taxxcpa

When I switched from Intuit to ATX, I bought both programs just in case ATX didn't work. It worked OK back in those days and included entity returns for the same price as Intuit's 1040-only program. I was a satisfied customer of ATX's for several years after that until their customer support began to deteriorate under the new owners. Those of you who are buying other programs now, may or may not want to switch permanently. One option would be to get the professional version of TaxAct which is low-cost and use it until ATX gets its act together--which it probably will in a few more weeks.

Itemized charges for trash collection, water, sewer, etc. are not deductible. I suppose if they are not itemized you would not have to make some seat-of-the-pants reduction to the amount charged for taxes.

I use it for all 1099MISC filings. First you need a TCC (obtain by filing Form 4419 with the IRS) You will need an EIN. I used an old, expired one and they accepted it) You will also need a self-selected PIN and password. WRITE ALL THESE DOWN. There are too many to memorize. You then create the files in Drakes CWU program (Client Write-up program) Then go to https://fire.irs.gov Enter your ID, then enter your password which you must change every year(self-selected, eight digits, with at least one Capital letter and one number) Then enter your TCC, your EIN (without hyphens), your 10-digit self-selected PIN When you create the file in Drake write it down. You will need it to upload in the IRS Fire site. The file will be something like "DrakeCWUClientsXCorpEfile_1099" In Drake enter the Payer's TIN, your control code (TCC), your name under "name", your company name and address and the name and address of the payer. Drake provides a manual you can download as a pdf with instructions. Also you can post a question on the Drake forum or call customer support if you have questions. It's a somewhat complicated process, but if you write down the instructions, updating the password after each year's change, and keep the written instructions in front of you when you are in the IRS web site, it is not too difficult.

Some tax returns with depreciation can be e-filed. If there are no mileage allowance deduction, no new assets in the current year and no sec 179 and no listed property in the current OR prior years, you can e-file returns, other than C-Corporations, which have depreciation. If it is a C corporation, and there is any depreciation at all you must include Form 4652 and cannot e-file it until the IRS redesigns Form 4652.

Sometimes actual is much better the first year, but in the long-run it is almost always best to take the standard mileage allowance.

I just e-filed an LLC Form 1065 and got an acceptance by the IRS a few minutes later, so it looks like everything is working OK unless you have listed property or otherwise need a Form 4562.

A number of years ago I had a return that ATX would not do correctly. I obtained free versions of several programs after Apr 15 and TaxAct was one of the ones that was able to do it correctly. It is a low-cost program, but if you e-file a lot of returns it gets less low-cost.

From all the comments i've read, they probably have far more calls this year than ever before, so there are always a hundred or so people ahead of you in the queue. I've never seen so many complaints about ATX before. Past criticisms have been mild in comparison to this year's complaints. I wonder what percent of ATX customers won't be back next year.

Once when ATX would not handle carried forward passive losses carried forward to a year with passive gains, I tried several programs. The lowest-cost program that I tried was Tax Act and it handled the passive losses correctly, as did several more expensive programs. If you are looking for a low-cost program, use Tax Act. If you can afford about $1350, Drake is a good choice. If preparing taxes is necessary for you to maintain your standard of living, you need the best software you can find for the price compatible with the revenue it provides you. In my case, I'm well past retirement age, but, as as the Retirement Millionaire Newsletter said in its Feb issue, "One of my keys to a successful retirement is "not to retire." So I prepare taxes, not only for the income, but for the psychological benefits of continuing to work at a slowed-down level.

Drake is not all that different if you use the "forms-based" entry method. Just right-click and a screen pops up, then you can select "forms-based entry." There are several other things you can select from the pop-up.

Drake and TaxAct are two that I've used. TaxAct for 1040s used to only cost $99 for the professional version, but I ended up with Drake for the last several years after leaving ATX since TaxAct did not have the Texas Franchise tax. Drake updates much quicker than ATX did, and you can set it to update automatically. Another feature that I recommend for ex-ATX users is to use the "forms-based" entry mode since, especially at first, you will have some difficulty in locating the right input screen. You can get answers to most questions by posting them on the Drake forum, but if you can't, you get excellent service when you call Customer support. Drake includes all state income tax forms. The only form I ever used with ATX that Drake didn't have was the California Sales tax forms. With Drake, you also get an excellent payroll program with which you can e-file Forms 940, 941, 1099MISC, and W-2 forms. The payroll program is called a "Client Write-up" program, but using it for bookkeeping is like making every entry as a general journal entry, so I use Peachtree for accounting. After tax season ends, I believe Drake will still give you a free copy of its 2012 program to try it out.

