jklcpa

Tom, I'd check the box marked "complete disposition of passive activity" and that *should* tell the program to allow any suspended items, if any. I could have sworn there was a check box marked "final" on the input screen. Obviously, check the return for correct calcs and if the K-1 input comes forward to next year, delete it. Not for you Tom, but I only put the info in about the proper handling of partnership returns relating changes of ownership, short years and technical terminations so that someone possibly reading this thread in the future wouldn't be misled into thinking that filing 2 short year returns is correct in all instances. Judy

Tom, the effects of your client leaving the partnership should be included on the K-1 if the partnership redeemed his interest or if other partners bought him out. You would simply check the "final" box on the K-1 input screen in ATX. Checking this box will tell the program it is the final reporting and will allow the calculation/inclusion of any losses that may have been limited in prior years that would be allowed because of this being the final year. ETA: at the partnership level, two short year returns would only be completed in a year when the partnership had more than a 50% change in ownership causing a technical termination, but if less than 50% interest changed hands or was redeemed then the partnership files one return for the entire year with financial activity reported to the partners either by closing the books and records through the date of the change in ownership and using those actual amounts, or by prorating the income/loss/etc. based on the number of days the partner was in the partnership during the year.

I'm so very sorry KC.

I've hardly been on the board at all this summer, but I'm sorry to read your update. You and Don are still in my prayers.

It's $250 to be an LLC in Delaware. General and limited partnerships also pay $250. Corporations pay less. A more detailed explanation is in your other post about a 2-member LLC.

Are you asking about fees to keep an entity in good standing with a particular state, or are you asking about state income taxes? It seems like you are confusing the two. Here in Delaware, the franchise tax fee for LLCs, LPs and genereral partnerships is $250 regardless of the number of members. Corps (both C and S) have 2 methods to determine their franchise tax. The minimum using the authorized shares method (for < 5,000 authorized shares) would pay a $50 filing fee and the minimum $75 franchise fee, so would pay a total of $125. These are fees/taxes paid to the Del Sec of State to keep the entity in good standing. Each business entity is also required to have a Delaware business license that is $75 per year in addition to whatever city licenses might be required. I've seen plenty of partnerships not ever bother to set up the franchise tax, and also plenty of Sch C businesses not have a state business license, and I've never seen the state go after these fees either. Delaware piggybacks federal income tax laws and makes some modifications starting with federal income: LPs, GPs, and LLCs that are taxed as partnerships: In general these entities do not pay state income tax and the income or loss is passed through to partners to be reported on their individual Delaware income tax returns. S corps also pass-through income to its shareholders. S corps in general wouldn't pay income taxes if all shareholders are Delaware residents. For nonresident shareholders though, the S corp does pay state income tax at the highest Del rate on the nonresidents' proportional share of income. The tax paid is reported on the Delaware S corp Form A-1 (similar to fed K-1) as an estimated payment paid on behalf of the nonresident shareholder . The nonresident files a Delaware nonresident income tax return and reports the income and the estimated payment. If the nonresident's Del tax bracket is lower than the max, then the amount paid by the S corp on behalf of the nonresident would result in the nonresident receiving a refund from Delaware. This taxpayer would also request a credit for taxes paid to another when filing his or her resident state income tax return.

I am so happy to read this! Best wishes to you and your husband on his return home.

Thank you to everyone that contributes here. I, too, miss having colleagues to bounce the ideas off, so this board is a definite resource. I haven't contributed as much as in past years, but I do follow the posts and always learn something or have an adjusted perspective that I hadn't considered. I'll still be around, but for those of you that are taking off soon, I'll wish you all a happy, healthy and prosperous remainder of 2012. Judy

It's annoying that a message saying that the 8878 is required pops up on the EF tab even when no funds are being paid.

Me too! The last one going out was picked up yesterday. I have 7 extensions, 5 of which are complete but won't be out before the deadline, and the remaining 2 are 99.99% complete. One is waiting on a K-1 from an estate, the other needs basis from a mutual fund.

Perhaps this couple checked around and found that the H&R or the other big chain preparers would charge them a higher fee to prepare their returns than they've already paid to you, and now the wife is trying to get a return from you to file. They've probably already done that, received the same result as your return showed, and they, or the wife, have again demanded their documents back and refused to pay, this time under the pretense of the return being wrong. I think you could ingor the whole thing and be done with it. Or you could attach Form 8948 and also get the signed statement from them that they've requested you not file the returns electronically and give them a completed package. If you do give them a complete package, be sure to attach any W-2s and 1099s showing withholding, and any other required attachments. You might tell the wife that there will be some nominal charge for printing, assembly and signing the return since those functions were not included in the amount they already paid to you. I would not simply give them a copy of the return if you go this route.

