Randall

1099Rs are issued for annuity and life insurance distributions. Annuities can be IRA or Non-IRA. I agree with KC, that this would not be an IRA annuity because the client put a large lump sum into the annuity. The 1099R reports the distribution proceeds. The basis appears to be $80,000. Excess of basis is taxable as ordinary income (with 10% penalty if applicable). If proceeds are less than basis, I believe the loss is deductible but I don't have cites off the top of my head. Review the rules on this, but I believe the loss is deductible. No on the rollover, like KC said.

And I did throw in a few fresh hampsters too.

I think I figured it out. In the Return Manager, some clients type were listed as W2 and some were listed as W2/W2C. I manually added the slash W2C to the ones listed only as W2. Now all clients are listed on the left under the W2 category. That still doesn't answer why the two groups reversed themselves within the two categories, but oh well.

This just got stranger. This morning, I rolled over another W2 client and it went into the 'Other' category on the Return Manager. Now I'm back into ATX and I see that the earlier W2 clients I worked on (plus the rollover this morning) are back under the W2 category, but the W2 clients I rolled over in between are under the 'Other' category. They've done a switcharoo. Do I have gremblins? Maybe I need some fresh hampsters in my CPU.

The W2 category is not showing in my return manager. It was earlier. My W2 type returns are now listed in the Other category. I rolled over a new W2 return and the W2 category reappeared with the new return listed under the W2 category. But the other W2 returns are still listed under Other. Does anyone know how that might have happened? And can I fix it, move them back into the proper category? W2 is still listed as type under the Type column.

That's why I wear my contacts with reading glasses over them, even on the long days.

I use encryption software on my desktop. It can also encrypt external hard drives and flash drives. The software license allows for this. But not addional computers such as a laptop. I use PGP for the encryption. Hopefully, if I lose a flashdrive or it's stolen, the info is protected.

If you're preparing both W-2s and 941/940, you can report to make the numbers the same. If you did not prepare these, you can prepare a corrected W-2 for the shareholder/employee to include the health insurance. One issue might be breaking it down on the quarterly 941s, but I've just added it on the 4th quarter 941. Then there's the local income tax. I just add to 4th quarter to make the total annual amount come out correctly.

I just do it on the individual return. Choose option for combining Fed and state.

SEP limits are percentages. SIMPLE limits are dollar amounts. S Corp shareholder/employees W-2 compensation applies. So, yes, if the W-2 compensation is $10,000, they can contribute the $10,000 to a SIMPLE. Wages are still subject to FICA tax and local income tax (most localities). So (in this case), the shareholder/employee might have to put in money to cover the withholding taxes.

I use HP 2430. It's not on ATX's list but I had no problems last year. The old HP4 got to be just too slow.

I generally upgrade when I get a new computer. Currently running XP and Office 2003. I plan to get a new computer later this year. I'll go with Vista and Office 2007. I hate the changes and the annoying learning curve too but there will continue to be upgrades and I want to keep up as much as possible.

Last year, I saved it on my desktop. Haven't done it yet this year but will soon.

I do.

I just upgraded my computer to 4GB RAM. I'm running XP. I think the 64 bit machines allow you to go well above the 4GB RAM. Are those with 64 bit machines (and Vista 64 bit) running the 2008 ATX ok? What about other programs such as QB and Peachtree? I'm planning to buy a new machine later in 2009. I'm not concerned with the older program versions as I will keep my current machine for old returns, etc. But I would like to get the top of the line 64 bit on the new machine and not have problems with software.

What about XP SP3?

I've copied a section from the manual into a pdf file with the instructions on how to make an accountants copy and how to merge the accountants changes. I send it to the client. According to QB, you can do the accountants copy for one version back. For QB2008, you should be able to get a client's accountants copy from their QB2008 or their QB2007 and they should still be able to merge the changes. I can't verify this though.

This is a good heads-up for future new clients. I think I'll add to my list of info requested: date they purchased their home and, not just the previous year's tax return, but returns going back to all years since they have purchased a home (within the time credit available).

I'm not sure of all the facts of your situation. I don't have any cites off the top of my head, but generally, I would think an S Corporation could distribute the installment note to the S shareholder and he could continue to use the installment method. For a C corporation, the shareholder would normally not be allowed to continue the installment method but have to pay all the tax upfront.

I don't know of an inexpensive alternative. You might try AccountantsWorld or AccountingWEB, places like that. They have lots of ads for various products. I don't do audits anymore and I recently stopped doing compilations. I had a peer review last year because I did one compilation. I still get PPCs Compilation and Review Guide and their Financial Statement Preparation Guide. I like having the reference material available. They seem to be reasonably priced although we do sometimes get in a rut and not want to look around and make a change. Let me know if anyone knows of some good alternatives.

Kind of like church, pay and pray.

My 2004 shows Release 20051108, Program Version 2004.55.37, says it's updated from the Web, Build 4590. My CD says 2004 Archive Release. I tend to update from each CD when received, then immediately update from the web. Even though they say the CD won't overwrite anything newer from the web, I still update from the web right after updating from the CD.

It seems like this run away train is picking up steam. Encouraging lenders to lend more, encouraging borrowers to borrow more. I guess the next step will be to add zeroes to the currency. I'll have that beer now.

The cost of the higher end programs are worth it if you have the volume to warrant it. If you only have a small number of the more complex situations, it's worth it to me to stay with ATX. Each of us have to make that choice.

I don't prepare these at all, even the simplest ones. I recommend they contact an attorney. If it's only one owner (or two spouses) and the business will be very simple, I tell them they can do it themselves. They can go to the state website. I think Ky has a simple one page form or whatever. They can also go to an office supply store and get some forms or buy some software. BUT I don't and won't do it for them. If they have two or more partners (not spouses), I definitely recommend they see an attorney and not try to do it themselves. On the other hand, I've seen attorney prepared docs that have such lengthy boiler plate language that doesn't really address some specifics of what they want to do. I don't think clients know what it says or means.