jklcpa

This might be a really stupid question but here goes. How do I sign up to efile these forms? I tried to update my efile applic to be able to file these, and information returns aren't on the list. Looks like I'm approved for 1040, 1065, 1120, 1120S, 1041 only.

2nd dumb question: when efiling these, what is the procedure & is this through ATX?

3rd dumb question: is there a required transmittal form like for 1040s (the 8465 or 8879) ?

Thanks to everyone,

Judy

I love it! Now, just as long as I don't look around my office too closely I'll be fine.

Client that's 83 y.o. & single died 12/23/07. Her estimates were set up for $800/qtr and would have probably had her overpaid by ~ $150. The executor son called & wanted to know what he should do regarding the taxes.

Estimates were based on her using std ded for '07. Income was just high enough & med exps low enough that std was better than itemized. Only other Sch A would have been a couple hundred in r.e. taxes because she sold her house and almost all was reimbursed at settlement. But then...

In Sept '07 she moved to assisted living and shortly thereafter fell out of a wheelchair in the facility's transport van. The fracture was apparently severe & required hip transplant & rehab at full-care nursing home. (She & wheelchair were not properly secured during transport - lawsuit in the works). While that was happening, she developed some sort of infection that turned life-threatening, was moved back to hospital where she did not recover.

Long story short: I don't know the extent of medical expenses that were actually paid during 2007, and even what portion of the assisted living may be deductible. I believe that 4 mos "rent" was paid, probably at a few thou per mo. The full care nursing/rehab should mostly have been covered by Medicare (or ultimately the lawsuit). Anyway, even if she did owe something, I doubt that it has yet to be billed.

Since the 4th estimate based on breakeven and using the std ded would only be $650, should I tell him to pay this possibly creating an overpay't, or skip it and pay this or poss. smaller balance with the return?

I just got my second chance too. Margaret, I think you are right.

Now, where's that new toaster?

KC,

May you find strength through the Lord to guide you in this difficult time.

You will both be in my prayers as well.

Judy

Well, I was just disgusted. And yes, it said something about the $1000 prize, but I was not interested in logging into Synovate's site to give them add'l info to win their prize. I believe it's John H that's been saying it's coming down to the toaster & microwave giveaway.

Finally had a few mins to take the survey. I only got through part of it. The survey said I didn't qualify & they were only interested in "households" meeting certain criteria!

I answered that my business was mostly tax prep, in business 12 yrs, 1 employee, 1 location. That's as far as I got.

This just is one more indication that ATX does not care about our opinions.

I received an email from "Caroline Stone <[email protected]> stating that Synovate was hired to conduct a survey on behalf of ATX. Email has a link to the survey site. Survey to take approx 15 mins.

I am always hesitant to open these or participate. Anyone else receive this?

Seemed to work ok for me. My subscription info didn't come up, but if I click right above that on "Order Status" I can see all my current products, their ship date & tracking number. The "Year" column is reporting the wrong year, and no installation codes are shown. My current renewal shipped in 7/07 is showing it is for tax year '06.

Maybe the site was under maintenance.

Thank you MAMalody. I knew this was a very simple question, but I'm just not thinking clearly today. Two sick dogs through the night ended up at vet today.

I'm glad I didn't have anything too complicated today.

Thanks again for the help.

Thank you OldJack. The wife is also an employee of this company, got $5000 in cash from the company. No life insurance or cafeteria plan was involved. It was only stated in the buy-sell agreement.

I was thinking it should go on 1099-Misc, box 3 as other income, taxable to her. I wasn't thinking about it being a fringe benefit, that's why I didn't consider the W-2 reporting.

One of my C corps had a shareholder die during their latest fiscal year.

The stock redemption agreement states a fixed payment of $5000 as a death benefit to the widow. This is in addition to the price of the stock redemption.

Is this deductible as an ordinary & necessary expense?

Is this taxable to widow & is it reported on 1099-MISC as other income, or because it's a death benefit non-taxable?

Thanks for any help. I'm definitely not thinking clearly on this one!!

I just discovered an error on Form 1099-INT issued by my client. Total of 4 1099-INTs were filed.

It's been awhile since I've had to correct one of these. Is this right - I have to resubmit all 4 with just the one marked "corrected"?

I call it an additional tax. It is stated as "10-percent additional tax" in the code, pubs, instructions & the forms. Commonly it is called a penalty, including tax preparers.

