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Client worked under contract as a teacher for several years in a non tax treaty country. No taxes were withheld by foreign gov. Income was well below the exclusion amount so no income tax. But, what about SE tax. If client were self-employed, he would pay SE tax, but he was on contract as a salaried employee. I still think he still pays SE, but just want to be sure. TIA

Excellent question! I just watched a pretty good CPA Academy webinar today on US Expat Taxation and realized that self employment was not covered. Have you scoured Pub. 519? It would be tricky with a non tax treaty country, I would think. Let us know; I'll keep poking around, too, as I seem to be getting more and more clients with international issues.

It seems I get an IRS warning about a different scam every other week. Honestly, I've given up reading them at this point. I get a big IRS email from our local rep sent out every Friday at 5:00. Who's still in the office at 5pm on Friday in the summer?

If I was guessing I would say all the assets had been fully depreciated in prior years right or wrong but fully deducted. If I did his taxes it would only be current and forward from current information. Let the past be the past.

This is just a rant about California FTB Client is a non-filer for several years. FTB has been zapping their bank account based on SFR's for the non-filed years. So we get the bookkeeping done and prepare the tax returns for the 5 years in question. 4 returns show a balance due and one shows a refund because the FTB levies were applied to that year (we took this off the FTB transcript). FTB has accepted all of the returns that show a balance due, but sent a notice concerning the refund year. The notice says that to prevent identity theft, they cannot process the return unless the taxpayer provides all W2's, 1099's, year to date paystubs, social security cards and driver's licenses. All five returns were sent at the same time, but only the one with a refund was selected for Identity Theft additional screenings? Bull$hipt! It is not an Identity Theft issue. It is the state dragging their feet on paying a refund (which is not going to be paid anyway - it will just be applied to the balance due). Rant over. Tom Newark, CA (Soon to be Modesto, CA)

Feels good getting it off your chest doesn't it? Wish I had a dollar for everything that comes up and I can't do diddly about it. Maybe tax problems will be more modest in Modesto.

In my area, several local banks will waive monthly service charges and account minimums on checking accounts provided you have at least one direct deposit. This might be why the employee wants direct deposit. Or maybe she finds it inconvenient to go to the bank. Who knows? I figure the employee is allowed to ask for anything, and the employer is allowed to say no, unless it is required by statute.