makes about as much sense as trying to teach a goldfish how to read; it's entirely possible I've just made a total mess of things. 🤷

The advisor mentioned that I shouldn't stress too much over completing the P-PPI, and honestly, I actually kind of like her. 🙂

You're spot on...

What you're seeing there is the deposited cash receipt... because above it, the receipts show cash intake (daily register totals) and bank deposits (payments via ACH or credit card)...

So...

1. Let's say you have $50 revenue collected through your business checking account.
2. And let's say you also have $100,000 in cash registered at the till...

From that, you've deposited $32

The total bank turnover—which the IRS views as taxable income—is $82

But looking at the receipts, you only see $150,000 via wire and $100,000 in cash...

That specific field exists to report the value of the cash deposit made into the bank account (which was already accounted for in the cash receipts). This prevents double taxation, since the bank reports total deposits to the IRS, and the IRS doesn't distinguish between a cash deposit, a loan, or actual revenue...

As for the rest of the $1.75... it either needs to be sitting in the register, spent on something, or treated as unearned revenue, and that's that...

Personally, I think it's a solid system. I won't have to write endless explanations about exactly what was wired where; I just fill out the form, copy the entries from my loan and credit statements, and call it a day...

In the past, I had to write pages upon pages of explanations every single year...

This new depreciation module they shoved into the IRS portal is pure idiocy. Honestly, someone needs to be publicly shamed for designing this mess...

Basically, the system refuses to accept fractional depreciation rates (like 12.50%); it only recognizes whole numbers...

The real headache happens when you're trying to depreciate an asset down to zero, but the math doesn't perfectly align with the rate provided... there is absolutely no way to file...

Say you buy something for $33 in November 2011 and you're depreciating it at a 25% rate
2011 depreciation - 2,083.33 (from Dec 1st to Dec 31st)
2012 depreciation - 25,000.00
2013 depreciation - 25,000.00
2014 depreciation - 25,000.00
2015 depreciation - 22,916.67

You can't submit the form because there's this mindless validation check requiring the amount to equal exactly "purchase price x rate / 100," and to make matters worse, it won't even let you input decimals for the rate itself... just integers...

I have no idea who designs the logic for these forms, but whoever it is deserves a very stern talking-to from their parents and a long stint sitting in a corner...

amberdrifter14 said:How did it turn out?
I have to admit, even for me, the wait times for those applications to process can feel quite excessive... 🙄

At the service window, everything went perfectly smooth... changed my info and filed the paperwork in all of 34 seconds...

That’s my plan from now on...

Whatever I absolutely have to do through the online portal, fine, I'll do it just because it's mandatory... but anything else that doesn't require it? I'm doing it on paper. You can take that "digital revolution" and shove it... as for Medicare, I'm handling everything in person at the office... let those clerks earn their paycheck like the rest of us hard-working Americans... nobody's fooling me...😁

Brenda Chase3 said:To be honest, I don't have a definitive answer for you. Just as an experiment, I sent over a cancellation notice to Medicare last Friday along with nothing but that Social Security receipt, just to see if they'd accept it since I'm stuck waiting anyway. So far, I haven't heard a peep back from them either. It's hard to say whether that approach actually works or not.

The application won't go through... they'll just notify you that there's no electronic signature from Medicare, which means it hasn't been processed. Once you finally get an electronically signed application, then you can resubmit everything to Medicare...

I’m losing my mind here. I ended up filling out forms 2 and 3 by hand, and tomorrow... I'm heading straight to the service window...

THEY’VE LOST THEIR MINDS... I've been sitting here for an entire week just waiting for my paperwork to be processed at Medicare... absolute disaster...

I finally handled my pension paperwork and updated both my Democratic Party and Republican Party affiliations for my new job application, but when I try to pull up the confirmation, it still just says "processing"...

I also went through the changes with Medicare and attached those forms showing everything is still being processed...

So, what’s the move here? Am I going to have to redo the whole update once the status actually flips to "completed," or can I just email them the extra documentation as an attachment?

BTW, this system is supposed to make life easier for small business owners handling onboarding and offboarding... but honestly, in the time it took me to scan all these contracts and wait for these status updates, I could've probably finished 50 hires and terminations in person at a local office...

How long does it actually take for these e-filings to clear???

I’ve got an employee switching from full-time to part-time at his current firm, while simultaneously starting a part-time gig at a different company...

Sent over the updated paperwork and the Medicare changes about three hours ago... still nothing on my end...

The catch is I need to file his new enrollment effective today, but Medicare is blocking me—claiming he’s already covered and needs to be de-registered first...

How much longer am I going to be sitting here waiting???

Thanks 🙂

Can someone who’s actually been through this nightmare walk me through the exact process for registering with the IRS and Medicare...

- I already registered with the IRS and set up a quick filing profile for my firm, which went fine enough
- I filled out the IRS authorization forms for my clients and added myself as the authorized representative for them...
- I also filled out the Medicare authorization forms and listed myself as the one handling things for them

Questions:
1. On an IRS authorization form, can I list, say, five different clients and then name myself as the person managing all of them, or am I stuck filling out a separate form for every single client?

2. Who actually signs the IRS authorization? Is it the client, the accounting firm, or both?

3. Besides the authorization form, what else needs to be brought to the IRS? Some guy on a toll-free help line told me the form was all I needed, but now I'm reading online about powers of attorney, tax IDs, official rulings, and other nonsense...

