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I agree with jainen. New entity, new accounts, new EIN. On your application to the state for an unemployment account, the state might consider that this is an existing employer (only incorporating for liability reasons) and give you a better rate based on the sole prop's history as an employer.

Mike, here's a link to the IRS that briefly discusses that issue. At the bottom of that page is the link to the online payment agreement for these short-term agreements: http://www.irs.gov/newsroom/article/0,,id=108508,00.html

Romeo, Just the fact that you called your wife "Mrs Booger" had me ROFL. She must truly be an angel ! Happy Anniversary.

That's why I suggested it prob needs an extension. Easier to do it right the first time rather than amending. Also, estates can file a short year & be a calendar year for filing. Then the due date of the 1041 if needed would be 4/15. If that's the case then the estate would need an extension too. But that's not likely because the attorney would want as much time as possible to drag it out. An estate can choose any month end to end it's reporting year as long as the estate's year isn't > 12 mos. That's why I initially said that it's fiscal year could be as late as 5/31/08. JB, you have lots of questions for the attorney. I agree with Bulldog Tom about the attorneys & taxes. Hopefully the attorney has the estate set up with the IRS & has gotten an EIN & the year-end date has been decided. At least that info will help you decide on how to proceed.

But my problem is that I don't really believe that they were trying in 2007 to be active. There are no amounts at all on the Sch C, not even $1 of income, no other expenses. 2 pieces of equipment were sold very cheap at a yard sale. Car was not used & taken out of service, business use 0%, so the equipment & deprec recapture are on 4797. That's why I was thinking about Sch A.

That's why you prob need an extension. But you need to talk with the attorney to find out what's going on with the estate and where this 1099 income is being reported.

It sounds like the income on that 1099 should be split between the mother's return & ??. The amount after mother's DOD goes to either the estate or the son, depending on circumstances. Definitely you have to talk with the attorney. Depending on the split of this 1099, the estate might have to file a 1041, required when income is over $600 If mom died on 6/5/07, the estate could have a fiscal year ending as late as 5/31/08. And in that case, if a 1041 is required its due date isn't until 9/15/08. And then that due date can be extended another 6 mos to 3/15/09. This one's prob needing an extension and paper filing too. Sorry JB

You originally gave him client copies of the returns, right? Wonder why he doesn't have those?

The estate shouldn't even have to file since its income is < $600, unless one of the sisters is a nonresident alien. Estates get a $600 exemption on the 1041. Since an extension has been filed, the IRS might be looking for a return. It would prob be easier to file than have to correspond later to explain the extension request & non filing.

That 7004 was filed, right?

Or there'd be some recapture on an auto if the business use % dropped below 50%.

You would use the 2006 form because that when the fiscal year of the estate began. The return's orig due date was Nov 15, 2007 and should have been extended for 6 mos until May 15, 2008.

Your post is confusing. Whose name is the house in? Did the children buy the house and the parents live in it?

Taxpayer started business in 2006 as single-owner LLC that didn't make it. Sch C has no income or expense in 2007. They had about $1200 of sales from the couple pieces of depreciable assets being reported on 2007's form 4797. They must have not known that the state would bill them for the corp franchise tax at the end of the year. In Dec 07 they paid the fran tax & fees to cancel the cert of incorp with the state. They really weren't operating the Sch C in 07. Should I put this on as Sch A misc deduction?

Check what forms your state accepts by efile. My state of Delaware does not accept these by efile, so I can't answer in general about ATX & state extensions.

Add the 4868 to the return & click e-file. The extension has its own efile separate from the rest of the return. I think there's a way to batch them, but I'm not familiar with this because I have so few.

I've never seen that error. Is it every return? Is your computer's date correct? I checked the knowledgebase but didn't find any help. Might require a call to ATX...sorry.

I wouldn't want to talk to the son. He's not your client, you owe him no explanation. Mom did the explaining already. If he doesn't respect his mother, what chance do you have. Besides, do you want your windows shot out too?

Yeah, the Bat Cave. I thought that looked familiar but just couldn't place it. Thanks

I know what Denne is talking about. I have client letters in every return prep'd in 2006. Earlier in the season, the letters were rolling over into the 2007 return. Now they don't come forward & I have to either put them in or choose the "automatically include" setting.

I'd say it depends on what's on the return. If the return consists only of items reported to IRS by outside payers (int, divs, soc sec) and the return shows neg taxable income, or no tax/no refund, then there's no reason to file. If the taxpayer had something going that the IRS can't verify such as sch c or rental income but because of expenses, deprec, std ded & exemptions ends up not taxable, then I'd say to file a final return.

Are they some of the people that appear on Jerry Springer's show?

If you're not e-filing, why not just attach a simple statement that assets have been taken out of service but haven't been disposed of.

I don't use them. I have some custom spreadsheets in Excel, mostly for my resident state of Delaware. At the beg of this year I tried to import & make as a form that I could add to any return. I couldn't get that working. Most of these returns having this sched are paper filing anyway so I just open Excel & work there.

Have you checked the Knowledgebase for any articles on this? Maybe there's some info there. I haven't had any problems with this.