Terry D EA

I got it figured out. Just as I thought, the IRS has made the error. I can't even tell where they got their figure from. Atleast I know the program is calculating the EIC correctly from the tables. Thanks Terry D.

Has anyone else experienced this problem? I did my son's return and he received a notice from the IRS the EIC was calculated incorrectly. All of the figures the IRS proposed matched mine except for the EIC. I will be calcualting this manually to see if the program is calculating correctly or the IRS has made a mistake. The difference is 169.00 which is an odd figure. Any suggestions? Terry D.

RoyDaleOne thanks for the cliff's notes as it really helped. OldJack, as usual, you are very helpful and thanks for reminding me about reducing the retained earnings account to make a stock purchase. The solution to the problem is as follows: Treasury Stock (5,000 x $10.00 Par) 50,000 Paid-In Capital Excess Par Common (5,000 x (14.00 - 10.00) 20,000 Cash (5,000 x $11.00) 55,000 Paid-In Capital Treasury Stock (Plug to balance) 15,000 Again, thanks for all of the wonderful help with this. If I would have just remembered that if you credit a paid-in capital account, you must debit the account when you sell or purchase the stock. In this case, the number of shares reacquired had to be removed from the PIC par common for the difference between the purchase price and the FMV. To make the columns balance, the Paid-In Capital Treaury Stock account is credited and the figure is plugged in. Thanks again Terry D.

Stick with OldJack and KC on this one. I have been and still am a ASE Certified Master Technician and they both have hit it right on the head. Terry D.

Maribeth, I agree with your answer for other states except for the debit to common stock. I know the reacquisition treatement is state specific but for the majority we are told to debit "Treasury Stock". Your ending balance in the APIC is exactly what I would think. What is confusing is there is another problem and other sample problems that use the same recording method using just a APIC account and not a specific APIC account for treasury stock. I guess I will have to question my instructor on the wording of the problem. OldJack you are right as well if you are using the cost method. Debit to treasury stock, credit cash. Terry D.

The interest is deductible as a second home. The tax is not real estate tax but personal property tax and is deductible on Schedule A. Can't use it to increase the standard deduction. Terry D.

I haven't been able to make this work either. Hope someone else can help Terry D.

A company authorized 100,000 SHS $10 Par common stock. During the year they had the following transactions: 1-5 Issued 75,000 SHS @ $14.00 per share 12-27 Purchased 5,000 SHS @ $11.00 per share. The par value method is used to record the treasury stock purchase. At 12-31 what is the balance in the Paid-In Cap from Treasury Stock? My take on this: Treasury Stock (5,000 x $10 Par) $50,000 Paid-In Cap Excess Par Treasury Stock 0 Retained Earnings $ 5,000 Cash (5,000 x $11.00) $55,000 Can a paid-in capital account have a debit balance? I think not. Wouldn't retained earnings be debited because of no credit balance in the PIC account? If you record the stock issued the Paid-In Excess of Par Common account would have a credit balance of $300.00. Are the Paid-In Excess of Par Common account and the Paid-In Excess of Par Treasury essentially the same accounts? Would they be combined in the Owner's Equity Statement? I am probably over thinking this questions substantially or I don't understand it at all. This is a homework assignment for an intermediate II class that I am taking. I missed the instruction due to a death in my family that took me out of town. Any help would be appreciated. Thanks, Terry D.

I remember those kamman battles and managed to have a few myself. I wonder if anyone remembers all of his aliases. (Hope I spelled that right) Terry D.

You are correct on both questions. Terry D.

That is my question eactly. Is the incarceration more than a year or if is less than a year can it be considered a short absence for the residency test? Terry D.

Tom and Marilyn I like that idea. Much nicer way of eliminating the PITA clients. After some thought, I will get these folks to do their own payroll taxes. I have a signed agreement for the year but it does state that either party can revoke the agreement at any time. Terry D.

By your post, the partnership owned the home and then sold it to the son which is a sale of a business asset with a gain of 15K and the son now owns the home. I don't see how choice B would work at all. Terry D.

