jklcpa

JB, did you see this topic with virtually the same situation being discussed? Maybe some of this will be helpful to you - '?do=embed' frameborder='0' data-embedContent>>

The deadline is April 15th. Filing your tax return before that doesn't change that date. If you've designated in the software that a contribution has been made in 2014 before 4/15/14 for the 2013 tax year, most software packages will have a paragraph in the tax return instruction letter to remind the client to make sure the contribution has actually been deposited into the IRA by that date. Care must be taken by the client when making these contributions to specifically designate that the contribution is for 2013, if that is their intended action.

It's a TIDE-al wave of puns, for sure. CHEERs.

To add to ^ that post above, if anyone is slightly confused about the first paragraph of the first post in that "Hi-jacked Threads" topic, it came from a quote made in another topic entitled "2013 ATX rollover". All within the "2013 ATX rollover" topic - hijacks were made, a complain made publicly about that hijacking, and discussions publicly back and forth with me about it. That thread has since been cleaned up to remove the junk so that it contains only the information pertinent to the topic, but that was also part of the public display by part of this membership that also had a hand in making Taxed feel unwelcome here.

SCL, the only person that could truly answer why she left is Taxed herself, and anyone else's answer would be only speculation. Eric said it best in that post that he linked to, but I will expand a little further since I was the moderator that had contact with her about leaving. After seeing this topic posted publicly --> '?do=embed' frameborder='0' data-embedContent>> , having one of her hijacks removed by me that was about to derail another topic, and realizing that some people were complaining about her posts, she PM'd me back to request that her account be deleted. She didn't know that her hijacks were causing such a ruckus and why there was suddenly attention being drawn to them, and she didn't want to be a problem here. She enjoyed it here but didn't want to cause problems or have people complaining about her, so she decided that it was time to move on.

Thanks for sharing that, John, it's good to hear. The corp extensions I did last year were done in ATX, so I haven't experienced Drake's speed on this function yet.

We should be asking enough questions and helping our clients assess the potential penalty that they may be subject to and that would be due in 2014 based on the 2013 tax year. It will be part of our job as tax preparers because the penalties and any subsidies are based on what the clients are reporting on their returns. My tax software has a screen that asks for the pertinent data, but I have not tested it out yet, and I've not opened those surveys either.

It was more flexible than other programs on the market.

Me too! I missed seeing the competitions leading up to the team selections, so I can't wait to see the Olympics.

If you do happen to not purchase the ATX tax program, please keep in mind that you can still purchase the payroll compliance reporting program separately for $295, at least that was the price last time I checked. It works well and is one of the easiest to use that I've tried, and it doesn't require the user to obtain a TCC or set up a user account that are required to use the IRS FIRE system.

Your client can file it without the recipient's ID number and it will be considered incomplete, and a penalty may be assessed for filing the incomplete form. I'm not sure it can be e-filed though as I've never tried that. Also, your client should have withheld taxes at 28% and the IRS can hold your client responsible for that tax.

That's not true, Jack. I've been using the ATX program with the forms on the left for years. I currently have back to 2009 on this computer, opened a return in that, and the forms are on the left. It was a setting in the preferences section, specifically in the "open return" section of preferences where the user could choose to show the forms on the left by checking a box.

Yes, I know about the annual limit, I've just never seen a negative on line 2 of the 941. Do you have a reference you could link so that I have this for future use?

This is interesting and I've never seen this reporting of negative wages on the 941. I know that the IRS computers only reconcile the W-2/W-3 reporting back to the 941s for 4 lines (SS wages, SS tips, Medicare wages/tips, and federal withholding), so if this reporting of negative wages on line 2 of the 941 is correct then maybe I've learned something new. What I'm wondering though, using the definition of "compensation" for purposes of SIMPLE IRA deferrals, how is it possible in any given quarter for an employee to defer more compensation than is paid to him or is subject to withholding? Isn't this employee's deferral limited to the $11,500 for the 4th quarter?

The quick answer is that construction is allowed as part of an exchange, but it can't be built on land already owned, and the construction does not extend the time to complete the exchange. The title to the land and constructed building would have to be held by the exchange intermediary. I don't have time right now to provide the cite, but here is something from the Federation of Exchange Accomodators site's FAQs page: The full link http://www.1031.org/about1031/faq.htm Q - Can the proceeds from the relinquished property be used to make improvements to the replacement property? Yes. This is known as a Build-to-Suit or Construction or Improvement Exchange. It is similar in concept to a reverse exchange. The taxpayer is not permitted to build on property she already owns. Therefore, an unrelated party or parking entity must take title to the replacement property, make the improvements, and convey title to the taxpayer before the end of the exchange period.

