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The answer is to override box 5 "Total 2013 payments" so it's more than the amount on line 4 "Estimate of liability" so box 7 "Amount you are paying" is zero. Box 4 is the only box that matters if the IRS is going to challenge an extension and that only happens in rare cases. It shouldn't happen at all. It's bullshit, but it is the law.

I just want to go on the record as saying I hate the extension process and the whole concept of having to file for an "automatic" extension with a reasonable estimate of the tax liability, or the IRS can (and has) reject it. No tax software I've ever used has made the process automated or easy. My idea: if you don't file by the 15th you automatically have until 10/15. No "request" made to the IRS is necessary. That's why I think when I hear the word "automatic". As for ATX, we used the batch process to create (and print - we turned our printer off then killed the print queue) zero amount extensions. Then we're going into each unfinished return and overriding the tax amount and the amount paid payments so no amount is owed. Check the lock box, put in our PIN and create the efile. Then we'll just have to remember to delete the amount paid on the 4868 when checking the final return. Nothing flows to the 1040 if no balance due on 4868. My employee who's doing them all says it's great compared to what we did last year in TaxWorks.

Thanks! I'll try that on the next one. I was getting red errors unless I entered dates, country, etc. so I was just feeding the beast what it was asking for.

The Fixed Assets form appears when you add the 4562. Delete and re-add the 4562.

Prior preparer was wrong. Amend those returns and depreciate the house (and take all the expenses) on the day care Sch C directly.

Anyone else notice a speed improvement?

It's just called "paperless"? I've not heard of it.

Well that's good news! The letters have been driving me crazy.

Try running a Check on the return. I had ghost assets appear after doing this once. Then I deleted all the ghost assets.

And then they never repay it and what do you do? Plus you're stuck with imputed interest which creates phantom interest income on the S Corp. No thanks!

The most important thing you do on a computer is SAVE, SAVE, SAVE! If your computer "takes too long to save", get a new computer. I was entering 5 W2s yesterday and I saved after each one. I save after entering each asset. I was saving less in ATX early on until it crashed and I had to reenter a K1 and Basis worksheet. I would rather spend a 1/10 of a second pressing Ctrl-S than 3 or 4 minutes reentering a K1, not to mention the frustration. Ain't nobody got time for that!

On audit, the IRS would move it to distributions anyway. Might as well do it right to begin with. The shareholder clearly did not intend this to be a loan. "penalties of perjury, blah, blah, blah.

Haven't used that line and it's filled with N/A on mine too. Not sure what I would ever want to put there. If it's a biz exp, I'd put it on Sch C. Just leave it alone. You might have to delete/re-add form.

Jack was telling me just the other day that I shouldn't save as often as I do. I save early and often. I do this in ANY program I use (spreadsheet, text editor, email, etc.) I've lost data in ATX on crashes several times in the past few weeks, but it is always just one form because I save before switching forms almost without fail. I hit Ctrl-S about every minute or so. Whenever I'm ready to hit Ctrl-B, I always hit Ctrl-S first. You don't even have to release the Ctrl key.

It's amazing how many people get this wrong. Most of my S corps' AAA does not equal retained earnings. But then again, I have no idea why we track AAA. I've never used it in any calculations, even on liquidations.

I would rather have capital gains distributions than W2 wages. It's all money coming form the business to the individual. I used to dread it when there were distributions in excess of basis but then I realized it's not a problem. The losses get suspended to be used against future income.

I have QB back to version 11 running under Win8. I'm going to tell all my clients that have to upgrade to at least 2012 this summer because all my computers are going to be Win8. I have XP installed in a VMWare virtual machine in case I really need to run any old software. I actually have one client still using an old DOS accounting system! I almost had him convinced to switch to QB but he got cold feet at the last minute. <sigh>

I've never issued a 1099 and I don't think you should because it's already reported on the K1. Excess distributions are capital gains so if you were going to issue a 1099 it would be a 1099B. I would not treat it as a loan to shareholder because it's not evidenced by a note and the loan will never be repaid.

I don't know if that stand gives me enough height or swivel. Here's my setup: http://imgur.com/a/3MxMp

I just tell them I'm very efficient and it's less than H&R Block would charge you. Followed by a rant about how much rent, insurance, health insurance, computers, software, CPE, etc. etc. are.

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No but I would try making the middle one vertical if I had that option available. Next time I buy monitors I'm going to look for adjustable height and rotatable mount. It might be worth the extra money! Scrolling is a pain.

Dual monitors? That's so 2012. I have three monitors and still wish for a fourth many times.

Aaaahhh! I see the problem. For us, assembly just means scan the client's records, do the envelopes, staple the clients paper copy of the return in a folder, and burn a CD of return and records. It goes even faster for those clients that are happy with just the CD and not a hard copy of the return. I charge $10 less if you forgo the paper copy. Any copying we do (which is almost none) is part of the prep or intake process, when the client gives us records that are not scanner-friendly. And we don't scan the return, we print it to a pdf, and that's the only copy of the return we keep. I review the return on screen and that's part of the prep, not assembly. Only a really complicated return might be printed out for review. We're always looking for ways to be more efficient and we almost always improve our processes every year.

If it went into the S corps books, the S corp sold assets, tangible or intangible. How you take the cash out depends on many other factors, but the income will flow thru your K1. I would lean to taking it as a distribution, taking into consideration reasonable compensation rules and compensation history, the nature of what's being sold, etc.