Pacun

No. they started the partnership without any investment. As they worked, the partnership was buying things. Let me give an scenario: I want to prepare taxes as a sole and was a VITA volunteer and then I worked for some one for a couple of years. On January 2, 2010, I go to my friend and I said: "You have an office for your translation business, can you let me use a desk and your phone and I will do taxes and I will pay you $500 for rent for the 4 months I will be there and another $500 for the rest of Saturday mornings that I will meet clients to reply letters from the IRS or other things". My friend replies, "no problem and you can pay me the rent one month so your first payment will be Feb 1". I go and buy the software which costs $1,200, and I installed it on an old computer (with printer) that is paid off or gifted to me with a FMV of 0. Then I buy one Case of paper $40, 100 folders for $50. I pay $50 for my PTIN. I take care of my first 80 clients and I pay the rent, and buy more paper and folders, toner, a new printer. At the end of the year, I made $20,000 and I have this expenses which I deduct them on my first schedule C: Organizational expenses: $1,200 + $40 + $50, + $50 Toner expenses $180 Rent $2,500 Paper, folders, envelopes, pens (supplies) $2000 On December 27, 2010 and every year after, I buy my software, a bunch of toner, paper, folders, and I rent a computer for the next 6 years. On December 27, 2015, I decided not to rent a computer anymore and I purchased a new computer for the business and I install the software on Dec 30th and make a few test run and I prepare some 1099s for my clients. I expensed everything on my 2015 taxes and on January 24, 2016 my taxes are filed and paid. On January 29, 2016, right before I meet my first client for 2016, I have a heart attack and I cannot longer prepare taxes but I am left with a bunch of toner, paper, manila folders, pens, pencils, calculators, hole punchers, a printer, a new computer, envelopes, rubber bands, paper clips, etc. So I didn't prepare any taxes in 2015 so my schedule C will read 0. My friend understand and doesn't charge me any rent because I didn't use her office this year. All my organization expenses were expensed on the year incurred, so no basis on my business. What should I do with those thousands of dollars in equipment and supplies? (leave computer alone please).

Partners didn't like each other anymore and last January they split. The previous years they have purchased little items that were not depreciated and last January they split those Items for a total of $2000. For example they split 16 soft rigging at $2 each FMV (cost $4 new). Now it is time to show those $1000 on each partners return. Should that go on K1 or somewhere else. This was a teaching and acrobatic performances so they were buying their tools and fabrics and the partnership was making money. No basis for both partners. Thank you.

I was going to say "How quickly we forget. A few years ago, we were complaining that efile was been forced on us and now we get unhappy when we have to paper file". Believe me, I know your pain because even before it was mandatory, I efiled. I love efile because if for some reason a social security number or last name is wrong, I get the rejection within hours instead of my client receiving a letter 2 months later when paper filed. I remember JohnH for two things: Efiling and pdf printer. AND other favors of course. Here is my rant. DC gov is worried about Identity theft and they are now sending letters to people asking them to verify their identity. Good move, right? Except that I have prepared taxes for 10 years for married couple. They have a house and for the last 10 years they have the same job, the same situation (DC portion) about the same refund, used the same tax preparer and the preparer the efile code and the tax payers have used the same efile codes, no change of addresses in the last 10 years and yet DC has ask them to verify their identity. DC started by asking for W-2, then to pass a quiz, then to bring their ID to their offices. Federal refunded 45 days ago and DC no yet. What a waste of resources. MD on the other hand is using computers smartly. They closed a lot of Liberty Tax offices because they compared returns and other items and found out that those offices were not complying. Back to work!

Sometimes intent means a lot. What do you think the intent of your client was when he/she came to your office? If the intent was to hire you to prepare his/her 2015 taxes, please do so correctly. If the intent was for you to review his/her taxes, review them and make suggestions and send it back to HRB. Of course (legally) you can prepare 2015 correct and suggest to go back to HRB (or whoever) to make the corrections after you explain the consequences of his/her actions. It is legal for you to say: I can prepare 2015 taxes correctly and suggest her to go somewhere else to have her taxes correctly. You are busy right now and then you will take a long vacation, aren't you?

Thank you.

You need to adjust the size to 100% in ATX, which I think it is just above the time in your computer. If not, (assuming windows 7), click on start, control panel, display, "change display settings" and use another resolution (go up and test)

I am assuming you are using the old excellent OS Windows 7. If you only have one printer installed (click start, devices and printers), install a second printer using the same output (wire or port) as the printer you had but this time install HP Officejet 4532 printer or something below the one you have. You should check if you can print from other programs, if not, click to start, control panel, services, and stop and start the "print spooler" service and make sure it is set to automatically. Make sure you are admin while running this.

