Posts by Timothy Morgan38

Jason Fox2 said:Wouldn't it be way easier and cheaper just to upload everything as an Excel file online?

it's not 😉

Robert Martin27 said:Hi there!
I have a quick question regarding filing the Form PD through the IRS electronic portal. I’ve been scrolling back through the previous discussions here, but I couldn't find anyone else bringing this specific issue up.
Entering the basic PD, TZ, and VAT data seems straightforward enough, but what on earth happens with the supporting attachments—like the balance sheet, the income statement, the declaration on utilizing overpaid corporate tax, and the gross balance sheet? How are we actually supposed to submit those?
I've searched everywhere on the electronic filing system, yet I can't find any option to upload these attachments, nor can I find any instructions explaining the process.
We even attempted to hand-deliver everything to our local IRS branch, but the agent there was quite firm in telling us that everything must be submitted electronically. 🤷

And how exactly are you supposed to file electronically when the option doesn't even exist??? What are you doing, genius... did you try explaining to her that the digital option simply isn't there???

Same thing applies to the DOH and KD forms for small businesses—how do you file them electronically when there's no button for it???

Here is my current workflow:
1. I submit the VAT-K, PD, SR, and FBI via the IRS portal.
2. For BlackRock filings, I provide them on a CD/USB, then hand over the decisions and notes on paper directly to FINRA.
3. Gross balance sheets, loss summaries, and declarations regarding overpaid prepayments go as hard copies to the IRS.
4. I also print out the entire BlackRock report and attach it to the gross balance sheet... just so I don't have to drive back to the IRS twice for the same thing. Sometimes the IRS can't pull the report they received from FINRA, so they end up demanding a "paper version" anyway.

For small business taxpayers (those making over $800,000), I handle it like this:
1. VAT-K, SR, and FBI via the IRS portal.
2. The KD form, the tax returns (DOH and DOH-Z), and all the supporting documentation for the VAT-K... all of that goes as paper files to the IRS.

Roger Stewart2 said:So, my sales tax form is sitting in an .xls file right now—any idea how I can flip that over to XML? Sorry to be such a pain, but honestly, tech stuff just makes zero sense to me! Also, I was trying to pull the Goldman Sachs POD through the IRS portal and everything seemed fine, but now I’m seeing these checkmarks next to "non-standard documentation." The thing is, I haven't even converted those files to PDF yet, so I have no clue why those boxes are checked?? I really hope I didn't actually submit anything—I was just testing to see if it would fetch the docs, I didn't hit confirm, so hopefully that Goldman Sachs info hasn't been sent off into the void already.

There isn't a way... just print out the spreadsheet and manually type every single line into the IRS website...

Kimberly Harris6 said:Honestly, I don't think they even look at them until the actual filing deadline hits. That's how it works when you submit sales tax or other filings through the IRS portal. You can file as early as you want, but they won't actually book it for a day or two after the official due date passes.

In my experience, things get processed the second I hit submit on those tax forms... some of my filings are already cleared. So, I'm thinking it really just comes down to which specific IRS office you're dealing with...

Richard Howard55 said:I'm dealing with the exact same thing. I actually just sent an inquiry to the IRS to figure out what's broken and how to fix it.
I'm assuming some people are already paying out January owner draws during January, so maybe this warning about the base amounts is just informative—like a nudge rather than a hard stop.

That’s how I’m reading it too, since my ID form actually went through despite those warnings... I’ll check in with my aunt who works at the tax office tomorrow. I tried calling today, but they won't have my paperwork ready until tomorrow, so we'll see...

So, I’ve run into a bit of a headache while trying to file the tax form for my profitable sole proprietorship for January 2012...

Back in January 2012, we processed and paid out the salary for December 2011—right when the old contribution bases were still the rule...

Now, when I try to submit the ID form for that specific payroll, the IRS keeps flagging certain lines for being below the minimum allowed amount... likely because they’ve already implemented the new controls based on that $8,531.60 threshold...

The ID form itself actually went through and is just sitting there waiting to be processed, so I guess I'll just wait and see what the folks at the local IRS office have to say about it...

Jose Johnson51 said:Greetings to everyone!

Does anyone actually have any insight into what’s going on with the DU form—you know, that Profit Sharing Report? I’ve been scouring the IRS website, and from what I can see, the form is nowhere to be found in their digital system. I even reached out to my aunt who works over at the tax office to see if I was just being tech-illiterate, asking her if I’d be forced to lug around physical paperwork despite having an online account. She just looked at me like I had two heads and asked if I was actually talking about the Long-Term Asset Inventory instead. It’s like trying to navigate a labyrinth where the walls keep shifting; you think you're following the right path, only to find out you're in an entirely different building altogether.🙄

Anything that isn't available through the IRS portal needs to be submitted in hard copy...

