Leaderboard

Advanced Tax Calculations? I assume they mean Taxes Paid to other Jurisdictions. Hopefully there aren't many other calculations they are keeping from their Max package. The taxes paid should be part of Max. In my opinion, you shouldn't have to pay more for that feature. I like how they spun that..."Due to high demand." Yea,...okay.

http://video.foxnews.com/v/4937667939001/can-beach-bums-pass-the-watters-world-quiz-on-us-wars/?intcmp=hphz05#sp=show-clips The War of 1812 question was tough.

The first page is *always* short - summary of problem, why our position is right, resolution required. The "bury them in paperwork" is the backup pages with anything and everything an ignorant IRS drone could want to look at before resolving anything. Basically I do NOT want any return letters stating "we are still missing corroborating documentation" of any kind.

CPAacademy.com sent me emails for their webinars EVERY SINGLE DAY. The emails were huge, with dozens of lengthy links. Thankfully our email service plopped all of them into spam. I got so fed up I clicked the link to unsubscribe (hate to do that as it can bring you twice as much garbage because the email address is now verified as "live" and can be sold for more money.) It worked, and they stopped clogging my spam folder so I can see what's in there. Companies try to solicit business via email because it's so cheap, but do they really think sending people messages every day is going to make them want to sign up instead of thinking of them as stalkers and vowing never to do business with them?

And, starting with them now, you know where they came from, where the numbers are coming from.

I used address at top of letter. Thank you, that was my main concern - which address to use. Client is picking up my short letter that he will sign. Today or tomorrow, he said. Attached are copies of cancelled check, front and back, and first page of CP14. I'm paying for the certified mail, return receipt requested. Will let you know what happens.

It is not a given that it is best for the buyer to acquire assets. There are some things that work in buying stock. For instance, large NOL's, large business credits and the buyer can use Sec 338 to treat the assets as if they were purchased separately. Also, if the assets are encumbered, or are being leased, such assets under asset purchase would have to be negotiated with each lender/lessor individually. There are so many variables in a buy/sell arrangement that each option has to be looked at carefully.

The struggle then becomes the allocation of the sales price, because they buyer wants more allocated to equipment so he can 179 it or depreciate it over a few years instead of 15 years for goodwill, but the seller wants less allocated to equipment and more to goodwill because goodwill sale is capital gains and equipment is probably mostly ordinary income. Both buyer and seller must attach form 8594 to their returns with the agreed upon allocation.

Andrea, if you want to keep this client when he's an S-Corp, there's no time like the present to get good at something new. We are all terrible at things until we are good at them. You can do it. Heck, I think half of my job as an adult is to Google things. We are here for you, too. And good ole IRS publications and instructions are invaluable. They act like they hate you at first, but it's an act to see if you'll hang in there.

Oh! Sorry. Got so wrapped up in my tale of woe that I forgot it's your thread and to answer your questions. 1) Yes. I'm with you (paper IS underrated). 2) I usually use the address at the top of the letter. Offhand I don't remember if the stub address was the same or not, but I've used both at different times and somebody at IRS apparently always forwards the stuff to the right department (it's gotta be a common thing) no matter which you use. Did you mail it or what's happened so far?

Well...as Pop used to quote: "Everyone to their own taste said the old man when he kissed the cow." Personally, I'm like you; I much prefer the written word (there's something comforting about the wordsmithing craft). And others' advice about keeping it as short as possible is right on the mark. But, having said that, I had the following problem a couple of years ago: When filing a first quarter 2014 paper 941, I accidentally used a 2013 blank form although wages, withholding, calculations, etc. for both years were correct as filed. Client got IRS non-filing notice for 3-31-14. I check it out - send in brief explanation. IRS writes back (12-31) saying they're working on it. Nothing happens. I write again (4-15). They write back (7-15) saying they have graciously fixed it even though I did not properly use a 941X. I assume all's well until SSA writes (11-7) saying 2013 941s total $4K more (exact amount of 3-31-14 941) than the W3 I filed. I write IRS a looonnngg letter (11-24) explaining in detail what happened. They send back a $600 bill for non-payment of 3-31-13 taxes plus a year's late charges and another non-fling notice for 3-31-14. I give up, call IRS Taxpayer Advocate, am astoundingly lucky in that call goes through within 3 minutes, the sharp female agent has me fax a POA, I explain the circumstances, she pulls it up onscreen, says (of IRS' actions) "This is ABSURD!" I hear keys clicking and she fixes it on the spot. Don't know what I'd have done otherwise. And...that's how a nightmare can evolve from a little bit of nothin' and how a telephone rescued me. Paper's always worked best (for me) so I'll probably stay with it, but it doesn't seem like it used to be this hard (or maybe the clerks are just gettin' worse). Best regards and good luck. BB

Yep, that caught my attention too. A smart reviewer would note Rita's closing and say "It all looks good to me. Case closed."

A good friend who spent his banking career in commercial lending always says "You haven't sold anything until all the checks have cleared the bank". But he is speaking from the practical side rather than from the legal side. And he really has some interesting stories to tell .

And yet, those articles and TV shows are out there every hour implying expertise. Everyone is under the impression they are informed if they read a little on the subject. Taxes, medicine, investments or financial planning, legal matters, foreign policy. The danger is that you don't know what you don't know. How many of us haven't complained about a client being uninformed in taxes because they didn't consider ALL the facts? Same is true in everything else yet a few articles almost always gets equated to full knowledge. There is an entire advertising campaign about this phenomena: Did you stay at a Holiday Inn Express last night? I do rather extensive backpacking trips in the wilderness. You'd be shocked how many people think they have a complete grasp of back country safety from 4-5 outings, a dozen webinars and having grown up in the country. The first true medical emergency when they are 200 miles from a road changes their understanding of the scope of that knowledge.

Absolutely drum in to client that they MUST insist that the Form 8594 be part of the deal. And strongly suggest that for any significant equipment they get a reputable appraisal in writing. But help them understand that the 8594 is how they establish that the price they agree on is the result of an arms-length transaction between buyer and seller, and thus, a "fair market price".

The seller always want to sell just the stock but the buyer wants to buy the equipment and goodwill so that they can get the depreciation/amortization. Also, buyer doesn't want the 'skeletons in the closet' of the old corporation, which is why we almost never see the sale of an entity.