Posts by Brenda Chase3

Robin Cook4 said:Hey, quick question about some assets bought back in Dec 2014. Should I list them on the 2014 tax return or wait until 2015 since they don't actually go into service until the following month?

You should include it in your 2014 filing so the purchase price is properly recorded, though you won't be claiming any depreciation expense yet; that will show up as $0.00.

Bradley Grant64 said:'morning everyone! So, at the start of the month, we started registering our younger employees—the ones under 30—so we can take advantage of those tax breaks under the Tax Code... When I was going through the registration process on the Social Security Administration portal via the employer login, I just selected 'employment with a legal entity' as their insurance basis, but then yesterday I logged back in and saw this notification on my dashboard saying there’s actually a specific insurance basis meant for these workers... I'm feeling a bit lost here, so if anyone has dealt with similar registrations before, whether it was under the Tax Code or those other employment incentive programs, could you please help a girl out? I'm dying to know if I just totally missed the option to select a different insurance basis earlier, or if they actually just implemented this new requirement recently??!

There have always been specific categories for certain types of coverage, such as for vocational training programs. For this new initiative targeting workers under 30, that specific designation didn't exist until the legislation was officially passed. If you realize you filled out the form incorrectly, don't sweat it—you can either file an amendment or just shoot them an email explaining that you selected the wrong basis and ask them to fix it. The Social Security Administration is usually pretty helpful if you reach out. Just leave your contact number, and they'll give you a call if they need more details.

rapidcanyon5 said:I’m going to be employed through a government grant program, and I’m currently looking over the application being submitted to the Bureau of Writing which states:
Once the Application receives a positive evaluation, the employer is required to submit the documentation for the co-financing contract signature within 8 days, specifically:
-the employment contract

In the past, they've requested both the employment contract and the forms for Social Security and Medicare enrollment.
Does anyone happen to know when or how the Social Security enrollment is handled in this specific scenario? From what I’ve gathered, Medicare registration happens automatically once Social Security is set up. Or...

We actually had to hand in the Social Security registration ourselves because they requested it. You don't need to worry about Medicare since that kicks in automatically.

Thanks Stella and APIS, everything looks solid today. Maybe I was just checking things a bit too early yesterday, haha. Anyway, all the remaining payments have been posted for everyone now; there are still a few correct entries waiting to be processed, but I’m not sweating it since I have confirmation that they were submitted correctly. It felt weird when only two contributions hadn't cleared yet—I honestly started wondering if I was losing my mind. The billing accounts and phone calls are all matching up, and the amounts are staying consistent (aside from those recent adjustments regarding pet fees and injury claims). So, yeah, if anyone else notices something off, they’re clearly still smoothing out the kinks behind the scenes.

Is anyone else seeing these massive delays with the 2015 tax filings regarding those bottom-tier contributions? It’s a total mess. For some people I know, the payments for social security and unemployment insurance haven't even been posted yet. Then you have others where the paperwork is technically correct and has just been sitting in the queue waiting for processing for five days—so they’ve actually made the payment, but the system hasn't cleared the filing yet. Honestly, it seems like almost everyone is running into some kind of glitch with their tax records. Are they still dragging their feet over there, or what is going on?
What cracks me up most is how inconsistent this is; half the payments were posted instantly—literally the same day—while the other half are nowhere to be found. I’m stuck wondering if I should just sit tight and wait or start blowing up their customer service line.

Jack Grant said:Hi there!
I have a quick question... I'm taking over the bookkeeping starting this year, specifically regarding the IRS e-filing credentials. Since the previous accountant used electronic services for this client, they clearly already have an established tax ID and profile set up with the IRS. Does that mean I just need to request the login credentials and digital signature tools from them, or am I required to submit a completely new application to the IRS regardless of their history?
Thanks so much in advance for any help!

If the previous bookkeeper was managing the firm's electronic filings through their own professional certificate—meaning the company didn't actually possess its own dedicated credentials—then you’ll need to apply for your own credentials through the IRS. You will also need to obtain a power of attorney from the client so you can access their digital services and have them authorized under your specific certificate.
On the other hand, if the company maintained its own separate certificate and the previous accountant simply used that specific tool to file, then the old accountant is obligated to return the physical card and reader to the client. In that scenario, the client should hand those materials over to you, and you can simply carry on using the company's existing certificate.

Thomas Gomez7 said:Evening. Can someone give me the quick rundown on this new Self-Employment Tax Act—specifically the part about self-calculating contributions?
Up until now, we just waited for the IRS to send us our assessments, so I'm a bit lost on how I'm supposed to figure out these new contribution amounts myself.

For 2015, everything stays exactly as it was under the previous IRS notices. However, starting January 1st, 2016, you'll be moving over to the JOPPD system. You can find all the specifics and a full breakdown right here:

http://www.irs.gov/Documents...Taxpayer2015.pdf

briskmason37 said:Does a municipal grant (subsidies) count as revenue, and should I record it under receipts in the KPI books via the checking account?

