I have a Texas resident client who is a partner and received a K-1 for New York. The K-1 shows a $4,000 ordinary business loss that is passive. There are no other passive activities and he has no other New York source income or deductions. The $4,000 loss is not allowed for federal or NY purposes. The NY K-1, however, lists 2 modifications related to this K-1 that appear should be entered on Form IT-225. One is a NY addition modification of $2,000 and the other is a NY subtraction modification of $1,200 for a net positive modification of $800. These entries from the IT-225 flow through the return (IT-203 lines 22 and 29) to show a NY income of $800 and therefore a tax owed to NY. This doesn't make sense to me as it seems like the modifications should be applied to reduce the $4,000 unallowed loss to a $3,200 unallowed loss. I am obviously not a NY expert and could use some guidance as to how to address this. Or, did I do it right to begin with?

I know it's early but wanted to throw this out in case IntuitGabi is on the board. When transferred from 2022 to 2023, the program is allocating total amount of loans from shareholders (as per balance sheet) by stock ownership percentage to each shareholder K-1 instead of the actual amount of ending shareholder loan as stated on the prior year K-1. Hopefully a fix is coming..

I've had 2 clients receive CP22As that ask for additional tax but there is absolutely no explanation of what caused the change. What is going on with this? In the past, every notice I have seen included the reason for the change by the IRS. Has anyone else experienced this? What is currently the best way to get a POA to the IRS?

For 2022 1040 tax returns the due date this year was April 18, 2023. For late payment of tax, shouldn't interest charges begin on April 18th and not April 15th? Pro Series computes the interest from April 18th forward. However, a client of mine just got dinged by the IRS for the 3 extra days from April 15th. Is the IRS wrong or Pro Series? The regs I looked at refer to interest from the due date of the return.