Timothy Morgan38 said: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...
Timothy Morgan38 said:Here’s a little update—might be old news to some of you, but hey, it can't hurt to have it on hand...
Just so we're clear: you can drop off written powers of attorney for your clients at any IRS office, regardless of where the client is actually based...
For instance, if the bookkeeping is handled in Washington, D.C., but the client's headquarters and primary branch are out in Seattle, you can just file that power of attorney right there in D.C. without any hassle...
Make sure to fill out three copies of the power of attorney...
Exactly. No more wasting cash on postage, and you don't have to play phone tag with some clerk at the IRS just to check a single line item. Here’s a real-world example where having digital access saved my skin: I had this small business client deal with a sudden new charge—some mandatory fines from the Department of Homeland Security. I flagged it for him, he checked his records and saw it was already paid, but the DHS hadn't cleared the payment yet. Without that instant info, we would've been looking at a full-blown bank levy. Then we'd be stuck in a massive headache trying to prove who was actually right.
I just punch in the client's Social Security number to look up the FARC info, sign the paperwork, and that's about it... I can't really help you 🤷, sorry
If I recall correctly—back when I was heading out from the IRS office—the system was already up and running. Can't you just open one of the client accounts, or are you honestly telling me you haven't managed to get a single one open yet?
Kimberly Harris6 said:Up until now, I've submitted everything through the electronic portal—notes, everything required... But how exactly are they charging people to view public records? Here is the article: "The Treasury is now charging for the public filing of annual reports
Monday, November 14, 2011.
According to the species regulation regarding fees for the SEC for services involving the public publication of annual reports and issuing documents from the SEC filings (Federal Register, No. 126/11), the SEC will begin charging fees for the public publication of annual financial reports starting January 1, 2012.
Per Article 2, Item 1, and Article 3, Paragraph 2 of said regulation, businesses will be charged fees for the public release of financial report documentation received by the Registry, whether submitted via paper or electronically on various data carriers.
Fees for the service of publicly releasing financial report documentation received by the Registry through online services will be collected from the federal budget in accordance with Article 2, Item 1, and Article 3, Paragraph 1 of the regulation.
Interestingly, in previous practice, there were no fees charged to businesses for publishing annual financial reports; instead, those costs under the 2009 regulation (Federal Register, No. 12/09) were covered by the federal budget regardless of the submission method or media used. "
Ha!! So that means my companies won't be charged anything because I send everything through the digital portal... Thank goodness! :-)
There’s definitely a fee schedule for accessing data... So tell me—do you have a professional login and full authorization for all your clients? And what’s the monthly per-client fee looking like? As of right now, I'm strictly using mine for the IRS.
The IRS is actually charging fees for the public disclosure of annual financial statements!
Absolute disaster.👎 I suppose next we’ll get some new directive on how to electronically submit non-standard documentation—you know, the footnotes and distribution decisions—and who knows, they might even make that optional eventually.😂 But for now? They’re charging us just to look at public data—as if we’re paying for movie tickets or something.🤣
Ethan Rogers7 said:Hey there, fellow tax enthusiasts, I’ve got a bit of a situation on my hands and could really use some wisdom! 🙂
So, I finally got my LLC officially up and running, and earlier today, while I was filling out all the paperwork for my sales tax registration with the IRS, I went ahead and entered the date the business actually became active—which was November 7, 2011, the day it was registered with the Secretary of State. I wasn't really thinking twice about it at the time, just moving through the forms, you know? But then it hit me... I also signed an employment contract with myself (yeah, the joys of being the boss!), and that one is set to start on November 14, 2011.
Since I’m currently listed as unemployed with the state unemployment office, I’m scratching my head over the math here... do I need to calculate self-employment taxes on a "draw" or owner's salary for that little gap between November 7th and the 13th, and then switch over to paying standard payroll taxes based on my actual gross salary from the 14th onwards once the contract kicks in? Just trying to figure out how to handle this tiny little window of time without making a mess of things.
Thanks so much for any help!
Here’s my two cents: starting Nov 14th, it follows the employment contract 🙂
Kimberly Harris6 said:I actually called Microsoft to ask about this, and the advisor told me that if she’s also the CEO, it wouldn't fly. Since a CEO is authorized to represent the company, they aren't strictly just there for bookkeeping tasks, so if an auditor showed up, it wouldn't pass inspection. Basically, according to the consultant, you’d need to actually hire someone in the company if you're going to be processing paperwork for clients..
That answer doesn't sit right with me at all. There are hundreds of companies across the US with zero employees generating massive revenue—it would be impossible if a CEO was strictly limited to "representation" without performing actual duties. BTW—I know a firm right here in the States that handles all its accounting without having a single employee on the payroll. 😉
Don't forget to handle the power of attorney for your own company—I went ahead and sorted everyone else out and everything is running smoothly, but I still can't get my own e-filing portal open. 😂
Yeah, the FBI, the IRS, and the web—all of them. Plus, I’ll have the balance sheet and the GDP figures over at Goldman Sachs before the PD even gets moving, so there's no need to involve the CIA. If there's anything else you need, just say the word; it'd be a perfect excuse to stop by and say hi to the ladies at the CIA 🙂
Patrick Peterson49 said:I've only been using it for about 20 days myself... it's got its ups and downs... I filed my tax forms back in September and got the receipt saying they were received, but it tells you to check later to see if they actually cleared... so I went back on October 17th to check, and nothing—nothing at all (even though I filed on the 30th)—🙂 I called my agent at the IRS, and she's basically like, "Oh, you forgot to check a box." 🤣 so yeah, it really just comes down to which clerk you get... plus, I just finished my sales tax filings and it says "processed," but when I look at my account, there's still no balance updated🤷 it's cool that everything gets done way faster and the software is super easy to navigate (at least for me)... man, if the developers could just let us import our forms directly instead of having to type everything in manually, that would be a total game changer...
This is spot on. Until the clerk actually processes the entry, nothing moves—and from what I can tell, if they don't get to it within a certain window, the whole thing glitches and you have to start over. The ledger doesn't reflect anything until the clerk "finalizes" the posting. I once sat around waiting for my state tax credits to clear for over a month because of this exact nonsense.
Timothy Morgan38 said:Since there’s clearly enough interest here to warrant a dedicated space, I’ve split these posts into their own thread. It should make things a lot easier to follow...
Moderator lili p.
Does anyone know if you can actually file a DOH form—or basically any final tax return for sole proprietors—through the IRS online portal?
While I’m sitting here waiting for my new security key from the bank to arrive in the mail, I’ve been digging through the IRS digital filing manuals... and I honestly can't find a single option for small business owners to submit their returns online.
Just to clarify: since the rule change on January 1st, does everyone making over $800,000 have to use the electronic filing system, or is that strictly for corporate income tax filers?
The law specifies VAT registrants—which means anyone meeting those revenue thresholds is included—but we’re stuck waiting on the IRS regulations and official guidance. We still have over 60 days before this actually kicks in.😉
You don't actually need a specific degree to run an LLC like you would for a sole proprietorship. Of course, there are exceptions—for instance, a pharmacy obviously needs to have a licensed pharmacist on staff and so on.