Margaret CPA in OH

Yes, the path above takes one there. But I listed that path as it seems that is the route to get to Intelliconnect subsequently and it might not be so obvious otherwise since the direct link was omitted.

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As the instructions for Form 8879 state, the taxpayer signed (handwritten or electronic) form may be transmitted to the ERO in person, or by U.S. mail, private delivery service, fax, email or an internet website. The vast majority of my signed 8879's are faxed to me. I have an electronic fax system and save the form in pdf format. If needed, I could print out the form but typically do not. Those that are mailed, I do keep in a file for at least 3 years then scan and discard along with the engagement letters for that year.

Jack, I guess I am just cushier and nicer than you. I purposely included the "fluff" for this client but not for all. You don't know the entire back story and I won't bore all here with it. I do not expect full payment but I do expect to continue to see her in social situations. It will not be difficult to sever this client relationship from my end if she doesn't from her choice sooner. Thanks again for your input. I thought long and hard about this as well as rereading the many thoughtful responses above. In the end, we each must act according to our own understanding and needs. I did so. You very well would have handled this in another matter if you had ever even gotten to this stage with a client - which I doubt. I am satisfied and will be with whatever the outcome. I don't think I burned any bridges or created an enemy, just lost a client and can live with that.

Okay, here is what I finally sent. Thanks to all for your input. I don't know how this will play out. Thank you for the check received, #6306, in partial payment for invoice #1458, copy enclosed. I appreciate your note regarding my ‘usual charge,’ however there is no such thing. As my engagement letters and cover letters clearly state, I charge an hourly rate for the time it takes to understand the documents, clarify uncertainties through email, telephone and personal communication, input the data, review the returns, efile, invoice, and complete all processing. I have enclosed a report of your charges since 2003 and have looked at each invoice. Most years the time involved was 1.5-2 hours at the rate in effect that year. For tax year 2013, 4.5 hours were documented and I provided a discount of 1 hour due to the health issues you mentioned about (son). The additional time was spent in email correspondence (at least 22 exchanges from April 9-Oct. 21), telephone calls and two meetings to discuss proper listing of specific deductions and review of final returns to file. These meetings and the final review were critical as your figures for expenses changed often over time so it was necessary to input the final, correct amounts in the proper place. You may recall us tracing the correct, final numbers from my printouts of myriad emails with differing amounts and types of expenses mixed together. The most positive aspects of this extra effort were, finally, significant refunds of $866 for you at the federal and state levels and preserving the loss carryover at the local level. A refund has not been the case for many years. As a self-employed sister professional yourself, you surely understand that invoicing for services provided is comprised of time, overhead such as software ($1300 in my case each year) and materials, as well as expertise (40 hours of continuing education at my expense annually as well as licensing as a CPA). I appreciate your confidence in my professional services for these many years. However, I choose to value those services appropriately. Even at that, I undercharge significantly compared to many less qualified preparers. As has been necessary in a few other years per the enclosed report, it may take some time to pay for these returns in full. I understand and trust you understand my position, too. Best regards now and in the New Year,

I think the qualifications for dependency are fairly clear. 1. Can the filers be claimed as dependents by someone else? If no, then 2. Does the potential dependent meet both of the following tests? a. Was a US citizen, US resident alien, US national or a resident of Canada or Mexico, for some part of the year? b. Does not file a joint return...? (The answer to this question may be the determinant factor.) 3. Are they qualifying children? 4. Are they qualifying relatives meeting all the tests? a. taxpayer provided over half the support. b. they were child... or other defined relative or live in the household all year c. not the children of another person d. had gross income of less than $3950. Also check this http://www.irs.gov/uac/Who-Can-I-Claim-as-a-Dependent%3F

Thanks, JJStephens, for the reminder of UBI conditions. Things are looking better all the time! I have yet to call the national PCUSA regarding the capital gain reporting. It seems clear that it isn't taxable but it kind of goes against my professional grain and experience to not report something on a 1099.

Outstanding research, Judy! Why not be transparent, indeed! Will we ever know what is really going on here? The demise of ATX? Disgruntled former employees developing their own software to compete? (Think Quickfinder and Tax Book) Veeeerrrrryyyy interesting.....

In nearly 20 years of my own practice I have been unpaid maybe 3-4 times. Once was a big one, one I told to pay what they thought it was worth after hearing many complaints (it was a mutual parting of ways), maybe one more I wrote down and now this one. At least this isn't paid in full - yet. Not exactly sure yet what I will do. I do have $150 in hand. My engagement letter states no returns without payments but, yeah, I always invoice later. Guess my trust and luck isn't 100% but not too bad, really.