Looks like you found your answer. Thanks for posting the link.

C&P from pub 15-A that might help you report correctly and reconcile. See the parts in bold and specifically the underlined text: Sick Pay Paid by Third Party The depositing and reporting rules for a third party that is not your agent depend on whether liability has been transferred as discussed under Third party not employer's agent , earlier in this section. To figure the due dates and amounts of its deposits of employment taxes, a third party should combine: •The liability for the wages paid to its own employees, and •The liability for payments it made to all employees of all its clients. This does not include any liability transferred to the employer. Liability not transferred to the employer. If the third party does not satisfy the requirements for transferring liability for FUTA tax and the employer's part of the social security and Medicare taxes, the third party reports the sick pay on its own Form 940 and Form 941 or Form 944. In this situation, the employer has no tax responsibilities for sick pay. The third party must deposit social security, Medicare, FUTA, and withheld federal income taxes using its own name and EIN. The third party must give each employee to whom it paid sick pay a Form W-2 by January 31 of the following year. The Form W-2 must include the third party's name, address, and EIN instead of the employer information. Liability transferred to the employer. Generally, if a third party satisfies the requirements for transferring liability for the employer part of the social security and Medicare taxes and for the FUTA tax, the following rules apply. Deposits. The third party must make deposits of withheld employee social security and Medicare taxes and withheld federal income tax using its own name and EIN. You must make deposits of the employer part of the social security and Medicare taxes and the FUTA tax using your name and EIN. In applying the deposit rules, your liability for these taxes begins when you receive the third party's notice of sick pay payments. Form 941 or Form 944. The third party and you must each file Form 941 or Form 944. The discussion that follows only explains how to report sick pay on Form 941. If you file Form 944, use the lines on that form that correspond to the lines on Form 941 that are discussed here. Form 941, line 8, must contain a special adjusting entry for social security and Medicare taxes. These entries are required because the total tax liability for social security and Medicare taxes (employee and employer parts) is split between you and the third party. • Employer. You must include third-party sick pay on Form 941, lines 2, 5a, 5c, and 5d (if applicable). There should be no sick pay entry on line 3 because the third party withheld federal income tax, if any. After completing line 6, subtract on line 8 the employee social security and Medicare taxes withheld and deposited by the third party. • Third party. The third party must include on Form 941 the employee part of the social security and Medicare taxes (and federal income tax, if any) it withheld. The third party does not include on line 2 any sick pay paid as a third party but does include on line 3 any federal income tax withheld. On line 5a, column 1, the third party enters the total amount it paid subject to social security taxes. This amount includes both wages paid to its own employees and sick pay paid as a third party. The third party completes line 5c and 5d (if applicable), column 1, in a similar manner. On line 8, the third party subtracts the employer part of the social security and Medicare taxes that you must pay. Form 940. You, not the third party, must prepare Form 940 for sick pay. Third-party sick pay recap Forms W-2 and W-3. For wages paid in 2013, the third party must prepare a “Third-Party Sick Pay Recap” Form W-2 and a “Third-Party Sick Pay Recap” Form W-3. These forms, previously called “Dummy” forms, do not reflect sick pay paid to individual employees, but instead show the combined amount of sick pay paid to all employees of all clients of the third party. The recap forms provide a means of reconciling the wages shown on the third party's Form 941 or Form 944. However, see Optional rule for Form W-2 next for information on designating the third party to be your agent for purposes of preparing Form W-2. Do not file the recap Form W-2 and W-3 electronically. The third party fills out the third-party sick pay recap Form W-2 as follows. Box b – Third party's EIN. Box c – Third party's name and address. Box e – “Third-Party Sick Pay Recap” in place of the employee's name. Box 1 – Total sick pay paid to all employees. Box 2 – Any federal income tax withheld from sick pay. Box 3 – Sick pay subject to employee social security tax. Box 4 – Employee social security tax withheld from sick pay. Box 5 – Sick pay subject to employee Medicare tax. Box 6 – Employee Medicare tax (including Additional Medicare Tax, if applicable) withheld from sick pay. The third party attaches the third-party sick pay recap Form W-2 to a separate recap Form W-3, on which only boxes b, e, f, g, 1, 2, 3, 4, 5, 6, and 13 are completed. Enter “Third-Party Sick Pay Recap” in box 13. Only the employer makes an entry in box 14 of Form W-3. Optional rule for Form W-2. You and