MAMalody

The last business I bought was over a three year period. The client type and rate schedule was similiar to mine. I paid 50% of receipts the first year, 30% of receipts the second year and 20% of receipts the third year. He sent out a letter indicating the sale and introducing me. I sent out a letter introducing myself, setting up an appointment and guaranteeing my fee would be computed using his fee schedule. Worked for me. I only received records for those that continued with me. The rest were returned or destroyed.

The Form 8888 instructions say: "You cannot request a deposit of your refund to an account that is not in your name (such as your tax preparer's account)." Mike

You might check with HRB. There are also a number of groups out there that have written CPE designed for beginners such as GearUp and ClientWhys. I hope this helps.

What I have normally read is "considered to be timely filed" which is different than "for most pourposes on the due date of 4/15/XXXX. On the surface, an objective reading would make my example correct.

While I don't really like it, the part I really don't like is the fact that if you file on 1 March and receive your documentation on 2 March it is not allowable. I would accept it easier if they simply indicated it must be received by the due date of the return or 15 October if the return is filed under extension.

<<<So how is anyone supposed to get a danged receipt? >>> By asking, if necessary.

Don't forget to come back and tell us what happens.

Don't forget to see if the state you are in conforms to federal options. If they don't, you have a nice little nightmare on your hands for the next 15 years.

....don't forget the stop at the barber on the way back from the jewelry store.

My point was, if it takes two reads to determine the validity of the answer, we have missed the point of the board. I do not mind any nontax postings or poking fun at the IRS or congress or the way forms should, could or would work. I, personally, don't want to have to stop after reading any or all postings, in general or from a specific individual and determine if they are jesting or trying to actually answer a question. I agree, that jainen has made a significant contribution to this board and can argue both sides of almost any issue which forces us to think through what we are doing or going to do. After all, iron does sharpen iron. Just my two cents worth.

<<<I wonder how long it takes Jainen to come up with these responses, because that one was pretty good. I had to read it twice before I came to the conclusion that he was typing "tongue in cheek".>>> That's one reason he shouldn't do that, at least, without some type of disclaimer or notification.

I just had one like that (except in mine I had to ask them three times for the form and then they told me what was up) and what I did was to count the payment as a late 4th qtr payment. I will find out if that was right.

Hmmm. My experience with custom built is not real world, however, when I asked some about it, they referred me to the commercial companies. They said they could not build one to match the price of the Dells, HPs etc. Recommended that I check with those companies. I was asking about custom built laptops. That may be why. Mike

Personally, I don't think any automatic reminder is necessary. I currently have three returns that are completed, transmitted to the client and for their reasons they have not yet returned the Form 8879. I have contacted once a monthly since the return has been completed. This reminder would not prevent this from happening.

You subject heading is refering to the 2006 tax program. You are not able to update that via the Internet. You would need to get the archive disc for that.

In regards to extensions, my engagement letter indicates that, at my discretion, I will automatically file for extensions unless instructed not to in writing. Come 1 April, all returns remaining get an extension. On the 7th I send the 9325 acknowledging the extension to all returns that have not been filed. Works for me.

All I did was look up the percentage figure for the date first placed in service in the Pub and insert it in the line on F8829 and it computed the figure correctly. Worked for me.

I might mention a caution here. (1) Generally, noncash contributions are valued by the donor, not by the recipient. (2) If the noncash contribution would exceed $5000 it may be required to be valued by a qualifed appraiser. (This would probably fall under Tom's "subject to the normal charitable contribution rules.")

My experience, with a different company (3GStore and ATX), is that they can go anywhere on your computer. You are able to monitor whern they are going because it is all reflected on your monitor. From my perspective it was like watching over someone's shoulder as they worked the mouse, etc. Ultimately, you can terminate the link if necessary. In my case, they were on the phone at the same time and were able to explain what they were donig...it was just far easier instead of trying to talk me through it. Mike

Tom, your experience with the FTB and IRS reflect mine. The IRS is much easier to deal with than the FTB. I must admit that my client calling the auditor an idiot didn't really help to much and then he called his supervisor...it made the auditor get very technical and detailed. Fortunately, I had a prior experience with this auditor and was able get things reasonably calmed down for a fairly favorable resolution.

In my case, the only CA based item was the passive loss. There was no other CA income. Client had been a nonresident for the second or third year at this time, lived in MD. I also contacted FTB about the issue and was told that he could not take it in the current year and was not able to carry it forward.

I always understood that if there was no taxable income and a passive loss was generated, that it was lost in CA and could not be carried forward. I had a client like this about 12 years ago, a non-resident.

Tom, go ahead and use your "scared to death" reason. You might even use a newspaper case or two in CA as examples of why he was scared. Ultimately, CA just wants the tax. My experience in CA, although a few years ago, was FTB seemed to be more reasonable that the advocate was or the IRS for that matter. You won't win on the interest in any event. Get him on a payment agreement, if necessary, and he can probably have it paid off by years end and be done with it. Out of your hair and his at that point, for collection purposes. You should easily keep the client for getting his mess straightened out and everybody is home free.

I hope that ATX will make sure their Tax Organizer is constructed for the two time periods.

I use it for every return. While it is essentially a worthless form, with a completely internet based client base, it simple indicates the the client that I am on top of things and their return has been accepted. Removes a possbile question from their mind, cost me two minutes because I send it as an e-mail attachment and over 60% send me a thank you for keeping them appraised to the disposition of their return. Good PR as far as I am concerned. Mike