Lee B

"The future ain't what it used to be" - Yogi Berra

If the IRS follows the pattern of the last two years, the Friday before Thanksgiving, it may be November 21st or ? This is for 1040 efiles. Business entity efiling has a shorter shutdown period.

One hour ago Customer Care said it will be released later this afternoon

from Stephanie B Director of Customer Care 13.7 will be released tomorrow- Oct 23rd. I just blogged the information and posted another thread to the community board as well. 1040 Organizers An Organizer is a pre-assembled packet of worksheets that can help you and your 1040 clients organize tax information for the upcoming tax season. When you add an organizer to the client's return, information from the client's previous tax year return is populated in the organizer worksheets. Send the worksheets to your clients so they can provide you with the new numbers for the upcoming tax year. The organizer includes three questions related to ACA: 1) Was there any month in 2014 where the individual health insurance mandate was not met for you or your dependents? 2) Did you receive Form 1095-A, Health Insurance Marketplace Statement? 3) Did you have a Health Insurance Marketplace granted coverage exemption or are you claiming a coverage exemption? For more information, see the Organizers Overview in Program Help

Based on the ATX posts that I have read the last two days, I believe that ATX has not finalized the 2014 organizers. From ATX Kristin : " I would recommend waiting to make changes to your Organizers until the 13.7 program update is released. The program update enables many of the Organizer features that are not currently available " As far I can determine 13.7 has not been released yet.

I think most people are to the point of ignoring this stuff: Staples investigating possible data breach Oct 21, 11:42 AM (ET) (AP) In this Tuesday, Nov. 15, 2011, file photo, customers enter Staples office... Full Image NEW YORK (AP) — Staples is looking into a potential credit card data breach and has been in touch with law enforcement officials about the issue. The office supplies retailer said Tuesday that if it turns up any data discrepancies during its investigation, customers won't be responsible for fraudulent activity on their credit cards as long as it is reported in a timely manner. "We take the protection of customer information very seriously, and are working to resolve the situation," spokesman Mark Cautela said in a statement. Earlier this month Sears Holdings Corp. reported a breach at its Kmart stores that started last month, saying some customers' credit and debit cards may have been compromised. Other breaches have occurred at retailers including Target Corp., Supervalu Inc. and Home Depot Inc.. Shares of Staples Inc., based in Framingham, Massachusetts, slipped 3 cents to $12.27 in midday trading. Its shares have fallen 23 percent over the past year.

Also, you don't have the requirement of an annual meeting and Board of Director Minutes.

MORE FROM ATX : Re: Great Season The majority of the Network users that had issues with our ATX software this year is because they did not allow the Program CD/DVD to set up their server first and then let the Program set up their network. Clients that followed these steps in the setup process had little to no issues this tax season. David Uitermark Lead Customer Service Representative CCH Small Firm Service

PER ATX: from Stephanie B Customer Care We have focused our efforts on stability this summer, along with speed of certain tasks and simplification of certain tasks (such as backup and restore and client letters). When I have the final list of enhancements, I will post to the board and blog- I want to make sure the enhancements are properly documented before I try posting partial lists here. Note- 13.7 version of ATX 2013 comes out this week and includes the organizers. We have a few ACA health insurance questions in those organizers as well

I haven't had to look at this in a while, but the rules vary some depending on which part of the Tax Code is in play. In other words be careful, because what may be OK in one scenario may not be OK in another scenario.

Reply Quote Favorites Copied from the ATX Board: Good afternoon, Changing the backup/restore server under the Admin Console is not the same as browsing to a different backup location within the Backup utility in prior years. It can lead to other issues potentially, especially at this time in the season, therefore I don't recommend that. If you want to make a literal "Backup" rather than manually copying folders you can go in the program to the Returns Menu, and Backup Returns, and click the button to "Copy Backup to Local Storage". We put that button in the program to make it easier for customers than going into Explorer and manually moving around files, and having to worry about the hidden folders. It does the same thing as jmdaviscpa states as far as copying the backup folder - but without the manual steps which some users may not be comfortable with. All that said, the best way for 2013 is actually to go through each page of returns, mark all on each page (using the Mark All button at the top), and then going to Returns -> Export Marked Returns. The export will create 1 file for each customer so you can see each name, and also is much easier to "restore" from than the literal backup, as you can specify the location to Import from, whereas you have to manually move the backup back into the proper folder to restore. Jon C. Jon Conner CCH Small Firm Services Lead Customer Service Representative

See discussion beginning October 7th, "Cosmotologist Chair Rental" which covers most of the issues.