Have a client who is handicapped and spent over 20k on widening entry ways, hall ways, etc to make them accessible for a wheel chair. The kitchen cupboards had to be emoved and were upgraded which would be an increase to the property value and the other expenses that did not increase the property value are fully deductible. My question is, where in the world is the worksheet within ATX for determining the amount of the deduction one can take to determine if any of the expenses that increased the home value are deductible? I looked and looked and couldn't find it and ended up creating a spreadsheet to attach to the return. Any ideas where the worksheet is? Terry D.

Kerry means to privately mail him using his e-mail address. If you click on his name, his profile should pop up with his private e-mail address. Kerry I would help but am in NC and would probably screw up the ME 1040. Good luck! Terry D.

Yes, I have seen these notices as well. The one my client received does show the penalty amount due and is indeed a bill. I have considering the approach that Wayne Brasch mentioned and will approach them with the intent of withdrawing my services completely. As for my current invoice, I still consider it valid and expect payment. They agreed to a service at a price, the service was provided professionally and timely. No excuses here, they should just pay it. How many times do we go to a doctor and the doctor really has no clue what is wrong other than a coverall "virus" and he expects payment. If the same doctor misses the diagnosis we can't withdraw payment, instead, he/she expects payment anyway even if we visit them two or three times we get billed for each visit cured or not. Why is it that as accounting professionals, people seem to think they can treat us differently and refuse to pay for our services? Wouldn't it be nice if we could be like a dentist and only fill one tooth at a time and bring them back for multiple visits when they were already numb in the first place. Let's see, first visit form 1040 page 1, second visit 1040 page 2, third visit Sch A, fourth visit, State Return page 1... and bill $85.00 per visit! Maybe we have been doing it all wrong. Thanks for letting me vent Terry D.

I have an s-corp client that runs their own payroll but has retained my services to process all of the payroll taxes. they use QB and a remote connection really simplifies things. I pay all payroll taxes through the EFTPS system. The client received a letter from the IRS concerning a 940 deposit that the IRS assessed a late filing penalty. My confirmation shows the settlement on 10/31/2009 and filed before 8:00 PM on 10/30 because the client asked me to wait until a deposit was received. Regardless, the payment was timely on my end. This client insists on holding my invoice until I prove that the penalty was generated from something other than my fault. Can a client withhold payment for any kind of reason? My logic is, my current invoice was for services provided at a different time so PAY ME. My engagment makes no reference to me having any liabilty due to late filing errors. If I simply forgot then I would feel like I owe the client something but this is not the case. What is the best way to handle this? This has only occured twice in our short two year realtionship and both times due to the client not having the money on time. Terry D.

Same here everything is printing fine. Terry D.

I am sorry for the confusion with the input form for the 1099C. You are right, there isn't one. The information from the 1099C is put on line 21 of the 1040. Drop down the window and scroll down a bit and you will find it. Don't know what I was thinking when I originally responded. Long day Terry D.

Thanks for all of the replies and help. So far, my cleint did not get the 1099C but you never know. RoyDaleOne, no apologies necessary my original post wasn't very clear. Terry D.

WOW! I can't wait to see te outcome of this one. I hope Ray was joking as well Terry D.

Now that you have stated your client is a sole-proprietor, follow Margaret's advice. Terry D.

The home sale is reported on Schedule D and falls under the 121 exclusion. On form 1099C, there is an input form within ATX for the 1099C and the information will flow to the 1040 as taxable income unless your client would be insolvent or the debt had been discharged in a bankruptcy proceeding. Terry D.

bcolleen, I use the QB payroll as well. The only difference maybe that I am a QB Pro-Advisor and can service 52 clients from one payroll subscription that costs me $150.00 annually. The subscription through the Pro-Advisor membership is the enhanced version. The entire QB Pro -Advisor membership is $599.99 and I too am getting tired of the yearly price increases. What's wrong with this picture, I promote their product, sell it, support it and pay through the nose for it. Seems like there should be some kinda kickback or something. Terry D.

You are right but he bought the truck in 07 and it was repossessed in 08 Terry D.