Pacun

I have a new client who is the only owner of an LLC in MD. Previous preparer filed sch C (using FEIN of LLC) and 1040. For MD, he filed only the regular personal forms. I have read that LLC has to file with the state where they are registered. I have dealt only with LLCs with two partners and I have filed for the LLC and distribute K1s to partners. Do I have to file with the IRS and/or the state (MD) for this pass-through disregarded entity or continue doing what the previous preparer did?

"A taxpayer may change an election to claim the standard deduction at any time before the period of limitations has expired. Sec. 63(e). Insofar as the record shows, petitioners have not sought to change their election to claim the standard deduction. In any event, on the record before us it would not appear advantageous for petitioners to do so." This is what I understand what the court said: Since you didn't itemized before 3 years, and because maybe with the extra $1,100.00 in itemized deductions, you still wouldn't beat the standard deduction, we are not going to allow you other losses, except that we are going to adjust your basis on the day you won. Your basis on your winning day was $900 and you won $2,000.

"A taxpayer may change an election to claim the standard deduction at any time before the period of limitations has expired. Sec. 63(e). Insofar as the record shows, petitioners have not sought to change their election to claim the standard deduction. In any event, on the record before us it would not appear advantageous for petitioners to do so." Sorry KC, I go with Jainen et all after carefully reading the case again.

How about if you charge per line and you program it to charge $30 for the first line and $1 for the next lines?

This is a continuation of the "GAMBLING: Court accepts IRS Rules" post "A taxpayer may change an election to claim the standard deduction at any time before the period of limitations has expired. Sec. 63(e). Insofar as the record shows, petitioners have not sought to change their election to claim the standard deduction. In any event, on the record before us it would not appear advantageous for petitioners to do so." Sorry KC, I go with Jainen et all after carefully reading the case again.

"I have to remember that Jainen always has a point, but he disguises it well" That could be true on other posts but he was clear on this one. Now, depending on how much business they will have in the future, they might want to keep the S status.

Fighting the IRS Your chances of winning a fight with the IRS are about as great as your chances when fighting City Hall. National Taxpayer Advocate Nina Olson, in her recently-released annual report to Congress, listed the 10 tax issues most litigated in the federal courts. Of the 923 cases involving those issues, taxpayers prevailed in whole, or in part, in 132, or roughly 14 percent. Taxpayers who were represented by counsel did somewhat better when the numbers were broken down—they won 20 percent, or 54 of 265 cases; pro se taxpayers prevailed in 12 percent, or 78 of 658 cases. Full report http://legaltimes.typepad.com/blt/2010/01/fighting-the-irs.html IRS commissioner doesn't file his own taxes By Bob Cusack - 01/10/10 11:54 PM ET IRS Commissioner Douglas Shulman does not file his own taxes in part because he believes the tax code is complex. During an interview on C-SPAN's "Newsmakers" program that aired on Sunday, Shulman said he uses a tax preparer for his own returns. "I've used one for years. I find it convenient. I find the tax code complex so I use a preparer," Shulman said. Pressed on how he would make the tax code simpler, Shulman responded, "I don't write the tax laws. Congress writes the tax laws so that's a whole different discussion." Full report http://thehill.com/blogs/blog-briefing-room/news/75119-irs-commissioner-doesnt-file-his-own-taxes

That's why I used OR.

Leap year.

"At the end of the year you add all your daily gains (up to 366 of them) and put the total on line 21." If it is up to 366 days, it doesn't go to line 21, it should go to schedule C or you need to call the gambler hotline for help.

On previous posts, I wanted to comment on Catherine and Margaret bonding and I thought it was by coincidence. Now I have my answer. As for the funny portion of this post, I think Bulldog and I were right on the money. It is funny after all.

You don't elect to itemize or not itemized. You make entries on sch A and if you don't have enough to itemize, you take the standard deduction. If the IRS takes away some from another part of my return, I should be allowed to go back to sch A and amend. I see the problem as KC sees it but again... that's why we have this forum to help us. Let's say that I am single (tax year 2008) and my itemized deductions are only $4,500 and salary $45,000. I had education expenses for $5,000. By mistake I take the hope credit eventhough I already claimed it for 2 years in the pass. The IRS disallow my hope credit. I should have the opportunity to go back to schedule A and itemize.

Welcome back. Who needs a book with this forum.

I couldn't resist either. The taxes are being done by the engineer himself. He just charged Catherine with the task of looking for a "good financial planner" because the engineer is busy. SORRY Catherine... I couldn't resist either.

Jainen is sleeping so I will occupy his shoes. The first thing to do is: Don't assume that a refund is due since you don't have all the documentation in front of you. Don't mention form 1310 yet.

Remember, the individual will be dead or in a nursing home not in capacity to be trialed.

"without commenting on the morality of it". I understood this statement as "what's legal without consideration of morality". You can request a credit card for Mickey Barney as an authorized user if the company doesn't require a social security number. I didn't use Mickey Mouse on the example because everybody knows him.

I think the FMV on Dec 31, 2009 and May 1, 2010 scared everybody. I thought the warm up problem was going to be a breeze for those with more than 20 years of experience and the CPAs but I was wrong.

It really depends on the credit card company. Some companies ask for ss# and others don't. For sure you are liable if you use it after the person dies but if they don't have your ss#, there is not much they can do. Maybe it is a felony to use a credit card when you are an authorized user and the main card holder died.

I have to check my efiling but I think the form is automatically when you select that you don't want to efile for the state on a separate efile.

Is it possible that I am the only DC preparer for ATX?

The taxable income was given because if it was only $990.00, then none of the answers would be the correct one because of TI limitation.

On the first one (since this is a related party transaction) I would go with zero loss (D). On the other one, I go with answer C since they had a loss of $3,200 but they can only claim $3,000 in the current year. They had a long term gain of $800 on the Tray company transaction and they had a long term loss of $4,000 on the Delta transaction. Again, I am doing it from my head so I could be wrong.

I like Jainen comments, as a matter of fact, I read all his comments. That's why I want him to try the warm up exercise. YES, I am still trying.

I think I am the only DC preparer on this forum.