Industry Discussions

I have a self-employed overseas client who is filing with his Foreign Tax Credit (not the 2555, which doesn’t allow the refundable CTC) so he should be entitled to the refundable portion of the child tax credit.When I exclude the Self employment tax on Form SE (due to Totalization Certificate of Coverage I am attaching) it wipes out the refundable Child Tax Credit refund. He only has $70k income, so is well below the threshold. How do I get it to allow the refundable tax credit without a manual override, which would necessitate a paper file and possibly a review? Prior tax preparers for the last several years have gotten him this refund but ProSeries is not allowing it.Is there anything I can do to restore the refund?Thanks for any advice!

When a Taxpayer buys a new principal residence and the closing statement reflects a $6,120 Loan Origination Fee but the 1098 shows $0 for points paid on purchase of principal residence in Box 6, is that $6,120 deductible as interest expense on Schedule A?

Continued from https://accountants.intuit.com/community/tax-talk/discussion/toon-d-jour/00/260300

I’m a sole proprietor 

My client is in the entertainment business and been hired to complete a commercial project for a client. The client received a 1099-NEC for revenue not earned yet; the deposit is for expenses, earnings and costs associated with the commercial project that client is hired to complete. The client is starting this project, and the money provided is seed money for project. This is a first-year Partnership, has elected accrual accounting for reporting, small amount of expenses allocated toward project. I am asking the community the best way to report 1099-NEC on partnership return to show the 1099-NEC amount and backing out the amount, then explaining the client is an accrual basis partnership and the deposit is unearned revenue. What documents or attachments would the community suggest sending with return not have any issues with the IRS reporting, along with showing the 1099-NEC amount for matching to the pre-payment. The revenues and expenses for the project would be coming in the next y

USMNT players can earn between $330,000 to nearly $1 million from the World Cup, depending on how far the team progresses in the tournament.FIFA does not pay players directly. Instead, they pay tournament prize money to the national federations. Thanks to a landmark 2022 collective bargaining agreement, U.S. Soccer pools 80% of the FIFA World Cup prize money and splits it equally between both the men’s and women’s national teams. The per-player payout breakdown scales as follows: Group Stage: ~$330,000 eachRound of 32: ~$361,000 eachRound of 16: ~$423,000 eachQuarterfinals: ~$484,000 eachChampions: ~$800,000 to ~$961,000 each All of the team members are US citizens.  One of them, who has been in the news lately, was born in Brooklyn to Nigerian parents who were living in London but visiting the US when his mother was seven months pregnant.  Airline staff did not allow her to board the family's return flight to London due to safety concerns over the advanced state of her pregnancy.  The

Certain individual taxpayers who have an IRS Online Account* may submit their Form 843, Claim for Refund and Request for Abatement, electronically through a new secure application available on IRS.gov located on the Mobile-friendly forms web page. At this time, only claims on Form 843 related to fully paid interest and penalties that cite to Kwong v. United States are being accepted electronically. https://www.irs.gov/forms-pubs/filing-form-843-for-claims-citing-kwong-v-united-states

Does anyone have a way to contact INTUIT to get missing CEs reported to the IRS.  I emailed back in January (protax_training@intuit.com), but the email went unnoticed.  I have now been placed in “inactive” status due to the missing CEs.  

I just wanted to give everyone a "Heads Up" regarding Intuit live online courses which promise you an hour of CPE. The IRS will NOT accept these courses as part of your required education for Enrolled Agent, because they lack a 14-character IRS program number.I took six online courses from Intuit in 2025 which was the last year of my 3-year enrollment, and I recently discovered that I am lacking six courses for my enrollment renewal.Here is a the e-mail that I received from the IRS on the subject:Thank you for your response. Please reply to this email with the certificates that are not in your PTIN account. The certificate has the 14-character IRS program number to be accepted. After reviewing the certificate, we will continue to process your renewal or notify you in additional information is needed. Regards, Office of Enrolled Agent Policy and Management/vmmThe certificates that I received in 2023 did include what appeared to be a program number and they were accepted b

I am quite pissed about the new way Intuit has found to further enrich itself from customers from the new $100 advanced users fee. The cost of each return was high enough, and increasing each year enough to cover their costs. The supposed additional services that are given are not things that I ever needed or used in my small service. This should only have been for firms with multiple users who really benefit. If I have only a few returns, mostly less than five then this is a bad move. They need to re-consider the plan.

I have an individual who made a 2026 estimated tax payment online with the IRS in the amount of $6500 for an IRA distribution they withdrew in June 2026. The broker also paid the $6500 estimated tax payment from their distribution which they cannot correct at this time. The individual would like to request a refund NOW vs waiting until their 2026 Tax Return is filed next year. The individual is asking if IRS Form 843 Claim for Refund and Request for Abatement can be used for 2026 refund requests? I have only completed this form when requesting the abatement of penalties and interest due to reasonable cause on returns already filed. I have never used this form for future tax years. Does anyone know how to request a refund of an estimated payment for 2026 or is it even possible? I have tried to reach the IRS office but been put on hold for hours and then disconnected. Feedback is welcome. Thanks!

Hello Community,I have a quesion regarding one of my clients vacant not available for rent rental property.About four years ago my client got tired of dealing with tenants and took her rental property off of the rental market and it is not available for rent.  In the past four years she has spent about $30,000 in property taxes, auto mileage, insurance and repairs.  In the past if my mind serves me correctly I have capitalized all of these expenditures and if she starts to rent the property I will begin to depreciate these exepenses.  If she decides to sell I will add to basis of property.I have done some recent research and found that some of the research says outside of taking an itemized deduction for property taxes and if she had any mortage interest the rest of the costs are non recoverable carrying charges.  Possibly only if her repairs were big items that were improvements in nature could be added to the basis.I would like to know what would the people in the community do in thi

Working in Lacerte on amended returns to claim the small business OBBBA provision for immediately expensing previously capitalized DREs in 2022 and 2023.  I have not seen any clarification as to how we are to show this immediate expensing.  I don’t believe we are supposed to fully override the amortization to 100% but I’m also not clear as to whether we add those previously unclaimed wage expenses as wages on the business return.  Does it become a separate line item expense for “Research & Experimentation Expenditures”?  If so, that would leave the 199A deduction calculation off-base since the wages aren’t being fully utilized.   Does anyone have any insight to ensure these amended returns don’t get rejected?

