Janitor Bob

We ought to all email the tech gap and tell them the truth. But then, we are not corporate america and would not be believed.

If we were enron, they would believe us.

Tom

Lodi, CA

I just e-mailed the author of that article...letting him know that the user base was less than happy

>>Since he did advertise does that mean I can file a Sch C with our return this year and claim the expenses ?<<

Based on all you have said, no, he was not in business in 2007. Advertising for future clients for which he would go into business if the facts were different -- that's more in the nature of market research. Well, obviously I hold a minority opinion in this thread. Tax preparers like to push things in favor of the client, and it's often said that if you are ready to go into business, then you already ARE in business. Unfortunately, such a view is not backed by law or regulation. (Tax preparers don't always care about that particular objection, however.)

Business requires more than just an intention to find clients and put a rig together. You actually have to operate in a business-like fashion. Besides not having the necessary equipment, you say he hasn't even set up his books yet. Do you have a 2007 start date for insurance coverage, business license, RIAA royalty agreements, or other outside indications that he was truly good to go?

Where did it say that the books had not been set up? I did not recall reading that in the postings here. I respect your opinion and not stating that I am definately correct, but I have found no printed reference that would guide me more to your opinion than mine...if you know of some citation or reference, please let me know...as always, I am trying to learn more each day and improve.

Actually my husband did do some advertising online in 2007, with the plans to buy all the needed equipment if he did get a client. Of course now we will be doing much more extensive advertising in hopes to get at least one Prom in June and maybe some summer weddings ! Since he did advertise does that mean I can file a Sch C with our return this year and claim the expenses ?

I personally would have no problem in filing a schedule C for 2007. The business obviously did exist in 2007...just no income received until 2008.

You would have a loss for this year....pay attention as years go by that you do not exceed the max number of years with a loss....if so, IRS will consider it a hobby and not a business.

>>Would we file a Sch C<<

No, and it is not a simple question. Since he was NOT in business there is nothing to file and no deductions available for 2007. You can begin depreciation when assets are placed in service, i.e., when the business starts. Supplies and other current expenses paid before the first day of business, whether in 2007 or 2008, are generally not deductible at all. However, see a tax professional about making a formal Section 195 election for those, as well as setting up the depreciation schedules.

You should also get advice about documenting vehicle, travel, meals and entertainment expenses, as well as general business set-up issues such as separating personal and business records. Knowledgeable help is particularly important if there is a period of time before he starts pulling in big bucks, because IRS feels that music supplies and equipment could have a significant element of non-business pleasure.

When does a business formally begin? With receipt of income or with intent? If he did everything short of actually booking an event (i.e. advertising, supplies purchased, almost all equipment purchased, market researched, LLC filing, etc) I would argue that the business existed in 2007. If all he did was start purchasing a few pieces of equipment in 2007, then I would agree that business did not constructively start until 2008.

I'm hoping someone can answer what I hope is a simple question. I searched the IRS website but could not find an answer.

My husband is starting a DJ business. He purchased most of the equipment in 2007, but is still missing a few components to actually start the business. Some of the equipment purchased would be a straight business expense, while some I believe would need to be depreciated.

Would we file a Sch C with these expenses on this year's tax return, or can I put the expenses on next year's tax return - when the business would have income, even though the items were purchased in 2007 ?

I would file a Schedule C for this year...you would have expenses, but no income for 2007...not unusual for first year in business...to help offset, just use the resulting refund and apply it to next year as estimated payment(s)

Client, for various reasons, needs to get their assets, reduced ASAP (for medicare assistance or something)...so they took withdrawal from 401k earlier this month (received check 2008) and want to make an estimated payment to IRS as soon as possible...I know the first estimate would not be due until April 2008...and the last not due until January 2009.....but client wants to pay it all right away.

Do you think there will be any problem with this? The current year 1040ES is not yet available in ATX, so I had to go back to 2006, unprotect the 1040ES and change the date references.

They did the same thing last year for a 401k that they withdrew in October 2007....I just sent in that 1040ES for this filing year that was due 01/15/08.

