tax help

Forum|Forum|2 years ago
February 2, 2024
3 replies
14 views

i just want to confirm if i have a difference in beginning year cash to the actual amount on the books do i do an m1 adjustment line 2 or m2 adjustment?.

This topic has been closed for replies.

Best answer by IRonMaN

The client does not want to do that, and for the past 5 year return he had done an m1 adjustment.

Well, he has done it wrong for 5 years. If it is my client and he doesn't want to do it the right way he gets transferred from my client list to my "former" client list.

sjrcpa

Level 15

What caused the difference?

How much is it?

The more I know the more I don’t know.

D

dmufeed2Author

Level 4

It is a messup in thier books, and the difference is less than 20k. I thaught it goes as an m1 adjustment because its 1065 return

IRonMaN

Level 15

You need to find out what the difference is and amend the prior year return.

Slava Ukraini!

IRonMaN

Level 15

If it is a cash based taxpayer, doesn't a difference in cash mean a difference in either revenues or expenses? You don't plug equity to make it go away. If it is $1, adjust through the current year income or expenses. If it is $100,000, you are looking at amending the prior year return.

Slava Ukraini!

D

dmufeed2Author

Level 4

Yes but wher would i put the adjustment so ot can reconcile to what they have in books m1 or m2 its a 1065 partnership

S

strongsilence

Level 10

If this software is in your control or if you have access to it, put a lock or password on it after you have finalized the 2023 tax return. QBO has this feature. This will prevent prior year adjustments by bookkeepers or business owners.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded