cientax

I have a new client that used an employee leasing company and he used a worker as a commissioned worker. The leasing company paid the employee for the hours worked but my client also paid him commissions for his sales. My client (not me) reported the commissions as nonemployee compensation on Form 1099 in 2004 & 2005. The employee filed an SS-8 with the IRS and the IRS determined that he was also an employee of my client even though he was hired through the employment agency and IRS is now requiring my client to pay the employment taxes that were not withheld or paid and to file the 941c's. Can someone give me the code section(s) where it states that commissions on sales are considered wages? I always "THAWT" that commissions were subject to SE tax and considered Self Employment income. Have I bean wrong for the last 20 years? * My client has a concrete construction company and he had the worker find new jobs for the company. Not selling anything other than promoting the company and getting new jobs and would get paid a commission based on the dollar amount of each job.

He can go online and lock his credit with the credit unions without having to sign up with LifeLock. It will cost him $8 to $10 to do so depending on the state that he lives in. He can go to his Dept of Motor Vehicles or what ever it is called in his state and file a report and renew his license whether needed or not, that way another person cannot use his license or can be aprehended if they have his license with the older version date. He can also go to FTC.gov and file a report there. If the refund has not been sent to the bank yet he should be able to also put a lock on the account so that monies cannot be withdrawn through electronic withdrawals but he needs to talk to someone other than a teller at the bank. These are just a few things that can be done to prevent identity theft. I'm sure there are other ways to secure identity theft. You have to do the research.

I would use the Form 10(40 Acres And A Mule) Schedule which is available at the Lincoln Literary Arts Library in Lincoln Alabama.

I prepared a e-filed return with direct deposit but the account number was incomplete on the return. The bank has now returned the refund to the IRS. Will the IRS now have to issue a paper check or can we call and have them add the last three digits to the acct number and get direct deposit?

Doing Sch-E for rental properties but the schedule won't let me add more properties. I click on the button but it won't add. The button is not even dark as if it disabled. It also won't let add a duplicate Sch-E. Any one with any ideas besides calling hell hole?

Here in Texas what we do is split the SE tax only. We use one Sch-C for the business income and expenses and split the SE by clicking the check box at the top for JOINT. That could be what they are trying to do is split the SE tax so that spouse gets some SS credits. I only do that for spouses that both participate in the business.

I efiled three returns wednesday and two yesterday. The ones is efiled yesterday have been accepted but not the ones I efiled wednesday. They are still in validated status. Does anyone know what I should do besides try calling hell (tech)? I know they were having problems with the server but I didn't know they were having the problem when I efiled those returns. Do I create them again and re-efile them or is that even possible?

You mentioned that this is for equipment, where on the return are you trying to enter this interest? Is this equipment for business use or personal use?

Have a client that invested $1000 into investment company and received 3467 shares of stock valued at $17335 which would be $5.00 per share. Each year for five years she will be receiving a check for $1620 representing 324 shares that the company buys back, which is $5 per share.This is a "Preferred A Payback Plan", which I have never heard of. At the end of the sixth year they will buy back the remaining shares of 1847 for $9235 which is also $5 per share. The way I figure it is, is that her basis in the stock is $.2884 per share, $1000/3467 = $.2884. 324 shares x .2884 = $93, therefore she would have a gain of $1527. Am I correct here? She says she is not a partner in this investment company and will not be receiving a K-1. She did receive a 1099-B for the $1620. Reason I'm asking this question is because I have a feeling that she may dispute this when she comes back in tomorrow. I have not seen her prior years returns to see how it was reported previously.

As I mentioned above, the auditor pickup his tax return for audit and they were both there during the audit. It is possible that one of them did make the auditor mad but the records were in order and they were presented. They were using a good bookkeeper, she kept all records in order in files and labeled. I wasn't there either and they didn'e have any representation. Back to the community property issue. Can community property be split on an HOH filing status? I have not seen where it can't be done. This is what we intend on doing incase the ex husband doesn't come around and make the MFJ election with her on the amended return we'll be filing when requesting audit recon. And yes we do have records to support what will be on the return.

It's not that they don't or didn't have the records to substantiate the deductions, they did have and still do. It was the position of the auditor to disallow the deductions based on her opinion that the wife did not perform any physical construction labor, therefore she didn't have a business and because the wife didn't issue the husband a 1099. The only changes that I could find would be some vehicle expenses and possibly some income. Another issue that I didn't mention is that this is Texas, a community property state. There was no allocation of income and expenses made on either return even during the audit. Another question arises here now. Since she filed HOH, can an allocation be made or does the filing status have to be MFS? IRC 66 doesn't mention anything about filing status, only separate returns. They were separated and did divorce and the community doesn't end in Texas until the divorce is final. As far as filing a 1065, it was only a thought and I do agree with what you say, it wouldn't look good on my part. She only came to me after the 90 day period and now need to try to reopen it. I have never seen it in law where a woman cannot operate or own a business.

