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Get a grip, this is way overblown ! Microsoft is providing free extended support until January 15th, 2020 , when all support was scheduled to end, which was announced years ago. Apparently they intend to offer paid extended support for 3 extra years, which is exactly what they are still doing with XP on a contractual basis for the IRS and other large institutions. Obviously they see a chance to make some extra profit due to the large number of Win 7 systems still up and running. Captured aliens are being kept in Area 31

https://www.forbes.com/sites/gordonkelly/2018/09/15/microsoft-windows-7-monthly-charge-windows-10-free-upgrade-cost-2/amp/

That's creative and something I'd suggest not to do; he isn't self-employed. You should report what actually took place, not what he'd like it to be or some fabrication to keep him out of trouble. I would look closely at those distributions to see if they are the same amounts as his net paychecks were in prior years. In other words, was he paying the paychecks and not recording them properly in the books and not filing and paying the payroll taxes? Or did he do this himself instead of having a bookkeeper or hiring you to do it properly, or have a new bookkeeper that didn't know the difference between paycheck vs distribution? Or...is he starting to use his S corp as his personal checkbook?! You need to inform the client of the consequences of the S corp not paying him a reasonable salary, and discuss what has transpired thus far in 2018 before the year is closed.

As Judy said, it really depends on the income. I have a client who lives in the US but is a Canadian citizen. Sorting his paperwork can be a real challenge. Some of his dividends come through an Edward Jones brokerage account in Canada, and get reported on an NR4 for Canada, AND on a 1099DIV for US. And some of the NR4s are in USD and some CAD. I don't think he understands how confusing this can be and why I charge him as much as I do. But he keeps sending his stuff to me because I am the first preparer that even asked if he had foreign accounts and started him doing his FBAR.

The only other thing I can think of (since it's a bit LATE to do a retroactive payroll for 2017; why do our clients do this stuff to us?), is to write up the explanation now of why, for this one year, he didn't take a salary when obviously there were funds to pay him. Don't send it in yet - but write it up when it's fresh, so that when (not if) you get the letter from the IRS about it, all you'll have to do is tweak it a bit, fix the date, and send it. 'Cuz otherwise by the time the letter shows up all the details will be foggy. For both you and your client.

What is meant by "Spataro confirmed these would only be offered to customers running Windows 7 Professional or Windows 7 Enterprise in Volume Licensing - aka large businesses." I run Windows 7 Pro on my stand alone desk top. I assume I'll still be charged a monthly fee? I plan on upgrading prior to this, but just curious.

I have a Dell T1700 that I purchased about three years ago. This will hopefully be my fourth tax season using the desktop. I normally replace my systems every three years but I'm going to see if I can get a fourth out of this one. Fingers crossed. It has treated me well. There have been no issues although I'm starting to detect a little slowness.

They don't care. I have Microsoft 7 and will refuse any updates, so they'll have to shut me down. Use of the "cloud" enables big software companies to essentially charge "rent" to their users. Gone are the days when they sent you a CD and you installed it. Control has transferred from the user to the provider. Mass resistance or somehow an economic boycott is the only tool of organized users. Without an organized network of users, they will continue to steamroll us.

Hopefully, the screams of their customers will make them back down. I don't know if they will care or not.

I used to build computers thinking that it would be easier to replace parts, but DELL made me change my mind for two reasons: 1.- I cannot build a computer and spend less than the price DELL charges. 2. DELL has a next day service for 3 years free on most purchases and you can add warranty to 5 or 7 years if you want for an additional (reasonable) fee. In your case, DELL would replace the power supply and MOBO the next business day. AND it would be harder for me to find a similar MOBO vs DELL finding a MOBO that will not need any drivers when replaced.

Nothing wrong with donating a car and cash at the same time. The church will give you two different receipts and they are not related to each other. Once you give money to the church, it is unconditional and you no longer have control over that money, if they church decides to give it to the pastor or fix the car is beyond your control.

Nope mine came with 10 pro. Lower end yes but I never buy the lower end.

The problem with buying systems at Costco or Sams Club is that the internal components may be of lower quality to achieve a desirable price point. I have purchased Dell systems thru Dell online for over 20 years without any problems, except that my current Win 7 Pro 64 bit system will have graphics driver problems several times a month.

Tom asked for recommendations for laptops and Abby's search was narrowed to only search for only Dell laptops, no other brands or desktops either.

I will only own Dell. The configurations you are looking at will be so much faster and better than what you have. If you truly want the SSD I am sure on the Dell website you can have one built that way. They give you pricing on the basic configuration but you can almost always upgrade, you might want to check out both sides, the personal and the business. I have bounced back and forth to get what I wanted. Also I couldn't agree more with ILLMAS's comment about getting it at Costco or Sam's Club. My last couple of computers have come from there and when I did have a problem they were great to work with in resolving it. I trust Costco completely on my electronics and slowly gaining the same trust with Sam's Club. I've never bought big ticket items from them simply because unitl I moved I had to travel too far if I needed to return it. Now I have two Costco's and one Sam's Club within 15 miles of my home!

Look into Costo and Samsclub, someone they have the XPS on sale.

You all probably already know that a PLR is intended to be relied on for only the taxpayer that requested the ruling based on an exact fact pattern, and I posted it more for the code section references it contains in this one particular case so that those could be used as a basis for further research. I do think it's an interesting ruling with the IRS allowing the deferral.

I have reviewed the material and find it answers my concerns. Many thanks to Judy for her kind assistance to an aged taxman.

When you have to be passenger, not driver?

Option #2

The phrase in the original article of those that will receive this offer was poorly worded, and I think Abby is correct on this, that it won't be offered to most small businesses. This was within one of the linked articles:

I think they mean that people like us will not even have the option to pay for continued updates. You'll either have to move to 8 or 10.