Lee B

You need to find find out whether your client was a beneficiary of the pension benefit or ? Some pensions have a so called "death benefit" which is the equivalent to life insurance, in which case it may not taxable.

What they are also looking for is when JE's were posted. Some decisions in accrual C Corps cannot be be made and posted retroactvely, for example, profit sharing bonuses calculated and posted during the Corporate Tax Return Preparation Process.

Haven't seen this survey ? However I did just receive an email urging me to renew my Taxwise software. Very curious, since I have never used or subscribed to Taxwise ? This maybe the shotgun approach to marketing & communication ?

They supposedly gave away $ 1,000 to a thousand people per day for 30 days = $30,000,000. My favorite was the commerical, jogging with basketball player Anthony Davis. "Bring your return to Block and get half off last years fee "

Very interesting considering the incessant TV advertising ! H&R Block reports business decline and 250 layoffs By Diane [email protected] and Mark [email protected] Kansas City-based H&R Block on Tuesday reported a disappointing tax season and 250 layoffs. The company expects a 2016 revenue decline compared with 2015, based on a lower volume of tax returns prepared by the company. It declined to offer details of its just-completed tax season, promising its full year report on June 9. Block said it handled 4.6 percent fewer tax returns this season across all parts of its business, from the retail outlets it owns and those operated by franchisers to the desktop software and online services it provides in its digital business. In all, Block said it handled 19.59 million tax returns in the just-completed tax season, compared with 20.52 million a year ago. The company said it undertook the layoffs in Kansas City and at its field locations across the United States. Affected employees, which equaled 12.6 percent of its workforce, were notified Tuesday. News of the layoffs came the same day that Overland Park-based Waddell & Reed Financial said a decline in its business led it to shed 10 percent of its workforce through a voluntary separation program and layoffs. H&R Block chief executive Bill Cobb said the company’s disappointing results came largely in the early part of the tax season. He vowed to be aggressive in attracting business next tax season. “I believe in the future of H&R Block and, as you will hear from me on June 9th, this season does not change our long-term outlook for the company. We are focused on developing an aggressive 2017 program to appeal to a broad segment of tax preparation clients,” Cobb said in the company’s announcement. In response to the business slowdown, Block said it is realigning field operations and beginning a “significant cost reduction effort.” Tuesday’s changes include a shuffling of responsibilities for Block’s retail operations and products, which covers its chain of stores that provide tax preparation help to consumers. Chief financial officer Greg Macfarlane was named senior vice president of the company’s U.S. retail operations, covering all stores and products on the retail side, such as Tax Identity Shield and Emerald Card. Kip Knight, who had been in charge of retail operations, now heads the franchise operations in the United States as well as Block offices in Canada and Australia. H&R Block promoted vice president Karen Orosco to senior vice president overseeing sales and services in the retail operations. She had reported to Knight and now, like Knight and Macfarlane, will report to Cobb. A year ago at this time, the company reported 90 staff cuts, mostly at its Kansas City headquarters, a result of business being down early in that year’s tax season. It had 2,200 full-time employees at the end of tax season a year ago. This round of layoffs leaves it with 1,735 full-time employees. In 2012, H&R Block similarly sought to cut costs following the tax season though it had handled a then-record 22.2 million tax returns. Its cutbacks then eliminated 350 jobs and closed 200 tax stores

The reason you need the manufacturer's certificate is that the number of each manufacturers model that qualifies for a potential credit is limited by a numerical cap that set by the government, so that people who buy a popular model near the end if the year will never get a credit.

Unless it meets the tax free fringe benefit exception via the entity who pays your client, how do your avoid the SE Tax ?

Apr 16 IRS Alert: New Tax Scam Targeting Tax Professionals Like - Click this link to Add this page to your bookmarks Share - Click this link to Share this page through email or social media Print - Click this link to Print this paApril 15, 2016 In advance of the tax deadline, the Internal Revenue Service today warned tax professionals of a new emerging scam in which cybercriminals obtain remote control of preparers’ computer systems, complete and file client tax returns and redirect refunds to thieves’ accounts. Although the IRS knows of a handful of cases to date, this scam has potential to impact the filing of fraudulent returns in advance of the April tax deadline and is yet another example of tax professionals being targeted by identity theft criminals. The IRS urges all tax preparers to take the following steps: Run a security “deep scan” to search for viruses and malware; Strengthen passwords for both computer access and software access; make sure your password is a minimum of 8 digits (more is better) with a mix of numbers, letters and special characters; Be alert for phishing scams: do not click on links or open attachments from unknown senders; Educate all staff members about the dangers of phishing scams in the form of emails, texts and calls; Review any software that your employees use to remotely access your network and/or your IT support vendor uses to remotely troubleshoot technical problems and support your systems. Remote access software is a potential target for bad actors to gain entry and take control of a machine. I am afraid it will get nothing but worse !