Since tax prep has so many areas, do you recommend any books for a tax preparer in this areas: 1040 Prep 1041 1120 909 Payroll Or any other book that teaches you how to file returns not just theory. For a new comer, I will suggest HR blocks text book which is tailored for someone who will be preparing taxes.

I have two clients that file 1099s (No W-2s). I have efiled in the past but this year I heard that ATX is going to charge us. I gave one of them the envelope and ask that person to mail it. I have just sent the efile from the other's client 1096 and 1099s to ATX and I wonder at what point they will charge me. Has any one used the efile feature on payroll 2015 and paid or not paid ATX?

Client has a terminal disease and got a W-2 from The Guardian Life Insurance that reads: Box 1: $26,878 and nothing else no box filled out. On box 13 it reads: Third-party sick pay. Depending on how this benefit was paid for, it could be fully taxable, partially taxable, or not taxable at all. Any other advice that you can share before I contact this client? How do I report this w-2 in ATX?

No rejection will occur. Nothing to worry about. That form was not made to be efiled, so I doubt that the software will ever send it as part of the efile package.

Cool. You just sent W-7 and passport to the IRS, correct?

Eric, If people want to donate twice, please don't issue any refunds. Let them sleep well knowing that they have donated to a site that helps them from time to time. Thank you for you hard work.

I didn't say non-resident. Are you filing 1040NR for people with W-2? 100% of my clients with W-2 qualify to file regular 1040 with their ITINs. Has any one gotten an ITIN for a client just because he wants to open a bank account?

I guess in the past, banks were able to open US bank accounts without social security numbers or ITINs. I guess also the banks were able to lend money without SS#s or ITINs. When the rules changed, the banks were forced to withhold or to have a number in order to issue 1098s (mortgage interest), at that point the IRS included that "other" choice. Currently, banks don't open account or issue loans without a number and you cannot tell the IRS, I need to open a bank account and I need an ITIN. A client earned 8K a few years ago. W-2 showed 8K in box 1 and 0 in box 2. Client had money withheld for state (box 17) and the IRS denied his ITIN request because he was not required to file nor had a refund coming.

Just in case you didn't notice, after new years eve, the economy slows down and when the IRS refunds start coming the economy is injected. Almost all the billions refunded the first month are spent right away almost 100% in the United States. Imagine that after tax season, the IRS would be given 2 more months to issue refunds. All refunds would come in the last week of June. Do you think most of the money would be spent here or in another country? A lot of people would take their kids to La Habana.

Catherine, I was going to give a like to your post, but we don't have a button "I like your first line". I am sorry to hear that your computer is giving you hard time during tax season. I hope you catch up soon.

My understanding it that you must file a tax return in order to request an ITIN. You must have a tax reason to request one.

That's correct. That's correct.

Another detail. Next year the IRS will put aside returns with EIC, AOC, and large refunds, so it might be a good idea to start telling people, call me in two months if your money is not deposited. I used to work with a guy who would promised something like "This is a simple issue, I will fix your computer soon. Come back in 2 hours" I always told him, why did you promise that computer in two hours? He said, "because it will be ready" Clients would come back in two hours and guess what computer was not ready.

We check where is my refund every other day and we noticed about 3 returns being put aside. Eventually the IRS release their refunds and clients never called us. We tell people this while we hand them their copies: "if everything goes well, you could have your refund deposited in your bank in two weeks. If you nothing is deposited in 30 days from today, give us a call".

This is a very valuable resource and we have two kind of people and two formulas that we can follow. 1.- I charge an average of $80 for regular returns (not complex ones). I would suggest that amount for every 200 clients. 2.- I take a ruler and I measure my heart and I assign a dollar amount to each inch of my heart. I compare both amount and I donate which is bigger. Other people will donate whatever amount is smaller, but that up to you. Joking aside, I think it is very hard to answer this question: "I donated last week. What $ range is the usual?" Keep in mind that we don't mind if you change your mind and donate again keeping in mind the formulas above. My mind is tired now.

Correct. As a matter of fact, whoever was next to his bed that day (for the hours he lived in 2015) can take the dependency for 12 months provided they are blood related.

Have you donated lately? If not, please donate some money so that we have this lovely site up and running. Eric will appreciate that we appreciate his efforts. If you cannot donate during tax season, do you think it is easier for you to donate in November or December?

I have the same issue. It seems to be synchronizing everything every time.