Terry D EA

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.

That seems kinda crazy. I can see another problem with this. If you use the perforated uni-form paper, wouldn't you have to assemble the different papers together so as to not waste the perforated paper? Hmmmm?

As I read your post I have to admit that I was a little confused as I wasn't aware such an item existed. If I am understanding correctly, you are talking about the self-select PIN used as a signature on any electronically filed tax returns. I have always checked the boxes for practicioner entered and have religiously used the tax payers last five digits of their SS# and have never been questioned nor have there ever been any problems. The way I read the material surrounding the PIN, if you as a practicioner have the client's previous AGI or use a PIN from the previous year, or select practicioner entered then you shouldn't have any trouble. Am I on the same page with you or is there something different that I am missing?

George I can tell you have been around for a while and your generosity is appreciated. However, there are a few kind former and current ATXers that were willing to help.

Allow me to put a different twist on this. I received a letter from the IRS acknowledging that even though I already have a PTIN, and have used it for 14 years, that I still have to renew that PTIN and pay the registration fee. Also, they included a brochure of the three step process of preparer registration, which none of it mentions finger printing. Might it be that the finger printing issue is for the first time PTIN and EFIN registration? I am sure the IRS can match the EFIN and PTIN if that person is an already a listed ERO. I would think that if I hired a preparer, that he/she would need to obtain the PTIN and finger printing prior to preparing any returns. While I would be the ERO, that preparer would have no need for a EFIN. Personally, it doesn't bother me to be finger printed again. I do agree while I may have removed mine a couple of times, sanding, pealing off calluses,etc; they grew back and are of the same design. :lol:

In response to a couple of the replies, I had been with ATX for over 10 years and had minimal problems and yes, they did sell software for previous years at $25.00. Again, that was after the year of filing expired. All of our experiences with the CCH buy out are different. Some had very good experiences while others did not. I was one that did not and this situation has just added to my reassurance that I made the right choice for my practice. I appreciate the response of purchasing all the years that I need. I have the ATX software all the way back to the first version in 1994 or 1995 and only need one 1120S return which is certainly not worth a $100.00. My call to CCH was received with cold unfriendly service along with the unwillingness to address my concern. The person with whom I spoke even said I would be foolish to purchase one return for $100.00 and did not offer any other solutions. Now, if my remarks are considered "slamming CCH", then so be it. Thanks to all who have offered assistance.

I am trying to complete a 1120S return for 2004. Evidently, I did not purchase Max for that year. Why, I cannot remember. However, I called CCH to purchase one and I mean one tax return and they are willing to sell it to me for $100.00. This is another reason why I left them two years ago and am not regretting it. When ATX was in control,the entire MAX program, not just one return, could be purchased for $25.00. Would anyone be willing to lend me their unlock code for the 2004 Max Program? If anyone would be so kind, you can e-mail it to me at [email protected]. This is a zero return and I can fill the forms out from the IRS site but would like that as a last resort option. In the past ATX allowed us to do this. Thanks for any consideration.

I have and still do this. I purchased a Radon dual monitor video card that came with the video card. Once you get this up and running, you will never regret it. Check to see if your PC has dual monitor capabilities. Where your current monitor plugs in, see if there is another port for another monitor. If there is, then you won't have to purchase a vide card. If not, then you will have to purchase and install a video card.

If it helps, the difference owed is 870.00 and this is the 2008 tax return.

I am amending a return for a client for TY 2008 that the IRS refigured due to the return being incorrectly prepared. This return was prepared using Turbo Tax by the client's son-inlaw. Several mistakes were made, the client received a refund over and above what the actual refund should have been. The client is paying back the difference with the amended return. Will the IRS calculate penalties and interest on that money? My first thoughts are yes because the client has had the money they were not entitled to in the first place. If they will charge interest and penalties, would you let the IRS figure these or try to calculate them yourself? Personally, I prefer to let the IRS calcualte the penalties and interest. However, won't the interest clock be running while they are reviewing the amendment? How to handle this? Should the client include the difference and wait to hear what, if any, additional amounts are owed or should we try to calculate the interest and penalties and inlcude that amount with the payment? Thanks in advance

You guys are the greatest! Thanks for all of the responses. I thought individually would be the best. However, I didn't think of the beneficiary issue. If the same beneficiary is on all of the IRAs, then I see no problem with doing the calculation on the total amount with receiving the distribution from one IRA. If there are different beneficiaries, then I see a problem and will recommend the required percentage from each IRA. Thanks again!

Sorry I don't have time to research this topic and I certainly appreciate all you guys that can help on the fly. My aunt has two or three IRA's. She is 83 years old. Is the required distribution taken on each individual IRA? I would think so but am not sure. Thanks!

