IRS and Tax Filing Issues

I’m dealing with some total nonsense regarding my tax filings. I got an email from the IRS because I’ve been hounding them about some mismatched payments—basically trying to get a refund credited to my account—and now they’re claiming I need to submit forms from previous years because apparently, nothing was properly recorded. I managed to track those down, but then they hit me with this: "Additionally, on account 8125 MO-supervision, there is an overpayment of $xxx dating back to 2002 which is past the statute of limitations. Please
submit a written request to have this amount credited."

Can someone please explain what they actually want from me? What kind of request are we talking about, who am I supposed to credit it to, and does anyone have a template for this kind of thing?!? 🤔 🤦

On top of that, they’re asking for IDD and ID forms for December 2013, but for that specific month, the JOPPD was actually filed in January 🤣
.

Are there any actual penalties or issues if I don't get the JOPPD form sent in immediately? My USB drive just died on me, so I'm stuck. 🤦

@ lady G i Gill01
Do you guys actually list land and personal vehicles in your long-term assets when you're running them at double the depreciation rate?

Look, I’m honestly stuck on what to put under "Useful Life" (years, right?) for land since you can't depreciate it. I can't just punch in a 0 because the software assumes 0 means the asset was sold—which isn't the case here. And then there's the category code... should it be 01-Buildings? Land is its own thing and doesn't depreciate, but if I don't put it under buildings, there's nowhere else for it to go. It feels like a total catch-22.

Next issue: personal vehicles. Usually, they're depreciated at 20%, but if you're doubling it to 40%, that makes the useful life 2.5 years. Problem is, this damn app won't let me enter anything other than whole numbers. What am I supposed to do there? Just round up and pray?

Honestly, the whole "useful life" field feels kind of pointless anyway—I have some assets where I only depreciate a fraction of a year, but the system refuses to accept decimals. It only takes integers. How is anyone supposed to be accurate with that?

And going back to that weird 0=sold thing... shouldn't sold assets just be removed from the long-term asset registry entirely? If it's gone, it's gone, right? So why is there even an option to mark it as "0=sold"?
Are we actually expected to keep sold property in the records?
🤔

Matthew Cruz41 said:I’m dealing with some total nonsense regarding my tax filings. I got an email from the IRS because I’ve been hounding them about some mismatched payments—basically trying to get a refund credited to my account—and now they’re claiming I need to submit forms from previous years because apparently, nothing was properly recorded. I managed to track those down, but then they hit me with this: "Additionally, on account 8125 MO-supervision, there is an overpayment of $xxx dating back to 2002 which is past the statute of limitations. Please
submit a written request to have this amount credited."

Can someone please explain what they actually want from me? What kind of request are we talking about, who am I supposed to credit it to, and does anyone have a template for this kind of thing?!? 🤔 🤦

On top of that, they’re asking for IDD and ID forms for December 2013, but for that specific month, the JOPPD was actually filed in January 🤣
.

Are there any actual penalties or issues if I don't get the JOPPD form sent in immediately? My USB drive just died on me, so I'm stuck. 🤦

Just write it out informally: "Please execute a credit for the amount of $xxx under account 8125."
That gets credited toward government revenue, because once three years pass, those claims of yours just expire and vanish into thin air according to the statute of limitations.

Robin Kern76 said:@ lady G i Gill01
Do you guys actually list land and personal vehicles in your long-term assets when you're running them at double the depreciation rate?

Look, I’m honestly stuck on what to put under "Useful Life" (years, right?) for land since you can't depreciate it. I can't just punch in a 0 because the software assumes 0 means the asset was sold—which isn't the case here. And then there's the category code... should it be 01-Buildings? Land is its own thing and doesn't depreciate, but if I don't put it under buildings, there's nowhere else for it to go. It feels like a total catch-22.

Next issue: personal vehicles. Usually, they're depreciated at 20%, but if you're doubling it to 40%, that makes the useful life 2.5 years. Problem is, this damn app won't let me enter anything other than whole numbers. What am I supposed to do there? Just round up and pray?

Honestly, the whole "useful life" field feels kind of pointless anyway—I have some assets where I only depreciate a fraction of a year, but the system refuses to accept decimals. It only takes integers. How is anyone supposed to be accurate with that?

And going back to that weird 0=sold thing... shouldn't sold assets just be removed from the long-term asset registry entirely? If it's gone, it's gone, right? So why is there even an option to mark it as "0=sold"?
Are we actually expected to keep sold property in the records?
🤔

