michaelmars

if possible i try and have the clients clear the loans on 12/31. they can reloan the money mid january. Of course it depends on cash flow and dollar amounts but if my clients delay paying A/P etc for a few weeks they can usually do it or bring it way down to make the interest an insignificant amount.

you have to otherwise you have imputed interest. i do on any loan thats lasts more than a year.

paid a few creditors but remember he did that and closed the corp 2 years before the irs made this assessment. At the time he paid the calculated taxes per the return. He did take aprox 30k from the company and some equipment. The assessment is for over 100k.

Which brings me back to original issue, do we have to bother with appeals etc or is the shareholder judgement proof and we can let the irs assess all they want?

actually we didn't try to reconstruct anything, the agent understood that the company was closed and the only shareholder figured he was off the hook. the only item we really discussed and agreed on was the accounting error made in the %of completion computations. Travel was never discussed beyond him asking once if we had any documentation available.

gotta defend the poor guy, not often i really think a client is being honest. he ended business then 2 yrs later the irs decides to audit. He moved to Hawaii, didn't keep much in records from Ny, previous cpa died, blah blah blah. His business requires travel around the world and his portfolio [photography] proves he did his shoots there, most other exact records just aren't available bu obviously he had to go to japan to shoot scenes of japan, right?. anyway thats where we stand. company ended when he moved, with just some cash and his camers, etc. going to him.

i have been researching transferee liability and i find court cases both ways but i am honestly don'tunderstand all that i am reading. Some say they are liable up to any assets they took out at dissolution and some say no. There was no fraud here. the company honestly closed. On audit an accounting error was found and also the agent questioned some travel expenses. The client didn't really cooperate since he felt there was no liability - we will most likely appeal if we can because the travel is legit but we need grounds to appeal and the fact that the client now wants to cooperate and produce record isn't good enough. Also we are inNY and the client moved to Hawaii so that makes it harder too.

Corp out of business for a few years got audited and received an assessment of $100,000. I am wondering if they can go after officer/stockholder under a constructive receipt theory or any other reason. Corp has no assets left. We didn't prepare the return but got stuck handling the audit. We agree with 1/3 of the assessment but we aren't sure if the client has any exposure for anything. The tax attorney we use for these off the cuff questions is on vacation and i don't want to have to retain one yet if i don't have to.

ah-got it thanks, i figured it would work more like sec 179 and all be input on the asset entry somehow. - thanks

maybe i am not clear, atx is calculating normal amortization and flowing it properly, it doesn't have an option anywhere to take the elected $5000. as a current deduction.

you will see a dupl file with an ext of .mdb or .mbd that has to be deleted, a very simple fix. call tech support and they will talk you through it.. there is also a kb on it but i am locked out of myatx for months now and haven't bothered getting unlocked

yes, its an election but there is no way to imput it

anyone know how to get this deduction in the program without overriding? I see how to make the election statement but i can't get the deduction on the 4562. -thanks

agree with Daune, I have food deliv clients too but you should be aware that both the irs and Workers Comp are going after these arrangements.

yes you can and i can't remember where but there is a schedule somewhere to allocate any estimated payments between the spouses

IF ITS JUST the returns they want they can get them just as easily from the irs. You can suggest this to the attorney too.

YEAH, deal with it! just another stupid printing issue with atx!, i haven't gotten them to address it in 4 years

i'd file a 1065 for the entire year, allocating the income properly of course for the period each was an active member then switch to a sch c for 2008. no difference in taxes due, no red flag since there will be 2 k-1's either and just because the partner "walked out" was there a legal dissolution of the partnership? Bet you have an argument that the there was hope till 12/31 that the partner would return and continue in his capacity as a partner. If he showed up now he might even still have a claim on his share of the partnership unless he "legally" "walked out". I'd discuss this option with your client and how its a good argument for filing the 1065 and avoiding penalties.

I'D RATHER have your weather jan to apr maybe i could commute to you! got extra room?

I am still looking for an ATXer to work in my office during tax season. I would like someone to start now so we can get used to each other working on some of my extension returns. Days and hours are totally flexible. During tax season I think 15-20 hours a week would be a min and you could work as much as you want. I am in Great Neck, NY

you are not required to use an 8/31 year end, thats just the latest you can use. You need to look at the investments and see what year you want the income in etc. before deciding, perhaps a calender year makes more sense [doubt it]

Are you sure that all that he claimed he claimed was paid to you and not to others?

We use it here too and one of my guys is a FX expert if anyone needs help I'll gladly pass on the program issues for response. 99% of the time the old imput method works best and avoids most of the glitches btw.

the issue is that the sale is an installment but we have to decide whether or not to recommend reporting as an installment or electing to report the whole gain in 2008. Sort of flipping a coin on what congress will do in the next few years.

We can't decide whether or not to recommend installment sales, hard to predict what will happen to cap gain rates for the next few years or if current installments will lock in todays rates etc. Amending to opt out of an installment most likely will not be an option. Tax planning has now become a game of throwing darts at a dart board. This is a 200 million cap gain!