Yes, they should.

Robin Cook4 said:Hey, quick question—can I (small business owner) write off a generator as an immediate expense $5.00 right away, or does it have to be depreciated over time?

Generally speaking, long-term tangible and intangible assets are defined as items where the individual purchase cost exceeds $1.25 and the useful life extends beyond one year.
In this case, you'll need to capitalize it.

http://www.irs.gov/newsroom/example-link

This is going to be incredibly interesting to watch unfold! We're looking at a system where employees have to be registered before they even clock in for their first shift, and then the Social Security Administration has to be notified if someone changes their mind about the job... I am genuinely curious to see how the bureaucracy in this country actually manages to pull something like that off.

Carol Price4 said:Section 112 is being updated to read:

"(1) Obligors shall submit data for maintaining master records within the following timeframes:

1. Data regarding the commencement, termination, or changes in the business operations of contribution obligors — within 24 hours of starting or ending operations, or on the date the decision to register or strike off becomes final in the appropriate registry, within 24 hours of any change occurring in the obligor's business operations.

4. Data regarding the start and end of coverage for self-employed obligors — within 24 hours of the registration decision becoming final in the appropriate registry.

(2) If an insured individual does not begin working on the start date of their coverage, the obligor is required to notify the Bureau of Writing no later than that same day.

(3) The Bureau of Writing is required to accept the application from paragraph 1 of this article and confirm receipt of the filing.

So, does anyone actually have real-world experience with this? Like—you finish the registration, then you handle the tax filings, then the bank, and so on... is 24 hours after registration really enough time to get everything sorted with Medicare? Honestly, they could have made it at least 3 days... this is just ridiculous. It’s like they have zero connection to reality—if a company can be set up online in a matter of hours, then fine, maybe those deadlines make sense, but right now? This feels like nothing more than a way to collect money through fines.👎

They aren't exactly thinking clearly; I honestly don't see how anyone could squeeze all of that into a 24-hour window. Unless people are out there buying Superman capes so they can fly from one office to the next, it's impossible. Especially since those initial filings still have to be processed manually because they haven't approved digital access credentials or other similar nonsense yet.

I wanted to bring this topic back to the forefront since New Year's is right around the corner, so... does anyone have any fresh insights? I’d love to get a discussion going regarding what we actually need to be doing, who needs to be notified, and what our payment obligations look like...

Justin Fox4 said:Hey there!
I could really use some advice. I’m switching jobs, and since they’re in different states, the timing is a bit tricky. My current boss is offboarding me on Friday, December 19th, and I start at the new company that following Monday, December 22nd.
What happens during that weekend?
My current employer handles my Medicare deregistration on Friday. Can my new boss handle the enrollment later while things are processing, or does it have to be instant? I know there's usually a 24-hour window for payroll reporting—so if I show up Monday, am I technically just having a two-day gap? Or can my new boss backdate my start date to Sunday? Honestly, does those two days even matter?
Also, I need to swing by the Department of Justice on Friday to update my tax info since I'm moving to a new state... ugh, so much to do!🙂

Why is the weekend bothering you? Your old employer will offboard you on Friday the 19th, and then you start with the next company on Monday. That new employer will register you on either Monday or Tuesday, because they have a 24-hour window from your actual start date to get everything filed. If you start on the 22nd, they’ll file you on the 22nd or 23rd, but your official start date remains the 22nd.
There is no way the new employer would register you starting on the 20th if you aren't actually working until the 22nd.
Generally speaking, the 24-hour deadline refers to business days, not calendar days. So, technically, your old employer could process your exit on Monday instead of Friday if you finish up on Friday, since the weekend falls in between and the "24 hours" essentially spans Friday to Monday.
But practically, the new company just needs to have your paperwork submitted by Tuesday at the latest.

Brenda Chase3 said:I’m feeling a bit stuck regarding the NPS forms, so I’d really appreciate some guidance from my colleagues...
I am currently dealing with an acquisition of vehicles (motorcycles) from the USA intended for resale here in the States. These bikes are 2008 models. The buyer is a registered business with a valid tax ID, so everything is perfectly standard and above board. They purchased these vehicles on December 4, 2014, from another firm based in the USA.

Regarding the Value Added Tax Act, I know I need to file the return including the VAT for the period of December 2014 through January 20, 2015. However, the question is: do I actually need to complete the NPS? My main point of confusion is that since these are 2008 models and clearly aren't "new," I'm not entirely sure how to proceed without accidentally overlooking a specific requirement.

Just to answer this myself—and hopefully help anyone else who might be wondering—if you are acquiring a vehicle specifically for the purpose of resale, you don't need to worry about the NPS. You simply handle the VAT and the VAT return.

