Lynn EA USTCP in Louisiana

For an asset placed and taken out of service in the same year, I believe the depreciation equals zero.

Hi Ranger, that part I am well aware of.

I just wondered if Tom had found another solution to his dilemma.

Thanks, Lynn

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

Advise your client to take the 2010 RMD ASAP.

My own mother one year forgot to take her RMD. We filed the return without the 5329 and it was never questioned. But if it had been then we'd have responded, explaining the circumstances, that the RMD was taken as soon as it was discovered to have have been missed, procudures now in place to make sure it doesn't happen again, etc.

The proper way would be to file the return with the 5329. Some preparers recommend paying the penalty tax and then asking for it to be refunded, while others (and I'm in this camp) recommend filing the 5329 without paying the penalty and waiting to see what happens.

Lynn

Lynn Jacobs, EA, NP

Kenner, La

Never mind. I got it.

Tom

Lodi, CA (but in Fresno today)

Tom, for those of us who don't know the answer to your question, would you tell us what you figured out?

Thanks, Lynn

Lynn Jacobs, EA, NP

Kenner, La

This is what ATX put out just this afternoon (2/8)-

"We received the following from the Louisiana Department of Revenue:

Subject: LA acknowledgements

Sorry for the delay. Due to inclement weather Thursday and Friday of last week our office was closed. We will get the acknowledgements out as soon as possible."

And now an updated message on 2/9 - "LA acks-- We had expected Louisiana to begin posting acks last week, but we have not received any LA acks yet. The state has notified us that they experienced hardware issues and expect to get acks posted by Feb 15"

Lynn

Cathy, so far not yet. I've e-filed one LA return on 2/2 - federal ACK received right away. Still waiting on the State ACK.

Lynn

>>the agreement is that we get to take this deduction<<

See what happens when I take a month or two off? I would never have let such a statement go unchallenged. The authors of The Tax Book are pompous idiots--if you aren't using Quickfinder, you deserve the bad information you get.

Yes, this year the instructions to Form 1040 say "can" in a paragraph that has said "cannot" forever. That is an obvious typo, not a change in the IRS position. Instructions have no authority, so can you point to any actual ruling that supports this deduction? Quickfinder cites its sources exactly; where does TTB send you for verification? The IRS position has been steady since the Chief Counsel decision in 1995. Medicare is not "established" under your sole proprietorship.

Immediately after that flawed paragraph, the instructions refer us to Pub 535 where it says in italics "Medicare Part B premiums are not considered medical insurance premiums for purposes of the self-employed health insurance deduction." Let's see if the wording gets changed there too, when Pub 535 is updated next month.

Jainen, this is NOT a typo. It is a reversal of position. One of my NAEA peers corresponded with the person that re-wrote that section of the rules, and the reversal of position has been confirmed.

Lynn Jacobs, EA, FNTPI, NP

Kenner, La

2nd try - think it worked this time.

Lynn

TAx Minimum_fee_schedule_Sample_template_and_with_samplefees_2011.pdf

I figured out how to add a link to a file. Attached is a sample fee schedule @ big firm prices.

Guess I didn't - will try again.

Lynn

Lynn Jacobs, EA, NP

Kenner, La

Link does not work.. but I looked on IRS site pub 535 page 18 middle of the page and it says it is not deductable for purposes of self employed health insurance deduction

From the NAEA Webboard - for 2010 the IRS apparently has reversed its position on this issue, as follows from a discussion begun by another EA:

The following is the response received from the IRS:

"Thank you for your inquiry dated 01/18/2011, I apologize for the delay in responding to your question. There was a change for 2010 allowing Medicare Part B Premiums to be used to figure the Self-Employed health insurance deduction. In previous years, Medicare Part D payments were allowed, but not Part B payments. As you mentioned, the 1040 Instructions do state that you can use Part B payments in calculating the deduction for 2010."

Lynn Jacobs, EA

Kenner, La

This question was posed to me by a colleague:

"I have a brother/sister controlled group, (2 C-Corporations 100% owned by same individual). Looks like they need to put an apportionment plan in place in order to avoid a flat 35% tax rate. Anyone out there have experience in this document and how to create/word such a plan? Any feedback would be greatly appreciated!"

Thank you,

Lynn Jacobs, EA

Kenner, LA

I appreciate the fact that people are sharing the fact that a deal is available. Just curious, what do you guys use for tax research and what is the cost?

For years had Kleinrock, then ATX, then Intelli.... This year dropped ATX TTO down to MAX. Instead purchased TRX Alliance $299 deal which is 'supposed' to come with RIA Research. the Research part of the subscription does not yet work. In addition have Tax Analysts research @ ~ $370 per year. If I can ever get the RIA research to work, and like it, then next year I'll drop Tax Analysts. Have to reserve judgement on the TRX/RIA research since it doesn't work, yet.

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

Customer and Technical Support:

Toll Free: 1-800-638-8291

If you use ATX tax software only through our Pay-per-Return System (PRS), please call 770-857-5602.

Rita, go to Preferences, Open Return and near the bottom you will find a box to check to "Enable Payer Manager". Hope this is what you are looking for.

And, when you Enable Payer Manager you have the option of the payers being listed by EIN or by name. I chose by name.

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

Anyone have any success yet utilizing the RIA research from within the 2010 TRX software?

If you have had success, which internet browser are you using? And are there any tricks, or a primer?

Thanks,

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

Thanks, Tom! Do they just do a direct deposit to the client's account?