It seems to me that more inquiries are needed. At first I was inclined to go where you seem to be headed. What bothers me is that is that the checks were paid directly to the children which implies that perhaps you don't have all the info you need.

Just switched gears earlier today. Back to monthly writeup, financial statements, payroll processing and quarterly reports. It's a wonderful life !

Hey with the exorbitant fees we charge our poor clients, we should be able to waive our magic wands and fix everything ! LOL

Several years ago, I met the Social Security District Manager for this process at a party. According to him, hiring an attorney is unnecessary as long as you follow the process and provide all of the information requested. He claimed that given the way the system worked that hiring an attorney was of little or no benefit. Unfortunately, a lot of people trying to claim SSDI either aren't capable or choose not to follow the process and submit all of the requested information. These people need the hand holding of an expensive attorney.

No different than when you assume any other liability linked to real property, it's part of the price you paid. Therefore capitalize it.

You are not only pushing the envelope, you have completely shredded the envelope !

David, you certainly have very interesting scenarios. I will check later to see what the answer is .

Now, I feel really bad. This has the smoothest most trouble free tax season I have ever had. D@#, I have probably just hexed myself !

Wouldn't you just have a capital loss on Schedule D for the remaining basis ?

I think your expectations exceed their reach.

Do you or he know what was paid for the land originally ?

Given enough info on the house, a long time home builder in the area may be able to give you a reasonable guesstimate of what it would have cost to build the house in the mid seventies. There will be courthouse records, but they may not be computerized. Otherwise basis is zero.

I didn't make any money ! I can't possibly owe that much ! (She and her husband cleared 150 k from their S Corp and paid no estimated payments )

I think the key issues revolve around how the coffee shop was started up. Did the funds come from or thru the S Corp or ? Did they use the S Corp checking account or set up the checking account under the S Corp name with a dba or ? You need to answer these key questions before you ask the how to questions. In this case the substance of how they did what they did really matters.

TAX HUMOR They're only two people who ever have understood the Internal Revenue Code in its entirety. One is dead, and the other still is in therapy. As an EA I have learned and continue to learn that I do not know what I do not know and that buying technology to help me get there faster is akin to using speed dial to dial wrong numbers faster. Tax law is a funny thing. I think it fair to say that most CPAs know something about the federal income tax; many if not most lawyers do not. . . . I'm continually amazed at the attitude people have toward their tax refund. There seems to be in most people's minds -- and I'm talking about intelligent, educated people who understand the tax system -- a disconnect between the refund they get and the amount of taxes they pay. It's like a lottery. People want that check! In connection with the payment of taxes due, no person shall fear that he will suffer, at the hand of perverse and enraged judges, imprisonment, lashes of leaded whips, weights, or any other tortures devised by the arrogance of judges. Prisons are for criminals. . . . In accordance with this law, taxpayers shall proceed with security. -Emperor Constantine It is the small owner who offers the only really profitable and reliable material for taxation. . . . He is made for taxation. . . . He swarms; he is far more tied to his place and his calling than the big owner; he has less skill, and ingenuity as regards escape; and he still has a large supply of "ignorant patience of taxation." Feeling stressed out before your audit? Relax and enjoy this new stress relief method... Picture yourself near a stream. Birds are softly chirping in the crisp cool mountain air. Nothing can bother you here. No one knows this secret place. You are in total seclusion from that place called "the world." The soothing sound of a gentle waterfall fills the air with a cascade of serenity. The water is clear. You can easily make out the face of the person whose head you're holding under the water. Look. It's the IRS agent who caused you all this stress in the first place. What a pleasant surprise. You let them up...just for a quick breath...then ploop!...back under they go... You allow yourself as many deep breaths as you want. .. Gleim Accounting

What other stuff are you asking about supplies and inventory or ?

Darn good thing your client hasn't seen the commercial with Anthony Davis where you get half off . It's right up there with touch a button on your smart phone and your return is done for free.LOL