Crank

Picked up a client this year and noticed that his prior CPA missed $10K in loss carryforwards so of course he had the accountant amend the 2010 return. Well, I just noticed that he also missed $5k in passive activity loss carries. I did a quick proforma and it would have had no impact on the return if it were included. So should the return be amended for these losses even though they dont change anything? BTW, I would have him go back to his prior CPA to do amendment #2.

Im beginning to wonder if Ryan is monitoring this thread. My issue remains outstanding. I also contacted TRX several times about tis issue and they were supposed to contact RedGear to resolve it. So far its been weeks and nothing has been addressed.

Ive had some issues with the program this year, specifically the 1099R (code 4) calcualting on form 8606 when it shouldnt. It was correct last year and I have called TRX several times about the issue and they said RedGear kenw about it and would address it. Its been several weeks but nothing has been done. As for your issue with Mediare premiums not carrying to Sch A medical exps I am not having that problem. It is carrying properly for me with all returns for both the taxpayer and the spouse. You should call TRX about it. It might be a setting you have checked/notchecked or a confilct with another form.

Thanks for the replies. They were not very happy with the $1500 the other guy charged. The return wasnt all that difficult as they provided most of the numbers on a spread sheet. There were some new assets this year and also some from the initial year (last year). I put in about 4 hours on it and some of that was researching and learning about 1120S filings. The state also requires two filings. No payroll involved. I was originally landing at about $400 for the 1120s with each 1040 at about $300 for a total of $1000 which is 33% less than the other CPA. I didnt realize that people charged so much for 1120s prep. I dont want to charge them entirely for my having to learn about 1120s filing but some of it should be allocated to them. This is a difficult decision as the client is a personal friend.

After 30+ years of doing taxes Im a CPA I have completed my first 1120s. Ive strictly only worked on 1040s up until now and I have no idea what to charge for an 1120s and the corresponding State return. Background info. Business is a year round ice cream shop with 2 sharholders. They have 2 locations and revenue of about $175,000. Assets are about $200,000. One of the shareholders has been a long time client of mine but went to a different CPA last year to file the inital 1120S when I declined. The shareholders did not have good experience with this CPA and convinced me to take the return this year. Cant say I disagree as the CPA did a sloppy job with almost no interaction with the clients and didnt file until October 2011 with some penatlies and interest. He also made significant mistakes on their 1040s missing $10,000 in capital loss carryforwards, among others, requiring amendments. This other CPA charged them $1500 for the 1120s and the two shareholders 1040's including States and locals. Im good with pricing the 1040s but Im at a loss for pricing the 1120s that would be fair to both me and the client. I would appreciate any comments on what others charge or how to arrive at reasonable price. Thank you!

This gets my vote! But would I have the guts to actually do it? Probably not. I would send bills and increase each bill by a few dollars for postage , mailing supplies and time spent generating each bill.

Issue with 1099R, code 4 and form 8606 where Taxpayer & Spouse had prior years (before 2011) nondeductible IRA contributions with an entry only on line #2. TP & Spouse had no current year Nondeductible IRA contributions and therefore no entry on line #1 of form 8606. 1099R should be fully taxable and reported on line 15b. However, an incorrect taxable portion is being calculated on form 8606 based upon the nondeductible IRA contributions. This is a beneficiary IRA, not a traditional IRA. This issue was correct in 2010 and in 2011 up until an update on or about February 7th, subsequent updates have changed the 8606 calculations and the taxable portion of the 1099R but it remains incorrect. TRX was notified of this issue on about February 8th and responded that it was a known issue with RegGear and would be addressed with the update on February 14th. This update changed the 8606 calculations but it remains incorrect. Also, the return has been locked and as of the February 14th update the return does not display at all in review mode. In review mode only an icon appears but no form names. If you click on a line where the form name should be listed the program gives an error. Trying to print in review mode also gives a print failed error.

Well the update today did change the 8606 and 1099Rs but it is still wrong ... (sigh). Im about ready to give up on this. Im not even calling TRX on this issue anymore.

I didnt want to post this in the RedGear thread until I was sure it was an issue. However, I spoke to TRX who contacted RedGear who said this is a known issue and there will be an update to correct it in five days on Tuesday February 14, 2012.

I was thinking about this but I do have clients who dont own a computer. I guess in that case they would just get the paper copy as usual. From what I have found so far is that most people still want paper.

Todays update fixed an issue with form 1099R, code 3 carrying to a NJ state. It also changed my situation listed above but it is still not correct. 1099R with code 4 and full amount taxable, Taxpayer & Spouse each with an 8606 and $5,500 in prior nondeductible IRA contributions. The 1099R does not appear as taxable on line 15b of the 1040 However, it is no longer incorrectly calculating a portion as nontaxable on the 8606. BUT 1099s are still wrong .... be careful! This program is not right and I believe it was broken with the update prior to today's update. Todays update changed things but it is still incorrrect. Im trying to get Jeremy at TRX to discuss this but havent been in contact with him yet. The tech I spoke to yesterday knew very little about taxes and balked when I suggesting elevating this issue.

