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About BulldogTom

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  1. OK, Stop me if you heard this before, but I think the OPR of the IRS should regulate all Federal Tax Practitioners, including those at the IRS. It should be an independent body that ensures the competence of the preparer, as well as the auditor. It should have full authority to remove the privilege of practice before or for the IRS. It should be the watchdog over both sides of the tax practice equation. I have said this for years, but I will keep saying it until we get more competent "professionals" at the IRS. Tom Newark, CA
  2. This is interesting. My first thought is that a cash basis taxpayer has income in the year they received the cash. That would then control the timing of the taxable event. I wonder what code section I am missing that would change my mind? Tom Newark, CA
  3. I respectfully disagree with SaraEA. You should call the IRS and let them know what the situation is. They will probably take a look at his record and see if they have any open years on their books. They will tell you how many years they want you to file. I had two of these types of clients, one they wanted 10 years because they had open items that far back, in the other, they wanted 7 years because they had no earnings records at all for the client. After you get the IRS to tell you what you want, you can buy some time to get the returns prepared and filed. Then you can pull the transcripts and see what the IRS has for W2s and 1099s for the client. Just filing the open years will get the refunds if there are any, but those other years are still open for audit because the statute does not start running until the return is filed. You need to protect your client from that audit exposure. Still love you SaraEA, and I think you are very smart. I would just take a different approach to the situation. Tom Newark, CA
  4. Client bought a bunch of equipment, some of it small tools, some of it light equipment, some heavy equipment. Financed it through a leasing company in 2014. Did not read the lease and did not realize there was a residual buy out or an automatic renewal of the lease payments. The prior accountant expensed the tools and capitalized the equipment at the purchase price. The lease was recorded as a loan with the total rent payments less purchase price equaling interest. When I picked up the client, it looked like a loan that was being properly amortized and the equipment was being properly depreciated. I never asked for the loan docs from the client because they had an amortization schedule on what they called the loan. Everything was fine until the "loan" was paid off this year. Here comes the bill from the leasing company for the residual buyout or continuation of the rent payments. The client paid the 70K residual payment rather than getting stuck for continuing rental lease payments. What would you do if you inherited this? (I know, the client should have read what he signed, and we have had that conversation). Tom Newark, CA
  5. Thanks for the info. This has been one of the things that has pissed me off since they implemented it. Glad they lost. Tom Newark, CA
  6. 1. Good For You 2. Great for you I paid 525K for a 1230 square foot fixer in the bay area and got a steal, but that is not paid for yet. I wish I was Rita. Tom Newark, CA
  7. Stop it. Just spending an hour with you would be worth $225. If he is too cheap to pay what you are worth, let him go. You offer more than just filling in the amounts, you offer your expertise, your time in the off season, a reliable professional to give good advice all year and planning for future years. If this guy can't see that, it is his loss. Tom Newark, CA
  8. Personally, I would prepare the amended return to see if there is a refund after changing the status. If there is, I would file the SS8, including the DOL letter, and then file the amended return showing the SS8 application and the DOL letter. I would not want the statute to run out on a refund. If the amended return shows a balance due, I would probably advise the client to file the amended return but leave it up to them to decide. Tom Newark, CA
  9. How many tries to pass the Exam? Very impressed with you. Please fill in the details. How did you prep. How hard was the exam. I am thinking about going for it as well. I have never talked to anyone who has taken, much less passed that exam. Tom Newark, CA
  10. Yeah....whatever. Like I said, talkin' bout me right to my face now and laughing 'cause I don't get it. I am going to get my kids read this and tell me how to respond.... Tom Newark, CA
  11. The problem was I was too poor to have someone do my homework for me....my grades in high school will attest to that. Tom Newark, CA
  12. Y'all need to start typing in English. This stuff makes me feel like you are talking about me behind my back. If I am not a nerd, that would mean I am one of the cool kids on the block! Tom Newark, CA
  13. California has a very convoluted tax system. And the appeals process is even worse. Having an employee in the state working is an automatic way to require a business tax return. You can't just do the PR tax returns to the EDD. The EDD shares information with the FTB. From the original post, the company had an employee working in the state, which gives them a presence in the state, which triggers the business tax return filing requirement. The penalties and interest will be applied and will not be abated. The tax returns need to be filed and the taxes, penalties and interest paid. Tom Newark, CA
  14. I use square. Takes all credit and debit cards. Easy to use and set up. I don't do the invoicing from it, but I think I will add that feature next year for the clients that want to pay by credit card but don't actually come into the office. Easy to set up, no hassles (except the constant emails marketing more services). Price is not the cheapest out there, but the convenience can't be beat. Tom Newark, CA
  15. I know this is venturing into politics, and I will stop if you tell me to, but I really think this is the way the penalty should work. It is the insurance company that is taking on the risk of the person who goes without insurance until they get the sickness that requires big health care layouts, then they sign up and go to the doctor. Once they are well, they drop out again. So, by making the penalty part of the insurance premium to make up for the time they did not have insurance, I think that is fair. Sorry Judy, I could not stop myself. Tom Newark, CA