Terry D EA

Well thanks for the reply and I certainly don't blame "teachers". I am a teacher and have taught college level as well as high school. Currently, I am teaching HS and will continue to do so for at least 6 years and then retire. I do blame the parents and the educational system. Some systems have dumbed down testing, adpoted multiple attempts, facilitate low level of student accountability and cannot institute a dicipline plan that is effective because of parents and federal laws as well. Contrary to what most think, the Bush no child left behind act has not improved education. I agree every child can learn and should have the opportunity to learn so he/she can be successful. However, the only thing this act has done is placed a higher level of accountability for the teacher, increased paper work, increased administrative duties that take away from the classroom planning and instruction. School systems receive funding based on student performance so you can see where a major part of the problme lies. I am of the opinion that poor parenting is a major contributor as well. Of course, I can't leave out the medical profession. The general fix all is to shove a pill down their throat and expect it to correct a problem that the parents lack the ability to do. Simply put, we are doing our young people a disservice by not educating them properly and holding them accountable. Again, I am a teacher and do enjoy my teaching job and will continue to do so to the best of my ability. I love watching my kids succeed. My rewards come when they walk across the stage in June. I get especially touched by those who I made them work thier tails off to accomplish their goals simply because I knew they could do it despite all of the other things they have been told.

I totally agree. Had the employer listed the bonus checks correctly under payroll items in QB, then the QB payroll program would have calculated it correctly. For future reference, if the employer wants to give a bonus in a specified net amount, they are allowed to gross up the bonus to cover the withholdings. It appears by your statement there was only one employee affected and I would advise them to follow the regulations in the future. I can't offer any way to correct this. Backup withholding I think only applies to FICA taxes so that would not be an option either. This is why companies shouldn't do their own payroll

It is form number 8948 which is still in draft form. I do like the cover letter as well. Don't think you can overkill CYA on compliance issues. I know I use a client interview form that asks all the due diligence for EITC which I require the client to sign prior to preparing the return. Stays in their file with the 8867. Here is a link to the draft form: http://www.irs.gov/pub/irs-dft/f8948--dft.pdf

Here is an article from the IRS site. If all conditions are met, then yes they can elect to be an S-Corp but there are some timing rules as to when the election can be made. http://www.irs.gov/businesses/small/article/0,,id=98263,00.html

I have had several people tell me I should create a Facebook page for my business. Has any of you done this and if so do you use it for advertisment? What are the benefits? Do the benefits out weigh the aggrevation of having to check and update another program? The only advertisement that has worked for me is word of mouth. All other forms barely and sometimes not at all, pay for themselves. Please give some comments

Exactly, which is why I moved from your area to NC in 1996. However, I did have to get out the snow shovel this year. The difference is it only lasts a day or so. The other problem is nobody knows how to drive in the stuff here. They don't use any salt but do put a brine solution on the roads prior to the onset of a storm. Either way, snow and cold weather are not my favorite and I am definitely looking forward to the middle of March when temps change and you can tell you're in the South again.

I have used ATX for over 10 years and up until 2008, that feature wasn't available. JB gave you the best advice. I did not like the statement format of ATX and chose to create my own using Excel. Unlock the form and enter in the cell "STATEMENT 1" or "SEE STATEMENT 1" then lock the form. When the form is unlocked, you choose the font size and work everything like you would in any spreadsheet program. Yes, the statements in ATX do identify the form and line number which I also included in the manually created statements. TRX does the same thing as Drake, however there is not a provision to unlock a cell or field to manually add a statement the program is not associating one to be completed with the return. Hope this helps

Welcome back JB. As always, your posts are always generating a good laugh. Happy tax seasonh. Are you digging out of snow up their in Ohio??

The only thing I can add to this is the IRS may and can require the employer to do backup withholdings if an error was made and they are aware of it. With that said, it is up the employer as to whether he chooses to pay the employees part which in my opinion, it is the least they can do to make up for their or their accountant's mistake. I agree with checking with SS admin as verification if the correct amounts were paid.