Follow up post from the same poster on the ATX Board : Ps. I put the extra 16 GB in the new server in Feb. 14. I just got done with Tech support again. At 2:30 the last tech said everything was good to go. Notice I wrote at 3:03. Well by 3:30 I was pulling my hair and not being able to open returns. Error said I had newer versions of forms on the program..wtf? I even got a bigger surprise when in frustration I had my assistant call ATX. that's 6:30 pm their time, Holy Crap someone answered the phone. I just got off the line with them. Yep 2 1/2 hrs more to get the program up and running with new forms. 7068 of them. Now it is 6:19 and I will work for 3-4 more hours trying to get done what I was finishing at 10 am this morning. Lacerte is starting to look cheaper all the time. Barry"BigBear"Schweiger

Copied from a post on the ATX Board this AM : Barry here, We have a network with 5 w/s. We have had problems keeping the server communicating with the w/s.'s. I saw Donnie P's response to network memory. I started to write him on this forum, but also called ATX, and OMG guess who answered the phone... Donnie P. He didn't know too much about networks but after I explained that we have had trouble with our system he called the tech's in the back and let me talk to them. I had them remote into my server to look it over. I had to add 16GB memory to my new (Jan 14) server to get program to quit bombing out. My IT guy could not believe my server was almost blue screening while running ATX. So I had this guy look it over to see if it looked alright. He spent about 2 hrs cleaning deleting rebuilding ATX directory's. To delete one of the directory's it took 3 1/2 hrs and is still working and not finished yet. So go figure about 2014 Barry"BigBear"Schweiger

I ran into the same thing last year. Finally to get the return out the door, i deleted the 4868 and it went through. After all the IRS already has the extension info.

Michael, I agree with you. The last several years I have waited until January to renew.

Received this email this morning: Up To $300 Off Your Purchase Your 2014 Tax Preparation Software Is Ready For Renewal We are quickly approaching the 2014 tax season, and we are in the final stages of our software development to ensure that you will benefit from: Increased platform performance to support quick data entry and processing. Intuitive user interface to help you move through each step. Streamlined processes for data collection, client delivery and reporting. Various solutions to help you manage client fees and document management. Renew your tax software by 10/17/2014 to receive up to $300 off your purchase* Call us at 1-800-495-4626 to take advantage of this great deal! *$25 off your ATX 1040 renewal; $100 off your ATX 1040 Office renewal; $200 off your ATX MAX® renewal; $300 off your Total Tax Office renewal. Please call Wolters Kluwer, CCH Small Firm Services for more details. Offer expires 10/17/2014 1. This is a bigger discount than ATX offered last spring 2. What about the users who have already renewed for a smaller discount or full price ??? 3. Never seen them do this before. Wonder if renewals have fallen off ???

Actually, last year the personal efile shutdown was as I remember somewhere between the 20th and 25th of November. I just checked the ATX Blog and they stopped transmitting 1040 efiles at 5 PM EST on November 22nd, 2013.

Good morning, Are you at version 13.6.0.84 of ATX2013? Also, which version of Windows are you running on your PC? The memory issue has been addressed in the 2014 software, but I'm also able to open three large returns in 2013 ATX, using a standalone Windows 7 PC. The program is using just over 1 Gig of memory with three returns open. It is using less than a quarter Gig with one return open. If you are installed over a network, this may be why your system is using more memory. Donnie P. CCH Small Firm Services Lead Customer Service Representative i always love it when ATX runs a scenario on one their their pristine systems and act amazed that any users have problems !

