Randall

Then, shareholder must have W-2 wages and employer SEP contribution is deducted at corp level, 1120S. Won't show up on personal return.

I do it Margaret's way. Use the old amended form in ATX, create a new amended form and fill in.

Only change in W2 is Fed wages Box 1 and State wages Box 16. W2c is printing both Fed and State change amounts. But W3c only prints Fed change amounts. Is this correct that the W3c doesn't need to show the State change amounts?

I use the manual system. Maybe I'm not understanding the auto ATX filing system but it seems to file by year, then all clients. I like to file by client, then all years listed under the client. Maybe I should look into the file manager system and learn more about it. But that'll have to wait now until the off season.

Interesting comments. I'm still with ATX. Probably will stay but who knows down the line. I think CCH has improved a lot from the initial buyout. I only heard of TRX last year. It seemed they were simply selling ATX and Taxwise under their own name. Now it sounds like they have their own program. Is that correct? How many years have they had their own program? From the comments, it sounds like they are still in the improving stage. ATX has improved every year. I wasn't really affected by the buyout since I didn't have to have much contact with support. Lucky I guess. What's the price of TRX for new people, not returning discounts, etc. All in all, I will stay with ATX, but if something major happens, I will look around. I have had Taxwise and Drake at the top of my list to check out if ever I want to switch. But if I hear more good comments about TRX, I will add them to my list in the event I do want to switch. Also, is TRX a small independently owned company like ATX used to be? No doubt, the owners will want to cash out when they've built up their client base to be attractive enough to one of the big boys.

Another thought I had, how can it be a deduction on Fed 1040 if it were pre-tax dollars? So it seems it would be a deduction on KY if it were on 1040, line 29. I'm trying to think of a situation where the two would differ.

Yes, I'm familiar with all that but was curious why it didn't automatically link this year but did last year. I agree, the probable answer is so that we would review the insurance being eligible for the deduction.

For any KY preparers, I see that the SE health insurance deduction from 1040 automatically carries forward to an addition on KY Schedule M, but does not automatically carry forward to a deduction on KY Schedule M. Did I miss something in KY tax changes? I'm thinking it is still deductible. I think last year, it automatically carried forward to KY Sch M as both an addition and a deduction.

Thanks. I thought so. But that was my next question.

Wouldn't such large amounts be prepaid? It seems high to be just for one year. But I too wonder how are we supposed to know.

I agree. Usually, the check is made out to the insurance company (a big corp), not the agent (who may be a sole proprietor). So for 2011, no 1099 needed. For 2012, corps come into play unless they repeal this, which most people think they will.

Side question. Can gold be held in an IRA? Or an ETF on the gold metal itself?

We may get lucky next year and not have this problem since the Dec law was good for two years.

I have a Fujitsu ScanSnap S500. For filing, I'm a one person office so I just use Windows Explorer and make up my own file folder names. For more than one person offices, I think you would need a program so the filing system is consistent and everyone can save and retrieve in the same place. I've heard File Cabinet is good but I think that cost $800 or more.

I suppose there are pros and cons. But I like to be able to find the client easily. Since I've been scanning, I can receive a call from a client and with a few clicks while he's still asking his question, be looking at the returns & info and usually answer his question on the spot.

Does the 1099-R show gross and taxable amounts the same? Is the box checked for Taxable amount not determined? I would tend to think this is part of his cost too but not show on line 21, rather input the lower taxable amount on the 1099R input sheet.

Under the overall file name of TAX FOLDERS, I set up folders labeled Business (1120s & 1065s, etc) and Individual (1040s including Sch C businesses). Under these folders, subfolders dividing the alphabet into 4 groups. Then Client name, then year. Under each year I have separate files for Fed return, State return, other worksheets & info produced by ATX, Client documents, my documents (such as notes, emails, etc). I also have an INACTIVE file and move client files there if they don't return.

Keep us informed on how it goes, especially after tax season. I'm keeping my eye out for the future. So far, not really a need.

Does the billing statement go to the IRS in the efile? It doesn't show up on the list of efiled forms. But earlier, I got an a rejection that my billing statement wasn't the latest version and I needed to update that form's version. I did not get a notice when I created the efile, only a rejection after transmitting.

Not sure if your are asking about my ATX question or the Forum layout. I think I got my ATX question (client letter) answered from the ATX knowledge base. Once I click on View New Content, I am now looking at the forum column to see if the topic is general chat or TRX before I click on the topic. So I think I'm ok now on this. Thanks.

I never sign the letter. I compose the letter FROM the client TO the IRS. Client signs.

If ATX is not piggybacking the state efiles, it still seems they are sending the state returns to IRS. I get acknowledgment status reports the state returns are IRS Cleared. So it seems that they are really piggybacking thru the IRS system, they just are transmitting the Fed and state at the same time. Is my understanding of the process correct?

jainen, MN dhawk, samingeorgia and others. Good to hear comments from the other side for a change. The talk show hooligans seem to rule the media.

Was there a discussion earlier about the billing invoice going with the efile? I had a rejection because the billing invoice was not the latest version. When I checked my list of efiled forms, the billing invoice is not listed. Seems there was a discussion of this info going to the IRS and the possibility of IRS auditng us using that info as a basis of our income. I like to use this invoice as a guide and input form rates knowing this will be higher than I actually bill.

Poor analogy. Lots of problems with our system. I'm not one to 'soak the rich' but then when I think of how they are compensated, I'm left wondering if they are really earning it or just back dooring it from the govt.