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There's no way that amount should be there as you described because the IRA distribution was already included in regular taxable income, and the idea of the AMT is to make adjustments starting from there. You probably already know this, so forgive me for stating the obvious, but that line does include AMT adjustments to IRA distributions that may be required IF the taxable portion of the IRA distribution would be a different amount using AMT rules. It seems like the former preparer didn't know what they were doing when they prepared the 6251, saw that line with its worksheet (if their program included worksheets similar to ATX), and plunked the IRA $ in there.

Joan, is that the house brand? I checked their online site, and for those prices it's only 5 reams.

If you are using the ATX program, it's not under the main Preferences. When the client's return is open and on the W-2 form, click on the "Employer Info" tab, the tab at the furthest left. In the top section, uncheck the box "auto calc boxes 3,4,5,6, and 16.

It's the first year I've tried importing data from QuickBooks, and I'm using QB Pro 2011. This is a fairly simple corporate return. I created the 2 files and it seemed to successfully import the data. The trial balance worksheet opened and I proceeded to assign the remaining lines. After this I clicked "Send to Summary" and this is where I encountered my problem. I tried this twice, and both times at this point in the process, ATX encountered a problem and stopped working. Has anyone else had this problem or can tell me if I did something wrong? I feel like this process is a total waste of my time. I already had the tax lines assigned during the year, but I spent more time fiddling with these files and assignments once the file got to ATX than I spent actually preparing the return by inputting the data manually. [/rant]

It isn't unusual for liabilities to arise or be discovered after a business is liquidated. Had the business known about this liability and paid it prior to liquidation, it would have affected the partners' basis, and therefore most likely would have affected each partner's Schedule D for the reporting of the partnership's liquidation. This was the general premise of Arrowsmith v. Commissioner, a very old case that applied to corporations, and I honestly do not know if it could be used with a partnership. However, following the logic (who said tax law was ever logical), it would seem to me that you need to look back to how this would have affected the final reporting of the partnership if this debt's existence was known at the time. That should give you a start in determining its character.

I got extra copies of W-2s yesterday without asking for them. Luckily the company only has 3 employees, so it wasn't a lot of extra paper.

Customer support is asking for me to send in the return. I'm sending a dummy return that I created having the same error, so it wasn't something with only the real return.

I am preparing a corp return on 1120. I've properly entered the current year additions of fixed assets. Forms 1120 and 4562, line 14 are reporting the correct amount. When i open the 4562 Statement tab, my 3-yr software added during 2011 is not included in the report and the total shown to be carried to 4562, line 14 is short by this amount. Anyone else with this problem?

Primo pdf is free software that allows the user protect the file with a password also.

I'm not new to e-filing, but I've never filed W-2s this way. I found most of my answers, and I sent the appropriate files from my hard drive using the SSA site and my state's website. What happens to those "created" files on the e-file manager? Do they stay on there permanently like the other efiles that are sent?

Two of the Sch Cs were for board of director fees and the third Sch C was for speaking engagements with gross rev of ~ $21K. There may have been no expenses if the host organization was covering the travel, meals and other related expenses.

I only very occassionally have to request POAs. I got one last fall for a client through the e-services and quickly resolved the issue. Today I received a request from the Treasury Inspector General's office of audit for a copy of the signed Form 2848. The letter said that the Dept of the Treasury is conducting an independent review to ensure tax professionals who electronically submit 2848s to the IRS really did obtain the taxpayer approval and authorization. So it looks like even more monitoring of us tax professionals. Has anyone else received one of these yet?

This won't help for your IRS inspection, but for this year and going forward, it would be easy to track e-filed returns by customizing the Return Manager by adding a column and simply placing and X, or indicating the tax agencies the return was filed with (Fed, state 1, state 2...). Or if most returns are e-filed, track only those that are paper filings.

