Lynn EA USTCP in Louisiana

News Release FOR IMMEDIATE RELEASE December 20, 2012 FOR MORE INFORMATION: Douglas Baker Director of Communications 225.226.0694 (mobile) [email protected] LDR FACT SHEET: Alternative Fuels Tax Credit § An emergency rule was issued by former Secretary of Revenue Cynthia Bridges on April 30, 2012, that expanded the scope of R.S. 47:6035 to allow Louisiana taxpayers to claim tax credits for the purchase of flex-fuel vehicles; § The emergency rule issued by former Secretary Bridges was not in accordance with the Administrative Procedure Act (APA); § Since the emergency rule was not issued in accordance with the APA, the rule was rescinded by the Governor on June 14, 2012; § Louisiana Department of Revenue (LDR) issued a statement on June 19, 2012 that indicated all claims under the Alternative Fuel Tax Credit Program postmarked on or before June 14, 2012, would be honored; § After the governor rescinded the previous emergency rule, LDR initiated the formal rule-making process in full accordance with all APA requirements, and in consultation with the Department of Natural Resources (DNR); § The published rule (effective today - December 20, 2012) clarifies the legislative intent of R.S. 47:6035 and reflects the legislative record of deliberations prior to final passage of the Act; § Between June 14, 2012, and December 17, 2012, all claims received and held by LDR total approximately $11.2M; § Of the $11.2M currently held by LDR, approximately $9M relates directly to flex-fuel vehicles. § No credits will be allowed for any claim related to flex-fuel vehicles received by LDR after June 14, 2012; § Vehicles that operate on both alternative fuel and petroleum based fuel from the same tank will be disallowed for the credit; § Flex-fuel vehicles are not eligible for the tax credit; § Claims that continue to qualify for the tax credit under the new rule (LAC 61:I.913) include: o fueling stations o vehicle conversions o vehicles that operate on an alternative fuel from a separate tank that does not burn petroleum gasoline or petroleum diesel; § Analysis is ongoing regarding a final annual financial estimate to the state as to the number of applications received by LDR after June 14, 2012. Lynn Jacobs, EA Enrolled Agent Civil Law Notary Kenner, LA

With the engagement letter open, I'm looking for that box 'review/edit' with the engagement letter open and don't see that 'review/edit' box. I see the toggle switch for 'edit' vs 'preview' and the only LIVE option is 'edit'. When I click on 'view' the only option is 'edit'. Nothing happens when I try to change to 'preview' in the view box. I've updated the program daily since downloading.

Jack, one thing I want to know is about the engagement letter. They put out an email that it's available in the 2012 program - I can access it but only in 'Edit' mode, and not in preview. And I haven't been able to print it, unless I export it to my documents as an .rtf document and print from there. Thanks, Lynn Jacobs, EA kenner, LA

Did you notice that the 2012 program has stripped the Payroll related section into a separate download with a separate desktop icon? Can't wait til next year when they want to charge extra for that. Lynn

My ATX is up to date. I am able to add the short organizer to a client's record. Even though the comprehensive organizer says it is installed the system will not add the comprehensive organizer. Anyone else have this issue? Thanks, Lynn Jacobs, EA Kenner, LA

Well, when the reply posted the chart lost all its formatting. Here's a link to the page on the IRS website with that info: http://www.irs.gov/Tax-Professionals/Overview-of-Tax-Return-Preparer-Requirements Lynn

Actually CPA's may NOT go to Tax Court if they have not passed the Tax Court Exam. An RTRP have limited representation rights and may represent clients only for tax returns they have prepared, and only with exams and not collections or appeals. EA's, CPA's and Tax Attorneys have unlimited representation rights. Below is a chart from the IRS website with a comparison. Overview of Tax Return Preparer Requirements The chart below provides an overview of the various categories of individuals who may prepare federal tax returns for compensation. Category PTIN Tax Compliance Check Background Check IRS Test Continuing Education Practice Rights Enrolled Agents* Yes Yes Proposals Pending Yes ( Special Enrollment Exam) 72 hours every 3 years Unlimited Registered Tax Return Preparers** Yes Yes Proposals Pending Yes ( RTRP Test) 15 hours per Year Limited CPAs*** Yes Yes Proposals Pending No Varies Unlimited Attorneys*** Yes Yes Proposals Pending No Varies Unlimited Supervised Preparers† Yes Yes Proposals Pending No No Limited Non-1040 Preparers‡ Yes Yes Proposals Pending No No Limited *Enrolled Agents have passed a three-part, comprehensive IRS exam covering individual and business returns. They must adhere to ethical standards and complete 72 hours of continuing education courses every three years. EAs have unlimited practice rights before the IRS, which means they can represent clients for any tax matter. **RTRPs have passed an IRS test establishing minimal competency. The test covers only individual income tax returns (Form 1040). They must adhere to ethical standards. They must also complete 15 hours of continuing education each year. RTRPs have limited practice rights before the IRS, which means they can represent clients in only certain circumstances. ***CPAs and Attorneys have unlimited practice rights before the IRS. †To determine if you are a supervised preparer, view the fact sheet ‡ If you only prepare Forms 1040-PR and 1040-SS, you are considered a non-1040 preparer Lynn Jacobs, EA, FNTPI Enrolled Agent Civil Law Notary Public Kenner, LA

