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Thank you. I could not figure out why tweek is always underlined when I type it. Now I know. Agree with your comment too, btw.

The problem with rules is that as soon as your write one down, you end up needing 10 more to clarify or tweak. Then, more questions arise or tweaks are suggested and before long you have a book of rules.

I think a rational rant should be called a rat.

Not all countries have simple tax systems, with one exception being those that have VATs. Remember when the big accounting firms were offshoring tax prep to India? That's because India's tax code is similar to ours. I find it more complex. There are different sets of rules for rental properties and cap gains--you can pay one rate or none at all if you invest in India bonds, a higher one if you take the money and run. There are two types of bank accounts--one that pays a really high rate but the money can't be converted from rupees ever, and another that pays much less but can be taken out of the country. My Indian client thankfully has his India taxes done by an accountant there and brings me the result. But the credentialing system is different; his India CPA advised him to do a like-kind exchange with US property but my research showed that's not allowed. I think the India offshoring diminished when congress passed a law saying clients had to sign on to allowing their info to be sent abroad. Who would agree to that?

If the tax code was simply to raise enough money to do the governments job as set forth in the original constitution --- then it would probably be very simple and straight forward. With that said, when the tax code is used to penalize or reward certain industries/people and for "social" engineering, then it gets complicated. Everyone (including me) have their agendas. As naïve as it sounds, HOPEFULLY our leaders, whichever party or persons have their agendas as what is best for our country overall without special interests. As stated -- probably naïve.

See, we can't even simplify English! But they are trying.

It's a slow day, so I'll ask: Am I the only one who would rather do a tax return than call IRS? Call anybody, actually. I'd rather compose a letter to IRS than call them, too. (This comment is not meant to disparage the advice to call PPS. It sounds like a good idea.) In the interest of full disclosure, I would also rather risk cutting off all circulation in my arms by carrying in all the groceries at once rather than making another trip to the car.

I for one do miss the phone books, especially the blue pages, and to see if an ex is still alive, I mean in the area. And great when computer or phone is on another floor. Bulldog is right, we not dealing with the same ATX, although when I call I usually get good results, thankfully not often. With the Max package we would get the MTG and 1040 and Business Quick Answers. I used them all and they made good coasters. I do miss the old days. Oh, BTW, you guys are making me LMAO.

If YOU make up a K-1, then it's fraud. His income you can accept from him - and if *he* nets out the "partnership" loss it's on him. But you should get that information from him in writing, not verbally. But other than his written statement, you have nothing to go on. I'd put it on Sch C (subject to SE tax) as a guaranteed-payment-equivalent, and put in a disclosure statement stating this is the best that can be done because the tax matters partner has disappeared - and give whatever names and EIN's exist. This is one of the tough ones; the client wantst to file, can't because of other people - what do *we* do? Sometimes the best you can do is the best you can do. But still cya, get all info from the client, and disclose the bejezus out of it all.

Bulldog looking for this years tax answers in his new books... Then he hired this, when he realized they were last years....

If the delivery person has a wreck while on company time, that ultimately should be covered under the company's insurance. The employee would have to give his/her insurance card at the time of the wreck, but guaranteed that his/her personal insurer would be assigning that claim against the company's insurance. This is entirely different than putting the company car in personal name to get a cheaper rate that would be fraud. In a similar vein, my office has a separate policy that covers people on my property for business that my homeowner's policy does not cover. And...we are waaaaaaaay off-topic.

Yes, payroll is included. With discount (10%), tax, processing, handling, destination fee and dealer prep the price is $1,583. I think this is still a bargain.

JMO, I'd call up the practitioner hotline and ask them how they want you to proceed.

https://sales.cchsfs.com/user/login.aspx?Offers=true

The Master Tax Guide is a really good book. ATX/Kleinrock used to have something similar, but when CCH took over, they discontinued that book and replaced it with the Master Tax Guide. That made sense when they did that. The MTG (or the Kleinrock equivalent) has always been included in my software cost. I don't like CCH, but I am too lazy to learn a new software and go through the conversion process. Since I don't have to interact with ATX except at renewal and occasionally with their (non)support department if something goes wrong at the beginning of the year, I tolerate them. But 2012 is never far from my thoughts every time I deal with ATX. Rants are not supposed to be rational, they are always bizarre to the person who is not ranting. Tom Modesto, CA

I am inclined to agree with Abby, although I have very little to base it on either. But I also agree with Roberts, that it " isn't difficult to go simple if you want to ." The problem is that every special interest group in the country has its own set of deductions, or credits, or other loopholes that they don't want to give up and convinces congress that they need to go along with them. Then congress drafts legislation including all these complications, and IRS has to write regulations to try to accomplish what congress was trying to do with the law and before long you have the mess that we have all come to know and love - the US Tax Code. As amended. And expanded. And simplified. *sigh*

I always wonder about the teenagers that I see working for Papa John's or Domino's - have they (or their parents) told the insurance company they are driving around with a lighted sign on their car delivering pizza?