Lion, let me know how it goes with your client, or what you are going to do with the bonus. I'm going to pick up a client's December records tomorrow and will see if holiday bonuses are written to employees exceeding the $25 and not put through the payroll service.

Like the rest of you, I continued to pay dues year after year to the AICPA. I've been a member since late 1987 and I finally dropped it this year seeing no real advantage for me to remain a member. I do have my malpractice, term life insurance, and a small disability policy through AON because of my membership. During this past year I found out that I can retain existing coverage as long as I'm still a member of a state society. I can't ever increase the coverage, but I can continue to have the insurance already in place.

I was hoping for clarification too. I got an email yesterday about updating Quickbooks to help with the 1099 prep. I know that credit card processing companies will issue 1099s to merchants for sales they've processed. This QB message was to companies that need to issue 2011 1099-misc to vendors & contractors, and the need to exclude payments made to them using credit & debit cards so as to not duplicate those amounts. I thought the new rules were repealed and we were back to the old rules, except for above.

BNA has excellent software. I used their tax planning software for many years, but that was years ago. For depreciation I use Fixed Assets CS by Thomson Reuters Tax & Accounting, years ago was called Creative Solutions DS II. Not inexpensive though.

I'm thinking that this preparer gave the couple a return to be paper filed, otherwise the IRS would know who this preparer is if the return was efiled. The 3rd party box not being checked isn't a red flag to me. I ask each of my clients if they would like to have that box checked and all but one says yes. I don't know why that one man does not want it checked. Maybe he thinks that the IRS will contact only my office and not him, or that he'll end up paying me for something that he can answer himself.

I tried to renew last night and ran into problems. Today, same thing. I also have a question. Next to the credientials for my CPA certificate, the system requires an expiration date. Technically the CPA certificate itself doesn't have an expiration date, but I have State of Del individual and firm permits to practice that correspond with the 2-year CPE reporting requirements. So would I use that date as the expiration? I think that's what I did last year.

I didn't realize the debt code indicator was gone, proof that the battery in my brain has died. I have a POA and receive each month's statement but was just curious about the ack. I never took notice of that code until this since I never got involved with RALs or any bank products, and have only had a couple of installment agreements where a refund like this was involved. Thanks for your responses.

It seems like that final K-1 and the partnership accounting may not have been handled properly. Did the partnership provide a schedule of the partner's inside basis? Is it possible that the partner was relieve of his share of partnership debts? If that is the case, the excess of the debt relieved over his basis would be considered a deemed distribution and can be taxable gain to him.

It could make a difference in the calculation of the self-employment tax, that is if the wife has other earned income on a W-2.

Taxpayer has an installment agreement from 2008 with a remaining balance of $7,000. The overpayment for 2010 is $2,900. The return efiled successfully, but the ack is not showing a debt code. Any reason why the debt code wouldn't be indicated? The taxpayer wasn't unhappy about the overpayment going toward the prior year's balance.

I tried the block for forcing the Sch A to print, but it still doesn't include in the efile for the state. The only way to get the Sch A actually included with the efile package is to tell ATX that the federal return using the "force to itemize even though standard is better" option, even though that's not how the federal return is actually filed. That's what I was wondering if that would cause a problem. That was suggested to me in past years as a solution. Perhaps Montana is a state that verifies the A deductions with the federal. Our state requires the Sch A be attached to the efile or faxed separately. I don't like piecemeal handling. At this time the state return has a status of "IRS cleared". I should know soon enough if this caused a problem.

Yes, the deed was transferred into the name of the LLC. Delaware charges $250 per year for LLCs to remain in good standing. That fee was also paid personally. The brilliant idea was their own, and their lawyer created the LLC. They are owners of a closely held corporation with a large line of credit collateralized by the corp's assets and guaranteed by them personally. Their thinking was that this would shield the unencumbered condo from the bank's proceedings should the corporation default on the line of credit. I don't believe the LLC offers them this protection, and both the lawyer and I both told them that at the time.