It looks like the due diligence requirement will cause honest tax preparers to raise their fees considerably since even a valid EIC claim may be a cause for a penalty due to missing some step in the due diligence process. The effect of the price increases will drive many EIC claimants from the honest preparer to the Turbo Tax preparer who never signs a return he prepares. Due diligence is a big bonanza to crooked, non-signing preparers.

FALLS CHURCH, Va. (AP) -- A federal judge on Friday barred the IRS from imposing a series of new regulations, including a competency exam, on hundreds of thousands of tax preparers. http://hosted.ap.org/dynamic/stories/U/US_TAX_PREP_LAWSUIT?SITE=AP&SECTION= HOME&TEMPLATE=DEFAULT&CTIME=2013-01-18-18-32-55

There are several Yahoo groups that deal with tax matters. Also The Tax Book and Quickfinders have forums. Also there are some Google groups and misc.taxes.moderated on the usenet.

I certainly can't see any reason why any literate person should have to pay a fee for a 1040EZ. Why should anyone go to all of the effort to become a CPA or EA and spend their time doing 1040EZ returns. It is like a person becoming a lawyer and doing nothing but notarize documents when almost anyone can become a notary without even a high school education being required. A tax professional should be someone who normally handles situations beyond just a basic, simple return. Of course, there are some people who might be reluctant to prepare even a 1040EZ and want help, but they should be few and far between. The only such returns I ever do are those of the children of clients. On the other hand, I've known some accountants who couldn't prepare their own return. Once I had a tax client who was an FDIC auditor.

Most people with simple returns should not have to pay someone to do their tax returns. Younger people are increasingly computer-literate and could easily do returns that have nothing more complicated than a W-2 and a schedule A and schedule B.

It may be that the IRS may be more interested in the PTIN requirement than anything else to enable them to implement a new policy of assuming there are no crooked taxpayers, ONLY CROOKED TAX PREPARERS. With the PTIN and the RTPR requirement, the IRS now has more information to use in selecting preparers to be audited.

I remember the first time i ever saw a Xerox machine. The guy that was showing it to me gave me a demonstration by putting a $10 bill in it and copying it. He said it was illegal to copy money and tore it up. Even further back, one day when I worked for the Air Force Auditor General, I had a PFC assisting me and told him to copy some information to document some audit findings. While he was doing it, I was talking to one of the people I was auditing and he showed me the latest thing they had; a thermal copying machine. I copied the documents the PFC was transcribing, and told the PFC I didn't need the worksheets he had done. He became angry about my having wasted his time doing unneeded work.

I just e-filed a form 940. At first it was rejected by Drake because I had not checked the box for TEXAS. Also, the software itself had the company president's name as "O" and the date was garbled. After taking care of the problem, it went through OK.

The first ones I prepared was back in 1956. I typed them and made two carbon copies using the forms provided by the IRS. Tax laws were much simpler back then. You could use SL, DDB or SYD less salvage value for depreciation and you could usually get by with a 15-year life for a building. There were no Earned Income Credits, social security tax ended if you made over $4800 and back then $4800 was a pretty good income. I had one airline pilot client who made $ 14,000 which was big bucks back then. Back then H&R Block was just getting started and they charged $5.00 for a short form. I had enough of tax return preparation pretty soon and took a job as an auditor.

I liked Joe Kernan's comment this morning on CNBC about the tax on all those billionaires making $ 400,000.

Even a printed "signature" by the preparer is usually acceptable.

This reminds me of someone who asked what I would charge them. I gave them a pretty low estimate, and they replied, "That's pretty steep. I only paid $ 15.00 last year." Apparently they thought it should only cost $10 or less.

Eschew obfuscation!!

I see no conflict in Warren Buffett's position on taxes. If he gave his entire wealth to the government, it would barely put a dent in the deficit. Iif all billionaires paid a higher percentage year-after-year, it still might not help much, but it would help those of us in the lower brackets think we are being taxed more fairly than we are if those greedy billionaires keep too much of their money.