Jack from Ohio

Short answer is the same as all other discharged debts not involved in a bankruptcy. Taxable unless she meets the insolvency rules at the time the loan was forgiven.

I will wait for the report about the outcome...

If he was "medically incapacitated" would mean that he could not make any financial transactions on his own. This would include paying monthly bills, going to the grocery, etc. Call me skeptical....

Just finished the NSTP 1040 Update Seminar on Thursday. 16 CPE credits that I know are accepted by the IRS. 4 hours on the tax implications of Obamacare as its tentacles are enacted over the next 4 years, several hours of networking with dozens of other more experienced tax professionals at lunches, breaks etc. Cost $225 plus a couple of meals. Sometimes the "deal" is not a "deal" just because the price is better. Comparing White Castle burgers to Ruth Crist steak...

The IRS neither cares, nor is under any sort of requirement to even consider it. Too late to e-file, so it must be mailed. The taxpayer had 10+ months to file. If he chose to procrastinate and then ended up sick, those are the consequenses of his choice. Send the explanation with the return if you wish. I think all that will happen at the IRS is a good laugh. I have yet to get a late filing or late payment penalty abated when the taxpayer files after Oct. 15. Let us know how that works...

Stick with Win7. Microsoft will see the folly of their ways with Win8, They will lose more market share to Apple. Then Microsoft will (possilbly) bring out something better than Win 7. Win8 is "The Mummy Returns" of Vista!!

Call me MAS! You have my number.

I am attending the Seminar in Kennesaw on Dec. 8, where one of the major topics will be the new changes in ATX for 2012. I can tell you this, if you are having issue with speed of the program, you need to have at least an i3 processor, min 4GB RAM. This has solved many of our problems with speed in the past. Please send to me any things you see with the new Program, and I will ask when I am there. Computer hardware is cheap, so there is no excuse for trying to use a Model A computer to do Indy Race Car processing. Word of warning from a total geek here... DO NOT BUY WIN 8 unless you are using it on a touch SCREEN device. (You'll be sorry, despite what a salesman may tell you.) I have hands on tested WIN 8, and it is my researched and observed opinion that WIN 8 is a "SKIP" OS. (Think Vista...)

Love your implimentation.

If you did not get paid, why did you give them the completed return or file the completed return?

If you only want to "buy" CPE, $15-$30 options are available. I continue to work regularly to improve my knowledge. That is the reason that between now and Jan 15, I will attend 64+ hours of seminars and classes. I have been doing this for the past 8 years. "Needing" the CPE credits is just an additional thing to stay in compliance. I have been "earning" over 40 CPE credits each year for many years. Continuing Professional Education Credits. I guess it depends on your objectives.

Those things sound like common sense and ethical logic to me. I have been doing those things, without IRS mandate, for years.

It seems that the stresses of the upcoming changes in the Tax Preparation Career field may be too much for you to handle...?? If you think being a tax professional is just putting in numbers for those clients you "approve of," then you and I are not in the same profession. Would not want you to have a nervous breakdown worrying about the black helicopters with blue helmeted troops dropping it to observe your tax preparation activites....

NSTP 1040 update. Two days, 8 hours each day. Learn every year, 16 CPE including 2 Ethics. One stop shop. Our Professional Tax Preparer organization sponsors it every year. Usually 50-60 in attendance. Cost for members - - $225 and that includes 2 delicious lunches.

I work at a firm that does ~3,000 returns. These come from all 50 states. Approx 10% have EIC. I have been there 8 years and had 2 EIC returns with "issues." NONE in the past 3 years. Just because you have never seen....

Several have responded to me. I will package an e-mail with attachments and a detailed list of what we do. Those that have already responded, please be sure to send an e-mail address for me to reply to. More than happy to share the tools I use.

The church needs a better informed accountant. Send the church a W-9. Nothing else is needed.

Anyone interested in my process for EIC documentation, send me a message and I will be glad to share.

Please feel free to send any of your "too risky" clients to me. I choose to be a professional. I abide by Cir. 230. I am smart enough to handle the necessary documentation for due dilligence. Frankly, it is not a rocket science thing to achieve due dilligence documentation as to protect my integrity and practice. Do not worry about being close by. I also have experience doing returns for people from all 50 states. Contact me and I will send you my contact information. Additional documentation required by EIC Due Dilligence is reason to increase my fees for those it applies to. It is not my decision for the IRS to increase their audit activities, but I am totally professional enough to deal with it. I would welcome the IRS auditor to audit my interview process with my EIC clients. No worries here, and he/she will leave understanding that he/she wasted their time. It is not rocket science, or even calculus!! Please excuse me for ranting. I choose to be professional and adapt as necessary to the changes in my career field. I choose not to "run from the tough ones," rather use the tough ones (handling them professionally and charging reasonable fees for my professionalism, experience and skills) to increase my client list and therefore my bottom line. This is why my practice will be here 15 years from now, and many other preparers are "checking out" of the tax preparation business because it is "too hard" or "too risky." Rant Over!!!

I am pleased to know that you consider every EIC client to be dishonest. I am also pleased that you have so many clients that you can blatantly disregard a huge number of clients. I am a bit miffed and confused by your position. Do you also turn away FTHB, American Opportunity, Adoption Credit and Additional Child Tax Credits as well? There is as much fraud in those areas too? Please help me understand??

Final preparations are in place. I would love to connect with anyone from this forum that will also be attending on Dec. 8. Contact me here. We are already planning to meet with one other. The more the merrier!! Just let me know.

Congressional Action is an oxymoron.

I say simply $0. Costume jewelry. If it were really worth what he considers it to be, he would sell it and give the total amount to the charity. Otherwise, it seems he is just fishing for a large deduction that will truly cost him nothing.

Handy for them = you doing the work of dividing the deposits instead of them doing it. Do you charge additional for the extra work involved? We/I only use the form if specifically asked.

So your contention is that this worker's payment, if he is deemed to be an employee, is exempt from taxation?