Margaret CPA in OH

I use Paperport 11 but move my client data to folders that I have set up. I also create (print) pdf copies of client returns and save them in their respective client folders.

Just for fun, I exported a file to a client folder and then tried to open it. Of course the message was to go to the source and print the document as a pdf. It's a 2 step process but it's another backup that I use.

Thanks, Tom. I appreciate the quick reply. You may have misread my intentions, however. The ONLY advice I would give would be to see an attorney or other next steps such as contacting the state for dissolution. I don't understand what "kind of advice" you are assuming that I am giving besides to contact an attorney.

I suspect that although the cc's are in the corporate name, he would be personally liable. The rental property is an LLC but she/wife's business is not incorporated. I encouraged her to at least form an LLC but, as an insurance agent, she said she was not permitted to do so by Allstate. That may or may not be the case; as I am not an attorney, I did not question her personal research on that issue and let it go.

The wife was, I believe, asking about what sorts of things to expect as she is very concerned about her business. This is a second marriage; he was barely scraping by from the beginning and things obviously have just further deteriorated. She seriously considered divorce a couple of years ago. Maybe she should have done so.

A client is giving up. He has had no new bids accepted in weeks and has significant outstanding credit card debt and owes on 2 trucks. I expect the trucks will be repossessed. The only other assets are a computer and printer. He is a sole shareowner and has no basis any longer.

His wife is quite worried about potential claims on personal assets despite the corporate status. They do own rental property together but she owns her own business and building. Quickfinders states the "The courts may disregard the so-called "corporate liability shield" in the case of single shareholder corporations." This seeems cause for concern.

What are the next steps for him to take? I assume engaging an attorney but he has no money to pay. Fortunately he has kept up with payroll taxes because we handle it for him. And he owes me just a small amount. The major debt is nearly $100,000 to credit card companies. Several years ago, after an IRS audit when he became a client, I convinced him to incorporate to protect assets. Wife was 50% shareholder initially but, as she saw debt mounting, sold out a couple of years ago to him.

Any guidance will be appreciated. I've only had one other client this bad but that was about 3 years after I "fired" her for nonpayment. Sadly, I have another teetering on the brink. And they stubbornly refused to be bought out 5 years ago for a couple of million...

Congratulations! I am so happy for you having just gone through a son's wedding myself on May 16. Unlike you, I don't have pictures yet. The photographer has 1,864 on their preview site, though, but even I don't really want to wade through that many pictures. When they whittle it down to about 500!, then I can be ready to share.

This sounds like a great idea! I would hope that the posters make sure to put a title that makes sense, too. Eric, you are the best!

I agree with Marilyn. This is wonderful as is but if you choose to make improvements, well, we'll let you know our opinion but it's your baby that you graciously share with us. I sort of think that you really enjoy tinkering with websites, etc. Hmmm, mine needs work!

Thanks again for ALL you do; we wouldn't be here without you.

Thanks for the suggestion. He has never mentioned a union; is it possible that he is not a union member since he is, as he says, among the last of the civil service employees? I will pass this along to him. Thanks again.

My mail carrier is the last of the civil service folks. He needs to increase his withholdings but there is no longer an HR department or even a local office to handle such things. He said everything is out of Langley VA now and he cannot figure out how to manage this.

He is nearing retirement and wants to buy back some time that he used during his national guard weeks. He cannot figure out how to do that, either. He isn't particularly computer knowledgeable so that may contribute to his problems.

If anyone has a client or personal experience and could provide some hints and guidance, it would be appreciated. This is the same guy whose son died of brain cancer a couple of years ago. His wife is now experiencing what may be some mental issues in not handling the grieving process so well. My heart just goes out to them...

35 seconds - a musician and former molecular biologist but a wannabe engineer

I'm glad things are (mostly) working for you now. It's puzzling about the EIN, though. That is one problem I haven't had, once the info sheet was added and completed.

Let me know if there are other problems; perhaps I might help you or at least be alerted to an issue that might confront me in the future!

For 5227 you have to have an "info sheet" to enter the data. ATX has jerry rigged this CRUT reporting for several years and this is the latest iteration. If you haven't entered much data, you may want to begin fresh by simply creating a new return and type in 5227. It will open along with the Info Sheet. Choose the Company Tab for data entry.

If you don't want to do that, go to Forms and do not check any of the boxes even though a logical person would check Fiduciary. With no type of form checked, type in Info Sheet in the box to Find and select it when it appears. I think you have to retype the information in but then can discard the 1041. Add the other forms/schedules you need if beginning all over. Otherwise, the data will carry.

