Randall

Yes, I short cutted the description.

I don't use the ATX billing for my actual billing. I include it for my personal use. I track my time and calculate an hourly rate. That's not my actual billing either because I use a high rate. Some of my time is clerical and bookkeeping. I adjust (usually down) for my actual bill. I have some minimums. I know my billing is too low. I'm a softy. I'm quoting new clients higher (especially if they have rentals, etc.) and gradually raising the existing clients. I do charge a separate line item for 'accounting service' if I have to do too much before actually preparing the return.

Also, keep in mind, there is a double benefit for the mortgage interest. Total mortgage payments reduce amount of housing allowance that is taxable to both income tax and SE tax. But the mortgage interest is also deductible on Sch A reducing income tax more. A double deduction for income tax purposes.

Housing allowance. Fair rental value of home (including utilities and furnishings). Actual out of pocket cost of home (including total loan payments, repairs, utilites, furnishings, lawn care, landscaping, custodial, etc). The lower of these three is what he can exclude from tax and SE tax. So if he pays off the mortgage, what will his actual out of pocket cost be? It will go down without a mortgage payment. Assuming fair rental is greater than $17,000, then actual costs may fall below the $17,000 and he'll have to pickup the excess for income tax and SE tax purposes. Be careful with small independent churches. They tend to want to help the minister but skirt some of the accounting and tax rules.

I asked this client ahead of time because he usually has a lot of transactions. I asked him to get the file and either send it to me or bring it in on a flash drive. Apparently, he had the broker send it to me directly by email. I think most brokers can do an excel file or csv file directly.

I agree with Terry D. Send a bill. Ok, but don't expect payment. The 1099-C is a bad idea, VERY BAD idea. You're asking for more trouble. 1099-MISC, no way, you didn't pay him anything. DON'T DO IT.

I wouldn't do that.

I go with Lion. LLCs get a 1099. But if electing C or S Corporation tax status, no. I treat them as corporations for tax purposes. Isn't the 1099 for tax purposes? The new W-9 should be your support. The IRS should probably clarify this since this question has come up often.

In the past I've entrered the entries or attached statments to the 8453. This year I had one client send me a csv file. I already have received it from the broker but I'm waiting for the client to bring in his info to begin the return. I hope to try the download and see how smoothly it goes. ATX does have that import worksheet. I want to try to take advantage of this more.

I try to caution clients on vehicles. Try to go with SL if they will agree.

This happened to me the first time I began efiling the business returns. But I didn't get a EIN. I just go into the Efile Info form and delete the firm name under ERO. My ERO personal name and PTIN are still there and everything goes thru.

It could be a re-issue and not a corrected. If originals have not been sent to SSA yet, it wouldn't need the W2c.

WmMorris, yes I thought it would be a better more efficient system. That's why I was going to use it. But I have my C drive on a SSD HD which has less space and my D drive on a regular HD (1 terabye). I like to keep the C drive for OS and Office Suite but install other programs (ATX, QB, Peach, etc) on my D drive. I used the custom install for Paperless Plus and put it on my D drive but it was by default putting all my files on the C drive. Due to limited space on my C drive, I need all that to go on my D drive and I couldn't figure out how to get that done. I will look into it after the busy season.

I've been using pdffactory pro for my file copies. I've been using my own windows explorer file folder system. I was going to look into the paperless plus program but ran into the problem I stated above. I thought it might be quicker. But now I don't have time to look at it.

Mine used to do it automatically too. But recently, not so. I don't know why. But I do the above.

Not harsh at all. A comment I like is 'It won't hurt my feelings if you want to get a second opinion.'

Yes, especially if they've been filing in previous years.

I've had some success with writing a letter explaining everything (truthful reasons for the situation), enclosing amended returns (if only to show what the tax should have been). Show the total tax per year as should be, the amounts paid, and how much would be left to be paid or overpayment, etc. I compose the letter, but the letter is from the client to the IRS, signed by the client. No telling if it will help but that's about all I can do for someone in this situation.

When in doubt, better safe than sorry.

Not sure if this is your problem. But I usually create both Fed and State at same time, keeping the state on hold. When Fed is approved, I click on release state return. I just had one and I must not have clicked on release. At first I couldn't get the state return to release. Then under EFile manager, under the far left efile tab, there was an option to release marked return. Not sure if you've already tried this but I thought it might be applicable.

I put it in box 14 to show the difference between box 1 and boxes 3 & 5.

No change. But remember it does not go in the SocSec and Medicare wages. And on the 1040, the deduction is limited to the amount of Medicare wages (same for retirement account eligibility). So if wages are low and ins is high, there may be a lower deduction on 1040 than the income added thru W2.

I see this new tab under the EF tab. Do we have to have this signed for everyone efiling or is this some special situation for only certain clients that we need this?

I haven't gotten to these type of returns yet. But thanks for the heads up.

I haven't used it yet. Looked at it the other day. Made up a client file and saved it. Couldn't find where it was. I found it on my C drive under a default folder. I installed the software on my D drive and assumed everything else with the app would be there too. Now I can't figure out how to install to make the files go to the D drive.