Chart makes comparison https://www.babylist.com/money

I had a few clients receive notices for additional information. Copies of W2’s being requested by NYS

I have a client who files a Sch C for his distributorship business. He entered into a lease agreement withTrans Lease and the initial lease agreement was in 2018 in the amount of $119K which was fully satisfied in January 2025. The original lease was set up as a capital lease recorded as an asset and related debt and the interest and depreciation were included in the tax returns. The original lease value has been fully depreciated since in 2023. In January 2025 the lease company offered him a buy-out of the truck for another $37K over 85 weekly payments. The client accepted the buyout lease and continues to make weekly lease payments broken down into principal and interest. My question is do I dispose of the original truck asset for $119K at zero selling price and then set up a new asset for the buy-out portion in the amount of $37K to record the asset for tax purposes and start depreciation again over another 5 years or the lease period ?  Your input is greatly appreciated. Thanks

Client sold his vending machine route and equipment (truck and machines) for $100,000 with $25,000 down and payments of $1,000 plus $150 “interest” per month.How do I account for the interest since this does not make sense as far as an amortization schedule and normal interest rate is concerned?I just don’t know how to report the $150 of “interest.” Is it OK to go with what the buyer and seller agreed upon or do I need to figure out something different? 

Received a 1099 comp statement, below the 1099-int section is a section that says “the following amounts are not reported to the IRS. They are presented here for your reference when preparing your tax return”There is an amount of $7,000 listed as taxable accrued interest paidIs this reported as a deduction from interest income line 1 of the 1099-INT

Hi all—I'm Mark Anthony Gargano, based near Nashville. I’m looking for a CPA or EA interested in part-time work to help launch a tax practice focused on approximately 100 returns. I expect to complete my EA in August and also operate a separate wealth-planning practice.Please message me or refer someone anywhere in the U.S. who may be interested.Mark Anthony Gargano  

I have two 1065 K-1s issued by different ETFs, and have a question on each of them. 1. The first K-1 has $63 in both Box 13 code AE and Box 20 code B. On K-1, the $63 investment expense was included to calculate "current year net loss" in the Capital Account Analysis section. In ProConnect, the $63 was not showing up in Basis Limitation Worksheet, which I think it should. So, I put it on ProConnect input page: 1065 K-1 => Basis => Other current year decreases to basis. The $63 now shows up on Basis Limitation Worksheet and reduced basis ending balance to the same amount as capital account ending balance, although they don't have to be the same all the time. I'm not too sure about it because normally ProConnect would pick up the right numbers to show on basis worksheet. Is this just a glitch or there's a reason $63 should not be included in basis calculation.2. On the other K-1, the box 19 distribution is empty, but there's $40k reported as Withdrawals & Distributions under Ca

My client is a small business LLC partnership and is building a drive thru restaurant to lease out to a national tenant. He spent several thousands in soft cost last year 2022 ; architect fees, legal fees, permit fees, and other soft cost.Construction began this year in March 2023.Can we expense the soft cost on 2022 returns then capitalize direct building cost on 2023 return.How does the TCJA impact this scenario for small businesses ?

As a QuickBooks ProAdvisor, I would love to see more opportunities to participate in paid research studies, user interviews, surveys, and product testing programs.Accounting professionals use QuickBooks daily and can provide valuable real-world feedback that helps improve the platform. Expanding these opportunities would allow Intuit to gather insights from experienced users while giving ProAdvisors a chance to contribute directly to product development.I recommend creating more frequent paid research studies and making participation opportunities easier to find and access.

We add estimated underpayment penalties to our client tax returns. Starting this year, almost every single client is receiving a letter that the penalty being calculated by ProConnect was incorrect and the IRS is refunding a portion of the client's money back to them for the extra penalty that was paid.I've noticed this is happening with other software that we use as well.Has the penalty calculations changed starting in 2025 or something? 

TP is 81 and an owner of rental real estate (an apartment building.)  I amended her 2024 1040 to reflect her "claim" that she has a profit motive in this activity and therefore qualifies for the QBI deduction. She does not meet the RRE safe harbor. However, she can prove that she has a profit motive with facts.  The 1040 X was filed in March. The IRS sent a letter in April stating "we changed your account for 2024 to correct your Qualified Business Income Deduction."  So, I feel like the IRS is going to challenge this deductionHer occupation was listed as Retired on the Original 1040. It would have been better to list it as "RE Investor" or something similar on the 1040. I didn't change it.

Master Sergeant in his 80s.  Receives monthly check from DFAC.  Tax withheld, but all of it refunded.  Not thinking, I fill out a W-4P in February and mail it for him.  I know, old soldiers never retire, they are always subject to recall so they can't remind others not to obey illegal orders.  In April they send it back and tell him it requires a W-4.  So I fill that out, he makes another trip to the office to sign it, I check the "Exempt" box.  Now they have sent that one back, saying he should not have filled out marital status.  (He's married; she has no income.).  Sure enough, the W-4 instructions say to fill out just name and SSN.   I give up.  We'll try again next year.  And maybe avoid the Exempt box, so a new one doesn't have to be filed every year.  Live and learn.  Thank you for your service.