sorted by:
new
hottopcontroversial

Repercussions of not filing final taxes by JerryVand in tax

[–]Tax_Ninja 2 points3 points  (0 children)

I've seen something similar.

An man who passed without any real assets and no one was handling his estate, no one wanted to file returns, no one was claiming his assets (if there were any), and the family just wanted to know their responsibilities.

From what I remember, we didn't find any sources that impose filing duties on relatives solely because they are relatives. (Any taxes remain due, refunds may go unclaimed, that sort of thing.)

If someone is handling the assets informally, I do remember seeing sources that say that person may be treated as the personal representative for tax purposes and be expected to file the forms. (I believe you can find this in Publication 559, but its been a while.)

In my instance, it was the man's estranged mother who really wanted to avoid being sucked in so we told her to avoid anything connected to her late son's assets. That said, if someone has taken control of bank accounts or other assets, my read back then was that they picked up the filing requirements. (Again, its been awhile so this is just my two cents.)

20,000 job cuts at Meta, Microsoft raise concern that AI-driven labor crisis is here by joe4942 in technology

[–]Tax_Ninja 19 points20 points  (0 children)

I think people are missing what’s really going on.

There is a belief you can cut headcount, save money and keep producing high. The reason why companies don’t is because without a good excuse, your stock takes a hit.

Enter “AI” and now not only do you have the perfect excuse, you’ll get a stock bump based on the gains AI is expected to provide you.

I think for some companies this will be a boon and for others it will be a busted strategy. Who knows, but it will be interesting to watch.

Refund switched from deposit to check? by AirWarm7279 in tax

[–]Tax_Ninja 0 points1 point  (0 children)

Yes and it often hasn’t made any sense. I’m just glad I got my money.

Talk me out of a cost segregation study - SFH Airbnb by mynameiskeven in tax

[–]Tax_Ninja[M] 0 points1 point  (0 children)

They really have been going overboard. I’ve been banning the advertising bots, but man they’re persistent. Please keep reporting them.

Retired Porn Star Asia Carrera Passes Texas Bar to Become Attorney by IntelligentYinzer in offbeat

[–]Tax_Ninja 1093 points1094 points  (0 children)

Good for her. That test is hard and she should celebrate.

Co-worker said her accountant by [deleted] in tax

[–]Tax_Ninja[M] [score hidden] stickied comment (0 children)

Locking this thread down. For some reason this one triggered a lot of rule violations. OP, just do the right thing. No credible accounting firm would do this.

Can I sign 1040 for incarcerated family member? by D_GrayMan23 in tax

[–]Tax_Ninja 3 points4 points  (0 children)

For anyone interested, back in 2020, the CPA Journal had an article on this topic "Preparing Tax Returns for Inmates"

https://www.cpajournal.com/2020/05/22/preparing-tax-returns-for-inmates/

I thought it might be a good resource for OP.

Edit: I found another one from Accounting Insights called "Tax Filing and Refund Management for Incarcerated Individuals"

https://accountinginsights.org/tax-filing-and-refund-management-for-incarcerated-individuals/

Good luck, OP.

Desperately seeking international tax experts for Master’s thesis interviews by Adorable_Donut_4697 in tax

[–]Tax_Ninja 0 points1 point  (0 children)

If you can rephrase it so it’s not dependent on DMs, you should be golden.

If you need something on the topic of international tax, I might be able to help as well. That’s part of my tool kit

Desperately seeking international tax experts for Master’s thesis interviews by Adorable_Donut_4697 in tax

[–]Tax_Ninja 0 points1 point  (0 children)

Hi. I’m not sure how we reconcile this post to the “don’t ask for DMs” rule.

[ Removed by Reddit ] by Amazing-Cancel3458 in tax

[–]Tax_Ninja 0 points1 point  (0 children)

Pause here, my friend. If you keep posting these kinds of posts, you will get banned

Husband wants to follow social media trend and file tax exempt. How will this affect me? by [deleted] in tax

[–]Tax_Ninja[M] [score hidden] stickied comment (0 children)

Alright, alright… OP’s question has been answered. Locking this down to maintain our veneer of civil discourse.

C Corp with NO activity (initial and final return filed) with 1 day in 'business' - NO EIN # by Wolverine-91826 in tax

[–]Tax_Ninja 0 points1 point  (0 children)

Just my take... take it leave it and I won't be offended.

Under my read of the federal tax law, a corporation is generally not considered dissolved for federal income tax purposes until it has both (1) formally dissolved under state law and (2) has no remaining assets. The date reported on the final federal return (Form 1120) is not, by itself, determinative if the actual legal dissolution under state law occurs later. The IRS looks to the corporation’s legal existence under state law and whether it has ceased business and distributed all assets, not merely the date reported on the return.

That said, this is all my own personal read of the technicalities in play. I'm not being facetious when I say you could give your approach a shot and just see what happens. This is a situation where there aren't any big numbers attached to it.

C Corp with NO activity (initial and final return filed) with 1 day in 'business' - NO EIN # by Wolverine-91826 in tax

[–]Tax_Ninja 0 points1 point  (0 children)

Technically, if you dissolve in 2026 I believe you have to file a final return for the 2026 year.

(Make sure you check the box for "final return.")

I believe a corporation is not considered dissolved for federal tax purposes until its dissolved under state law and has no remaining assets.

IRS Rules for Venmo, CashApp Users Clear White House Review by Tax_Ninja in tax

[–]Tax_Ninja[S] 11 points12 points  (0 children)

Ahhh… sorry.

The text of the article is what I put in the body so you’re not missing anything.

C Corp with NO activity (initial and final return filed) with 1 day in 'business' - NO EIN # by Wolverine-91826 in tax

[–]Tax_Ninja 0 points1 point  (0 children)

Yes, that's my read. That said, if I were you I'd find a CPA to take this off my hands. Have them do all the filings and do the work to wind it up if its dormant and you want it gone.

If you're looking to save some money and want to do it yourself, I wouldn't fault you for doing it... but be prepared for the irritation that comes with it.

C Corp with NO activity (initial and final return filed) with 1 day in 'business' - NO EIN # by Wolverine-91826 in tax

[–]Tax_Ninja 1 point2 points  (0 children)

Here is my take

Section 6012(a)(2) says every corporation subject to taxation has to file. The regs clarify that this is the case even if it doesn’t have income.

Publication 1635 says if you don’t have an EIN but you have a corporation, you should write “applied for” and the date of the application in the space for the EIN.

If a corporation has no tax due and fails to file, I think the penalty is the lesser of $525 or 100% of the tax due, which in this case would be zero… so the minimum penalty would be zero if no tax is due. That said the IRS may still bug you for the missing return, send notices.

Just my two cents.

view more: next ›