My policy is as OldJack stated. If the taxpayer would have owed the additional taxes with a properly prepared return, then I would not be reimbursing for this item. However, I would pay any interest or other penalties that may be involved related to the error.

I agree with Lynn. I've never heard of this $5K limit.

Also, your client should make sure that the 17 year old's duties are not in violation of worker comp laws.

Ex: here in Delaware it's a violation to allow an under-18 worker to operate the french fry machine or meat slicer (at Arby's, McD's, grocery store deli) but they can be cashiers, servers.

Agree with Old Jack. I like to see who's logged on, but knowing about the last clicks is unimportant to me. And I've never had Google appear.

I read many of the posts. I try to learn something. When I see a post that may pertain to my practice, I'll use that info to further research on my own. Many times I read and the answer is already posted. Just because a user is reading and not posting, does not mean that the member has the knowledge and is withholding it.

And if you really want advice from a specific member, there's always the option of sending a direct PM to that individual.

calculated, sort of:

1 human for every 2 lizards. Meaning that 1 human & 2 lizards would have a total of 10 legs. 80% of legs would belong to the lizards, since snakes have no legs. 70 legs * 80% = 56 legs for the lizards / 4 legs per lizard = 14 lizards.

14 lizards, so 1/2 # of humans = 7 & the remaining # must be the snakes at 6.

It proved out with the total # of heads at 27.

Surely, someone will post the algebraic formula that is easier than my way. :)

6 snakes, 14 lizards, 7 humans

And why is it that people from other states insist on calling this place Cali, anyway? I've never heard that from a native Californian.

Hmm, is the trend escalating? Is it because the state's Czar, oops Governor, pronounces California more like the word "cauliflower?" :P

Also, you need to consider the compatibility of style and philosophies of running your individual practices.

I was an employee of a CPA firm that was selling out to an individual wishing to acquire our firm to expand.

Long story short, here were some of the problems encountered:

the new owner alienated most of the staff,

new method of billing differed and angered largest and most lucrative business clients (progress billed monthly instead of billed at completion only),

during a transition period, both offices were kept open instead of one making the new owner a very absentee owner-manager - and engagement planning was not completed properly,

staff lacked appropriate supervision,

computer systems used were different: tax programs, write-up, research.

And probably the biggest of problems was this: the owner of our firm was not truly ready and willing to give up control.

Ultimately the deal fell apart. More than a year passed before another arrangement was finalized.

Yes, when TP has multiple 2nd homes, TP can switch which is considered the 2nd home for deduction purposes. Normally, the home elected as 2nd residence is deducted for entire year. Code provides 3 circumstances where a partial year could be used.

If you have Kleinrock, it has a good summary of the basics in the 1040 compliance handbook at 13.6 "qualified residence interest" to use as a starting point for further research, if needed.

Also, here's some info from that same section on homes under construction:

Home under construction

A house under construction is a qualified residence for a period of 24 months provided that the house becomes a personal residence when it becomes ready for occupancy. Thus, interest on a construction loan is deductible as qualified residence interest. However, before construction, interest incurred on the construction debt is non-deductible personal interest.

Reg Sec 1.163-10T(p)(5)

The "1040 EF Info" form has a tab called "E-Filed Forms" that lists each form in the e-filing. A similar form and info exists for the states.

Worksheets are NOT included when e-filing, unless specifically required by the IRS.

My client's stock redemption agreement calls for monthly payout over 8 yrs with balloon (if needed), at a fixed payt amount (not fixed principal). Interest rate for this obligation is the lowest rate specified by Code Sec 483 to avoid unstated interest.

The stock payout will be done in about 4 yrs, so no 8 yr or balloon. Still, this obligation is in the mid-term range. For my latest hypothetical presentation, I used the rate from June 07 Table 1 of 4.55%.

One of the minority stockholders said HIS accountant told him that I used the wrong rate, but he couldn't remember why it was wrong. So back at the office I looked again, and reg 1.483.3 referred me to 1.1274-4 for the "test rate." This reg talks about the 3-month rate.

The rates were Apr=4.52% , May=4.53% . Based on this, should I really be using the rate from April?

And don't forget the mileage to the post office to mail in the entry. :D

I checked their website too. Did you see that this is a membership in their "alliance" to promote their "brand name" nationwide and that they want you to add their name to yours? And also that your membership is subject to approval by their board of directors?