taxxcpa

The UBTI is code v on the K-1.  If it is over $1000, it is taxable .  However I doubt that IRS adds them up to check

I retired before this tax season, but still do my return & two daughters'.  TaxAct is the program I use--it only costs $9.99.  Better than pencil & paper

I used an older version of  Peachtree  (Sage software) and used Drake's Client Write-up for Payroll (941s, W-2s,1099-MISC).

Or, you can call Drake Support.

The main thing is to keep income below$1000 in an IRA.

Two quirks in Drake:

1.  If you have a non-deductible IRA, you need to go to the bottom of the 1099R screen and indicate it should be excluded; otherwise, you get the full amount on the 1099R PLUS the amount on the 8606.

2.  If you have an indirect rollover of an IRA,  you need to go to the bottom of the 1099R screen and code it "S" NOT 'X" to exclude it and to get the program to print "Rollover' on page 1 of the 1040

Nobody goes there anymore. It's too crowded.

Yogi Berra

HRB sent me an e-mail the other day.  They were making a potential offer of employment and wanted me to take a test to see if I qualified.

Maybe I need to move most of my cash out of JPM.  I get about 60¢ per month interest on my checking account.  If i transfer it into my brokerage account, it would cut my interest income to about 20¢ for the same cash amount.

It really was like that, once upon a time, long, long ago. Sic transit gloria fisci.

It was back before some of you were born--around 1958.

I can remember the day when the IRS could answer some very difficult questions.  Once I called and asked how to write off an investment in a worthless oil well.  The person who answered the phone explained exactly how to do it.  My client thought I was a genius when I took care of the write-off on his tax return.

I think any comments about IRS shortcomings is appropriate whether the administration is conservative or liberal.  For example, if an IRS official is found to be cheating on his own taxes, I think comments on this forum about it might be construed as political somewhat, but nevertheless appropriate for a tax forum.

He dropped off his tax return documents with me the other day.

Too much sun definitely causes skin cancer.  I used to ride my bicycle several hours in the sun frequently and developed several skin cancers, some of which required surgery to remove.

My last visit to the dermatologist was over a year ago, and, as George H W Bush might say, "read my lips no new skin cancers."

Very little in the way of political beliefs would make me dislike a person, even if I totally disagreed with them.   I am conservative on most issues, but I don't dislike a person just because he is a liberal (unless he is an elected official).

Posting political comments is a way to let off steam, but I don't think anyone ever reads a political posting and says, "After reading that message, I am going to switch from being a Democrat to being a Republican"  or vice versa.

Some clients cheat, but I've never had a client ask, "How can I cheat on my taxes?"

Some of them do some pretty dumb things that may or may not be an attempt to cheat-- like selling a lot of stock and omitting it although the IRS gets 1099-Bs.

In one such case, the client said they omitted it because there was no profit on the sale.

Refresh my memory, but doesn't the regulation say that you are to report ALL income?  As a CPA, instructing people how to circumvent the regs is a Circular 230 violation, and more importantly, a HUGE indicator of what your ethical and honesty base is?

I have never advised clients to cheat or conceal cash income.  They are capable of figuring it out for themselves if they are dishonest.

How did you get the idea that my comment was advice to a client?  If I said that shooting someone in the head with a gun would be an effective way to kill them, would you think that was the advice I gave clients.

You really should apologize for making that assertation.

The IRS might look at your bank statements, so to keep the total low, take checks to the bank of the client and cash them.  Pay all of your grocery bills in cash and report income that equals or slightly exceeds your deposits.

There is no way the IRS can catch all cheaters.  Anyone who does not get a W-2 or 1099 for all of his income can cheat, but if you cheat too much, the IRS can add up all of your living expenses and if they exceed your income, you would be in trouble.

I had a semi-retired lawyer client who only reported about $7000 income back 25 or 30 years ago.  The IRS assessed him more tax based on their calculation of his cost of living.

Anthony Weiner just opened a new restaurant in NYC.  The specialty of
the house is a 3 inch wiener, of which he will happily email you a
photo even if you don't want to see it.

Although they have your PTIN, they don't always know what you charged, and even if every return had the tax preparation fee on them, the IRS isn't likely to add them all up unless they have a reason to suspect you aren't reporting everything.

It would be possible to omit all or many cash payments.  Even if all fees were paid by check, you could cash the checks at the bank on which they were drawn.

The risk would not be if you left off 10% of your income, but if you left off 50% or if you were investigated for something else, maybe something you were not guilty of, it could look fishy.  

Once I did a sales tax audit of a man whose invoices indicated that he charged the correct tax on every income.  Then I looked at his sales tax returns and some of the individual invoices had more tax changed than he reported for the entire quarter. 

His excuse was "you just can't hire good help nowdays." and blamed it all on his bookkeeper.

There is no such thing as a fair tax since all taxes are unfair.  Once I commented that one tax was unfair, but the person I was talking to replied that it would be unfair if it were the ONLY tax.  Theoretically the unfair burden of one tax would be offset by the unfair advantage you got from another one.  Of course anything can be  theoretically possible.

My plan: abolish all taxes and just print the money the government needs.

i used to get a small increase every year separately from the regular annual increase.  I had several years of civil service work, so the increases may have ended as soon as i got 35 years of SS coverage.

 However, I've noticed that I get slightly more than the annual percentage increase with my regular annual increase and I noticed that one of my  over-65 clients gets a much larger annual increase than the stated annual percentage increase.

Maybe you should offer candy to EIC clients' kids.  It could be considered "due diligence" verification that they really had all those kids.