SunTaxMan

KC, Thanks, One of my concerns, perhaps the primary concern, is the potential of "variance" with the seller's records. AT this point, the seller is saying "there is no listing of purchase breakdown" which, as I stated, I find hard to believe, because the seller would need this for his own 4797, etc. My concern is the risk of making an allocation that would not be in agreement with the figures reported to IRS by the seller. I am wondering what the potential is for IRS to EVER compare these figures - except in an audit and then it would need to be an audit of both the seller and the buyer. I an thinking this could happen if IRS would audit EITHER buyer or seller and seek to document the figures used by the one audited - and the only documentation for these figures would be the list, as reported by the other party. I realize this scenario seems very remote, but I like to have NO skeletons in the closet. I do appreciate the comments. Thanks again.

New client. Purchased ongoing business (restaurant - carry-out and eat-in), three locations, franchise. SINGLE purchase price has NO allocation between the three stores, nor contents of stores (PP), goodwill. No non-compete contract involved. No real property involved - all locations are rentals. There is NO attachment to, nor listing IN, Bill of Sale with specifics of purchase. Taxpayer paid separately for inventory of stores - so at least we have that figure. I am wondering how to allocate purchase price, other than taxpayer's memory of store contents at time of purchase (3 years ago! - with no returns filed since, except payroll returns.) Is it reasonable to make list of items and "estimated" value, apportioning the purchase price? and then proceed with depreciation/amortization on basis of "estimated" purchase prices? Would it be wise to note "estimated" on tax return? One further thought, is there a potential of "defective contract" because no specific listing of purchase allocation included? Is this worth legal action? Seller insists there is no such listing and never was. I find it hard to believe that seller's 4562 and 4797 could be anywhere near accurate without some kind of documentation of exactly WHAT was sold. Thanks for comments in any regard to these components of dilemma. And no, because of other aspects of relationship with taxpayer, this is not someone I want to tell to go somewhere else. I want to find a way to deal with this and bring tax returns to reasonable semblance of accuracy and completeness.

Obama IS doing something extraordinary! He is creating the greatest increase in our National Debt in history.

It appears that "residence" (tax home) for 1040 is New Jersey. Questions: (1) Is this NY client the "only" client tp will have? (2) Any potential for future clients, or existence of current clients, elsewhere than in NY? (3) Does tp have an "office" (read that as "permanent address") in NY (that would justify a NY based Corp) or is business "based" in NJ (that would indicate a NJ based corp)? If this NY client is the tp's ONLY client, perhaps 'employee' is more appropriate - worth a consideration? If tp's business is based in NJ, is working in NY business miles (rather than commuting)? (because this is only ONE of several clients, admininstered from NJ "home office?" Is this an otherwise 'home-based' business? Perhaps a further dimension to the issue is, 'Is this tp marketing his business to anyone other than this ONE client?' Or is this a 'permanent,' or otherwise looonnng term, gig? I guess my thinking is "facts and circumstances" dictate where the business "tax home" is located, not tp's 'preference' - regardless of tp's reasons for the preference.

You are not alone. We are all here. And it is wonderful to have this "counsel of peers" - most of whom are smarter than I am. It is also good to have this "counsel of peers" who have the ability, and the where-with-all, to give me a good swift kick in the butt, when I demonstrate I need it!

You mean there is another Tom Miller in here!!!!!

Ryan, from TRX called and said tech support would be calling me. I have not tried downloading the demo again, but more interesting..... I asked him if this is the ATX program with another label. He said, no. They HAD been selling the ATX products, but no more. They are now selling Tax Wise, BUT it will have a conversion capability from ATX. I am looking forward to seeing the demo, if it ever works.

My Malwarebytes software picked up a Trojan in the demo of the TRX program during installation. Anyone else have this problem? Should I "ignore" it? I have sent email to TRX (yesterday) asking about this - so far, no response.

Why are there two forms? Why choose one over the other? Is there a requirement for one over the other? The purpose of both forms seem to be identical. What am I missing? Thanks,

Bill Cosby has a great way of distilling things. Looks like he's done it again! I HAVE DECIDED TO BECOME A WRITE-IN CANDIDATE. HERE IS MY PLATFORM: (1) 'Press 1 for English' is immediately banned. English is the official language; speak it or wait at the border until you can. (2) We will immediately go into a two year isolationist posture to straighten out the country's attitude. NO imports, no exports. We will use the 'Wal-Mart 'S policy, 'If we ain't got it, you don't need it.' (3) When imports are allowed, there will be a 100% import tax on it. (4) All retired military personnel will be required to man one of our many observation towers on the southern border (six month tour). They will be under strict orders not to fire on SOUTHBOUND aliens. (5) Social security will immediately return to its original state. If you didn't put nuttin in, you ain't getting nuttin out. The president nor any other politician will be able to touch it. (6) Welfare - Checks will be handed out on Fridays at the end of the 40 hour school week and the successful completion of urinalysis and a passing grade. (7) Professional Athletes--Steroids. The FIRST time you check positive you're banned for life. (8) Crime - We will adopt the Turkish method, the first time you steal, you lose your right hand. There is no more life sentences. If convicted of murder, you will be put to death by the same method you chose for your victim; gun, knife, strangulation, etc. (9) One export will be allowed, Wheat. The world needs to eat. A bushel of wheat will be the exact price of a barrel of oil. (10) All foreign aid using American taxpayer money will immediately cease, and the saved money will pay off the national debt and ultimately lower taxes.. When disasters occur around the world, we'll ask the American people if they want to donate to a disaster fund, and each citizen can make the decision whether it's a worthy cause. (11) The Pledge of Allegiance will be said every day at school and every day in Congress. (12) The National Anthem will be played at all appropriate ceremonies, sporting events, outings, etc. If I stepped on anyone's toes, tough.... GOD BLESS AMERICA . Bill Cosby You might want to forward this to everyone you know, no matter which side of the fence they're on.