I beleive there is an error in the program but I would like to find out what others think. Taxpayer and spouse had made "nondeductible IRA contributions" totaling $5500 each many years ago. Each year an 8606 is filed with this amount on line 2 "Total IRA basis from nondeductible IRA contributions made for years 2010 and eariler". This year, unlike other years, the program failed to generate an 8606 for the Spouse but it did generate one for the Taxpayer. The reason it generated an 8606 for the Taxpayer is that he had a mandatory minimun withdrawl from a beneficiary IRA of $1500. The entire $1500 was listed as taxable with a code 4 on the 1099R. The program generated a black audit error saying that line 6 on the 8606 "Value of all Traditional, Sep & Simple IRAs as of 12-31-11 required a value. If this line is left at zero then none of the $1500 is listed as taxable. If you put a value in line 6 it then calculates a percentage of the $1500 IRA distribution that is taxable but will never reach 100% since the program is taking a proportion as nontaxable based on the $5500 prior nontaxable IRA contributions. I believe this is incorrect and all of the $1500 should be taxable. It is not a traditional IRA it is a beneficiary IRA and should not be affected by the nondeductible IRA contributions. The form 8606 has not changed since 99 I believe this is an error in the TRXPro (TaxWorks) program. The Taxpayer had an almost identical situation last year and it calculated it correctly and the form 8606 did not come into play. I also beleive that it was working correctly this year and changed with a recent update. The return has been filed and I cant file an admendment until this is corrected so I can get the entire amout as taxable. Or will the IRS pick this up and make it taxable based on the 1099R and the code 4. Also the taxpayer is disabled but not age 59.5. Sorry this is so long but I wanted to fully explain it. In short should a beneficiary IRA mandatory minimal withdrawl with the full amount listed as taxable and a code 4 on the 1099R be affected by prior year nondeductible IRA contributions on form 8606? Any comments on this are greatly appreciated.

Id be interested in this too. However this year I am trying to go paperless and it isnt working so well. For the first time I am offering the client copy and the client documents on CD, in .pdf format for $10 each ...cheap right. After people asking about it for years I thought it would be a no brainer at that price. Well so far only a handfull have taken it and they still want the paper copy too .... ugh.

Thanks for the reply. I dont think is functional in the TRX version. Oh well, no biggie but it would have been nice to have.

>Control Button > Switces Tab> check box lower right corner to veiw the audit trail in review mode - "Cntrl + Right Click" When I "cntrl+right click" in review mode all I get is a box with the word close on it. If I click it .... yep it closes. So, I cant seem to get the audit trial in review mode to work. I dont think it worked for me in 2010 either. Has anyone gotten this to work? Thanks.

Not to be rude but the support team this year seems to have acquired some new people who dont seem to be fully up to speed on the TRX program. Jeremy helped with this issue and I remember him being quite knowlegeable last year. I havent found any other issues with this years program but then again the season hasnt hit full stride yet. (crossing fingers)

Your welcome. It helped me with many returns but I'm confused why my personal return generated the PA-8879 without having the box checked. Also checking that box was not necessary in last years program (TRX Pro 2010). Is it a bug?

Jeremy at TRX was very helpfull in finding the solution to this problem. In order for the Pa-8879 to generate there must be a check in the box "Opt out of 1040 MeF (Federal and State) for this return" located at the top of the "EF" form.

Im having an issue with most Pa. State returns in TRX Pro. For the Pennsylvania state returns the program is generating form Pa-8453 and not the appropriate form Pa-8879. Only my personal return so fas has generated the Pa-8879. Tech support has no idea and suggests I print the Pa-8879 from form filler but that still leaves the client letter stating that Pa-8453 is being filed for the state return. If I did something different on my personal return to get the Pa-8879 I have no idea what I did. Has anybody run into this issue or knows why it is happening on my returns? Thanks

Thats a start, Thank you.

Client had a home (primary residence) and lived in Pa for several years. Moved to MD 2 years ago and built a new primary residence. Last year the Pa. home sold. Is the sale reportable in Pa or MD?

I used ATX since it was Saber (1997 I believe) and decided to switch to TRX, a TaxWorks reseller (http://trxsoftware.com/) last year because of decreased service/product and the increasing prices. The conversion was much easier than I had anticipated and learning the software was very easy. I renewed with them again this year. Maybe its time to look at other options.

Thanks for the reply. Yep, got it., shareholders now that they elected an S-Corp. I am reading up all I can and going through some sample returns but I know no matter how much I research, its always a good idea to pick the brains of seasoned preparers.

I have only worked on 1040s for the past 15 years. Last year (2010) a friend opened an ice cream shop and went to another CPA to have his 1120S & 1040 completed since I declined. Well, he didnt have a very good experience with this new guy and really wants me to do them this year so I decided to give it a shot. He added a 2nd ice cream shop and another partner (3 partners total) in 2011 I have the 2010 returns and duplicated them in TRX (TaxWorks). It looks pretty straight forward except for a few state forms that were included last year but my program isnt requiring them, which puzzles me but they seem relatively insignificant and I can just add them if needed. I assume I have to have the 1120S (Fed & State) completed and filed by 3/15 and then I can do the partners 1040s. Can the 1120s federal and state forms be efiled? Its in Pennsylvania. Any tips, pointers, suggestions etc would be greatly appreciated! Thanks

I hate to see the test become a deterrent to seasoned tax preparers. If you have been doing taxes for a long time, a little studying shouldnt be a problem and it will give you a sense of pride and accomplishment. It was meant to weed out tax preparers who arent up to snuff. I cant see the tests being all that difficult. But ultimately it your decision. Good luck.