Gail in Virginia

As George Takei would say, "Ohm, my!"

I love it!

Hard to believe, but there is something that Jack from Ohio and Taxed agree on!

I can't address the specific question as I have not had foreign social security benefits on a return, but it is absolutely okay to override a field if that is the only way to get the return correct. Overrides do not in and of themselves affect the ability to e-file.

I think you are allowed to hang on to your work product, but you cannot refuse to return the paperwork the client provided you to prepare his return. And that is specifically stated in Circular 230, Section 10.28.

I don't see how we can encrypt the files we work with, unless you want to begin fresh every year by re-entering all of the personal data and previous year's depreciation, etc. ATX, or any other software I have worked with, doesn't seem to have a system for encrypting the rollover files from itself. I wonder, if upon discovery of any similar situation, we should go ahead and file identity theft affidavit's with the IRS and our state revenue office. While that would be a real pain for 500 clients, or the thousands that some preparers have, would it at least flag their files and maybe prevent some of the problems with false returns being filed?

Interesting that the park rangers in Death Valley National Park have had to ask the tourists to quit trying to fry eggs on the sidewalk: http://seattletimes.com/html/travel/2021380318_deathvalleyfryingeggsxml.html Apparently it leaves a gooey mess that they have to clean up.

Unfortunately, whoever was responsible for unilaterally changing tax law by setting that policy for the IRS will never be held accountable. I wonder what things would be like in this country if the laws already on the books were enforced as written. I don't believe it is possible to completely eliminate fraud, but we should not be encouraging it through policy and regulations.

They should have sent your client a list of what they want to see to do the audit, and it is pretty comprehensive. As for what they are looking for, my impression was they are looking for any contract labor that should have been treated as employees, or any wages paid under the table as cash. Therefore, they basically want to see all the employment records, corporate books and tax returns plus supporting documentation. Your mileage may vary.

Thanks, Jack! That was a great solution.

I am trying to help a client become compliant in his tax filings. Federal forms I can get from older copies of software or from IRS Website. However, I think that I need to file a Vermont return for the year 2000, and the Vermont Department of Revenue website only has forms back to 2001. Can anyone provide me with a PDF copy of the instructions and forms for a year 2000 Vermont individual tax return? Should be a simple return - one W2 and no other income. Thanks for any help.

I am not sure any amount of regulation works with some people. Wow.

It seems to be just COBbled together.

I suspect that this is just another way to get the partners to pay into social security longer and collect benefits later.

It was my understanding that we are required to have written authorization, including certain specified statements as to purpose and length of time, to provide tax return information to anyone other than the client. While many of my clients probably think this is a pain, they have gotten so used to privacy restrictions that they just accept that and come by and sign. Without written authorization, such as my form or a subpoena, I don't even acknowledge that they are my client.

I believe, since the business is an S-Corp, they could actually pay rent to the individual for the portion of the space used by the S Corp. Of course, appropriate documentation should be maintained, such as a lease, and a 1099MISC for the rent at the end of the year.

Thanks, KC! I love the one from Jay Leno!

Perhaps a solution would be to just have a separate forum devoted to all other vendors, and unless and until it became apparent that some particular vendor was dominating that forum leave it like that. I don't know how difficult it is to set up a separate forum, and I certainly don't want to cause Eric unnecessary extra work. I think we all appreciate all that he already does.

I am an EA, and I would refer a client to another professional if the area for representation was not one that I am familiar with. For example, I have never done a 1040NR and I don't have much experience with tax treaties. So I would probably have handed a case like this to an EA in our area that used to work for the IRS in their international division if he was willing to take it. I don't mind doing some research to prepare an unfamiliar form or even return, but in a representation situation where I am unfamiliar with the rules of engagement, I feel like the client is entitled to more competent representation. I have learned a lot reading this thread, but I still would not feel competent to take over representation on a case like this. I will be the first to admit that I don't know everything there is to know about tax law. IMO, there is just too much of it to know it all. And not enough hours in the day to do the research required for an area I am totally unfamiliar with.

Congratulations, JohnH! What a wonderful way to celebrate Father's Day!

I agree with you Jack until the point where the software is slowing me down so much that I can't get my clients returns filed on a timely basis. This past tax season, that is what I felt like was happening with ATX. Speed isn't primary but I do want a software that will let me work to my capacity and not the other way around.

Another way the IRS violates the constitution, IMO, is that with them you are presumed guilty until you can prove you are innocent. Not the way our system is supposed to work.

I have noticed since the 15th of April that when I e-file a tax return, the Virginia return automatically creates at the same time as the federal. I have the option to hold and release marked in preferences, and I do not have the box at the top of the VA EF info page marked to uncouple the federal and state. I have been just not sending them until I get the federal acknowledgement back, but does anyone know of another setting that I need to check? It worked earlier in the year.

The only way you can prepare a return and not sign it, is if you are not paid to prepare it. Why on earth would you want to prepare a mess like this for free?

And not only lowest cost but no deductible as a rule. My son usually has older cars and being under 25 high rates. So we skip collision but comprehensive wasn't much more and covered his car when it was stolen, without us having to pay a deductible.