I have a new client that was audited for the year 2004 and all expenses were disallowwd becuase the auditor made the decision that she did not "participate in the business". It was a construction business and her then husband performed the physical labor as far as the construction goes. She had the business registered in her name, she received all the checks in her name, she made all deposits in the business bank account with both their names on the account, she received all 1099's in her name, she did all the paper work for the business and made purchases for the business, she also acquired most of the jobs for the business. The problem is that they separated in May 2004 and husband filed MFS and she filed HOH. They divorced in 2005. She was the one that was audited and all income and expenses were reported on her tax return. The auditor told her that she did not have a construction business and that she also should have issued her husband a 1099 and because she didn't, all expenses were disallowed but the income remained. The auditor also piked up his return for audit but only made little changes for his vehicle expenses, nothing else. The auditor told them that if they were to file an amended return, that she would allow client the expenses on the amended return. Husband was cooperating with us at first but has now decided he won't file MFJ. I was thinking of requesting audit reconsideration with an amended return reclaiming all expenses that were disallowed and requesting a different auditor and arguing the issues with them. But then I was also thinking of preparing a 1065 partnership return and issuing a K-1 to the exhusband and one to the client then make the amended return and take 50/50 for income and epenses. Any ideas. Thanks.

Thanks for the information it was really helpful. I tried going to the MyATX site but I keep locking myself out because I keep forgetting my password. I have my client number and account number but the passowrd I used to try to get in must be an old one and I must have changed since then, but I can't find where I wrote it down. Now the log in page tells me to contact the administrator. I clicked on the bar to reset but I still can't get the right password. Would you know how I can change the password if I don't know my prior password?

I read either this morning or yesterday that the Form 8863 for education credits is now approved for filing. Does anyone have any idea when it will be available from ATX? I updated this morning after reading the informatin but it still isn't available through ATX.

I have a potential client coming in monday. She mentioned that she was a shareholder in an S-Corp and the S-Corp went belly up and issued her a letter mentioning that her stock is worthless. She did not mention what kind of stock it was, but she will be bringing the letter with her. She wants to know if she can take a loss on the worthless stock. I have never dealt with this before. Can some one please help. Thanks.

The reason the taxpayer is not allowed a credit, even though they made the contribution from their wages, the employer can "pick up" the contribution and treat it as if they (the employer) made the contribution to the plan. The information should be in box 14 of the W-2 and is for information purposes only. You can read all about how the plan works in the irs web site in the IRB. I don't know which IRB it is, like isaid earlier, I just googled it.

No! I had one with the same thing two weeks ago and I googled it while the client was here and found that it is not eligible for the credit. I believe I found it at the irs web site but it gave me many sites to go to when I google it. My client also works for a county office.

I have husband and wife clients and each have two last names on their ss card. Which last name am I to use? The first last name of each or the second last name of each? The wife's last names are totally different from the husband's last names. And the wife's last names are split with "De" in the middle, such as "Ortega De Jesus". I have tried various versions since the return gets rejected each time. When I used the entire last names of the wife, the program would not create the efile because the name was too long. They do not have a copy of their last years tax returns. This is a joint return.

Thanks people, I had a feeling that was the problem.

Use the Form 3911 to launch a lost check investigation. If there was one issued and cashed, they will send you a copy of the check. If your client did not receive and cash the check, then the IRS will investigate.

Have a client that has emailed their company accounts from QB. I have saved the files but they won't go into the program. I have followed the instructions but have unable to get the file into QB. The file appears to be in the directory but I have been unable to move it into QB. Anyone have any ideas as to what I might be doing wrong and can give some help on what I might be doing wrong. They have QB Pro 2008 and I have QB Pro 2007 if this might help. Ill even be glad to call you by phone if you can help. thanks.

There is withholding of over $500 from the state of MN. I did realize that MN could not be efiled yet but he want it done anyway even if we paper file it. I went to MN web site and down loaded the form and filled it in and am sending with the return. Thanks.

I am preparing a return for a nonresident of MN and has less than $8750, which is below the filing requirement for MN. He is single and no dependents. However he is required to file a Federal income tax return so that makes him required to file a MN tax return. I am having a problem, I don't know if it's me or the program. All of the amounts except the State Income Tax withheld carry over to the MN return which is the MN M1 and MN NR. The MN Instructions state that the MN W1 must be attached to the return for claiming his state withheld income tax. I can't find it in the ATX program. Also, the MN return shows that he owes over $1300 when there is no taxable income. This guy will be coming back in in about an hour. Hel please.

It doesn't work that way if you can only select three states. I only selected two when I installed the CD but now I need a third. If I try it your way (which I did) it tells me that I have to PRS the forsm. Thanks for everyone's help I did it the way KEA mentioned and I got it to work.

When I selected new forms I selected the state that I need but it did not prompt me to insert the disc. Any other ideas besides "TECH NONSUPPORT"