the third party may choose to enter into a legally binding agreement designating the third party to be your agent for purposes of preparing Forms W-2 reporting sick pay. The agreement must specify what part, if any, of the payments under the sick pay plan is excludable from the employees' gross incomes because it is attributable to their contributions to the plan. If you enter into an agreement, the third party prepares the actual Forms W-2, not the “Third-Party Sick Pay Recap” Form W-2 as discussed above for each employee who receives sick pay from the third party. If the optional rule is used: •The third party does not provide you with the sick pay statement described next, and •You (not the third party) prepare “Third-Party Sick Pay Recap” Forms W-2 and W-3. These recap forms are needed to reconcile the sick pay shown on your Form 941 or Form 944. Sick pay statement. The third party must furnish you with a sick pay statement by January 15 of the year following the year in which the sick pay was paid. The statement must show the following information about each employee who was paid sick pay. •The employee's name. •The employee's SSN (if social security, Medicare, or income tax was withheld). •The sick pay paid to the employee. •Any federal income tax withheld. •Any employee social security tax withheld. •Any employee Medicare tax withheld. Example of Figuring and Reporting Sick Pay Note. The following example is for wages paid in 2013. The IRS expects to change the third-party sick pay recap reporting and filing requirements for wages paid in 2014. Dave, an employee of Edgewood Corporation, was seriously injured in a car accident on January 1, 2013. Dave's last day of work was December 31, 2012. The accident was not job related. Key, an insurance company that was not an agent of the employer, paid Dave $2,000 sick pay each month for 10 months, beginning in January 2013. Dave submitted a Form W-4S to Key, requesting $210 be withheld from each payment for federal income tax. Dave received no payments from Edgewood, his employer, from January 2013 through October 2013. Dave returned to work on November 1, 2013. For the policy year in which the car accident occurred, Dave paid a part of the premiums for his coverage, and Edgewood paid the remaining part. The plan was, therefore, a “contributory plan.” During the 3 policy years before the calendar year of the accident, Edgewood paid 70% of the total of the net premiums for its employees' insurance coverage, and its employees paid 30%. Social security and Medicare taxes. For social security and Medicare tax purposes, taxable sick pay was $8,400 ($2,000 per month × 70% = $1,400 taxable portion per payment; $1,400 × 6 months = $8,400 total taxable sick pay). Only the six $2,000 checks received by Dave from January through June are included in the calculation. The check received by Dave in July (the seventh check) was received more than 6 months after the month in which Dave last worked. Of each $2,000 payment Dave received, 30% ($600) is not subject to social security and Medicare taxes because the plan is contributory and Dave's after-tax contribution is considered to be 30% of the premiums during the 3 policy years before the calendar year of the accident. FUTA tax. Of the $8,400 taxable sick pay (figured the same as for social security and Medicare taxes), only $7,000 is subject to the FUTA tax because the FUTA tax contribution base is $7,000. Federal income tax withholding. Of each $2,000 payment, $1,400 ($2,000 × 70%) is subject to voluntary federal income tax withholding. In accordance with Dave's Form W-4S, $210 was withheld from each payment ($2,100 for the 10 payments made during 2013). Liability transferred. For the first 6 months following the last month in which Dave worked, Key was liable for social security, Medicare, and FUTA taxes on any payments that constituted taxable wages. However, Key could have shifted the liability for the employer part of the social security and Medicare taxes (and for the FUTA tax) during the first 6 months by withholding Dave's part of the social security and Medicare taxes, timely depositing the taxes, and notifying Edgewood of the payments. If Key shifted liability for the employer part of the social security and Medicare taxes to Edgewood and provided Edgewood with a sick pay statement, Key would not prepare a Form W-2 for Dave. However, Key would prepare “Third-Party Sick Pay Recap” Forms W-2 and W-3. Key and Edgewood must each prepare Form 941. Edgewood must also report the sick pay and withholding for Dave on Forms W-2, W-3, and 940. As an alternative, the parties could have followed the optional rule described under Optional rule for Form W-2 , earlier in this section. Under this rule, Key would prepare Form W-2 even though liability for the employer part of the social security and Medicare taxes had been shifted to Edgewood. Also, Key would not prepare a sick pay statement, and Edgewood, not Key, would prepare the recap Forms W-2 and W-3 reflecting the sick pay shown on Edgewood's Form 941. Liability not transferred. If Key did not shift liability for the employer part of the social security and Medicare taxes to Edgewood, Key would prepare Forms W-2 and W-3 as well as Forms 941 and 940. In this situation, Edgewood would not report the sick pay.