Man...I hate it when clients get tax advice from their attorneys!

Good morning everybody!!!

Due a lot of people asking if it is possible to efile without form W2, ( They pretend to e-file with last pay check ), I decided to ask the same question, I understand IRS does not accept e-file with last pay check, at least not before February 15, after that date is permited to do so.

If I am wrong, please let me know. I really apreciate your help.

Thank you!!!

God Bless You.

Pedro Cantu

NO....Despite the deceptive advertising it is NOT possible. What these preparers do is prepare a good estimate based on that last pay stub and then advance some type of refund anticipation loan to a taxpayer based on this estimate

....Correction...Terry O....Happy Birthday...have a great one!

A client submitted a W4 to her employer last week, at the employer's request. After speaking with me she realizes she filled it in incorrectly for her current situation. She hopes her employer will allow her to correct it by submitting another signed W4.

The conversation with my client raised some interesting questions. Can an employer refuse to accept a W4 revision? Is there a limit on how many times an employer would have to accept an updated W4? I would expect an employer to become rather irritated if an employee attempted to make a change every pay period. Some companies seem to ask for one every calendar year; others only when a person is first hired. Publication 15 states to remind employees before December 1 to submit a new W4 if withholding allowances have or will change but does not seem to mandate it annually. In fact page 15 says to encourage employees to update.

One of the hats I wear in my "real" job is payroll manager. My understanding was that W-4 should be filled out at least once per year, but that they could be submitted by employees ANY time AS OFTEN AS THEY DESIRE. However, I cannot, at this time, point you to any rule or publication that states as such.

No software has a 'lock' on it's customers. The programs are 'tools', and if the tool no longer does what you need it to do, or the cost of the tool increases beyond it's value, then you shop for a new tool, right? It will be sad if ATX goes under, after improving so much in the last few years, while keeping the price increases small. We all wish the

Willets had stayed in the business. They had not only a great program, they had the right idea about listening to their customers and responding to our needs. That was what built the customer base.

CCH seems to have a VERY DIFFERENT IDEA about how to treat customers. It is not an improvement.

We all have so much respect for and dependence on your input and opinions that I find it frightening to hear you voice the same uneasiness that I have been feeling. Shades of Parsons Tech. Of course, we have all gone far beyond the expanse of that wonderful program, but who knows how they might have developed if they had been left on their own. To this day, I refuse to buy an Intuit product because of what they destroyed when they trashed that program. Thanks to Eric, we have the new "tool" that we need to hold us together without being under the manipulation of CCH. I will continue to monitor this board for any and all advice and suggestions regarding the future. I, too, have been a strong supporter of ATX and still am, but apprehension is now hanging over me.

I would add my opinion, but KC and mchampine have stated it very well. I am just glad that I have this board and everyone on it...both for true tax research assistance and to just be silly with.

If you had ordered Quickfinder series you would have had them weeks ago.

That may be so, but I cannot afford all that fancy stuff.

Same here....I made a cake for both of you to share, but I got hungry....Sorry

JB, I can't remember the name of the other ATX'er from Sidney....is he/she still active on this board??

That would be single Dad...and yes he is active...although I have not seen any posts for several days. I spoke to him by phone a few weeeks ago and he mentioned he might be moving his office from Sidney to Fletcher, OH (small town about 20 minutes SE of Sidney).

Hello, people. I'M BAAAAAACK!!

Wish everyone a good tax season.

Janitor Bob, how are you doing?

Great to see ya booger!! I'm doing just fine....New address, new dog, new girlfriend, same coffee mug, same daughter, same desire to perform quality tax preparation at an affordable price!

With all of the changes at ATX/CCH...This should prove to be an interesting and challenging season

Thank you for your answer. I hope to see it this week.

Thanks...I was wondering as well...but did not want to call

I cannot log on either....tells me my account is locked. Then it runs me through the steps to unlock it and when I get to "secret answer", it doesn't tell me what the secret question is. It must be REALLY SECRET....