To add the Sch K-1 (which will be for 1041), if starting with a new form, you can go to page 7 of 5227 and click on the name of the recipient under PartII-A. The K-1 will appear.

You cannot efile 5227. You have to edit the federal letter to type in the address to Ogden.

I hope this helps. Been there, done that!

A bit...seems to be happening more frequently since tax season. Our minds begin to wander and pick up on some little item to pursue. But then, this is Chit Chat and those of us with some spare time are just chit chatting.

Next topic, please!

Atypical of me to chime in on these sorts of posts, but, since you raise the "life style choice" issue, I wonder about paying for the health care of those who choose certain life styles, i.e., smoking, drinking, speeding, drug usage, overeating, etc.

In my local paper today was a letter headlined "Universal care means people die." The writer continues that she has cancer (unspecified) and now has good insurance. The says, "While all Americans should have access to health care, it should not be at the expense of anyone else." I wonder if she understands that perhaps, should she lose her job (or whoever has the insurance loses the job), that good insurance will disappear. She would find it challenging to obtain individual coverage with her pre-existing condition. I imagine she would gladly refuse Medicaid coverage as it would be at someone else's expense.

I also wonder what she thinks happens to those who now do not have access to health care due to joblessness, homelessness, etc. Many times they die and not from universal health care. One of my clients is a clinic for the homeless, mentally ill. Many times they die.

This has to be one of the best I've seen regarding the list of what the young of today have always or never experienced. Best because of the prelude, the larger type (thanks!) and the PS! KC, keep 'em comin'!

:bday: and many more!

:bday: and many more!

That's what I was thinking, too, Taxbilly. My question also relates to a fixed payment monthly covering all outstanding debt, medical, credit card and who knows? How would I determine the medical expense portion? A simple ratio? Or perhaps in the documents it is specified as to dollar amounts going to specific creditors. And what about the payments being made through an intermediary?

When I get the documents, hopefully, I will have a better grasp of the situation. I just wondered, having had not prior experience, if there was any effect with the Ch 13.

Thanks again for replying. Perhaps I should have waited to ask any questions here. Sorry to have used up so much brain power and time prematurely!

Thanks for your comments, Jainen. The surviving son did not qualify as a dependent in 2008; I think they were hoping he did but he lived on his own, made more than $10,000 and they did not provide more than 50% of his support, etc.

The deceased 20 year old was most certainly their dependent. He became ill originally just prior to high school graduation and never made more than a couple thousand dollars as he played in a band. He lived at home and was in treatment (chemo, radiation, etc.) repeatedly. He was covered under dad's insurance (as a dependent) to the limits but the bills greatly exceeded the limits.

I don't know whether they consulted an attorney. I should find out more in the next few days when the court and other documents are provided. The client said that no bills were forgiven just that they had to pay through an intermediary set up, I believe, by the court. That is my problem. I am unfamiliar with the effects of Ch 13 and whether these medical bills would be deductible. I don't know how a fixed monthly payment through an intermediary would be allocable, if at all.

It's for sure they never consulted anyone regarding the tax ramifications of anything. Then again, going through a 2 year struggle with a son's terminal brain cancer and the massive grief ensuing death, well, I am not so sure I would be fully functioning either.

I hope to have more details soon. I just don't know anything about Ch. 13 and need to get educated really soon!

Thanks to you both. I was hoping that expenses paid in 2008 would be deductible for 2008 and pub. 502 says yes. I still don't grasp how Ch 13 fits into this. Guess I will have to see the documents they have and the arrangements for payments first. Thanks again.

A new client asked me to extend their return and said they likely owed nothing or a small amount. I extended with no tax due. I finally got the documents. They owe about $1300 at least in part because one son filed for himself unexpectedly.

The real question relates to deductions. I asked about medical bills and was told that they are still paying on their now deceased (other) son's bills but had to file Ch. 13. No debt was forgiven but payments are managed through a mediator. The deceased son (really sad story, 20 years old, died of brain cancer, WAS a dependent for tax purposes in 2007) was covered by some insurance for catastrophe (dad's policy, he's a mail carrier) but thousands of dollars were not covered. Since much of this was paid in 2008, is any deductible? Must they have been paid in the same year as treatment? How does Ch 13 fit into this? I've never had one before.

Thanks for any help!

:bday: and many more!

You just reminded me that my book hasn't arrived yet. Gotta check on it now! I know it was charged already.

:bday: and many more!

:bday: and many more!

:bday: and many more!