Yeah, but if your insurance company finds out you're using it for business without properly disclosing that, then your claims can be denied.

Just because the client didn't receive a K-1 doesn't mean there isn't one. The first thing I would do is pull the Income transcripts for that year. It is always possible that the 1065 was filed, but the TMP didn't bother to send out the K-1's. I'd also try to get a transcript of the 1065. If no K-1, I prefer reporting netting the income on Line 21 with any SE tax going on to the SE form. However, be careful that the client's partnership basis is not exceeded by the losses.

Excellent advice!

OK, here is my tax simplification code: Individuals: 17% Tax rate Flat. Std Deduction of 10K per person on the return. All persons must live in the home to be on the return (school exceptions). All persons on the return over 18 are jointly liable for the tax. No concept of marriage, just joint return filing (so I could file with my mom if I wanted to, or my brother, or my roommate, so long as we live in the same home, or we could file individually). No credits, no other deductions. No Cap Gains rates, just 17%. Corporations: 17% flat tax on Gross profit. 10K std deduction. No credits, no other deductions. Done. Tom Modesto, CA

I just realized this was probably the point you were making. Sorry. Daylight Wasting Time - 2. Rita - O

Respectfully, this seems as unreasonable to me as your assessor’s errors do to you. What the taxpayer wants to do and how long he’s going to own a property mean zero. I get what you’re saying, and IRS is oblivious, but ok I am shutting up now. Respectfully. Friends 4 Ever.

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If you have a PDF iFilter installed, you can search the contents of all the PDF copies of returns. You have to also change the Windows Indexing Options to index file contents of PDF files (Advanced, File Types)... and wait for the indexing to complete.

I also look up the property tax assessment. If the land is say 15% of the tax assessor’s total, I assign 15% of the number you’re working with to land.

An update to a now continuing saga that has ended sadly. My client fell in her home and broke her hip. The "husband" who did not live there found her and called 911. She spent 2 weeks in hospital then was able to go home. I was in touch with her regularly until she left the hospital. I called yesterday and could not reach her so I called a daughter in SF and was told that she passed away a few days ago. She had fallen again, laid there for 24 hours and then passed away in the hospital due to pneumonia that daughter said she had beginnings of when she originally left the hospital. So now son in law calls me and he is my best friend. I gave him whatever information he needed as he will head east soon. Now here's the very sad part. Daughters were here when she died. They went to the house to retrieve personal belongings and now husband is living there and would not let them in. I decided to Google this guy's name to find out what he did to be incarcerated for 21 years. He is a sex offender and convicted of raping a minor in 1993. Also had other similar convictions. This will hit the papers if it gets ugly. I will be mostly out of this, let the attorney and authorities handle it. I will miss my client, she was a character and we always had a good comedic back and forth. This is what happens when a special client becomes a part of your life and dies, you feel the loss just like a family member. If only she told me of her plans to marry this guy I might have googled him then and relayed the info to her and hopefully change her mind. I'm sure many of you can relate to this. Take care of yourselves, and your clients (if they let you). Bill

Every tax bill has winners and loser. Of course, everyone is talking about the taxpayers in high tax states like CA, NJ & NY. Some of the less obvious ones are: 1. Families with more than 3 children especially if they are older than 16 due to loss of personal exemptions. 2. Families with children in college due to loss of education credits and student loan interest deduction. 3. The absolute worst is the loss of the medical expense deduction: I have a 97 year old client with dementia who has been in a memory care facility for the last 3 and 1/2 years. She has income of about $40,000 per year. Her medical expenses are over $7,000 per month which are all deductible, which of course reduces her taxable income down to zero. Under this bill her medical deductions would be zero, which means that she would be paying taxes on all of her income above $12,000 since the net effect of the increased standard deduction minus the lost personal exemption is only $400. Also families with parents or children who have chronic medical conditions that require expensive drugs with be be really slammed.