Edward

If ATX can come up with software LIKE it had in prior years this would be my choice - if they can come out with a sample that we can actually test to determine its reliability, or will they have the same problems as last year? Otherwise I'll consider Drake or Tax Slayer.

And I'll bet all of this fraud is made easier via the IRS free file system started years ago -- to avoid all this, IRS must eliminate the FREE FILE program and suggest these free filiers file future returns via the city programs that offer free tax return preparation. Otherwise it will just get worse. Too, such elimination would divert preparer's away from using the free filing to prepare returns for taxpayers and leave no trail and thus not reporting the income received from such preparations.

The following is taken from QF Depreciation Handbook: Expenditures that do not materially add to the property's value, appreciably prolong it life or make it suitable for a different use are incidental repairs or maintenance and are generally expensed. (Reg 1.162-1(a)). Whether a cost is an ordinary repair or should be capitalized has been a source of much controversy. Courts often test expenditures by looking at whether the cost "puts" an asset in working condition (capital expense) or "keeps" it there (repair). Also, amounts expended to restore property to its original condition are repairs. According to IRS Pub 535, examples of capital EXPENDITURES include new electric wiring, a NEW ROOF, a new floor, new plumbing, bricking up windows to strengthen a wall and lighting improvements. Other examples of deductible repairs include (a) Reconditioning floors (but not replacement); ( Repainting interior and exterior walls; © Cleaning and repairing ROOFS and gutters; and (d) Fixing plumbing leaks(but not replacement of fixtures. PRACTICE TIP; IRS has issued a Capitalization versus Repairs Audit Technique Guide (ATG). The ATG outlines the items that IRS examiners are instructed to consider when determining whether an expenditure should be capitalized or expensed as repairs. Court Cases in regards to roof repairs are: Oberman Manufacturing Co., 47 TC 471 (1967); Campbell, Nevia, TC Summary Op> 2002-117; and Stark, Dennis. TC Memo 1999-1..

IRS SERVICE CENTER ADVICE 200018051 follows: Gross Income generally means money, goods, and property received that is subject to tax. It does not include nontaxable income (such as tax-exempt interest). For sales of property, gross income for this purpose is the amount realized in excess of basis (Reg. 1.61-6(a)). However, the IRS advises that taxpayers receiving Form 1099-B or other information returns reporting gross proceeds from a sale of property can avoid possible IRS matching notices by filing returns, even when a return is technically not required.

QUESTION: Over-night stays: ASE - SFO - ORD: How much per diem should be allowed: MY ANSWER: Using 59. x 1.50% gives us 88.50 for the departure and return portion of the flight; then 59.00 for the three nights = 177. for a total per diem of 265.50. FOR TWO LAYOVERS: It would be the 88.50 plus 118.00 (2 x 59.) for a total of 206.50. FOR ONE LAYOVER: 88.50 Plus 59.00 for a total of 147.50. Are these fairly reliable computations? If not, where can I find some solid samples to follow? IRS Pub 463, the tax book and quickfinder aren't much help. Will appreciate any assistance.

There is just too many problems with the 2012 program - changing to ProSeries.

Ref the worksheet cited above - Form 8867 (new edition) has all that mentioned plus possibly other items that we are required to complete and file with the tax return.d

In reading the other board it appears that ATX has some serious problems and I doubt whether or not they will get them resolved anytime soon. If things aren't resolved by Tuesday AM, I am going to purchase another software program and forget about ATX.

They should have everything up and going by the 30th of Jan!!!!

Ya know, alot of these ghost preparers that don't sign returns don't even buy software - They go on-to internet free file while the client provides all necessary data to the person doing the return. They then run off a copy for the client, efile the return, charge the client a substantial fee of which they pocket the money and never report it. There's no trail so the preparer gets a free ride. Last year I talked with a client that went to one of these types. I had also thought they would purchase Turbo Tax or some other software, but no sir - they'eve got a new trick as I've described.

We'll just have to wait till the 30th - I'm certain all the problems will be resolved by then - I haven't ordered the 2012 program and may be forced to change programs if they don't have everything fixed by the 30th.

The initial payment the farmer receives is called a LEASE BONUS which must be reported on Sch E . (Source, pages 8-3 and 8-4, QF 'Individuals - Special Tax Situations".

I have many spouses that have their own checking accounts and they like their refunds split 50/50 so this method comes in handy for them. No problem and I haven't heard anything about any fees they had to pay for using this method.