An acquaintance asked me how to change the address on their tax return in Turbo Tax. I think that's even worse than not being able to print. I haven't seen the home version of TT, but I'd think that one could type the address on the 1040 form itself. If home users of TT buy the program year after year, does the information roll over from the prior year?

Jack, that $1 could be chalked up to rounding. The difference in reporting $1 and your hypothetical $1 million is that the $1 will not affect the amount of the tax liability calculated on the return, but you already know that. When we complete a Schedule D, I hope that we all tie in the total proceeds reported back to the 1099-B, but in order to get to that number, sometimes it is necessary to adjust one or two of the sales by $1 to make the total work out. Does that make it a lie? I don't think so. What about the cost and net gain or loss? Rounding on entering each individual cost basis sometimes yields a difference of several dollars in the totals of the cost and gain or loss as compared to those totals reported by the brokers on their summaries when not rounded.

I have one extension to work up, or I might actually get the return done if I'm not missing info on that client's rental activity. I'll get the extension either way to give some time for the client to pickup and to efile. I ended up with only 8 extensions, all but one because of incomplete data. I've already started working to catch up on some accounting, planning for business clients with upcoming fiscal year ends, and first quarter payroll filings.

For those of you that might not receive email of upcoming IRS programs, here's a link to a free 2-hour webinar on 5/7 at 2pm eastern time. http://www.visualweb...eg.asp?id=86227 If you don't have time on the 7th, Tax Talk Today will have an archive of the session. Here's a list of upcoming programs available through TTT: https://www.taxtalkt...grams/index.cfm

I have several elderly couples whose returns have been like this too. One has over $55K in dividends that are almost all qualified, small pension, taxable portion of soc sec ~ $12K. They used the standard deduction and had taxable income of about $50K and ZERO tax. Terry D, bunny hop to the worksheet for line 44 of the 1040 will show you the calcs.

I tried earlier and could not connect at all. Just now I was able to send one extension through but in the same session got the same message about server error and couldn't receive acks. Ridiculous!

I use QB in the fashion as Fred and MAS have described. I had some wide gaps in the years too (2000, 2007, 2009, 2011) but it really isn't a big deal. If you don't have the correct version, convert it to what you are using, send the client your journal entries and tie in retained earnings next year. I have a client that is still using QB 2000 and I am on 2011. Up until this latest computer now running Win 7, I could still load the 2000 version up through Win XP. Intuit only support it 3 years back, but the programs will continue to work. The thing I wasted most of my time on with the newer versions was figuring out where to shut off the payroll features that QB really wants to force us to use. I use the program for a lot of small clients' write-up work and entering after-the-fact payroll. I finally found a tiny link in the side bar pop-up help that allowed me to shut off the payroll services but still have the program track and summarize payroll tax liabilities. Otherwise I would have been making lots of journal entries!

You know, I assumed it was required because ATX gives me a red warning message when an EIN isn't entered for payers of interest and dividends. Now that I've gone back into the program, I see that red message is caused by using the Payer Manager to be able to use the QuickAdd feature on subsequent returns. That tells me just how tired I really am. Thanks Lion, I think I'm good to go with this.

I have the same question. My client received a Canadian NR4 reporting interest income from a life insurance policy, no EIN.

Thank you, Mike. Let's not forget the mandatory work experience prior to certification, or the peer review requirements if the CPA is a member of their state society or AICPA.

Starting with this year, I added a column to the Return Manager specifically to track the efiles. For returns I'm efiling, I enter "Y - Fed, DE" (and/or whatever other states or forms are applicable) or "N" for the opt out or misc forms that efiling doesn't apply to. Then I can click on the header of that column tol sort the returns so that all the ones with no entry are grouped together, all the Ns are grouped in a block, and all the Ys are grouped that way too. It's the easiest I could come up with to do within the program.\ In Return Mgr, I don't check the block as completed until the return is out the door. I have a column for status when I need info, and a second column other status notes such as the date return is to be picked up, or the status of return through the e-file process.

I've had this on a few returns. When I deleted any "x" that appears where the choice is made of which number to show AND delete the "( )" on all the phone # input areas, the error message disappears. I didn't even connect any of these errors to whether or not a refund existed or direct deposit is requested with a particular return.

Did you have an engagement letter detailing the work to be performed for the partnership that included your billing practice, when payment is due, how you handle any unpaid balances, and whether you charge interest?

Form 1120S, Schedule D. Gain or loss flows over to Sch K, lines 7, 8a and 10 and the appropriate lines on K-1s.