Pacun

Good idea.

I tell my people that if they hide a 1099-misc from, the IRS has a copy and that's a red flag that is 100% enforced. I think we all should pay the penalty when it is our fault or have insurance for it. I would like to point out that, when tax payers go to court, they will claim that they gave the 1099-misc to the CPA even when they left it at home and never mentioned it to the CPA.

Please make sure that if we type efile on the search, we find all the topics with efile and e-file words on it. Maybe dep and depreciation should be interchangeable on searchs. IRA should bring up IRA and individual retirment plan (this one might be tricky). So far I like the new forum!!! Thank you.

Tax practices have a 0 value. Most of the clients don't stick around with the new company. I new forum will not make sense.

Jainen and Rfassett... Tax payer could sue the preparer on a small claims court and they should win, correct? They should be able to recover the penalty money from the CPA.

There is no odd arrangement... the managers are paying rent. You need to report that income on Schedule E and maybe you should use FMV for the rent. Remember that you(most likely) will devide the house in three parts and two of them will be depreciated. Since he has his own business, you should ask for his bank(s) statements and see how much money went in. Don't forget to add as rental income the money the managers give him for expenses. On a second thought, you are right... this is an odd arrangement and remember that most odd arrangements are aimed to tax avoidance. Ask you client to give these managers a rent contract.

Jack, Why don't you share the recipe with us? Sti, Since you are talking about ONLY ATX 2009, you can leave the data on the server and assign permission accordingly and install the software (network version) on a regular workstation.

Why are you using version 2? I would suggest to upgrade .net to version 3.5 SP 1. I have noticed that version 3.5 is friendlier than 4.0 If a portion of ATX 2009 has been installed, please delete the registry entries left behind by failed ATX 2009 installations. Have you checked if any SPs are available for your version of Windows?

I see it differently. If the mother has assets, she should pay taxes for the debt forgiveness. She was liable for the debt and the debt was forgiven. Most banks send out one 1099-C for each client on the loan and they include the same figures. I am surprise the bank didn't go after her assets. That's the reason why I tell my clients NOT to sign for anyone else.

States and the IRS share information but most of the time the states pay attention to what the IRS is saying. The IRS doesn't pay that much attention to what the states are saying. You should make up your mind now about what they are based on the rules.

Troubled Asset Relief Program: $700 billion. Projected budget deficit for 2011: $1.4 Trillion dollars Spending $3 million of taxpayer money on treadmills for shrimp? Shameless. With the decision on whether to raise the national debt limit fast approaching, read on for more examples of questionable government outlays, care of Senator Tom Coburn’s (R-OK) whistle-blowing reports "Wastebook" (Published in 2010) and "National Science Foundation: Under the Microscope" (Published in 2011). You might want to find a bottle of Tums first. Unnecessary printing costs: $ 930 million Federal agencies spend an estimated $2.6 billion on printing. Many of those trees could have been sparedsuch as the ones used in the $28 million spent on the daily printing of over 4,500 copies of the congressional records, which are also available online. Unused buildings (including a monkey house): $175 million Coburn asserts that the Department of Veteran Affairs spends $175 million annually on upkeep of hundreds of empty buildings, including an unused monkey house. The VA, according to the Dayton Daily News, disputes the figure, claiming it only spent $34 million a year on such activitiesroughly equivalent, using median figures, to the annual income of 560 U.S. families. Fraudulent tax reimbursements to prisoners: $112 million Not only does crime pay, it seems it keeps right on paying. Streetcar system that runs the same rout as the subway system below it: $47.6 million Atlantas stimulus-funded streetcar project runs from Centennial Olympic Park to Martin Luther King, Jr. Centerthe exact route covered by the existing Metropolitan Atlanta Rapid Transit Authority. $15.68 Million: On an unprofitable shooting range The Clark County Shooting Range, just outside Las Vegas, lost $1.3 million last year and has yet to turn a profit. $5 Million: On a three week conference for the FAA The Federal Aviation Administration put up 3,600 employees during at a training conference in Atlanta. Some attendees say it resembled a three-week long party. $4.2 Million: "Duplicative Shuttle Services for Federal Employees" Taxpayers spent $18.5 million on a bus service for federal government employees. Many shuttles run empty rather than pick up workers from neighboring agencies, creating redundant routes. Treadmills for shrimp: $3 million Do sick shrimp display the same endurance on a treadmill as healthy shrimps do? No. But now we know for sure, thanks to an amply funded study. $2.9 Million: On a study of World of Warcraft and other computer games This research explored how "online virtual worlds such as World of Warcraft and Second Life can help organizations collaborate and compete more effectively in the global marketplace." (It also found way to legitimize playing video games at work.) $2.5 Million: On a U.S. Census commercial that appeared during the Super Bowl It was ranked as the worst Super Bowl ad in history. $2 Million: On a study about posting pictures online The National Science Foundation really wanted to know if "people who post pictures on the internet from the same place at the same time are often socially connected." The much anticipated conclusion: Yes! New toilets for Denali National Park in Alaska: $1.5 million At 36 toilets, the tab comes to just over $ 41,000 per can. (And that doesnt include a life-time supply of paper!) $1.5 Million: On a laundry-folding robot We'll be happy to eat our cynicism on this one, if it pans out. Thus far, though, the robot can manage to square off one towel every 30 minutes. Study of baby names: $1 million This study aimed to ferret out trends in baby naming. The astounding conclusion: Popular names are popular with parents.