Tom, I bet the loan isn't free. It is sad that they make enough money off of the crappy loans that they can afford tol prepare the return for free. Oh yeah, as you mentioned, the preparers will take the hit on that one, no commission and at minimum wage only costs HRB about 7.50. Again, whatever it takes at some poor undeserving soul's expense. I gotta sleep at night and I am so glad I don't do these things or use these kind of tactics. I guess greed overshadows the fact that good service and honest transactions will gain just as many clients.

The problem is, most of the folks filing a Sch A don't know they can't yet. As usual, the ads are mis-leading and these bottom feeders will probably be loaning them their own money (if they have any left, or come up with some other scam to get the business. In the past when the IRS computers locked up (2003 I think) my local JH offices told folks that they had a connection with the IRS and they could get returns filed and got them more money than I did because they didn't know the tax laws, lied to the client, took their money and said see ya later. They forgot to tell the client when the folks at JH screwed up, they (the client) would be left holding the bag and they didn't get their refund when promised due to some other gliche. Geez, will they ever stop

We are anticipating inclement weather here in the middle of NC. More than 3 snow flakes or less (give or take a few) within a 2 minute time window causes the grocery stores to empty of all water, milk and bread, school closings, church closings, business closings;etc. So, as I am enjoying a day off, I see this Jackson Hewitt and Walmart ad that says come to Walmart and get your taxes done and get a huge check all for $38.00. I think one part of the ad said starting at $38.00 and another part said $38.00. They once again forgot to mention how they were going to fleece the client once they got them there. Other ads have large words stating come and get your Refund Anticipation Loan and guess what, HRB has the same ad. I want to be the first person who gets their taxes done for $38.00 and walk out with a huge check all for $38.00. I think I will try it or set someone else up to do it just to see. Demand the prep and huge check for $38.00 per the ad.

Well here is some news. I just read an article in the Journal of Accountancy that the IRS office that is handling the PTIN's said it will not reject and returns that are prepared by someone who uses a non-registered PTIN or social security number. They will, however, send a notification letter at the end of the tax season. They do not want to put a burden on the tax payer just because the paid preparer is not registered. Now, how does that work with compliance to ensure the paid preparer is qualified???? I had no trouble at all registering my 14 year old PTIN. I do know that some did and still are experiencing difficulties. But this article seems to say it really doesn't matter. Here is the article http://www.journalofaccountancy.com/Web/20113715.htm

Thanks Eli, I am aware of the ERO data base but would like to see the IRS list a database of preparers who are registered with a PTIN and not necessarily as an ERO. Some folks are preparers but not ERO's. I am both but it would be nice to direct potentially new clients and existing ones to a site where they can verify credentials.

Does your client understand that paper filing will take at least four to six weeks to get his/her refund (if they are getting a refund) and if he waits for another week, he will have it much faster. I agree with the frustrations of the IRS not being ready. But, for the last fourteen years I have not seen them ready on time. The last minute changes are a PITA as well but there isn't anything any of us can do about it. Try to make your client understand that it is best for him/her to be a little patient and efile.

Well I might agree but I don't think the IRS would reveal the assigned number but, could indeed allow the consumer to verify that their preparer has indeed met the requirements. There used to be a way for folks to see if a firm or individual was listed as an authorized e-file provider. I was, and if it is still available, listed there but my EFIN was not. I don't think the IRS would be that stupid and post something that would cause them to looser virtually all control

Is there a data base on the IRS site or another place where our clients can verify that we have registered with the IRS and are authorized to prepare and file their returns? I think this would be an excellent tool to use to obtain new business. Telling a potential client to check online to verify credentials is a plus. Also, how will a client know if a preparer is using a bogus PTIN? Just wondering as I am getting ready for the season.