Clarification - the reconciliation report from IRS does NOT show "No wages paid." It is simply an empty entry box, where wages are shown for the other three quarters. I appreciate the comments.

Interesting. The quarter in question here is Q1 07 and, apparently, there has been no inquiry as to a missing quarter report (even though the IRS summary of 2007 shows no wages paid in Q1 07). So I am waiting to talk to the employer again, because he brought me his "payroll" folder for 2007 and I now realize there is no SUTA, FUTA or state withholding information included. This is a Church, so I assume there is room for misunderstanding and "accommodation" for "errors" on the part of IRS, but I would still like to see the entire 2007 record. I am assuming (and you know what it means to assume?) that IRS is used to Churches having new Treasurers, perhaps every year, and the inevitable inconsistency that would occur with changing personnel in the recordkeeping department.

The actual situation here (and I hate "theoretical") is that there ARE continuing employees, the SAME employees before and after the missing quarter, just no wages paid.

If there is no payroll in any quarter, but continuing payroll before and after this "zero" quarter, is a 941 necessary? I realize there are state requirements, withholding as well as SUTA filing, that may/do not fit this question. My interest is ONLY the 941. Thanks,

I was just doing some research into this subject today and found: http://www.irs.gov/businesses/small/articl...=101065,00.html I don't see any reference to, or requirement for, establishment of a cafeteria plan to handle health insurance as a company paid benefit. Am I missing something? Thanks,

I have never looked at "BackUp" folder. Never thought about it.

One other suggestion. Drill down in "My Computer" to the ATX 2008 program (or which ever year you are accessing). When you open that program folder, you will find a folder inside named "Database." This folder contains all of th current year's returns. You can simply copy and past this folder to whatever location you wish. If you are storing multiple years' "Database" folders in the same location, be sure to rename the pasted folder to identify the year, e.g., "Datebase 2008." To restore this stored database folder, be sure to rename it again to simply "Database" once it is back in the program folder - to be sure the program will find it when you open a return. Every year ATX program has a "Database" folder that contains the returns from the Return Manager screen.

I have a new S-Corp, Husband and Wife - only shareholders. It seems to me that, in this situation, the tax year of the S-Corp must be the same as the Shareholders/Taxpayers, but I cannot find anything to verify my thinking? (That I cannot use a fiscal year of 7-1, when the taxpayers are filing calendar years.) Is this a requirement, or am I dreaming (again)? Thanks,

I have had limited experience with NOLs, so would appreciate any insight/comments, etc. I am dealing with 2007 1040 (yes, 2007, not 2008) Return shows: Interest income, $263 Sched. C Loss of ($-21,657) Schedule F Income of $13,911 Sched. D loss (-$3000) Total Income ($-10,483.) LESS: Self Employed Health Ins., $2,540. Standard Deduct. $10,700 Exemptions, $20,400 TAXABLE INCOME, -0- NOL Worksheet, ($-10,023) On the Form 3621-A, carryback to 2004 return: Carryback, $10,023 Taxable Income, $-0- No Itemizing Exemptions, $12,400 Modified taxable income, $12,400 NOL carryover, ($-2,377) On the Form 3621-A, carryforward to 2005 return: Carryforward, $2,377 Taxable Income, $-0- No Itemizing Exemptions, $12,800 Modified Taxable Income $12,800 NOL carryover, ($-15,177) On the form 3621-A, carryforward to 2006 return: Carryforward, $15,177 Taxable Income, $14,737 No Itemizing Exemptions, $19,800 Modified taxable income, $34,537 NOL Carryforward to 2008, ($-49,714) This ($-49,714) doesn't seem reasonable, but "reasonable" isn't always an accurate evaluation. Am I missing something (s)? Thanks,

So, who is/are the guilty party(ies)? Who voted for the Democratic White House and Congress? I didn't! The solution? Better voting research and voting habits by American citizens. How many conservatives did NOT vote? (I DID vote!) How many liberals DID vote? (I am not in this category - even though I realize I must suffer the consequences of others' votes!)

May I suggest that the best "closure" of this thread is: 1. A quiet chuckle and, 2. Get back to work.

Is there a question?

"Thanks" Very often unsaid, but often felt. This group makes the pressure seem easier....... and the "uncertainties" more easily dealt with.

From the Maryland E-File HandBook: "EROs, Transmitters and Software Developers who need assistance can contact the Maryland e-File Help Desk at anytime by email at [email protected] or by fax at 410-974-2274. Telephone assistance is available Monday through Friday, between 8:00 a.m. and 5:00 p.m. E.S.T. at 410-260-7753."

As I read some of the details about the new Home Buyers Credit, I find: 1. It applies to taxpayers who have not owned a "principal residence" in the last 3 years, prior to this RE purchase. 2. The taxpayer must own the property for at least three years. What I don't see is a requirement that the RE purchased (and used as a basis of this "home buyers' credit") needs to be the "primary" residence of the taxpayer for the required three year minimum ownership. This leads me to a question a client just asked me. He has not "owned" a principal residence for over three years (they are "renting" in an independent living facility.). Can he buy a home and claim the credit without USING that home as a residence? (primary or secondary -- can he use it as a rental property?) The answer to this question would seem to be very obvious - No - that the purchased home on which the credit is claimed must be used for three years as a principal residence (by the taxpayer{s} claiming the credit), not just owned, but I don't see this in the information I have been reading. Is this a "loophole" in the law? Or am I not reading enough informaiton to discover the "fine print?"