J. Ron

When did we start sending 1096 and 1099 to SSA? That goes to IRS.

I ask my clients to get a SS or ITIN number before the first check is issued, or to withhold 20 percent for backup withholding. I believe that Pub. 1281 gives instructions to this effect. I think this is required unless it is an incorporated entity. The W9 information should be gotten up front rather than waiting until the end of the year.

You are correct to place the salary and SS/Medicare offset in box 1. For the pension fund contribution you need to check the retirement plan in box 13. The health insurance paid by the church should go in box 12 with a code DD. The auto allowance, if it is an accountable reimbursement plan, should be shown in box 12 with a code of L. The books and continuing ed should also be shown in box 12, code L.

Did any of you just receive this email from TRX? What nerve and lack of ethics! They sold me an absolutely useless program last year, refused to refund my money, had a crony to contact me trying to get information when I went to the Tennessee Attorney General, filed bankruptcy to avoid dealing with their debacle and continued to lie about things. Now they expect me to buy anything from them. All I want from them is my money back that I paid them last year.

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To take a sneak peek of the awesome 2013 software go to our website at www.trxsoftware.com and clicking on the link or by just clicking the link below.

http://trxsoftware.com/SneakPeek.html

I was able to renew mine yesterday without any problem.

I have just received the following notice.

Tim Sneed <[email protected]>

3:05 PM (1 hour ago)

to tsneed

Dear Consumer,

A company's failure to resolve complaints presented by their customers is vital information that each prospective customer needs to know about. 97% of all services provided by BBB in this market is pre-purchase information.

Your complaint will appear in the company's BBB Reliability Report. This complaint is reported by BBB for three years so that prospective customers can use your complaint, and the company's lack of response, when deciding whether to use the company's services.

Thank you for contacting the BBB with your inquiries and complaints. The BBB wanted to advise you of the following information. We have been advised TRX has file for bankruptcy in the Middle District of Tennessee Bankruptcy Court.

The court web site provided the following information:

3:13-bk-06558 TRX SOFTWARE DEVELOPMENT, INC.
Case type: bk Chapter: 11 Asset: Yes Vol: v Judge: Marian F Harrison
Date filed: 07/29/2013 Date of last filing: 08/08/2013

You may wish to contact the court at:

Middle District of Tennessee

United States Bankruptcy Court

701 Broadway, Nashville, Tennessee, 37203

(615) 736-5584

If we can be of further assistance please contact us and we will assist you in any way we can.

Sincerely,

Tim Sneed
Complaint & Investigation Specialist
BBB Serving Middle Tennessee

Has anyone else received an email from a James Charles asking about who the contact person at BBB is?

I also received this on 7/26/13. Have already filed with TN AG.

Was somewhat "blah" after the tax season. Developed some pains that I couldn't explain. Began to look at side effects of some medicines. Cholesterol medicine side effects matched all the things I was experiencing. Quit it. The pains went away. Life became an excitement again. Feeling so good I began walking (had not been able to for more than two years because of hip pain that went away when I quit the medicine). Now running and walking almost every day. Have more energy than I have had in a number of years. Looking for things to do. It's great to feel like a teenager when I am now a senior citizen! Excited about life!

I received the email from Karen also. I responded that I had in good faith purchased a useless program from them and that they had refused to issue a refund. I stated that until they had the integrity to do the right thing I wanted nothing else to do with them or their programs. Of course, I received the email back offering me the 2013 program at no cost which I refused.

They are still updating their program. I have kept up with them and have an update downloading now.

I have not filed any returns with the software, but have been refused a refund by Karen. BBB informed me that TRX is not responding at all. The Tennessee Attorney General has my claim as still active.

I am on the BBB list, but due to no response from TRX BBB is now listing my case as closed. The Attorney General file is still active. Karen Bills offered to give me credit for next year. What a joke!

I failed to complete my statement. I meant with TRX.

I was just wondering if anyone has filed anything successfully this season. I have not even tried because I have yet to be able to prepare a return correctly on it.

I have kept it on my computer and updated. I had initially started my personal return, but after a time when the state programs were not working I purchased another program. I have kept going back to my personal return after each update. The only way I can make t work is to override a number of entries. The program does not work even today. I have asked for my refund, but have been turned down. They did offer next years program. Who would trust that? So I have begun the process with the TN AG and BBB. Early on I tried to compliment them on trying to get it to work, but either they were so incompetent that they could not work out the problems, or they just gave up on it themselves.

I have a relation who receives a salary and housing allowance as a minister. I report the combined figure on Schedule C-EZ and deduct the housing allowance on line 21 of Form 1040. Thus he pays SS and medicare taxes on both but only income tax on his salary.

You really need to use the Clergy forms to properly calculate the return. Then you would not even use Sched C-EZ.

To make proper corrections, the easiest way is for the church to agree to raise the clergy pay by their matching amount. Then the church needs to file a 941x with the proper figures, a W-2c and W-3c and the returns should be amended to show the proper figures. Doing it this way will give the clergy credit for the church portion, the church will not need to file for a refund, and the amended return will show the proper SE income. If the church wants the money refunded they can use the 941x to request it. It is far easier to move the withholdings from SS and Medicare tax withheld to the withheld tax line. The clergy wages would need to be raised to the level of the the matching portion.

jjstephens is right. The minister has a dual tax status. If a church has withheld SS and medicare and paid matching funds they are wrong. You need to use the clergy forms to properly calculate their clergy taxes.

Yes, Taxed, it is true. Denomination makes little or no difference. You must include the clergy housing (rental value of the parsonage, or the housing allowance) to properly calculate the SS and Medicare tax. Richard Hammar and B.J. Worth have excellent books on the subject that are worth buying and reading if you are going to do clergy taxes. Hammar's book is more detail in its subject matter. Worth's book is written in simpler terms and easier for the average person to understand.

I always advise churches to ask a question, "Do you understand the minister's dual tax status?" If they do not I advise them to find someone who does. Unless a person understands the status the W-2 will always be prepared wrongly.

Richard Hammar's book is the most authoritative for all around church issues. He also does some denomination specific writings that are usually distributed by the denomination or one of its entities, I know that Guidestone Financial Services, an arm of the SBC, has a book that can be downloaded. I have also seen work done for Methodists and Presbyterians that are more specific for each denomination. Another book that I have found valuable is B.J. Worth's INCOME TAX GUIDE FOR MINISTERS. When I am trying to educate ministers I use it most often simply because it is more concise, specific, and understandable for ministers.

I am happy for my change. This week has been a learning curve, but at least I am able to get some filing done. I am still checking the updates to see where they are going. They still do not work. I am enjoying working with Drake.

They finally got NC forms up, but the some of the information does not flow through very well.

I was not with ATX, but TRX. What a disaster this year! Rita, I went to Drake, got set up yesterday and am beginning to love it. It is different and there is a learning curve, but I don't regret my move.

Doug, I attempted to give you every opportunity to make your software work. I determined that I would not join the early chorus's of discontent. I even attempted to compliment you on this board. But when I asked three times about when NC forms would be ready and got evasive replies I checked with the NCDOR and found that you are not even registered there. I want my money back now.