Eli, from what I know Fee Collect requires the client have a bank account, to which direct deposit is made.

One client who really wanted to take advantage of Fee Collect didn't have a checking account, so we couldn't go that route. We went with a mailed refund check. He swore he'd pay me after his refund arrived; I trusted him. He was as good as his word - paid me faithfully within 2 days of receiving his refund. I wouldn't have done that for every client, though. For this person, this year's Wells Fargo credit card offering might be an option.

Lynn

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

Anyone taken advantage of ATX's i-transact offer re credit card processing?

If so, details and comments would be appreciated.

Thanks, Lynn

Lynn Jacobs, EA, FNTPI, NP

Kenner, La

All I asked for was an update regarding when we can expect to receive the 2011 software. I ASSUMED that there were others on this board that were

waiting for the software as well. Where did I put my account info on this board, Tom?

Booger

The 2011 program is available, and has been for a while - it's on their website for downloading if you chose the download option. Otherwise you'll have to wait for the CD. I paid my renewal fee ($55) and was able to download the 2011 within minutes.

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

Just recently received this email from TRX Alliance:

TRX is proud to offer new software this year. We now have new amazing Immigration Software. This will allow you guys to type up any form needed in an individual’s immigration documents. It has all the forms needed and an extensive client database. This is a great way to earn money year round by being able to offer this service. The software will only be $290 dollars and this will include support and training on the software as well as the shipping and handling. If interested in finding out more about it please email [email protected] and if ready to purchase please call 1-877-711-3211.

I'd be interested in hearing comments from anyone who tries this product.

Lynn Jacobs, EA, FNTPI, NP

Enrolled Agent

Notary Public

Kenner, La

I purchased the $299 package, solely to check out the RIA Research product. The program is loaded on my computer, and research is not yet active.

I dropped ATX's Intelli(whatever they call it) research product last year and went with Tax Analysts. My subscription with Tax Analysts renews on 1/7/2011; I was hoping to be able to try out the RIA Research product before my TA subscription renewal date. So far doesn't look like it's going to happen; I wrote to TRX's tech support and they just tell me it's not yet live, to wait.

We'll wait and see. If I wasted my $299 so be it, but they'll NEVER get me as a client again. Time will tell.

Lynn Jacobs, EA, FNTPI, NP

Enrolled Agent

Notary Pubilc

Kenner, LA

What about rentals in foreign countries? I have a client that bought a house in Costa Rica that he is renting out. Assuming he pays anyone there more than $600, how does he issue the 1099Misc? The yard boy (or whoever) does not have a US SSN. When I brought this up in the tax update class, the instructors said that since the landlord (my client) is a US citizen, the yard boy's income is now US sourced and would owe taxes on it (assuming he did enough of these to meet the filing requirement).

Another client has a rental house in Mexico (< 100 miles from the US). They use a rental management company. That company would have significant US sourced income (many of the homes and condos are owned by US citizens). But if they start getting 1099s, this could have a major impact on their business decisions. However, the grocery store would also get a lot of US income but not for business purposes. I'm having a hard time believing that these foreign companies (and individuals) would be subject to US taxes just because they have US customers. None of their business takes place in the US.

This could get interesting!

My only understanding of 1099 reporting to NRA doing work OUTSIDE THE US is that they are exempt from 1099 reporting. Currently 1099's are required to be sent only to those doing work within the US. IMO (clearly unresearched) no 1099 would be required for services provided to rental properties located outside the US, so long as those providing the services are NRA and never do any work for the landlord in the US. FWIW.

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

There's no rhyme nor reason to the method by which they selected the person to send the mouse pad. I went with TRX's ATX TTO offer last year, and then went back to ATX / MAX program. Did I receive a mouse pad? No I did not. Go figure.

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

Anyone able to get on? last few days has been:

"The web site has encountered an error. We apologize for any inconvenience. Please try again soon.

If you continue to experience problems please contact Customer Service.

Go Back and Try Again"

Once only this week, via my home computer using MIE and not my usual firefox. And when I was able to get to the Intellitax site none of my research components showed up. I wonder if they've already changed my subscription from TTO to next year's ATX/MAX but was unwilling to sit on hold to find out. I did send them an email about the website but no response and it's been days.

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

What is involved in setting up for filing my own and my clients 941's and 940's. Is it worth it?

While I do not e-file my clients' 941's, I do them for my own firm. You have to request a 9 or 10 digit PIN number from the IRS first. After that, it's a snap. I e-file the other quarterly payroll reports for my firm (state withholding and state unemployment), but not for my clients.

I still mail the reports to my clients for their signature, and checks, if applicable. The client is responsible for mailing the quarterly payroll reports.

The IRS has more information at http://www.irs.gov/efile/article/0,,id=105629,00.html

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA

Did you purchase this additional software and how much did you pay for it? I really do need it. WV required a detailed asset listing to be provided with the personal property returns. I always used the asset history. It was so simple, until CCH took this feature away. Is there another program that would provide this or could I export the 2008 Asset history to Excel? I'm a sole proprietor who wants the best deal.

I do not have the Fixed Asset Manager. I print one of the 4562 reports, the Tax Classification Report, for this purpose.

Lynn Jacobs, EA, FNTPI, NP

Enrolled Agent

Notary Public

Kenner, La

Happy Birthday and many more.

Thank You All, and may your birthdays be as wonderful as mine.

Lynn

Lynn Jacobs, EA, FNTPI, NP

Kenner, LA