Pacun

Go to the payment tab on the 1040 EF Info form and read it carefully. There is also a consent to disclose debit card tab next to payment which I believe is new. Since you are the first one paying (my early clients get refunds or pay by mail), please keep us informed.

I don't think this is possible. Maybe if you use a template, but not all your returns will match the template. Since we are e-filing everything, when we invoke form 8879, we need it to print, but the program doesn’t select it automatically for printing. ALSO, form 8867 is not printed automatically and I normally write the due diligence questions on that form and ask clients to sign it. We could ask ATX to change the settings for us. For example, Sch D will not print if it is not required for paper filing. You have to select it manually on the form tabs (not the printing menu) if you want to print when only a portion of the form is filled out. With e-filing, it should print automatically since it is for client's records.

Sch C is correct since they are providing a service.

I think they could claim both houses for personal use and deduct interest and taxes. One a primary home (where they live) and the secondary where the mother lives. There are only 3 ways to treat the house where the mother lives: 1.- Personal use, 2.- Rental property, 3.- Investment property. Based on the facts, I think it will qualify only for personal use. Think about this: If FMV of rent for the house where the mother lives was $1000 per month and the mother paid only $900 per month to his son. If son wanted to try that property as a rental property and take depreciation, the IRS will say "NO". That's personal use because it is below FMV and you are related parties.

I passed part 3 of the EA exam today. I went to a conference and a lady came to talk to us about how she passed the exams. She said that she took the easiest one first which was Part 3 (representation). Then she took Part 1, (individuals) and then part 2 (corporations). I thought she was right but after taking all exams, I will suggest you to stick to the order of the exams (Part 1, 2, 3). I got several questions from part 1 and part 2 on Exam number 3 today. I am pretty sure that I would have failed this exam if I only studied the representation portion of it. Because I prepare very few business returns, I think the hardest exam is Part 2 (corporations).

I only use the first and the last CD. I use the first CD to install the program on my work work computer and then I do all updates on the internet. I use the last/archive CD if I need to install on another computer later on. I thought that each CD has a full blown ATX program with updates and I have always been affraid to install over my working version of ATX.

Good info KC. I looked at Pub 463 and I looked on the temporary job assignment for the word INTENT and I couldn't find it. Interesting enough, the word INTENT is not used at all on Pub 463. This is close enough for your point: If Kari's client realistically expects that he will work one year or less in NC, he can deduct expenses. Since he was there for 5-6 for tax year 2010 and until today he realistically expects to go back to Atlanta before a year, I think it is safe to take the deductions. Next year you will have reality and the only question will be: When did you come back from NC? or Are you still working in NC? If the answer makes the temporary job assigment longer than a year, no more deductions for 2011 but he doesn't need to amend 2010.

try to install and see if you have a repair option. Repair option should not mess up your data but it is always a good idea to have it backed up.

He is talking about a temporary job location which doesn't apply in his case. When your employer moves you to a temporary job location for a year or less, you can take deductions. I think he doesn't qualify for either moving expenses or temporary job location. If he goes to different work sites, he might qualify for some mileage.

If the client's parents are living with your client, that's not a problem because 1.- he made more than $10K, 2.- is older than 19 and most likely he is not a full time student. As a result, he will not be a qualifying child for them. If parents are providing food, it will be considered a gift and parents will have to file a gift tax return if needed. As long as the children live with the father and he is not claiming HH, he should be OK for EIC. I think my reasoning is correct even if the parents of the mother are living and providing for mother and children. The children will be qualifying children of the father and the mother could be a qualifying child of her parents. Since they are not filing a joint return, even though the mother is a qualifying child of her parents, I think he is OK with EIC and doesn't need to claim girlfriend as dependent.

"The Regulations require that the tax preparer complete and retain an eligibility checklist (or alternative eligibility record) and the computation worksheet (or alternative computation record), as well as a record of how the information was obtained in the records (including the name of the person furnishing the information). This information must be retained for each client claiming an earned income tax credit." What are you keeping in order to comply with the due diligence requirements? Do you have your own documents or what worksheets are you keeping? Are you printing them or you are keeping a soft copy with the return?

