Pacun

Client lost investments on one company (all investment on company). Client filed a long term loss in 2004 for $3,000. From a Class action suit, client got $1,000 back in 2007. I know the IRS will love if I report it as other income since client salary is more that $200K but his loss reduced long term capital gains in 2004. Should I report it as other income, capital gain, or amend 2004 and pay interest on money owed? More info might be available if needed.

It is ilegal to hire an illegal alien but it is not illegal to be hired by an illegal alien. As long as you properly prepare the return, you should be OK. Remember that people with ITIN do not get Earn Income Credit. I just prepared 1999, 2000, and amended 2001 for a client. This client was using a fake social security number for those years but now he has his own social security number. His immigration attorney calls me and wants that all documentation to reflect his correct number. I said "that's wishful thinking. I cannot correct any W-2 that the client brings to me. My responsibility is to accurately prepare the 1040 returns for 1999, 2000, and 2001, and I have done that". I went on and said, even if you find the account that correctly prepared his 1999 W-2, based on the information at hand at that time, s/he cannot change that W-2 because the social security already has a copy of it and it is ilegal to do so".

I thought my answer (previous post) was original, but I like this one TaxmannEA: "I got 24. Not sure what i missed: wasn't paying attention!"

People come to my office with returns prepared by crooks but they do not sign the return. To the eyes of the IRS, these returns were self prepared and believe me, these tax payers (AKA crooks) know exaclty what's going on and still they go to this places to have their taxes prepared. I think there is no crook preparer without crook tax payer. Most of these tax payers go back to these places when I tell they that this year they will owe or their refund will be much less than that of last year.

The only one I missed was this one... On the United States flag is the top strip red or white? The choices were: Blue White Red. I chose Blue.

During 2004 and 2005 tax seasons, I efiled in situations where the ITIN didn't match the W-2s. I never got any letter from the IRS but this year, I didn't efile if the ITIN person had W-2s because I read that you should not efile if the numbers do not match. The only time I had problems was when the ITIN was relative new and the IRS didn't have them in the SS master file. Lately, I have noticed that the IRS add them to the SS master file as soon as they issue the letter with the ITIN. (How do I know that?) I have efiled the state jointly when the wife didn't have any income and the ITIN was just issued. In previous years, I got rejections when the ITIN didn't match the ss master file when efiling state returns.

That's very true. We want this board to be beneficial to both seniors and new members.

The point of citizenship is a good one, but illegal children with ITIN get $1000 as child tax credit or additional tax credit. Last time, I prepared a 1040 for a married couple and a child, all of them had ITINs, the IRS sent a letter because I didn't claim the child tax credit and additional child tax credit. I called the IRS and they asked me to amend the return and the parents got the $1,000 credit. For clarification, the father is not involved at all either because he does not file US taxes, he is not in the US or both. Support is not an issue. I am also assuming the uncle qualifies for HH and the child tax credit. We also need to post more questions to this board since we should clarify a lot of issues before next tax season.

Brother supports sister and niece. All live in the same household. Brother makes 55K (all w-2) and sister makes nothing, no one else lives in the household. Niece is only 2 years old, can he get child tax credit?

I got the same offer too. I just got the email, I haven't checked the old fashioned pony express mail.

"A fence could also prevent the ocelots and other animals from swimming across the water to mate with partners on the other side." Do we want our american ocelots to mate with Mexican Ocelots?

I provided my friend with forms for NY (she prepared her federal). She moved from VA to NY and we filed part year on each state. NY sent a letter asking for Change of city form (That's why I love efiling since I get this error on my computer before filing, but this was a paper return). I deducted moving expenses on the state form but nothing on the city form, what do you (NY Preparers) on this situation and is form NY IT 260 required each year if you live in NYC?

Well, it is not a good investment for sure, but all offices (our offices) have two rolls of extra stamps... so eventhough they are not "forever" stamps, all of us have invested in the postal office because all the time we have extra stamps on our possession when the new rates kick in. I guess I will buy "forever" as the back up and run very limited on the regular stamps.

I heard that you could buy 39 cent stamps that will be good for ever. Is that offer still available?

JohnH, Do you know what states are included or what counties?

Don't worry, the IRS only cares about the payment. As long as the payment medium has a social security number it will be cashed by the IRS and credited to the correct account. This is true, even if you send it to the wrong IRS center.

It feels good to be back.