This happened to me....had to call ATX. They said it was because I never set up a secret question....and, of course I had not because it was never an option ever presented to me when I initially registered...or migrated...or whatever the hell that thing was that we all went trough this year. I am all set now thanks to a very long call with Tech support (this was prior to recent layoffs)... but I still do not know what my secret question or answer is!

I just went to the ATX download center and the form release schedule and the estimated approval date for Louisiana form 8453 is not until January 31?? Doesn't that seem a bit late? Is this a holdup on Louisiana not being ready or is it ATX? I have an awful lot of people wanting to efile long before the end of January.

Ohio is this late every year...some years it was well into February before I could e-file Ohio state returns....and at that time they had to go "piggyback"...which meant that, If client wanted to e-file their state, they could not send their federal either becaue you could not e-file just the state form by itself....Most of the clients I have lost over the past few years has been due to Ohio forms not being available early....ATX always said it was an issue with the state of Ohio...and I believe them to a point...but the clients that left always claimed that other places (like H & R Block) could e-file Ohio without problems.

I would like to believe that they misunderstood and H & R Block could also only e-file the federal portion.

Most, however, just choose to e-file the federal only and mail the Ohio return.

Add another form to the list that cannot be filed electronically at this time...Per IRS Quickalert.

In addition, as a result of the recent enactment of the Mortgage Forgiveness

Debt Relief Act of 2007, effective immediately, Individual Electronic Filing

will not be accepting Form 982, Reduction of Tax Attributes Due to Discharge

of Indebtedness (and Section 1082 Basis Adjustment), until further notice.

These forms will also be disabled for PATS Testing.

We anticipate accepting these forms later during the filing season. A Quick

Alert will be issued when the forms can be accepted electronically.

We apologize for any inconvenience.

Good Morning everybody on the forum!!!

I like to know if some of you are able to create an e-file to send it today.

If you are able to do so, or not, please let me know because now I can't create e-files due Sch EIC needs to be approved for e-file.

Tried to call customer service (ATX) phone line busy all time. I already sent a fax and an email but they don't answer.

Do you know what is happening?

Is a software problem?

Or the IRS have not approved this form EIC for e-file.

Thanks for your comments, experiences and knowledges!!!

Pedro

It appears that we are all having the same problem....Anyone who actaully gets good info from ATX, please post it here for everyone to share....In seasons past, we had several good ATX folks monitoring the boards and providing help for problems such as these. Now, with the board and most of those people gone....We may have only each other to lean on

There was information on this that came with your install disk.

With Audit Shield, your clients can purchase an extended, three year warranty on their qualified returns for only $24.95.

Audit Shield provides reimbursement of up to a total of $2,500 for any penalties, interest or additional taxes assessed by the IRS.

Audit Shield is only available to taxpayers receiving a bank product.

Thanks...I do not offer bank products, so did not pay attention to this.

Dumb!

Actually the dog is quite smart...just a puppy though, so does not yet know what she can and cannot eat.

I have seen ATX reference a form titled Audit Shield....What is this?

.....Lesson of the day.....Do NOT leave your cherry frosted pop-tart unattended when Lila (aka The Large One) is in the room. Darn dog ate that pop-tart quicker than I could blink an eye!

Now it is just me and the Quaker Oats guy...and he makes me nervous.

Also....Lenny the Pirate is back and he has a feather duster....that also makes me nervous

I'm not sure you have to, but it does cover your bases, since you are simply recognizing that IF you had had any carryovers, you would have reduced them! It's a no-cost CYA, that's all.

Thanks...I really appreciate both your knowledge and you willingness to share it....I am a much better tax preparer due, in part, to wisdom from yourself and others on this board.

You would enter them on Line 21, down near the bottom where it says Canceled debts. It is the last preprinted item. Then in the blus line below, enter the same amount as a negative, and in the description area type in See Form 982. I would also, on the 982, put the same amount you put in Line 2 on Line 12.

Thanks, KC....but why put anything on 982 line 12?