FROM FORBES by Tony Nitti A Tale Of Two Activities: How To Beat The Hobby Loss Rules Over the weekend, I regaled you with the ballad of Susan Crile, who landed in front of the Tax Court after the IRS alleged that her 40-year run as an accomplished artist amounted to nothing more than a “hobby.” Crile came away victorious; you can read all about it here. The Crile case attracted quite a bit of attention from the art community because it provided some useful guidance on how aspiring artists can strengthen the position that their activity rises to the level of a trade or business. Today, the Tax Court took on another hobby loss case that should be of great interest to a specific sect of the population; namely, those odd yet loveable man-children who continue to collect baseball cards long after reaching adulthood. This case did not end well for the taxpayer, with the court concluding that his memorabilia activity was a hobby. In Akey, the taxpayer had a day job as a quality insurance engineer, earning over six-figures in 2001, 2002 and 2003. During those years, the taxpayer also generated large net losses ranging from $$97,000 to $143,000 from a sports memorabilia activity that he conducted and reported on Schedule C. As you’ve probably realized by now, this didn’t end well because, well…Day Job Income - Large Schedule C Losses + Recreational Nature of Second Activity = IRS “Hobby Loss” Audit. On it’s own, the decision in Akey isn’t particularly enlightening or memorable. When we take a step back and compare the facts and Tax Court analysis in Akey and Criles, however, we start to get a clear picture of what we should do — and, much more importantly, not do — to beat the hobby loss rules. As a reminder, the distinction between trade or business and hobby is an important one. A trade or business can deduct its expenses in excess of its income, thereby generating a net loss that can be used to offset other income. A hobby, to the contrary, can only deduct its expenses to the extent of its income, and is thus incapable of producing a net loss. Last week, I introduced the nine factors provided in the regulations to help determine if an activity is a trade or business or a hobby. And while no one factor is determinative, by identifying a couple of key factors where Akey and Criles handled their activity with varying degrees of formality, we can learn a few things. Factor #1. The manner in which the taxpayer carries on the activity. Does the taxpayer complete accurate books? Were records used to improve performance? In Crile, the taxpayer kept detailed records, including the sale price and identity of the buyer of one of her works. She hired a bookkeeper, and used the resulting financial records to market her works to collectors, galleries, and museums. She tracked her inventory carefully and conducted extensive marketing efforts. To enhance her profitability, she switched art galleries and tried new media. In Akey, the taxpayer failed to maintain complete and accurate books and records. He did not hire a bookkeeper. He did not prepare budgets, income statements, balance sheets, forecasts or any other financial statement that he could utilize to help improve his bottom line. He failed to undertake any steps to improve his profitability. All of this was within the taxpayer’s control, and by failing to conduct his memorabilia activity in a businesslike manner, he did himself no favors. While you can’t win a hobby loss case on the first factor, you can certainly lose it here, and that’s likely what happened here. Factor #2. The expertise of the taxpayer or his advisers. Did the taxpayer study the activity’s business practices? Did he consult with experts? In Crile, the taxpayer was an acclaimed artist with works hanging in many major museums, board rooms, and governmental buildings. She had over 40 years of experience and had sold over 200 pieces totaling over $1,000,000 in sales price. In Akey, the taxpayer did nothing to acquire expertise in baseball card collecting aside from purchasing price guides, which as the court pointed out, is pretty much the one mandatory acquisition for anyone interested in buying and selling cards, even if it were merely as a hobby. As a result, this purchase did nothing to differentiate his activity as a business. While not everyone can achieve the level of success enjoyed by Crile, the taxpayer in Akey could have established that he routinely attended trade shows, conducted sophisticated research, and consulted with industry experts about buying and selling tactics to bolster his argument that his activity was a business. Factor #3. The time and effort expended by the taxpayer in carrying on the activity. Does she devote much of her personal time and effort? In Crile, the taxpayer spent over 30 hours per week – over a 40-year span — working on her art. In addition, she spent a great deal of time on the mundane tasks that tend to separate business from hobby, such as marketing and networking. In Akey, the taxpayer testified that he spent 15 hours a day, every day, on his memorabilia activity. And yes, this was in addition to his regular full-time job. If we do the math, assuming his full-time gig was a 9-5er, the taxpayer asserted that he worked 23 hours a day from Monday through Friday, an outlandish, ridiculous claim that can only be rivaled by, well…pretty much every CPA I’ve ever worked with. Because the claim was so preposterous, the Tax Court ignored it. The lesson? Be reasonable, but also establish that you work very hard at your activity by showing the results of your research, and proving participation at conferences, conventions, and networking events. Factor #4. The expectation that the assets used in the activity may appreciate in value. Is the plan to generate profits through asset appreciation? In Crile, the taxpayer tracked her inventory in great detail, and took care to make sure it was secure and adequately preserved in hopes of maximizing a future sales price. In Akey, the taxpayer could not even produce an itemized list of the individual items he held in his inventory, meaning he had no apparent means of tracking which items to hold and which to sell. Don’t do that. Factor #6. The taxpayers history of income or losses with respect to the activity. Has the taxpayer become profitable in a reasonable amount of time? In Crile, the taxpayer had a long history of losses, though the Tax Court noted that the start-up period is generally longer in the arts. More damning, however, was that she appeared to greatly overstate her expenses, claiming deductions for what appeared to be numerous personal items that will land her back in the Tax Court soon. In Akey, the taxpayer took the inspired approach of blaming his history of losses on steroids, arguing that the PED era devalued his entire inventory and resulted in his large losses. The Tax Court was unmoved, though it’s not as ridiculous an argument as it may seem, and probably should have been given a little more weight by the court. We already knew how these two stories ended: Crile won, Akey lost. By going through these few factors, however, you should hopefully see that while Akey couldn’t be expected to have the same level of skill and experience as Crile, he could have taken steps within his control to strengthen his position that his baseball card activity was a trade or business. follow along on twitter @nittigrittytax

Another revenue enhancement opportunity

I did the exact same thing earlier this year. I amended this 1120 S. It's the right thing to do. Plus, do you really want your client to get a letter from the IRS.

In the past, I have considered it to be SE Income because my clients were renting personal property plus providing services i.e., Receptionist and phone, Janitorial Services, Merchant Card Services, Advertising etc.

In Oregon the only exempt preparers are CPAs and Tax Attorneys. Enrolled Agents has been having an ongoing fight with the Oregon Board of Tax Preparers for some years as the Tax Board is almost to the point of not acknowledging EAs.

FYI: From the very start the PTIN application processing and renewal process was contracted out to a subcontractor.