Uncle Sam

Calsurance is NOT licensed in New York. I use a group plan from NSA - Travelers - administrator is Forest T Jones & Co from Kansas City, Mo.

The issue is greater than merely not seeing the clients. It involves professional integrity of the preparer, professional ethics standards required by Circular 230, and the continuous liability it creates in not knowing your clients personally. Would you accept the diagnosis of a physician who doesn't even examine you in his/her office at least once? With all sorts of preparer penalty issues, due diligence issues, etc, - you've got to be crazy to blindly take on clients from Intuit. If you're that desperate to prepare returns - why not open up a kiosk as some promoter advertises?

CFS has an easy to use after-the-fact payroll program that is e-fileable. I've used it for about 15 years now. And their tech support is excellent.

This time around - Form 8718 is required with a fee - even though it wasn't required originally. Once the 1023 is approved - I suggest that the organization catch up on its filings and file 990-N. There's a special notation that's required on the 1024 - not 1023 to note reinstatement (I assume a Society of Engineers is a business group that's a 501©(6) - that files 1024. Only 501©(3) organizations file 1023.

Why are you asking about tax advice here - for a barber? I thought they were the most proclaimed best tax advisers of us all.

For those of you who are concerned regarding NY's rules, and if you are an EA or CPA (or both), why not join NYSSEA and you'll continually be informed as to what's happening in New York regarding the tax profession? NYSSEA is continually making efforts to make itself known to tax legislators, regulators, and the Department of Taxation & FInance in making them each aware of the effects of any tax legislation or regulation or policy in tax administration and how it impacts the practitioner community.

These ACA rules are going to force tax return season to start on April 15th with zillions of extensions. I can just picture these health insurance providers and/or others responsible for submtting the 1099 information to taxpayers on time.

What I'm feeling is a sense of frustration. When I first came into this profession - we had to know only tax law and peripheral areas of tax law. Now - we not only have to be conversant with tax law - but be compliant conscious on foreign tax reporting, HEALTH CARE reporting, EIC compliance - i.e. - we have to have eyes in the back of our heads to watch over each and every step a client takes during the year - and most clients don't appreciate what we have to know, nor are willing to PAY the value of those services. They just listen to the advertising commercials of the storefront preparer factories and expect US to match their fee structure.

This is ONE TIME I totally agree with jainen. The "check the box" for representative is only in effect for 1 year after filing. In order to not have this problem in the future - why not become an EA, CPA or Attorney? Then you'll be able to talk directly with IRS via a duly executed POA.

You can't do anything until such time as you sit down with the client and know what their expectations, needs, goals, and objectives actually are. When a client comes to me wanting to incorporate or become an LLC, I have to ask how they're going to operate, what they expect to achieve, what they're really looking for and what specific plans they have to achieve them. I then advise them to consult an attorney to form the entity they choose. Yes - they can go on the internet for the do-it-yourself kits - but I don't advise that - because they probably won't do it properly and at least they have some limited protection in covering areas that they aren't knowledgable of. As far as online tax payments - I see if it's necessary based on their tax liability, and/or if they're comfortable with doing it online (if it's not already mandated). Client may not like doing things electronically. Then, after the corporation is formed, then I apply for the tax ID#s, then the Sub S or LLC election forms. Attempting to set up 401ks the day they start I believe is premature. If it's year end they wish to start - I'll advise doing all the setup in the beginning of the year in order to avoid having unnecessary filings for the short year.

Without the corporation owning or leasing the vehicle - your client cannot be paid anything without it being treated as taxable income. What needs to be done is have the CPA enter a bookkeeping entry recording the car cost and offsetting it with a liability for the loan. Have the auto reregistered in the corporate name and insurance it as a business vehicle. Then the car can be depreciated/expensed, and have the corporation make the payments for the loan. At that point some written record should be made from the shareholder (your client) to the corporation of the assignment of the vehicle.

If your own state has limited locations for the exam - are you near an adjacent state where you can take it? Since the IRS is giving the exam - it's for a Federal license - it shouldn't make a difference which state it's taken in. When my wife took the EA exam two years ago - the two nearest test centers were each about 30 miles away. The one in our resident state - I'd have to cross a bridge, fight commuter traffic getting there, the center was in an inconvenient location with no parking facilities (without having to go into a municipal garage). The other was in the adjacent state where the test facility was in an office building off a main business route with plenty of parking and a safe neighborhood as well.

For those of you who don't know - there is a new version of Form 2848 dated October 2011 that is very different than the old version. I suggest that you look at it, read the instructions and start using it. Now - there's only 1 taxpayer's name and ID# listed. So joint filers need to prepare a separate 2848. Whistleblower, PLR and FOIA issues are now permissable tax matters for POA. PTINs are now required in the Representative Area. There's now a letter "i" in the Declaration of Representative area P. 2 - for Registered Tax Return Preparers.

The organization needs to complete a new 1023 or 1024 application and pay the fee. If you go to www.irs.gov under the charities, exempt organizations tab, there are a series of FAQs dealing with this issue.