Jainen, Thank you for your reply. I do agree with your assessment of the situation and we are seeking competent legal estate planning. With that said, I am interested in the information you have regarding the changes in the income tax rules coming at the end of the year. Can you direct me to that information? I would certainly appreciate it. The life time rights I was refering to is a life estate. My mother is very healthy and is on no medications. I wouldn't think that a nursing home or need for assistance from medicaid is in the near future. Although, one never really knows. You are not being morbid at all with your suggestions. When my father died, we were thrown a curve ball as it was totally unexpected. After going thru everything with only a will and no other planning, I vowed it wouldn't happen again. Thanks for your help

I don't have time to look this up and don't deal with them too frequently and this is for me personally. My mother has opted to deed her home to my sister and I, and wants, and will get life time rights. Her health is excellent but she is 80 and knows what she is facing with her own mother and medicaid who will be 100 years young in September. Here is my question, what is the basis for my sister and I at the time of death? I know I should know this but I am soliciting your help. Thanks,

Just to update everyone as I agree this is an interesting case and I am sure we will all learn something regardless of the depth of our knowledge. After speaking with the IRS collection dept, they initially had no intentions to grant a hold and would not consider granting a hold until I had the client on the phone with me. Yes, the POA was faxed and received but the seriousness of the situation and the fact that liens had been filed and the IRS had the pen in hand to garnish wages,and the fact that I was able to offer him up to them for information that he had been avoiding to give them, were all reasons for the IRS to not grant a hold for me as his representative. With that said, and after about an hour and a half on the phone, the IRS did give us three weeks to get all of the returns filed, temporarily stopped the liens, and gave us the required addresses along with instructions on how to proceed with an OIC if that becomes apparent. What threw me a little, was the agent was not completely famaliar with some of the forms needed to complete these returns and tried to tell me if the only thing for the years in collections were wages, then their substitue returns would be good enough and there was no reason to file those years. I however, insisted the returns be filed so that would not be a possible stumbling block if the OIC option comes into play so the IRS couldn't say he did not file all of the returns. Maybe a little redundant but in this case I don't think any stone should be left unturned. The returns are simple 1040 returns with only wages and 1099R income and I have them completed up to and including 2006. Now, the ball is in this guys court, bring the money, get the returns, it is that simple and he literally has no choice in the matter. So far, it looks like he will owe a significant amount due to pure stupidity. For example, one year he had a balance due of 1600. That has now turned into 6K= due to penalties and interest. I can only scratch my head and wonder why.

My first gut instinct was to run and not walk away from this. However, I did take a long look at the situation from the same perspective as Jainen and Tom. I also agree the OIC is not on the table at this point because of the need for all of the tax returns. However, the guy did keep his appointment, and Jainen's words were my exact words to this guy. I am not putting pen to paper or even beginning to fill out the POA until there is 1,000.00 on the desk plus my normal fees inflated a little to cover the PITA part. Also, explained the additional charges and time involved to do the OIC should he qualify for some reason. So far so good, i got the retainer, an engagement signed with absolutely no guarantees of any kind implied or anything else regarding the outcome. Our agreement is to work thru the retainer and then the pen goes down until additonal payements are received. I did suggest a tax attorney but the beginning part is to complete the returns. I am thankful of the watchful eyes on this board and the advice you give for me to protect myself. Some of you will suggest I use the brick at Catherine mentioned and maybe I will need to, But for now, I am taking the plunge.

I ususally don't stereotype my clients but this one takes the cake and then some. A young guy (40 ish) called because I do his girl friends taxes, and asked me if I could assist him with filing some past taxes. On the surface and without any furhter knowledge of the situation, I said sure and scheduled an appointment. This guy calls me with information that he has received a letter from the IRS that he has to sign for. Long story short, the IRS is looking for tax returns back to 2000, he has ignored their previous requests, and has not filed any tax returns since approximately 1995. I got the certified letter today and it is a 30 day collection and intent to levey notice unless he pays 53,0000+ dollars including interest and penalties. Again this is just for 2000,2001, 2002 & 2003. No, he has not filed anything forward either. Also, no state filings. He failed to show for the appointment and had his girl friend deliver the letter to me. On the envelope he instructed me to complete an offer in compromise for 1500 to 2000. Is he kidding? That isn't even 10% of the balance due. My first response is to tell this guy to take a hike. There is no way he can possibly pay my retainer which I think 1,000.00 is too little to start but I am considering this. Then where is the balance that he will owe me coming from? Hell, if he ignores the IRS there is nothing here that makes me beleive he won't ignore me either. If I do take this on, what is a fair charge to complete the offer in compromise? I know that all tax returns have to be completed and at my regular fees per year, that in and of itself would exceed 1,000.00 without doing anything else. what the heck, if I charged him 10,000 and if the IRS accepted the offer of 10% of the balance due, then that would be a major savings! Some guidance please

Jainen, The only reason I see is I have been the daughter's preparer for a number of years. These folks were/are getting letters from the IRS demanding the returns. The discussions surrounded the lack or desire of their CPA to return phone calls, plus,the refusal to do the husband's returns. I agree the MFS for medical reasons is, as you say, hogwash. When I first looked into this, I agree, it didn't appear I was being told everything. However, discussing the situation with the IRS didn't reveal anything other than they want the returns for the husband dating back to 2003 or they will process substitute returns from the information they have. Unfortunately, this guy was incapacitated for a while from a stroke that has taken a few years to recover from. With that said, he is not fully recovered, is permanently disabled, and his recollection of tax information is poor. The wife, is just plain clueless and is scared to death of the IRS. She speaks broken english,and I am not sure what her native tongue is. Hence, the daughter being involved to bridge the communcation gap. I will contact the previous CPA to see why the MFS choice before I get too much furhter involved. Have a restful break

That is what I was lookikng for. Thanks!!!