Congratulations. I love the last 5 pictures,they seem to be relaxed. I bet you also like them more when they are sleeping.

That's what I wanted to hear. Thank you so much for your answers.

Are we on agreement that 5% per year is more than the AFR rate? I rather tell my client to make the loan with AT LEAST 5% insterest than telling to check every month what the AFR is.

I have noticed that the minumum was 3.6. Can I just charge 5% annually and forget about the fluctiations in interest that the government publishes?

Don't worry. Everything is and will be OK.

Where is the missspelling? If it is after the 4th caracter on the last name or first name, it doesn't matter whether you corrected it or not. If the name missspelled is the only issue, you should leave it alone and the IRS will match it witht he social security number.

Let's say that an unrelated party (good friend of the owner of corporation) wants to lend $10K to the corporation for one year. The loan document will state the loan will be made on August 15 2011 and the corporation will pay back the loan plus interest on August 14, 2012. What should be the minimum interest rate that the individual should charge to the corporation? Can I use something like 10% yearly and that will be legal and will not have any imputed interest?

On the first one, I think it qualifies for medical expenses but there is a limit (I think) of $50 per night for patient and $50 for wife. As you will understand "very expensive apt." means nothing in this context and maybe the limit in this case. This is from the top of my head. On the second question, you need to see the court document when he was awarded the $5 million dollar. Maybe it included monies for the contruction of a house in the middle of the Arizona desert so he could stay away from cold weather. Very good question but I don't have an answer.

There is a 5K limit per family that the IRS allows family to use pretax money to pay for medical needs if the employer has a highly deductible plan. Do you know if I can enroll now and still contribute 5K pretax for 2011? How about if I (myselft) got a dental treatment that cost 6K at the beginning of 2010 and I will continue paying until 2011, let's say I pay 4K in 2010 and 2K in 2011, can I get a distribution from my employer for 2K in 2011 and be tax free?

who cares where she was in 2006? You should start with a date that makes her qualify for the credit so that ATX calculates it correctly.

ANSWER: "Yes! The IRS can pretty much allow or disallow whatever it wants in an audit of your records. At this stage of the game, the burden of proof is on you. The IRS is willing to give you 80%. What proof do you have that you deserve more than 80%? That's the question. When you think about this, the 80% might look pretty good. On the other hand, you might have proof to make the IRS eat that 80%. So you have a choice: Take the 80% or prove that you have more."

QUESTION: "During an audit, the IRS allowed only 80% of my internet and phone bill as a deduction. The auditor said that 80% was the amount her gut told her to allow. Can the IRS do that?"

"QUESTION: My CPA says there is no such thing as a $75 rule for receipts on vehicle expenses. He says I need receipts for all my car expenses. Can you give me the rule that says I do not need receipts if the vehicle expense is less than $75? (J. L., San Francisco, CA) ANSWER: and the best explanation of what this rule says is found in IRS notice 95-50, which states that the $75 rule applies to travel, entertainment, gifts, and listed property. IRC section 280F(d)(4) states the "listed property" includes any passenger automobile and any other property used as a means of transportation. Explicitly, this means that your vehicle is listed property; therefore, you do not need a receipt for a vehicle expense that is less than $75. Keep one key point in mind: Tax law requires proof even when the law says you don't need a receipt. So, always think proof. If you don't have receipts, do your gas expenses help prove your mileage and does your mileage help prove your gas expenses? Do you jot down the cost of gas on a timely basis? The IRS gives you up to one week for this timely test." Can someone elaborate or comment on this?

My question is aimed at the ideal setup. What should I suggest to a C corporation with only 2 employees and the 100% owner vs to a corporation with 10K employees?