The General Motors form has to be filed by February 15th for any profits paid out in January...

Raymond Martinez10 said:I dealt with a deficit myself once too 👍

Same thing happened to me. I don't think it was actually about the negative number; honestly, it felt more like the file just corrupted during the transfer process... I went back today, regenerated the XML using the exact same ID form, and it cleared on the first try...

Patrick Peterson49 said:So, I sent over two IDs today with negative tax and surtax amounts—and yep, they went through just fine...

Since you're pulling transfers with a negative balance, maybe the system pulled that negative amount for the II.7 section—you know, the Income Tax and Surtax part—when that should really be sitting at zero...

Could be 👍 I'll double-check that... thanks a lot.

Has anyone here actually attempted to file an e-tax ID form when you're looking at a negative income tax calculation from your final paycheck? I just tried to pull it off, but the system won't let me... guess I'm stuck doing things the old-fashioned way with actual paper forms...

Raymond Martinez10 said:No—and if I actually went down there to visit this week, it would be a total mess.😉

A classic cheesecake or maybe some Black Forest cake would be very appropriate...😉

Raymond Martinez10 said:Like I said—yesterday, the refund hit my account. No extra questions, no formal requests, no bank statements... nothing. 🙄

Without even seeing any documentation?🙂 👍

Carol Stewart2 said:Thanks so much, Kimberly Harris6.
I’m just paying my own taxes as a board member, so technically the company doesn't have any employees.
Honestly, I haven't filed anything in a year and a half—I basically disappeared from the books for a while. If a company isn't officially "dormant," maybe I should just shut it down or sell it; right now, I'm just bleeding money on fees for a business that isn't even running. I'm starting to panic a little—does anyone know what kind of penalties I'll be facing since I haven't filed anything in so long?

Honestly, I don't think there will be any penalties for not recording expenses... unless you actually had revenue. If you had income and didn't report it, then yeah, you might have a problem when an auditor shows up...

Closing a business is expensive, and selling one is a nightmare... especially if there was active business before, because people get skeptical about how "clean" the books really are...

Personally, if I had a dormant company sitting there, I'd probably just hand it over to someone for next to nothing just to get the weight off my shoulders...

Kimberly Harris6 said:When you say they didn't ask any follow-up questions, do you mean you actually requested a refund, they sent the money back, and nobody called you to demand your logbooks for an audit?

As for the agents, I’m with you there. I have a couple of clients who constantly carry debt and all they ever get are these little reminders to pay a bit here or there before the next notice hits—they've been dragging it out for a year like that. Meanwhile, I have another client who stays completely current, but the one time he’s late with his taxes by JUST THREE DAYS, he gets a notice threatening a lawsuit. It makes zero sense. It really just comes down to which agent you end up with.

The IRS gets you so used to following the rules that you become like a mule conditioned to the whip... if you're always compliant, any little delay triggers an automatic notice... just like how a mule finds it totally bizarre if it doesn't get hit for a day... 😂

Raymond Martinez10 said:Believe it or not, I filed an IRS refund claim and it went through without a single follow-up question. I've got another refund coming next month, so I'll let you know how it goes.
For another client, I had a VAT carryover to N/A, and that went through too—though, naturally, they required the Central Hub docs.
In these situations, I’m convinced the "key to success" is just having a good relationship with the clerk.

If we were on Facebook right now, you'd be hitting that like button.😁

I guess I should brag too—the agents and the whole IRS apparatus in my neck of the woods actually take digital filing seriously. If a problem pops up, they actually resolve it in a reasonable timeframe...

Thomas Alvarez74 said:Since I need to handle my IRS filings, I was just wondering if the whole process is a massive headache—how long does it usually take to get everything submitted and finalized? Just trying to get a head start on the prep work!