I'm not getting any feed back on my suggestion of IRS designating a limited number of CPA's/EA's within the tax preparation indiustry to perform limited audits on "Home Preparers" in an effort to identify those Ghost Preparers.?? I was certain this would generate some interest, but?

Most of the "ghost" preparers operate from their homes, and have signs outside that state this fact. Old Jack is totally correct. Since IRS will do nothing, maybe they should designate a limited number of the CPAs and EAs out in the field to perform unannounced limited audits on those that operate from their homes. If they have signs stating they prepare taxes, then the designated CPAs/EAs would ask to see copies of the preparers tax returns to determine if they have reported income on a Sch C. If they happen to have client file copies on hand, and they are not signing those returns, they would be subject to a 50.00 penalty per return. Details of the audit would be provided to IRS for further action. Lets face it, since IRS wont do anything, I believe its up to the preparer industry to make a move like I've suggested. I received two "self-prepared" tax returns this year in which the ghost preparers charged a substantial fee. Both returns were a total mess as they involved depreciation and business travel. One of the preparers did the return four different ways and then selected the one that gave the client the greatest refund. I didn't even want to deal with it and recommended they go to H&R Block. Don't you think IRS would go along with this - if there was major support I believe they would agree. Altho I'm certain most of the preparers reading this recommendation will think this to be a STUPID approach????? Any comments

But how do you catch the preparers that are doing returns when they go to all the free filing available on the internet. I know of one lady that I found out thru one of her clients from 2009 that I picked up and the preparers block says "Self-Prepared". The client says she went into the internet, does the return but leaves no clue as to who she is and when finished, runs a copy for the client and boom, there is no record of the preparers name since she is using the clients name, etc. She also charged a pretty good fee for the return; and I'm certain she is not reporting any of the income made like this. She works out of her home in the evenings and week ends. IRS has no way whatsoever of finding these types since they don't leave no trail.

AnnieR has the corrrect answer. Case closed.

So JohnH uses a soroban or japanese abucus in his tax work - well, I don't believe that there are many tax preparers that also use such and I'm certain the calculator is the most preferred instrument. I'm certain 320 is the correct answer so we'll just wait till taxxcpa responds.

For taxxcpa: It appears that the previous posters believe the correct answer is 20 - I tried it twice and came up with 256 or 64 short of 320. Could you show us a copy of your calculator tape to see how you arrived at 320?

I saw this equation on facebook in which they stated that 73% of people failed to answer this correctly? 4 x 4 + 4 x 4 + 4 - 4 x 4 = ?. The many answers were 320, 20, 480 and 128. Could you show your computation and break down?

I found the problem. I re-entered everthing starting over and when I prepared the original 1040 Line 6 of the Schedule M did not compute which it should have done by automatically entering 75000, and therefore line 7 would have checked NO rather than yes and thus the line 8 entry would have not computed. Here again, I relied on the software automatically making entries rather than giving it a good physical check myself. However with the second preparation it did line 6 automatically. Wow, guess we have to be careful.

Client filed 2010 1040EZ - 30 years old; single, one exemption, qualifies for EIC with wages of 7352 and FITW OF 258. Was in the process of amending the return and since I prepare ONLY 1040's, after entering the above figures on the 1040 I came up with a refund of 968.00, or 147.00 less than what was shown on the 1040EZ. I noted too that for the 1040EZ you have Make Work Pay Credit and EIC Worksheets as they don't use the EIC nor Sch M. For some odd reason, the Make Work Pay Credit worksheet gave client 147.00 more than the Sch M does. Thus the refund of 1115.00 is how the 1040EZ reads and that is the refund she received. I called Tech Support on this and the person didn't seem to want to help - he said you have different forms so that is what's going on. He wasen't very cooperative at all. Am I doing something wrong on this? By the way, I use ATX Max software.

Thanks Margaret - you're right, parents got the POA as part of the deployment processing. I had asked his mother and she didn't think that was the case, but later talked to his father and it was affirmative..

Have military client that deployed to the combat zone in Jul 2011. Just finished his 1040 and he's getting a refund. Just wondered how and when I need to get his signature on the 8879? Do we have to mail to him to get the signature or would the parents need a POA to do such? thanks....

I suspect that a t/p has a problem its a 4868 and when someone else has created the problem, then the penalties and interest may be avoided, whereas with the 4868 such will accrue until the 1040 is file and the liability paid. The 1127A (undue hardship) would then avoid such penalties/interest. Sound logical?