I haven't been able to find an AOP code for land depreciation—it just doesn't seem to have one. At least, that’s my experience digging through the tax guidelines. 😁I'm staring at this data entry problem and, honestly, I’m at a total loss. For sole proprietors, these records are only kept for informational purposes—there's no expiration date and no specific amortization schedule attached to them. Since there's no hard timeline or depreciation math to work with, I have absolutely no clue how we should actually represent this within the eDI application.
Regarding that whole headache with depreciating assets for a partial year—I finally managed to get it sorted through the app. It took two days of staring at loading screens and sending over screenshots of my inquiries just to get a response, but I eventually pushed it through. 🙄 I suppose they’ve finally sorted it out.
The way the IRS handles this can be a bit of a headache—it’s one of those accounting quirks that feels unnecessarily convoluted. Essentially, you don't actually write off the asset from the books until the following fiscal year after the sale goes through, even though it remains on the ledger for the current year. Take a hypothetical scenario: let's say you look at your balance sheet on December 31st, 2015, and the balance shows up as zero. On paper, it looks like nothing is there. However, you still have to account for the depreciation up until the actual date of the sale—say, June 12th, 2015. So, that "zero" isn't because the asset vanished instantly; it's just how the IRS records an asset that was sold earlier in the year. It’s a bit of a shell game with the numbers, really.

placidlynx92 said:I haven't been able to find an AOP code for land depreciation—it just doesn't seem to have one. At least, that’s my experience digging through the tax guidelines. 😁I'm staring at this data entry problem and, honestly, I’m at a total loss. For sole proprietors, these records are only kept for informational purposes—there's no expiration date and no specific amortization schedule attached to them. Since there's no hard timeline or depreciation math to work with, I have absolutely no clue how we should actually represent this within the eDI application.
Regarding that whole headache with depreciating assets for a partial year—I finally managed to get it sorted through the app. It took two days of staring at loading screens and sending over screenshots of my inquiries just to get a response, but I eventually pushed it through. 🙄 I suppose they’ve finally sorted it out.
The way the IRS handles this can be a bit of a headache—it’s one of those accounting quirks that feels unnecessarily convoluted. Essentially, you don't actually write off the asset from the books until the following fiscal year after the sale goes through, even though it remains on the ledger for the current year. Take a hypothetical scenario: let's say you look at your balance sheet on December 31st, 2015, and the balance shows up as zero. On paper, it looks like nothing is there. However, you still have to account for the depreciation up until the actual date of the sale—say, June 12th, 2015. So, that "zero" isn't because the asset vanished instantly; it's just how the IRS records an asset that was sold earlier in the year. It’s a bit of a shell game with the numbers, really.

I also track land in the general ledger for my LLC—that's what I was taught, anyway. But then you'd have to report it in the electronic tax filing too, which feels redundant. I ended up just listing it under "buildings" with a useful life of 1, just so the software would stop throwing errors and let me save the entry.
Regarding the write-off rate, you have to enter the exact percentage being depreciated. You can't just tell it 50% if you've only held it for 3 out of 12 months.
All in all, this whole application is incredibly poorly designed—just a massive pile of inconsistencies and flaws. 🤦

But wait, are we really supposed to list assets that have already been sold? This is my first time dealing with sold/derecognized property. Good grief, if I have to manually enter another 40 items into the electronic tax portal, I'm going to lose it. 🙂

Does an LLC send the DI form along with the PD form? I was under the impression that only sole proprietors have to deal with that when filing with HHS.

Steven Anderson14 said:Does an LLC send the DI form along with the PD form? I was under the impression that only sole proprietors have to deal with that when filing with HHS.

It's just for sole proprietors.

Steven Anderson14 said:Does an LLC send the DI form along with the PD form? I was under the impression that only sole proprietors have to deal with that when filing with HHS.

From what I understand, you always bundle those attachments with the PD—we're talking balance sheets, income statements, gross balances, and that full list of fixed assets. Basically, you'd always be submitting all of that stuff together.

😲 We never include a fixed asset list when we file our corporate tax returns.
Just the balance sheet, the P&L, the profit distribution decision, the financial statement approval, the explanation for any discrepancies between the tax return and the sales tax totals, and a statement on how any tax overpayments are being used (if there even are any). Oh, and a certified copy of the FARC filings as of December 31st, and that’s basically it. (I hope I didn't miss anything 😁).

We’ve never sent an asset list or a gross balance sheet, and honestly, nobody’s ever asked us for them. 🤔

Sometimes I get the feeling that half the stuff we attach is just going straight into a black hole. Nobody actually looks at it. 😁
They’re all obsessed with nickel-and-diming the taxes and what we owe the government, but they clearly have no clue what to actually do with the data. 🤣

I’ve found little typos in my own notes before—like putting the wrong year somewhere or leaving a sentence half-finished—and not once did anyone call to ask what happened. It really makes me think that aside from the basic tax forms, those people don't have the slightest idea how to interpret anything else.

I’ve never sent over a list of Disney companies—not that anyone ever asked for one...

What I actually send is the balance sheet, gross profit statements, income statements, decisions on profit usage or loss distribution, a breakdown of tax losses by year (if applicable), and the statement regarding overpaid prepayments... nothing else—and honestly, no one has ever called me to say anything was missing, 😁

I’m not sending over the balance sheet, the cash flow statement, or any board decisions, because the IRS just pulls whatever they need directly from Fidelity Investments.
What I do send is the gross balance sheet, the resolutions regarding the use of retained earnings, the tax reduction schedules, and the loss reports... but nothing from the private ledgers or anything meant for public disclosure.
So far, they haven't asked for anything else 🤷

Robin Kern76 said:From what I understand, you always bundle those attachments with the PD—we're talking balance sheets, income statements, gross balances, and that full list of fixed assets. Basically, you'd always be submitting all of that stuff together.

