Karen Lee

Therein lies my puzzle piece...thank you

I so don't know about this. 2 member LLC is to become a single member soon. Does IRS need to be notified via final 1065 and then a Sch C for remaining member? I hate LLC's. Karen

OK, I'll come clean. Not my client. Was having a conversation with tax preparer and we disagreed. I said that his tax home was where he made his money. No food reimb since it was his tax home. Mileage for his personal vehicle being used on the job for a UNION job without compensation is very hard to believe (see GeneInAlabama's response). Karen

Thank you Gene.

IRS sting? Phishing from the competition? Darn lucky he has gotten away with this for so long? Karen

Did I say he was a new client? Did I say he was my client? Did I say he wanted a new tax preparer? Could this be hypothetical? Karen

Client lives 90 miles from worksite. For years has worked at the same job. Union Welder. Spends 4 nights at job location furnished by employer. Uses personal vehicle daily for job performance. Client has taken F2106 expenses for vehicle miles (OTJ) and also 50% of food/meals. My confusion comes in with the "tax home" rules and the food. I don't understand why a vehicle isn't provided by the "union" employer for job performance or that the "union" employer isn't compelled to provide additional $ for use of personal vehicle. If client has a truck mounted welder that is used for work performance then "union" employer is more than likely compensating my client for use of his personal vehicle and therefore wouldn't be allowed to take mileage deduction. The nature of his business means he travels and travel expenses are allowable as deductions via F2106. Had the same job for years ... maybe he should move closer to work The whole food thing is such a stretch that I wouldn't touch it. This guy has always taken these deductions and even went through an audit and the IRS allowed, according to the client. What would you do? Karen

Margaret: My "rule of thumb" in this situation would be to reduce the expense account by any refund/rebate/credit. If the Cobra payments made by the employer is expensed (debited) to "health insurance premiums" than the credit would "reduce" or be credited to the "health insurance premiums". Your year end figures would be accurately reflecting "health insurance expense" and "payroll tax expense". The 941 check written will be a "net" figure including both. Karen

Thank you very much. Karen

Hypothetical... Person has just under 1 million dollars and wants to gift two sons with all of it. Gift tax return required for person but no taxable income to sons? Is the $13,000. limitation only to not have to do the Gift Tax Return? Thanks Karen

You may not be able to tell if you had to carry on a conversation with me right now!! :spaz:

I can't think clearly enough to figure this out. Can a Sub S Corp and an individual form a partnership? Doesn't seem right to me. Karen :wacko:

Thanks for the comments. 6 entries is alot faster than 153. Was really procrastinating now it is done.

I really don't want to imput all 153 W-2G's for this tax return. Can I batch by Payor, only 3 casino's involved and no federal withholding on any of them? Thanks Karen

Client asked me if her new flex fuel vehicle qualifies for any credits. Everything I have read so far says no, I think. But I don't know for sure because I don't understand most of it. Can someone give me a definite answer? TIA Karen

WASHINGTON - Taxpayers who make donations for Haitian earthquake victims would be able to write off this charitable deduction when they file their 2009 taxes this spring, under a bill passed by the House Wednesday. Under current law, donors would have to wait until they file their 2010 returns next year to take the deductions. But the newly advanced bill would allow donations made by the end of February to be deducted from 2009 returns. The bill passed on a voice vote with no opposition. Quick Senate action is expected. A similar law was enacted in 2005 for donations to victims of the Indian Ocean tsunami that happened in December 2004.

Thanks Old Jack for setting me straight on the 940... Karen

Yes on the W-2 and the 941 and don't forget the 940. Health insurance premium added to wages for greater than 2% stockholder/shareholder that pays for state payroll taxes based on gross income also needs to be included on the state payroll tax returns.

Yes, 941 and 940 and state employment taxes if premium is based on "gross income"

Just waiting...

Just received this e-mail from TRX Hello, TRX has been working hard on making sure that you are able to offer bank products. If you’re not approved for RAL’S, TRX does have another Bank (Advent Bank). Here is the website if you would like to apply for Advent Bank https://www.trxprotwsupport.com/advent/ Also, If you want to offer RT’S (ERC) ONLY SBBT is still offering this bank product. You may apply at www.trxprotwsupport.com We look forward to a great tax season.

I am talking about the Washington State Employment Tax exemption for corporate officers. I don't know of an exemption for corporate officers for 940. If Washington State employment tax rates are low enough for corporate officers to get the credit for 940, then it may be less expensive to pay the State unemployment to get the credit for 940. The difference from $434.00 for 940 and $56.00 for 940. If you can pay less than the difference for State unemployment and receive the full credit then do not opt out of Washington State employment taxes for corporate officers. I haven't had to deal with exempt 940 wages for years so I don't remember what wages are exempt without getting out Pub 15. Karen

Publication 1132, Reproducible Copies of Federal Tax Forms and Instructions, is used as a reference aid ...

Exempting corp officers for 2009 should have been done by 1/15/09 and there is no telling if that was actually done or not so it is an assumption. If they didn't pay any unempolyment in 2009 then they would have to pay the full rate on 940. You are right on all counts. 2010 needs to be filed by 1/15/10 however no need to file another exemption for corp officer if one actually was filed in 2009. There is an exception for the filing if they had no employees and corp officers were the only employees however it doesn't effect the 940 rules for the credit. Karen

You are right Julie. Corp officers are no longer automatically exempt from Unemployment and have to "opt out" and are NOT exempt from state unemployment. Corp Officers are not exempt from 940. If they did not pay any unemployment on their wages then no credit and pay 6.2% on first $7000.00 What I do is figure what the unemployment rate is for the year and what the wages for corp officer may be for the year and determine if the officer should opt out or stay in to get the 940 credit. Opt out has to be mailed by 1/15 to Employment Security Dept. Let me know if you need to get the form and I will give the web address. Karen