Request one via e-services. have to have a POA. Or call PPS and ask them to fax it to you. Lynn Jacobs, EA Kenner, LA

I think this is the form that I used several years ago - limits the time to 18 months. Lynn

Lion, I think those who do not subscribe to Intelliconnect will not be able to access the pdf. Lynn

How old are these taxpayers. If both are age 65, or older, they will not qualify for EIC. Nor will they qualify if they have interest or dividends above a certain amount. Lynn Jacobs, EA Cicil Law Notary Public Kenner, LA

Cathy, do you know if this will also repeal the credit for hybrid vehicles, such as the Toyota Prius hybrid? Thanks, Lynn

http://www.rev.state.la.us/forms/lawspolicies/RIB%2012-026.pdf Dates corrected to January 1, 2009

Kathy, what was their rationale for this change in position? Did he say if this position also extends to hybrids, gasoline electric vehicles such as the Toyota Prius? Thanks,, Lynn

http://www.rev.state.la.us/forms/lawspolicies/Emergency%20Rule%20-%20Alternative%20Fuel%20Credit.pdf Recently added Emergency Rule regarding the Alternative Fuel Credits, an 8-page document. Lynn

HI Cathy, I took that credit for one of my clients just this week. It's one of the refundable credits, #71F. Of course they want us to fax to them documentation for that - my client has provided me with a copy of the purchase papers, and something that states the vehicle is an EchoFuel vehicle. My client was told about this credit by the vehicle salesman. Lynn Jacobs, EA Civil Law Notary Public Kenner, LA

Yes, I have done that, notated the W2 as clergy income. Sadly, one W2 has SS/medicare withholding. That particular congregation just will NOT do it the correct way. But the problem is that the 'real' s/e income as a music teacher is not flowing correctly to the SE form. Do the wife need 2 SE forms? Or 'should' one SE form be able to properly calculate the combined SE tax for both the clergy and the music teacher SE income? Thanks again, Lynn

Well, I solved the first problem re the retirement plan calculation. I entered the info manually as a defined benefit contribution and it calculated correctly. Now on to solve the SE issue for the wife. If anyone (MAMalody, for instance) has some words of wisdom I'm all ears; if a phone call works for you 504-469-1025 or email [email protected]. Thank you, Lynn Jacobs, EA

I use ATX. This return is MFJ, husband is a partner in a law firm and the wife has 2 career focuses - one as a cantor (clergy) and the other as a music teacher at a private company. The wife receives W-2's for cantorial duties and a 1099-MISC for the work as a music teacher. First problem - calculating husband's retirement plan contribution: Husband's K-1 reflects retirement plan contribution of $72,000 (k-1 line 1 income is over $550,000). The retirement plan info does not flow from the k-1 to line 28 on the 1040. I tried doing the calculation within line 28, (s-e SEP, Simple and qualified plans) and it limits the amount to $49,000 so I figure I must have one or more of the parameters set incorrectly. Second problem - calculating SE tax for the wife. Will the wife need 2 separate SE forms? With just one it just doesn't flow correctly. Or do I use one and do manual overrides to make it come out the way it should? Thanks for all responses, Lynn Jacobs, EA

While I have not tried to either import or efile with a pdf attachment, I have efiled with the grouping STCG, STCL, LTCG, LTCL, by brokerage name, with various in the purchase date field and a 'real' date, usually the latest sale date, in the sale date field. YMMV, Lynn

On the back of the W2 it says: If a year follows Code D - H, S,Y, AA, BB, or EE, you made a makeup pension contribution for a prior year(s) when you were in military service. To figure whether you made excess deferrals consider these amounts forthe year shown, not the current year. If no year is shown, then the contributions are for the current year. Lynn Jacobs, EA, NP Enrolled Agent Civil Law Notary Public

These are W2 income to the pastor. See Richard Hammar's Church & Clergy Tax Guide for further reference; Lynn Jacobs, EA, NP Enrolled Agent Civil Law Notary Public Kenner, La.

In the ATX program that's called "Planner". Lynn

Joan, I went to Hodgen's website - no info re the webinar. How do we get more information? Thank you, Lynn

Exemptions from Maryland Registration The following individuals are exempted by law from the requirement to hold a state individual tax preparers registration: a current, active CPA registered by Maryland or any other State, an individual in good standing and admitted to practice law in the State or in another state; an individual employed by a local, state, or federal governmental agency but only in performance of official duties; an individual enrolled to practice before the Internal Revenue Service who is governed under circular 230; an individual serving as an employee of or assistant to an individual tax preparer or an individual exempted under this subsection in the performance of official duties for the individual tax preparer or the individual exempted in 1 to 4 above.