Thanks for all the great suggestions. It's clear that I am not alone in experiencing this challenge. For the record, she was a client before we ended up in the same book club. That was a surprise as we both knew other participants from different areas of interest. Another friend suggested that I write a letter (like KC) and state that I am downsizing more and am no longer doing any returns with business activities that involve depreciation. A viable rationale with the new regs! So I think I will send her such a letter, include her outstanding balance, ask her to pay as soon as she is able and recognize that I bill by the hour per my engagement letter which she signed. This is the first year in many that she actually had a refund, too - $866! Clearly she chose to use that for other purposes. Hmmm, maybe she needs this check more than I do. Maybe I should return it - or not.

Today I received payment of $150 (my usual charge, according to her) for a bill of $350 with a $100 discount already. She consistently provides info in small pieces, constantly scrapes for every deduction, pays very late and in several amounts, and more. This year she wanted to meet twice for planning purposes and multiple times changed various amounts (mileage, office expense, etc.). She has been a client for 11 years, has a grown disabled son and really doesn't make much money but is otherwise quite nice. We are in the same classics book club and she is very smart (well read, PhD.) I always undercharge but, heading into retirement, am loathe to keep giving up money. On the other hand, it's some money that I wouldn't otherwise get at all. It's draining but, with our social connection, I hate to simply cut her loose. Any advice for those in similar circumstances? It was easy to shed business clients or individuals who weren't nice. This is tougher. I always mail out engagement letters in January to existing clients. Just don't mail one this year? Actively disengage? Other?

Lion, thanks for the tip. Presbyterian Church USA is pretty main stream. I will be in the church office Friday so will have access to the contract and call the national office. Thanks again to all!

I don't have the document in front of me but I believe the damages were compensatory. The money was voluntary to keep us from continuing our objection. It cost them less to pay us off than go to court. My research so far is showing that the sale of the land for the $4500 actually may not be taxable for capital gain as an exempt organization selling raw land is a passive investment activity not resulting in unrelated business income (Tax Planning and Compliance for TE Organizations, 5th ed., Jody Blazek). We have never done anything with the land, kept it for investment purposes (and to prevent fracking) and it is a one-time liquidation. Just not sure about the damages and not sure about not reporting the $4500 when we will receive a 1099.

There is a reporting requirement as Judy noted that we exceed the $1000 threshold certainly for the sale of the asset. I was just questioning about the damages as the contract states it is non-1099 reportable. Yes, it also exceeds the $1000 threshold but, as a tax-exempt entity, I wasn't sure whether damages, not reported on a 1099, would also be included on the 990-T. I couldn't find a specific reference. I just know I will questions asking why we have to report anything at all. The sale proceeds are clear, the damages, not so much to me. If we end up paying the 15% tax, it is still much more than we ever imagined we would receive so not a huge problem and we still are blessed with this cash to be used now for additional local mission.

My church inherited from a member a tiny parcel in WV that had mineral rights. For several years we've received about $25 in royalties. The fracking machine has now rolled over the area. After much deliberation and preceding threatened condemnation, the church session agreed to sell the parcel for $4500 plus $1500 damages. The appraised value of the land was about $12 but they really, really, really wanted to put their pipe under that tenth of an acre. So I believe we must file a 990-T and try to get the basis of the land for Schedule D. In my opinion it was investment property. But what to do with the damages. The contract states the $4500 is 1099 reportable but not the $1500 so just let it go? Thanks for input. For the first time since 1867, we have to file a tax return.

I posted the whole article in the above pinned ACA topic, if interested. This is from a Western CPE eTax Alert: I though it a nice list. 18 Things Small Businesses Must Know about Health Reimbursement Arrangements (HRAs)

