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If a shareholder terminates his or her interest in an S corporation during the tax year, the S corporation, with the consent of all affected shareholders (including those whose interest is terminated), may elect to allocate income and expenses, etc., as if the corporation’s tax year consisted of 2 separate tax years, the first of which ends on the date of the shareholders termination.
To make the election, the corporation MUST attach a statement to a timely filed original or amended Form 1120S for the tax year for which the election is made. In the statement the corporation must state that it is electing under section 1377(a)(2) and Regulations section 1.1377-1(b) to treat the tax year as if it consisted of 2 separate tax years. The statement must also explain how the shareholder’s entire interest was terminated (e.g., sale or gift), and state that the corporation and each affected shareholder consent to the corporation making the election. A single statement may be filed for all terminating elections made for the tax year. If the election is made, write “Section 1377(a)(2) Election Made” at the top of each affected shareholders Schedule K-1. If not filed on the original due date, an extension must be filed or else the actual filing will not be considerd timely.
pension, the Quebec pension plan, and the Old Age Security plan. If the recipient is a resident of the United States, the benefits are taxable only in the United States, treated as US social security benefits for US tax purposes
Special hardship exemptions have to be applied for.... and when taxpayer receives an ECN (exemption certificate number) we can input that and the penalty goes away. Has to be applied for....
Here is the link.
If you have not done so, you should explore this.... some possible exemptions.......
Required care of a loved one disrupts your ability to pay living expenses
Marketplace plans are unaffordable
Experience some hardship in obtaining health insurance.
THERE ARE MORE EXEMPTIONS. Have a look.
For many things processed at www.USATaxHelp.com, we will need to submit your authorization in the form of a Power of Attorney (POA). If it is an income issue, audit issue, etc we will need one type POA (F2848)... if it is authorization to file payroll tax forms... IRS has another form (F8655) as does State of Florida (DR600).....
BUT, for 1099's to IRS, our firm can process if.........
Transmitters, paying agents, etc. A transmitter, service bureau, paying agent, or disbursing agent (hereafter referred to as “agent”) may sign Form 1096 on behalf of any person required to file (hereafter referred to as “payer”) if the conditions in 1 and 2 below are met.
The agent has the authority to sign the form under an agency agreement (oral, written, or implied) that is valid under state law and
The agent signs the form and adds the caption “For: (Name of payer).”