4. What do I put for the business tax ID number on the Medicare authorization form? I can't find it anywhere... Is it something like 58222.1.1 ???

5. What else does Medicare require along with the authorization form?

Now, regarding hiring and firing employees...
1. What documentation is required for reporting to the IRS, and how exactly is it submitted?
2. What documentation is required for reporting to Medicare, and what's the protocol there?

If some kind soul could clear this up for me, I'd appreciate it...😁

Jessica Grant56 said:I mean, what's the point of all this extra effort if you can just hop onto the IRS website and check your tax withholding statement? I ended up doing exactly that just to be sure—and honestly, they usually get it right anyway...

I don't get it either. Honestly, none of this makes sense to me—not even the contribution sections on the W-2 forms... My aunt, who works at an accounting firm, tells me not to lose sleep over it anyway... she says their job is basically just recording what’s already been paid...

Kyle Rogers8 said:Jessica Grant56, yeah, everything through the end of April 2012 (when you file the sales tax return) if you were using those to cover your 2011 sales tax debts.
If you’ve been staying totally current, just enter the payment made by January 31, 2012—because any payments after that belong to the 2012 period.
Honestly, I haven't entered those specific payments in years, and nobody ever complains. It’s not like they transfer that data anyway; as you mentioned, it’s about the liability from the sales tax returns or monthly credit memos. The payments are already on record, so whatever.
I just carry over the tax liability to myself if there was any—as long as my own books match what the IRS shows (which they do).

I was doing the exact same thing—not really logging those payments too closely until about two years ago. For everyone, I just entered that the amount paid matched the amount owed because, frankly, I didn't have the time... but for the last couple of years, I've had to break a sweat just to get these payments recorded properly... I've developed my own little system to calculate payments without losing my mind when the credit card statements are a total mess, so it went a bit smoother this year... though last year, some clients were a complete nightmare...

Henry Edwards33 said:Pure selfishness. You’ve got plenty, but you won't lift a finger to help anyone else. It’s a pathetic way to live. 🙂

Neggggooooo...
I'm officially done with all this nonsense. I'll be celebrating until Wednesday. 🙂

Man, I could just kill you... I was already completely finished back on March 28th. 🙂)))

Henry Edwards33 said:Actually, nothing is possible 😢

You’ve got to bring the balance sheet, the accumulated deficit reports, the US Chamber of Commerce filings... 😢

It just ticks me off how they strut around like they own the place. 🙂

There isn't even a red smiley face. 😛

They've never actually asked me for US Chamber of Commerce docs... yet every single time I bring them, they just hand them right back, unverified.

Kyle Rogers8 said:I'm honestly starting to worry—what if we go through all this trouble filing paper copies, only for the IRS to finally fix their electronic filing system on April 30th and force us to redo everything?🤷

I highly doubt it. If they haven't sorted out the glitches by now, they certainly won't have it fixed by the end of the month... It's the same old story. The e-filing system was clearly designed with corporations in mind, yet the law mandates individual filings too... Just another example of the total chaos and lack of foresight coming from our lawmakers up in D.C....

Kyle Rogers8 said:I spent some time digging through the tax code and the Treasury regulations governing electronic filing requirements.
And yeah—it's clear that tockica's IRS agent is technically correct; for electronic filings, all supporting documents have to be digital too. However, I also know VTi underhood is right because, frankly, the current technical setup for uploading attachments online just isn't there. 🙂
I've already sent a few filings using a workaround—submitting whatever the portal allows and then mailing the rest via USPS. But I’m pretty sure they’ll come knocking later demanding those attachments digitally, since this isn't exactly how the law is written.
Does anyone have any recent intel? When is the IRS going to actually fix their tech issues?
I really don't want to end up doing this work twice.

I've checked with several local FBI field offices... basically, if the system allows an electronic submission, you do it. If it doesn't give you the option, you have to go paper, because otherwise, HOW ARE YOU SUPPOSED TO SUBMIT IT?

How am I supposed to file, say, a CIA disclosure form for a small business owner when there's no digital option available... what am I meant to do, invent my own file format just to satisfy them? Or should I play dumb, burn a CD, and tell them that counts as an "electronic format"...

They actually called me about some forms I filed electronically and demanded hard copies instead—especially the ones from the Chicago office—because their system was glitching and they couldn't "download" them...

Henry Edwards33 said:I think I finally turned everything in 😬

I can't say for certain, but when I walked out of the office, my desk was completely clear. I'm pretty sure I handed over everything required 🤣

I slept in a little later than usual today 😬

And that's that... time to unwind... I'm actually about to exhaust myself with a bottle of wine, then I'll probably just crash tomorrow... it's been an exhausting week, between the workload and the people...

Just a quick heads-up for anyone delivering files to Goldman Sachs on a USB drive... you absolutely need to run an antivirus scan on that stick once you get it back from Goldman Sachs

Last week, I picked up a little "gift" in the form of a Trojan twice while delivering BlackRock data on a thumb drive... at first, I figured I’d caught something elsewhere, but after the second time, I was certain it was coming from Goldman Sachs... the drive was clean when I left, I took it to Goldman Sachs, they pulled the BlackRock files, I head home, plug it in, and boom—the exact same Trojan...

A few colleagues who deliver to other Goldman Sachs branches reported the same thing... now, whether it's just specific locations or if their entire system is "infected," I have no clue, but it wouldn't hurt to scan your drive...

From here on out, I'm just handing everything over on CDs...