This is from a Western CPE eTax Alert: I though it a nice list. 18 Things Small Businesses Must Know about Health Reimbursement Arrangements (HRAs) If your small business reimburses employee health care costs in any manner, you need to be aware that the law has changed, and there may be actions necessary to take right now to avoid severe tax and legal liabilities. 1. The federal government considers your arrangement to be subject to the extensive legal requirements of a “group health plan,” even if you did not intend it so or think of it that way. The legal requirements include exposure under the Employee Retirement Income Security Act of 1974 for employee welfare benefit plans. 2. To avoid taxes and legal liabilities, the HRA must be integrated with an employer-provided ACA�compliant group health insurance plan. 3. Employers should not reimburse the cost of individual health insurance under any circumstances.* 4. Where an employee is covered by his or her spouse’s plan, employers should never reimburse the cost of the spousal coverage. 5. For purposes of determining whether a violation has occurred, it does not matter whether the reimbursements were made on a pretax or after-tax basis. 6. Taxation of health benefits to the employee is a completely separate issue from the applicability of excise taxes to the employer. 7. Employers who give taxable compensation bonuses should not make reference to any aspect of employee health care costs. 8. The minimum statutory tax penalty for an unintentional violation is 10% of the amount the employer paid. The maximum amount of penalty is $100 per employee, per day of violation; plus (if applicable), wage taxes; plus (if applicable), interest and penalties. 9. Standalone HRAs are prohibited, regardless of whether they are simply informal arrangements or documented employee benefit plans. 10. An integrated HRA must meet additional requirements, including the requirement that they be in writing and be communicated to employees separately from the insurance plan in order to make the benefits tax-free to employees. 11. Employees may not contribute to an HRA on a voluntary salary-deducted basis. 12. Employees who waive health insurance or have other non-employer-provided insurance cannot participate in the HRA. 13. HRAs are not tools to reduce the cost of employee health benefits. In fact, HRAs may trigger the “Cadillac tax” provisions for rich health benefits in the future, because they increase the total health benefits for employees. 14. Improper reimbursements may trigger severe excise penalties under Section 4980D of the Internal Revenue Code. This penalty is $100 per day excise tax per applicable employee (which is $36,500 per year, per employee). Smaller penalties may apply in 2014 if the violation was not due to willful neglect. 15. If the employer is subject to the smaller 10% excise penalty for 2014 and then still does not correct the HRA plan for 2015, there would likely be a greater chance that the higher severe penalty would be assessed for the same repeat violation in the second year. 16. Employers that had a medical reimbursement plan prior to 2014 and have not updated their plan this year may unknowingly be subject to the excise tax. Apparently, there are many small firms that don’t even know about this problem. 17. Employers affected by 14 above should act as quickly as possible to terminate or amend plans and make appropriate payroll tax adjustments if necessary to avoid additional late tax penalties. 18. Excise tax penalties are self-reported on IRS Form 8928, which has not yet been updated for 2014 to include provisions for HRAs. Disclosure and clarification: The advice in this article is simplified for the purpose of clear communication regarding most small businesses. As with most aspects of tax and benefit law, there are special circumstances that may change this information. This article ignores the possibility of uninsured ACA�compliant health plans or grandfatthered health plans simply because these are not common. *Many of these points do not apply to one-person C corporations. The term “health insurance” in this discussion refers to primary ACA�compliant major medical insurance. References Department of Health & Human Services: Application of Affordable Care Act Provisions to Certain Healthcare Arrangements IRS Notice 2013-54 TD 9705: Minimum Essential Coverage and Other Rules Regarding the Shared Responsibility Payment for Individuals 29 CFR 2510.3-1(j) 26 U.S.C. 4980D: Failure to Meet Certain Group Health Plan Requirements U.S. Department of Labor: FAQs about Affordable Care Act Implementation (Part XXII)

I must be the luckiest person ever with ATX. I don't recall ever seeing that message (except when my internet service was down) and I've been using ATX since 1997 tax year. Better go buy a lottery ticket!

Thanks Lynn, for reminding me of the simplification. For over a year I have been filing only my own and forgot that the change wasn't due to that but a general change. I also have the 8879-EMP in my own return to authorize myself. It really is time to fade into the sunset... Sorry ILLMAS, so good to have others chiming in. To efile W-2's, though, is it still necessary to register with BSO and use that pin? Guess I will find out when I try to efile my own for this year.

I have been using the 941, 1099 and W-2 efile for years and really like it. I can't speak to a QB comparison, though. You fill in the form in the program using the client supplied payroll information. The SS and MC amounts due are calculated automatically. If monthly payers, you have to input the amount paid of liability monthly and also the amount and date paid for each month. Same with semiweekly. To efile, each business must have a 10 digit pin assigned by IRS for which you can apply online through the program. For one client it never worked despite repeated attempts but that was an anomaly. This pin should take about 10 days to be received and goes to the client. Then you can efile 940, 941 and 944. If you are the Reporting Agent and have that pin, each business doesn't need a separate one. It's great to have confirmation of taxes remitted though EFTPS, and make pdf's of the forms to save electronically. I like it. To efile W-2's, you need to register with Business Services Online (Social Security Administration) to get a pin or ID which must be included with each submission.

Now for the one about 3115 and repairs regs....

I'm with you. I have been to 2 seminars that went into some detail and will attend another in a couple of weeks that includes this. Nothing seems to be sticking in my brain as to exactly what to do. I have just drafted a letter to appropriate clients going out this week that they may well be extended and we need to work together for data and decisions. I am first working through my own this week. I've never had to deal with 3115 before so it will be interesting! And we thought the ACA was a challenge... Maybe someone will come up with a neato chart about what to do with what as was done for ACA.

Download went smoothly - neither validation codes works. RATS!

Judy, I do know the issue you have raised and have documented same to the son. He has not yet acted on it and, at least for 2013, dad was competent enough to sign the returns. I am uncertain for 2014 at this time and have already alerted son about the likelihood of getting conservancy for mother and maybe father, too, while he's at it. I also stated that returns will be extended if he doesn't have proper documentation. I just wasn't sure about the address to use on the return. Seemed odd to me, that's all. Thanks for input!