LML, to be totally clear about this, when I said "cut off from the server, I meant the ability to update the program and efile through the ATX system. I was able to log on to the ATX site and do everything EXCEPT PROGRAM UPDATES OR EFILE, even after the refund. I was only just now finally cut off from the official forum about a week ago, but even now I am still able to log in and see all of my prior year programs, access codes, and the efile database for all the other years it is available. What you complained about was not being able to efile a return through Drake's server or access updates for a program that you received a refund for, and my response still stands that all of the vendors do that. You entered a contract with Drake when you purchased and paid for the program, and when you requested and received your refund, your agreement with them, and them with you, came to an end.

Eric has been more than accommodating in changing the forum to try to make it better and to be what the users want, and he has addressed complaints as they've come along. Some people complained openly about the hijacked posts, and one person was going to take matters into her own hands to make it stop. There were VERY FEW REPORTS made along the way, so in future if any of you have this big a problem with someone or their posts, PLEASE REPORT IT. We are not mind readers and are busy just like the rest of you, so don't sit back and say nothing until it gets so annoying that you feel the need to rant about another member by posting publicly about it. Also, if you dislike someone's point of view or his or her postings to the point that you can't overlook them and can't stand to even see those posts, USE THE BLOCK FUNCTION. It works. It takes more than one person to create an argument or keep one going, and there are others on here have added fuel to the snark fests and squabbling besides Taxed. There have also been snarky comments made to new people coming on here that innocently ask a question that are adding to the negative tone of this forum, and that needs to stop. Every time we lose a person, we lose that person's insight and advice forever. That person might not have helped YOU, but someone else may have benefitted. Now how's that for a hijack?

That's correct, he didn't lose the entire $27,000 because the IRS is holding $4,800 of his money via the withholding. He never had that $4,800 to gamble away, so that portion can't be claimed as a loss. The $4,800 less the $500 net decrease in cash over the 2 days reconciles this back to the overall net of $4,300.

[deleted post]

Mr. Pencil, thank you for mentioning the "report" function that I would like to encourage people to use. In addition to be moderators, KC and I use the forum just like the rest of you by coming here to share ideas, help others, or we might pop on to quickly search the forum for posts that address a specific issue we are encountering in our work that day. I have my notifications set up so that I see a red number at the top of my screen any time a post is reported, much like the rest of you see when a PM is sent to you. This allows me to very quickly go to that reported post and see what the problem is without wading through all of the new posts that have occurred since my last visit. What is offensive to you might not seem so bad to me or to KC, and without you telling us, we have no way of knowing that a post or particular topic is bothering some of you. You shouldn't feel bad about using the "report" function either; you aren't being a tattletale. Try to think of it as raising your hand in class and giving us a heads up that will draw our attention more quickly to a post or topic.

If you are using Excel and want something preformatted that looks nicer to give to a client, you can use one of the templates available online. With excel open, press F1 to bring up the help box and enter "loan amortization". There will be plenty to choose from. I was pleasantly surprised to see a lot of financial calculators built into the RIA Checkpoint research that I purchased for this season, and my tax software also has a loan amortization schedule free for all to use.

Jack, please stop. This person has not slammed ATX in this thread, as was your prior complaints. He has also stated on several occasions that he purchased ATX in hopes of using it this year, but has also purchased Drake if ATX doesn't work well for his firm. He is allowed to ask questions here.

I have a friend in Toronto that was without power a week or two ago and tried that exact flower pot idea. She was trying to keep 2 pet birds warm. It did give off some heat but was not enough. Maybe the room was too large. If you look at that room in the video, the ceiling isn't that high and goes to a point and the room is small, so the cubic feet he is heating isn't all that large. My friend retreated to her business location and camped out there overnight until power was back on at her home.