I was reading the efiling regulations and it reads it is illegal to pileup returns before efile starts, I haven't done that. Anyways, I got a some clients yesterday and I haven't transmitted them. I am waiting for the bugs to be found on the first returns. In any event, it doesn't matter is you efiled friday on tomorrow, the refund will be processed on the same date.

"This creates an added step now in e-file processing, resulting in less effeciency." Not really, it is just the same click. Instead of clicking on Piggyback Ohio, you will click on Ohio. "I, too, missed that memo! What about states like Ohio that begin with federal AGI? They have always been piggyback" More than 50% (I want to be very conservative) of the states start with federal AGI and that will not change.

On the server, go to preferences and click on preparer manager and select none on both boxes. I am not sure if that will help but it doesn't hurt to try. Close and open ATX from server.

Same here. I also hate the fact that a lot of them are calling and saying "I don't have my W-2 yet but I have my last pay check stub, I want an appointment". I say to myself... thank you H&R Block for your come in December with your last paycheck stub and we will get your refund campaign.

As long as you are preparing his personal taxes ONLY and you have an engagement letter signed by the tax preparer you should be OK. If you prepare the payroll and/or the corporation's return along with this 50% owner, you will have a problem regardless if you have an engagement letter. By the way, don't understimate the power of an engagement letter. Now, if the client confessed to you that he didn't pay the payroll taxes, you might have a problem. Remember that the first thing this taxpayer will say during the payroll audit: "my taxpreparer knew about this". So, Run Forest Run (and don't look back) might be a good advice.

Kari, I checked your profile and there is no information about you. Are you in California?

I don't think ATX makes a good calculation for that. If you owe 2,000, the first month you will pay 10% for not paying and not filing, which makes it 2,200, then you calculate the interst. You do that for 5 months and then you add only interest until paid. If a client is late more than 12 months, I tell them that they will owe double as much. In the case above, I will tell them that they will owe about 4K.

"I have a client that gets a 1098 with her and her husband listed on the loan. Can she claim the interest deduction if they are not legally separated and he lives in the home without her? Or can they split the deduction?" If she is owner of the house, is liable for the loan and she paid the interest, she can. Keep in mind that there is only one social security listed on the 1098 and most likely it is not hers.

Very nice. Thank you for sharing and labeling properly.

I would suggest you to install only the previous 3 years on this new computer since you will keep you old one. If not, start with 2005 and move forward. If you use the archived CD, it should include all updates but it doesn't hurt to update on line too. Don't use the network version for previous years since the main computer will be your old, slow computer. If you insist, you can do it by maping a network drive to the old computer and install from the workstation folder. You don't need CDs for this type of installation but I am not sure when ATX started the network version. For tax year 2010, install normally on your fast computer and then install ATX on the old computer from the workstation folder, which resides on your fast computer. I posted a link to an ATX video on how to do network installation on a previous post. I bought a new computer last year and I installed only 2007, 2008, 2009 tax years. For previous years, I fire up the old, slow computer only when needed.

Install the oldest program. Copy the database folder by replacing it on the new computer. Create a new test client. Save it, reopen it, print something and close the new client. Then open one of the returns you transferred from the old computer, test it, resave it, print it and exit out. Make sure everything works before continuing. Install the next oldest year, copy your database folder again. Create new client, open an existing client, roll over the new test client you created from previous, roll over another client and test. Printing is a good test always.

"Transfer of an Installment Obligation at Death – A transfer of an installment obligation at death is not a disposition of the note for tax purposes. Rather, the income is reportable by the estate or beneficiary who receives the note in the same manner as if the decedent had lived (this results in “income in respect of a decedent,”)"

I was writing a long reponse to your post but I will limit to say: Very nice comparison you made: An employer who withheld a bit less than required with a guy who protested paying taxes.

Under the wherewithal-to-pay doctrine, withholding should happen when the IRS is best able to collect from the taxpayer. If I get a million dollar bonus, the best chance for the IRS to collect money from me is when I am receiving it. When I get an $800 bonus, the IRS will be able to collect from me any time. So, in this case, you don't have to worry about anything and just tell them to use bonus calculations for the future. Even if the taxpayer owes money, they IRS will not waste time and effort for such small amount.