Randall

Does the same for Ky. Luckily, I caught them all, so far as I know.

I haven't used Money Plus. I have downloaded MS Office Accounting but haven't spent any time with it. They offered it to accountants free. They also have something called Accounting Xpress and I think it's free. I don't know anything about it. If anyone is familiar with these, comments would be welcome.

I do not believe that the IRS makes a distinction on whether or not you are a CPA or not. My policy is to keep client records (1040) for seven years - when I checked I recalled that the IRS said 6 years. If you are a CPA your should also check with your State Board. I checked with Ohio and they do not have any formal requirements. I have an engagement letter that each 1040 client signs that states among other items my record retention policy.

good luck

I think that 6 years is on the IRS fiscal year or closing year, which I think is 6/30. So if a return is on extension and filed after 6/30, the first year counting is the following 6/30. With all that confusion, I just think of 7 years.

As mentioned, there may be improvements. Try to jog their memory. I doubt they have good documentation but maybe going through old checkbooks. Was all the borrowed money used for the deadbeat son? Could some of the money be spent on land improvements, fencing, excavation, surveying, whatever? Even to finance tenant farmers, or the son who was trying to be a farmer (in order to save the farm)? Just tossing out ideas to come up with some basis for them?

Good points. And I try to get my clients to get W-9s. Have the info ready at year end to prepare 1099s. And those who tell the client they're a corporation, ok, give the client a W-9 with corp name and EIN. I don't see why a long time business would NOT want to issue 1099s. Some may think I'm an advocate for IRS (we all are indirectly), but I see it as being an advocate of the client. Why not try to avoid the problem down the road.

Just to point out the obvious thing that no one has so far stated.. the IRS is seriously against seeing one business deduct expenses that do not show up as income on someone else's return. And, they do have the power to disallow those deductions.

That was my original point, but not so well stated.

>>it is understood that you gift them the money and you can only deduct $25. <<

if the company has reasonable records of the payment.

A big IF. Actually, I wasn't joking. But it is mostly a get your attention type of thing. I explain the requirements. I give them W-9s to get everyone on board. I'll accept the numbers the first year IF they seem reasonable and IF the client has decent records. But if they just throw out a big number, I'm not going to audit them and I'm not going to do the return.

Is it time to retire?

Yes, but I can't afford it.

I don't know about the increased frequency this year. But the tendency (especially for new businesses) is to just start paying people. They either don't know or somehow think they can still deduct the expense without any paper work. I usually don't see them until tax time. If it's not too much, I explain to the client, he can treat it as a gift and not deduct and do it right from here on out (W-2 or 1099, whichever applies).

I'd be interested in how others deal with this type of thing. I filed late 1099s in the past and don't know think the client was ever penalized. I keep hearing about the penalties though.

If the individual account fees are deducted from the IRA account, no deduction. They have to be paid with money from outside the IRA.

I agree on the plan fees paid by the employer, business deduction.

I haven't had that problem. But I'm not getting my client letters from last year included with the rollover. I think they rolled over early in the season but then stopped. I haven't pursued it, just added the letter, but it is getting annoying.

At first I hated them. But it seems more clients used them this year and brought in more specific info. Of course, many still ignore them. I think the mini left a lot out. The new one had too much for most clients but like someone said, it is very time consuming to customize them for everyone. I just printed the works out for everyone. Then I got sticker shock at the post office. I'm going to try to email as many as I can next year.

Thanks. That's what I was planning to do. I did however add a quick statement about the NOL on a Preparer's Note with the efile. I'm not sure if IRS gets that or looks at it or keeps it in their file. But I thought it couldn't hurt.

If current year has a NOL, will the worksheet (or any info about it) get efiled? It doesn't appear on my efiled forms list. I included a statement to elect to forego the carryback on the efile elect stmts tab and this is listed on my efiled forms list. If the current year NOL info doesn't go with the efiled return, do you just enter the NOL on next years return?

I don't know about CA, but I just put a copy of the Fed return with the original state. I do have a blue 'COPY' stamp I stamp the Fed copy 1st page (and signature section) included with the state return. This is more for the benefit of the client so he doesn't confuse the Fed copy with the Fed original. I let the state do their thing in figuring any differences. I do print the ATX state version of 4562 and depreciation schedules as part of the state original and the Fed copy has the Fed 4562 and schedules.

They're not all paid so poorly.

Erlanger is in No. Ky. A suburb of Cincinnati.

I have a full time Kentucky resident filing a nonresident Indiana return. He owes a small amount of IN tax. I have the IN efile info in the return, but it apparently is not linking or something. On the payment and refund tab, no amount is shown due. When I try to create the efile, only the Fed and Ky options are listed. I did this last year and was able to efile all three. Anyone know of something going on with the IN efile system?

The only thing I've had not roll over is the client letter. It rolled over earlier in the season, but a few weeks ago, stopped rolling over. It wasn't that much to just add it and then combine the Fed and state so I didn't persue it.

When first installing, I only checked two states. When I have a return that may have had another state from the prior year, the program will prompt me to insert the CD. This is the only time this happens for me that I can think of.

I roll them over and send in extensions unless I know for sure they're not coming in. For those who don't return, there's a year delay in my program of getting dropped off.

I was wondering how the efiling of 1065 and 1120S returns was working. Especially thru ATX. I got set up to do them last year but haven't done any yet. I've only done 1040s and I still have quite a few paper 1040s. I'm doing more and more efiled 1040s each year though.

I've noticed on my last several returns, the client letter is not included after rolling over from the prior year. Not a big deal, just added it, but I was curious. Anyone else seeing this?

I don't mind the two step error checking. It seems that the efile check process is specific to efiling and wouldn't affect a paper return anyway. Maybe I'm missing something.

I inputted the amount shown on 1065 K-1 Box 20 Code V in the input worksheet. A check warning showed up telling me the amount was not linked. I understood this amount to be for information purposes and not a separately stated income item. I thought the income was inclusive in the income reported in Box 1. Anyone familiar with this item and how ATX handles it?