Per Section 2 of Article 184 of the VAT Regulations.

I’m feeling a bit stuck regarding the NPS forms, so I’d really appreciate some guidance from my colleagues...
I am currently dealing with an acquisition of vehicles (motorcycles) from the USA intended for resale here in the States. These bikes are 2008 models. The buyer is a registered business with a valid tax ID, so everything is perfectly standard and above board. They purchased these vehicles on December 4, 2014, from another firm based in the USA.

Regarding the Value Added Tax Act, I know I need to file the return including the VAT for the period of December 2014 through January 20, 2015. However, the question is: do I actually need to complete the NPS? My main point of confusion is that since these are 2008 models and clearly aren't "new," I'm not entirely sure how to proceed without accidentally overlooking a specific requirement.

redsurfer61 said:Hey guys, I could really use some help here

So, I’m the only employee at my place, and it’s been about 10 days since I officially registered the business and got myself on the books with Medicare... but they told me I don't actually *have* to sign up for health coverage, though apparently "if I want to, I can"?!
Naturally, I didn't bother signing up, but now I'm looking at my status and it still shows me as unemployed under the health system.
Does this whole automatic enrollment thing actually work, or is Medicare going to just register me whenever they feel like it? And what happens if I suddenly need to take sick leave and the system thinks I'm just some jobless person wandering around?!

P.S. I don't even have one of those digital health apps or anything, I just grabbed a physical form and filed it with Medicare, so now I'm sitting here wondering if the paperwork is actually going to make its way over to the main office without a massive headache...

The information they gave you is correct—you don't need to visit the insurance office manually because the update should happen automatically. However, Medicare takes much longer to process things than the Department of Labor does. If you need physical proof right away, your best bet is to grab a processed form from the Social Security Administration and head down to the Medicare office to fill out Form 1; they can confirm your status there.

Bottom line: you will eventually be enrolled with Medicare, you just need to be patient. Since you aren't using the online portal, you won't receive their digital confirmation, as they typically only email those documents to users with active online accounts.

Jose Turner57 said:I need to register an employee with today's date through Medicare, but I don't have her Social Security number handy. Is it possible to get the filing through without the SSN today? If not, could I file tomorrow but backdate it to today? Also, besides filling out the application for a fixed-term contract, is there anything else I need to upload?

It works fine without the Social Security number. You can file up to one day in arrears, which means you can definitely submit it tomorrow using today's date.
There isn't anything else you need to upload. 😉

David Green642 said:I've had audits based on increased workload before, and nobody ever gave me grief about it. It's a gray area, honestly. In my view, you just need to back up that reason with actual accounting docs—something showing a spike in revenue or even just expenses, you know?

Otherwise, how is an inspector supposed to dispute anything just because they have a hunch? That's just pointless...

Their official response was basically: "If your business volume has increased, then hire someone on a permanent contract. If things slow down later, you can just lay them off due to downsizing."
Can you believe that? Honestly, it feels like every inspector in the US just makes up their own rules as they go. Because if you look at audits for other companies, nothing is ever questioned, even when the documentation is identical to what these people were penalized for.
These guys were hit with a fine of $1667, but the court actually reduced it to $533 because it was a first-time offense, they're a major corporation, they've always been compliant, and they pay everything on time. So, the court showed some leniency.
I totally get where you're coming from, but in the real world, things work a bit differently.

Samuel Sanders8 said:Hi everyone, I have a quick question regarding how to file an amended VAT return.

Back in October, we had to adjust one of our invoices because of a contract amendment, which meant increasing the total by about $6.75. Since this was for construction services, it involved a reverse charge tax liability. I’m trying to figure out the exact process for submitting a corrected VAT form through the IRS portal. I’m already familiar with how to handle corrections for the Social Security Administration, but I’m a bit lost when it comes to VAT, so I would really appreciate some help if anyone here has dealt with a similar situation before.

Thanks in advance for any insight you can share!

You just submit the amended return exactly the same way you did the first time. Just make sure to give your agent a heads-up that you've sent over a correction so they can pull it up and swap it out, especially if they've already processed the initial incorrect version.

David Green642 said:The reason has to be stated within the contract itself, but I couldn't find anything explicitly saying that specific reasoning *must* be detailed. Got a link?

That’s exactly where her logic was heading—thinking there has to be an objective justification for extending the term. Essentially, you can't just say "we have more work to do," because if that's the case, the law expects you to transition that role into a permanent position. It has to be something situational. For instance, you might need extra coverage because someone is out on maternity leave, or perhaps you're scaling up for a seasonal rush, like needing extra hands at a beachfront restaurant during the summer peak, and you only need them until the season winds down. I actually saw some of my own clients get hit with a massive fine from the Department of Labor because they extended a contract citing "increased workload" as the excuse. They refused to admit they were wrong, but the regulators weren't having it.