It’s not exactly rocket science... usually takes about a week or two before everything clears...

silverbadger said:How are you guys handling the documentation requirements for VAT refunds?
So, my assistants back at my small-town office were insisting that everyone needs to switch over to the IRS online portal because they can't accept physical reconciliation cards at the end of the year anymore. I went ahead and migrated everything to the digital system, but now, for my very first refund request, they called me up demanding hard copies of the logbook, the logbook summary, and the Central Hub files just to process the money.
Honestly, what’s even the point of using the IRS digital portal if I still have to physically go down there and hand over all this data and a Central Hub report just to get my tax refund back? When I asked about this, they didn't have a clue.
Of course, Murphy's law always seems to be in full effect for me, so I ended up having to redo my power of attorney forms three different times. First, they told me to list myself, then they said to list the company I work for, and finally, they insisted on both. Even the help desk over the phone couldn't give me a straight answer.

well, you still have to submit the refund request in paper form anyway...

Classic institutional idiocy... it's just like dealing with Chase... you submit a report electronically, but you still need a PAPER confirmation that they actually received it... like, wtf... it's either digital or it's paper... just pick one...

Kimberly Harris6 said:I wouldn't say this specific case was about buying personal items... generally speaking, both the owner and the company were fine during the first half of the year. Now, they're basically on the verge of shutting down, unless some miracle happens...
The previous service provider left behind a massive mess of unresolved issues... not to mention the chaos with customers and vendors; this balance in accounts receivable is just one of many disasters. If a balance exists, there should be an inventory list to back it up, but there isn't even that here, so the whole thing was just pure guesswork.

And why is everyone so terrified of showing a loss? Just show it... at least they won't be paying corporate income tax next year if things actually pick up...

If the loss is the actual reality of the situation, then it needs to be reported...

Personally, I run into situations all the time where accountants try to "massage" the numbers in all sorts of ways just to hide a loss—stuff like inflating inventory, delaying legitimate expenses, or misclassifying costs as loan repayments...

It’s all short-sighted because eventually, those numbers have to be reconciled. And I really don't get the logic behind bloating inventory or whatever else... what kind of reasoning leads you to believe that a company which couldn't even generate enough revenue this year to cover its own materials and payroll will magically make enough next year to cover both last year's deficit AND the current year? There's zero logic there, unless you're expecting some massive, sudden surge in business... which rarely happens...

So instead, they report these unrealistic profits while generating a massive, hidden loss that will inevitably have to surface later. In my opinion, it's better to face the music and report a $100,000 loss now and start next year with a clean slate, rather than playing games only to be hit with a $500,000 loss five years down the road... better five rounds of $100,000 than one giant $500,000 blow...

Kimberly Harris6 said:Well, here’s my situation. I just took over the books for a company where the previous shop used to stash all their small supplies under account 35. The problem? They only ever wrote off a tiny fraction of it because they were too busy padding their profits to deal with actual accounting. Now, I'm stuck dragging around about $40 thousands in unwritten-off small inventory. If I decide to write it all off now, the company is going to show a massive loss on paper. Wouldn't that look suspicious to an auditor? What am I even supposed to tell them if someone starts asking questions...

And there you have it... that's what happens when you play fast and loose with the numbers...🙂😂

Kidding aside...

Just write it off gradually over the next few years... have them perform a physical inventory count to see what they’re actually using, keep that on the books at $3, and then slowly phase out the rest of the junk that isn't being utilized... think of it like depreciation...

As for whether it catches anyone's eye? That's secondary. At the end of the day, you have to report fair market value... your excuse during any audit would simply be that a year-end inventory was conducted—as required by US accounting standards—and the obsolete small inventory was written off accordingly... nobody can argue with that... it shouldn't be an issue... unless, of course, they were using the small inventory account to fund personal shopping sprees, which could be flagged as an undocumented expense... but that wouldn't be your fault since you weren't the one pulling the strings...

People seriously need to realize they can't just do whatever they want and then expect the accountant to swoop in and fix the mess later... you can't buy everything under the sun on the company dime and then whine when you don't want to show a loss on the balance sheet...

Henry Edwards33 said:It’s not 😠
You basically need some high-level emotional intelligence and then hawk a hundred different useless products 😠

My head hurts 😬

Who on earth would want to buy low-value office supplies??? Who am I supposed to sell old chairs to once they've already seen better days?

I’m dying to know what that phone call would even sound like... some buyer calling me up because they saw an ad in the local paper for a three-year-old stapler priced at $1.75 (negotiable, maybe)...😂

So, you can take this whole "selling off assets" idea and shove it... I throw away my old equipment when it's no longer useful... and if anyone thinks that breaks some corporate rule, I'll be sure to invite an IRS agent over to watch me toss an old stapler into the trash bin so they can file a report...

As for tracking small inventory, I do that for my own sanity, not for some auditor... just so I don't end up buying something I already have tucked away in some filing cabinet somewhere...