Edward

I have kept a file copy of all my returns starting with the first one filed in 1958 - that year I was in the military and that's the year we became subject to Social Security Taxes. The return for that year was a 7 1/4 x 3 1/4 punch card (1040A). I suspect that was when the 1040A was initiated? Last week a company shredded the returns from 1958 thru 1990. Hated to depart with them.

For PACUN: I plan on purchasing a new computer also - am going from XP to Windows 7 HOME PREMIUM (64-BIT). Will this also work or do I need the Professional rather than the Home Premium. It does have 8GB and its an ALL IN ONE type computer. Thanks for any info.

Have new client that reported stock loss of 195,718 on her (MFS) tax return for 2009. Due to her filing status, limitations apply for ordinary/capital losses. The return reported 50,000 ordinary & 1,500 capital losses for 2009. The balance of 145,718 was classified as a capital loss and carried over to 2010and limited to 1,500 capital loss. T/P insists she can deduct another 50,000 ordinary loss for 2010 and until the 145,718 is eliminated. The Tax book dosen't mention anything about annual limitations, but Key Issue 18C of PPCs DESKBOOK it states "The 50,000 & 100,000 limitations are ANNUAL LIMITATIONS on the amount treated as ordinary losses under IRC Sec 1244".Anyone know how this is to be treated? 1244 stock losses have always been treated as ordinary losses, or did this change? Any assistance will be greatly appreciated.

Randall: I'm having trouble locating the Preparers Note Tab. Could you give me directions on the its location - certainly will appreciate it. Thanks

Note that on "Payment and Refund Options (1040 E-File Info) the fourth box down. By clicking on this, you can efile the 9465 with the return.

Have client who does not have a bank account but would like to deposit the refund in his sisters account. I thought I had read a post last year in which this was acceptable and that use of accounts other than the taxpayer was permitted? Can anybody provide any advice on this? Thanks

Yes, your assumption on the Return & Depart, is correct.

Have over the road (long distance - Form 2106) wage earner paid by local company who travels thru-out the southern part of U.S. I have computed his DOT per diem as follows: a. He had 273 over night stays during the year x 59.00 equals 16,107.00 b. Depart&Return: 1.50% x 59.00 = 88.50 per round trip x 12 = 1,062.00 c. 16,107. plus 1062. = 17,169. x 80% = 13,175.00. Hope this will pass OK - any comments on this computation. Thanks

Sounds to me like this is what they call a Lease Bonus (Initial)which is basic consideration for executing the lease. If this is the case, the O&G exploration company has listed it as other income when it should be shown as rents. Ask the client if this is the case, and if so, he can get a corrected 1099-Misc.

3200.00 so he has 2006.00 1231 gain.

Client signed oil lease regarding seismic surface testing of which it was agreed that the 5,206.00 was for surface damages. QF Special Tax Situations says "Receipient's tax treatment of these damages is "Return of capital to extent of property's basis; and that excess is Section 1231 gain. My question is where do I place this - part I or Part III of the 4797. Will appreciate any ideas.

Isn't this something that just changed for 2010? If so, it sounds strange that IRS would be looking at 2010 returns already? Any comments?

joanmcq: I would believe that in order to get things rolling for the special pin for a taxpayer who has had this experience, you might have to submit IRS form 14039.

Thanks clentax Had no idea that it would be located there. Thanks.

IRS Update says that such victims who have previously contacted the IRS concerning their identity theft will receive a notice (CP01A) which provides t/p with a six-digit identity protection PIN (IP PIN) for use when filing their tax returns. It further states that for electronic returns, the tax software program should contain a prompt asking if the t/p received such a notice from IRS. Anyone know how or if ATX has such an element? Thanks.

No it was not H&R Block - it was NATP. Just forget about all the confusion - put it on line 29 of the 1040 & include spouses amount also.

I asked a major "Tax & Accounting Chain" about the addition of Medicare B premiums and they've said to go ahead & use for this year. They have had discussions with IRS on this subject and they agreed that it could be placed on Line 29.

The Form 8910 has also been delayed for filing later this month with the other 13 or so forms.

Nope.

Got both of mine some time ago....

Form 1040 and Sch A have been updated and downloaded this A.M. Also note that efile testing has changed over last years method. Now you go to efile manager, then click on "efile" upper left hand corner then scroll down to "test transmission". I immediately received a response that the efile test was successful. I don't know if its required but I did have one updated roll-over client on board.

Nope - this is for everyone who "will become registered tax return preparers". Applies to all those who are making application on the W-12 for PTIN registration. That's another cost for us as I don't belive they do it for free? They'll probably come up with some sort of system that will allow the attachment of the fingerprints to the 1040, so they can really verify the preparer.......

The following from NATP TAXPRO Weekly (12/09/2010: "The IRS has issued a Request for Proposal (RFP) to procure a vendor for establishing testing & FINGERPRINTING services for those who will become registered tax return preparers. The IRS began implementing a number of actions to increase oversight of federal tax return preparers and this solicitation is in preparation for implemenetation of testing and suitability check proposals for those who will have to take the competency test. The RFP lists a tentative start date for testing and fingerprinting of 1 June 2011".

Note that the second disk you received is something new thats not even addressed in the new ATX User Guid for 2010, nor were there any instructions on just how this should be handled - as usual for ATX in regards to instructions. I went to the other board (ATX)and Kimmie1201 of CCH Small Firm Services entered a post of 11/30/10 providing essential data and instructions on the second disk. I don't know why ATX didn't send a letter or email to everyone that ordered their programs with this explanation as not everyone belongs to their board. This second CD is for installing Microsoft Net 3.5? whatever that is. They say that during installation if a prompt comes up that says "Net Framework 3.5 or higher is required for this installation" then you must follow other instructions. I've installed my ATX program and never saw any mention of this. I hope it works. I understand that theres also a problem in which the preparer and ERO are not rolling over properly. I think you have to go to the preparers tab and reenter EVERYTHING as we originally had to do. After you complete this, then go to Prefernces and complete the Preparer & ERO data.