The Curious Accountant

I’m a good little Tax Accountant, and always very curious.

[The Curious Accountant @TheCuriousCPA]

@RichardCrainCPA It was never black and white. the amount considered "significant" was always redacted.

Now that entire section is missing. not redacted. Missing.

Bottom line, you might've gotten lucky, but the policy is that any penalty makes you ineligible, no matter the size.

[The Curious Accountant @TheCuriousCPA]

@RichardCrainCPA @RichardCrainCPA, you’re likely referring to the 2014 IRM update (see screenshot/link above). That language is no longer in the IRM.

The current rule is any penalty in the prior 3 years kills FTA eligibility, except ES penalties and penalties removed for RC.

[The Curious Accountant @TheCuriousCPA]

@RichardCrainCPA It’s not available.

What dashes are your referring to?

There are other redacted section, but in the current IRM there’s absolutely no mention of a “significant” threshold.

[The Curious Accountant @TheCuriousCPA]

@RichardCrainCPA Current IRM has no mention of this policy.

The cited source, (20.1.1.3.6.1(5)(b)) does not exist in the current version. https://t.co/bUBdXcRael

Seems like a '14 version. The IRM has since been updated. https://t.co/yrzqcak5p5

Now, a $1 FTP will make you ineligible.

[The Curious Accountant @TheCuriousCPA]

@RichardCrainCPA @Jeremyrnis No, ES penalties don’t affect FTA eligibility, but that shouldn’t affect AEP either.

[The Curious Accountant @TheCuriousCPA]

@tenniscpa2 @Jeremyrnis @RichardCrainCPA False. Zero penalties, unless the penalties were removed for RC.

That $400 penalty ruined the clean compliance history. Wouldn’t have helped if the TP chose to pay it instead.

[The Curious Accountant @TheCuriousCPA]

@RichardCrainCPA @Jeremyrnis Yes. (Unless removed due to RC)

[The Curious Accountant @TheCuriousCPA]

@natesweather @jckristoff @Jeremyrnis @RichardCrainCPA That’s not how FTA works. Any penalty in the previous 3 years makes you ineligible for FTA. Dosnt matter if you choose to pay it.

[The Curious Accountant @TheCuriousCPA]

@jckristoff @Jeremyrnis @RichardCrainCPA False. You’ll still be able to claim RC instead of AEP

[The Curious Accountant @TheCuriousCPA]

@realEstateTrent Happy if the painter just AI copy-pasted you back?

Nobody’s triggered by AI. But dumping questions you probably don’t even get (your words: “3 seconds copy paste”) is why pros tell clients like that to kick rocks.

Not smart… but I get it.

[The Curious Accountant @TheCuriousCPA]

@rledbetterCPA This isn’t how FTA works.

You can’t just “save” it and pull the card once every three years.

FTA requires a clean compliance history for the prior 3 years. The fact that you chose not to use FTA on a prior penalty is irrelevant.

This is a common misconception.

[The Curious Accountant @TheCuriousCPA]

@RyanLEllis @Micha_Siegel @skingcpa No, it’s not just compliance BS.

The Schedule 1 deduction is strictly limited to your SE/Medicare/SS wages.
S-Corp shareholders with zero wages and zero SE income (or only health insurance wages, which are exempt from SS/Medicare), are NOT eligible.

Follow the rules

[The Curious Accountant @TheCuriousCPA]

@LoganGrafTax count me in

[The Curious Accountant @TheCuriousCPA]

@cordes_tax @JrdnMcFarland It’s a common misconception that you can’t establish a new 401k after YE.

You can adapt a brand new 401k plan until the deadline of the return (including extension) and make employer contributions only.

(A sole prop. may have untill 4/15 even for employee deferrals.)

[The Curious Accountant @TheCuriousCPA]

@AriaTruth @rledbetterCPA https://t.co/eFR5b48von

[The Curious Accountant @TheCuriousCPA]

@mountainwesttax I prefer Lacerte over UT. Like why can’t you zoom in/out in UT with the scroll wheel in forms view?

[The Curious Accountant @TheCuriousCPA]

@howard_knudsen @DreamFirms What PM did you choose instead of TD?

[The Curious Accountant @TheCuriousCPA]

@bhallcpa @preston_holland @PaceJordanMorby Brandon, You’re missing the point.

This is a rental activity which is passive by default. Full stop.

Material participation is a red herring.