Gail in Virginia

And many times the filing requirement is based on gross income, not net. If you have the information, why ask for extra headaches down the road?

Congratulations! An example we can all aspire to! :spaz:

:bday:

You remember rightly - he is too late on 2005 for refund, but it is never too late for them to collect if he owes.

I am preparing 1099's and w-2's for a corporation (not an S-corp.) One shareholder bought out the other shareholder's interest during the year. A publicly traded stock would report this on a 1099-B for the sale of the stock. This is not a publicly traded corporation. Is any reporting required by the corporation regarding the sale of the stock?

I haven't done one this year, but it isn't really any different than e-filing personal returns. I think the signature form is 8879-P, and I believe you do have to be signed up with the IRS for filing business returns. Other than that, everything is the same.

:bday:

Woo-Hoo! I know you are proud of her!

While a full power of attorney, as long as it specifically grants the power to sign tax returns, would be preferred, the form 2848 can be used in limited circumstances. One of those circumstances is if you are out of the country for a period of at least 60 days. Specific language has to be added to the 2848 if it is being used for this purpose. The instructions for the form are very clear about the circumstances under which it can be used, and the language that has to be included.

Regardless of the "level" of preparation you are at, there will always be details that somehow slip through the cracks and are forgotten. Too many aspects of the code are changed too frequently, or phased in, or just changed very late in the year, making it hard to always have every aspect foremost in your mind. I find myself that I sometimes lose sight of these details, and I don't mind being reminded of them. That is one reason I read every post to this board if at all possible.

That trade off is not likely to happen. If a politician did manage to streamline the tax code that dramatically, within twelve months some special interest group would have convinced some other politicians to add back just this one exception that is so important to fair tax administration and economic policy, and before you know it our vacation would be over. At least that is my guess as to what would happen. :wacko:

:bday:

It was different last year as far as real estate taxes go, Pacun. This year just adds sales tax on new vehicle sales into the mix.

In some instances, a business might choose a different method of depreciation for purposes of internal and external income reporting than that which they are required by law to use for taxes, or that which they find more advantageous to use for tax purposes. This would make a fixed asset manager useful. Also, in some cases in the state of Virginia, the local commissioner taxes business property and it might be easier to print a report from a fixed asset manager. Also, if depreciation is managed from a separate program than the tax program, changing tax software is less stressful.

From the instructions for form 8453: Form 2848. An electronically transmitted return signed by an agent must have a power of attorney attached to Form 8453 that specifically authorizes the agent to sign the return So yes, you do have to attach the 2848 or substitute POA to the 8453 and send it to the IRS. I don't think the 2848 is included as part of the e-file, but I would modify it as you have done if it is open in the return rather than take a chance. As far as the federal goes, I think you have everything fine.

:bday:

Have a client in the restaurant business who hired a dishwasher and they agreed to cash payments under the table. Other employees have been given W-2's, and now the dishwasher wants his W-2. I chastised the employer, told him at this point he has to pay both halves of the social security, etc. My question, though, is how to correct this. The employer has already sent in his W-2's with a W-3, and all of the other year end reports. I know we have to file a 941c to correct the taxes, and correct the other year end reports. But - do I file a W-2c for this employee changing his wages from -0- to $$$, and do a W-3c to show the new total for this employer, or can I just do a W-2 for this employee and a separate W-3 for just this amount? Long day and the brain just isn't working;

You must have bought the party version. Mine isn't nearly that interesting.

Have you marked the box that you are ERO and paid preparer? If so, I think it will only complete the preparer section with signature there counting for both.

However, she will still not be subject to unemployment tax until age 21 (at least Federal, and not in the state of Virginia).

I think that once you fill out the POA information on the EF info sheet, the check box on the 8453 will automatically be marked without needing to be overridden.

Just shooting from the hip for someone else to critique, but - she can file head of household because she has a child and she and her husband lived apart the last six months of the year. If she files that way, he should file MFS and file on his global income (I think). Next couple of years if he has no US income, he can probably avoid filing. OR they could file MFJ this year, and save HOH for next year. I am not really sure about this since he does not have permanent resident status or citizenship yet. But I feel sure someone will correct me.

And remember, a new year has started and if this is still a going concern, he will have the same problem next year if they don't get and EIN for the business and use it for everything.

:bday:

I hope someone with more experience answers you also, but I think the main thing you need to be concerned with is making sure that you do no duplicate DCNs.