The Deloitte report and the R&D Group findings aren't actually attachments to the P&L; they are distinct financial statements. As for the gross balance sheet, whether an IRS agent requests it as an attachment varies from one case to another. There isn't a universal rule there.

Maintaining a fixed asset schedule is mandatory, certainly, but it isn't something you submit as part of a Goldman Sachs filing.

For small business owners, the DI is the only entity required to file.

Ugh, I’m honestly just totally lost when it comes to this IBM stuff. I mean, I definitely agree that the IRS agents don't have a clue how to actually read the reports we're attaching—especially the gross balance sheet. 🙄
To be fair, no auditor ever asked me to send over an IBM before. At my old job, I just did exactly what my supervisor told me to do, so I figured I’d just stick to the routine. But now that you guys are saying it isn't even necessary... maybe I just won't bother sending it at all.
But then why on earth does the IBM form even exist on the e-filing portal? Is it strictly for sole proprietors? 🤔

And one more thing regarding IBM—if I sold off some assets back in 2015, can I just scrub them from my inventory immediately, or do they have to stay on the books through the end of 2015?
I run everything through Excel, so I just deleted the sold items from the spreadsheet, cleared the total net book value in the financial statements, and did a value adjustment on the 039 standard. Just your typical write-off.
So, if I started with 150 items, sold 50 of them, and ended up with 100 items on December 31, 2015—is that actually okay?

The e-Trade stuff is just for freelancers and independent contractors—basically anyone reporting self-employment income. I’ve had a few people confirm that on my end. You actually have to file it even if you're reporting zero, even if you don't have an official business ID. I even got some physical paperwork sent my way this year, but they made it clear I still need to submit the e-Trade version too.

Robin Kern76 said:Ugh, I’m honestly just totally lost when it comes to this IBM stuff. I mean, I definitely agree that the IRS agents don't have a clue how to actually read the reports we're attaching—especially the gross balance sheet. 🙄
To be fair, no auditor ever asked me to send over an IBM before. At my old job, I just did exactly what my supervisor told me to do, so I figured I’d just stick to the routine. But now that you guys are saying it isn't even necessary... maybe I just won't bother sending it at all.
But then why on earth does the IBM form even exist on the e-filing portal? Is it strictly for sole proprietors? 🤔

And one more thing regarding IBM—if I sold off some assets back in 2015, can I just scrub them from my inventory immediately, or do they have to stay on the books through the end of 2015?
I run everything through Excel, so I just deleted the sold items from the spreadsheet, cleared the total net book value in the financial statements, and did a value adjustment on the 039 standard. Just your typical write-off.
So, if I started with 150 items, sold 50 of them, and ended up with 100 items on December 31, 2015—is that actually okay?

Once an asset is sold, it is written off and shouldn't—meaning, it absolutely cannot—remain on that specific list or registry. It should only stay on the books if it hasn't been sold or disposed of, regardless of whether its value is zero. So, what you did sounds perfectly fine.

Sophia Ortiz said:Once an asset is sold, it is written off and shouldn't—meaning, it absolutely cannot—remain on that specific list or registry. It should only stay on the books if it hasn't been sold or disposed of, regardless of whether its value is zero. So, what you did sounds perfectly fine.

Ugh, thank goodness I actually handled it right. That IRS depreciation schedule totally threw me for a loop because I was convinced the accountants had to fill it out too... but then I saw the "Useful Life" column where it says (0 = sold), so I figured—hey, maybe I should include the stuff we already sold just to be safe? 🤦

Turns out, I didn't even need to touch that specific form in the first place. Total waste of my time, really. 🤦🤦 😬

Thanks! 🙂

Robin Kern76 said:Ugh, thank goodness I actually handled it right. That IRS depreciation schedule totally threw me for a loop because I was convinced the accountants had to fill it out too... but then I saw the "Useful Life" column where it says (0 = sold), so I figured—hey, maybe I should include the stuff we already sold just to be safe? 🤦

Turns out, I didn't even need to touch that specific form in the first place. Total waste of my time, really. 🤦🤦 😬

Thanks! 🙂

👍

Carol Price4 said:I’ve never sent over a list of Disney companies—not that anyone ever asked for one...

What I actually send is the balance sheet, gross profit statements, income statements, decisions on profit usage or loss distribution, a breakdown of tax losses by year (if applicable), and the statement regarding overpaid prepayments... nothing else—and honestly, no one has ever called me to say anything was missing, 😁

I’d personally throw in the asset data required under Section 22, Subsection 11 of the IRS tax code.

Do I need to attach the Chamber of Commerce fee calculation along with my sales tax filings? Like, am I supposed to keep those records tied directly to my financial statements? Or can I just debit the liability account and book the expense and call it a day? 🤔

Robin Kern76 said:Do I need to attach the Chamber of Commerce fee calculation along with my sales tax filings? Like, am I supposed to keep those records tied directly to my financial statements? Or can I just debit the liability account and book the expense and call it a day? 🤔

You don't submit or even calculate the QuickBooks for corporations anymore...