I too left ATX for the same reasons. I had to contact them this year to purchase one return on a PRS for 2004 and did receive poor service. The offered me the one lonely return for $100.00 and not the original 12.00. I can understand the price going up a bit but $100.00?? Really?? Thanks to friends on this board, I got the return completed. This is my second year using TaxWorks thru TRX and while I have had minor issues, the support has been above average. Last year most of my issues were the learning curve for me and their support was more than patient with me. If you have noticed, the level of incompetence from employees of alot of companies is reaching ridiculous proportions. I blame it on the attitudes and education received or attained by our younger generations. I can say that as I am an educator and sometimes, I am embarrassed to say so. I have been teaching quite a while and you can see the changes over the years. Good luck to all with the support folks this season regardless of who you purchased your software from. As for all of us old timers here, as long as we are here for each other, we will get thru.

Yes, it is good indeed to see alot of the regulars coming back. Eli my friend where have you been? I guess you could say the same for me. But, I have a good excuse working with all of those teenagers all the time. Hope you are doing well. JB, the same goes for you as it is always a pleasure reading your posts. A good and prosperous tax season to all.

http://www.irs.gov/taxpros/providers/article/0,,id=223832,00.htmlSee if this helps at all. If you are already registered as an ERO with the IRS, then all you need to do is call them and update your profile to include the business and estate type return filings. The next step is to be sure your software company has you setup to electronically file business and individual returns. I do know that the ATX Max package included unlimited e-file for all. If you are using TRX, it does not and there is an additional fee to file the business returns. All in all, these new requirements cause us to incur additional expenses which we have no choice but to pass them on to our clients.

Thanks for posting this Tom. I personally am happy to see the RAL's die. I just hope the JH and Liberty face the same dilemma. I am not proud to admit that I did at one time offer RAL's but took every step possible to talk clients out of them. I do have alot of loyal clients who no longer use them. The statement that RAL's are highly profitable to preparers misses it a bit. It is the bank that wins more than the preparer and it depends on how the preparer fees for using them are setup. Either way, I am glad to see them go. I bet alot of people won't even realize that this movement is a huge savings to them for a little bit of inconvenience.

In light of the recent conversation regarding not discussing birthdays and other issues on this board, I just had to post this. So, I am asking that those of you who don't agree with these kind of posts to just take a back seat for a moment. Understand that I am not being critical of anyone but we all need to realize that it is because of the committment of our service men, that we even have the right or opportunity to say or gripe about anything. All of you probably don't know that my tax and accounting business is,and has been a part time venture for the last fourteen years. My full time job, I am an automotive instructor at Eastern Alamance HS in North Carolina. My students worked this last semester to restore a car for a soldier who has been serving in Iraq and has been involved in active combat since last July. His tour in Iraq lasted for seven months and during that time the date of his return was uncertain. He did arrive home on December 12 and will be deployed somewhere (undisclosed by the military) on December 31. Thursday December 23, he received a Christmas gift he never expected. The presentation was broadcast by our Local FOX8 News. To my surprise, the story also made the front page of the local paper, (The Burlington Times News). As you watch the video, the smile and happiness of the soldier is all the reward I ever needed. My students who participated are awesome and loved every minute of the excitment of the presentation. Enjoy and take a moment to reflect on the sacrifice that our soldiers are making so we can post any type of topics, go to work, grocery store, walmart and watch the news freely everyday.I can't say thank you enough to any of our service men for the sacrifice they give unselfishly and helping this young man (Airman Jonathan Hogg) in anyway, regardless of the cost, (aaproximately 5,000.00) which is insignificant when compared to his committment to serving our Country. Click on My Link to view the video. My link

Thanks for the heads up. I now see where the input comes from. I was aware of form 5405 to claim the credit and now I see the same form is used to recapture the credit.

Thanks Lion as that really has cleared things up for me.

If you have any clients who qualified for the 7500.00 first time home buyer credit in 2008, the first installment payment to the IRS is due when filing the tax return for 2010. I have looked over form 1040 for 2010 and cannot find anywhere that addresses the repayment or recapture of the credit. I for one, have some clients who took this credit. If anyone can shed some light on where the first payment goes on the tax return I would appreciate it. I will keep researching this and if I find anything additional I will post it.