Daune/CA

When soda cans did NOT have a tab to open them?

How about soda that came in a bottle and you needed a "church key" to open it, instead of in a can. And those soda bottles could be returned for 2 cents deposit refund. That was how I got much of my spending money, returning those bottles that I found for the refund.

And most of today's kids do not even know what a typewriter is, let alone to use one.

It could also be presumed that the person made a donation to a restricted fund of the church, put the name of the restricted fund on the check, and the church used the money for the restricted purpose.

Churches have many restricted funds -- flowers, Sunday school, music -- this could be another one.

Churches have many "designated funds" that people show where they want the funds to go that they designate. The church is bound to distribute any funds designated to any specific needy family to go to them. They may not withhold any portion even for administrative purposes, which most churches do provide the administrative costs to their operating budget and not frm any designated funds.

Daune/CA

The check was made to the church right? So the only thing they would need is an acknowledgement letter, they can reference the family it helped out, an acknowledgement letter from the church could be support incase of an audit.

The problem lies in the fact that the church never received the funds. If the church is showing receipt of the funds and then showing it distributed to the needy family is could be a charitable donation, it depends on how the church is handling it on their books. If they do not show receipt, it is not a charitable contribution.

Daune/CA and former pastor

It seems very strange to me that all representatives of TRX have seemingly disappeared off the face of the Earth. What has happened to them? Has CCH sucked them into a spaceship and transported them off somewhere else?

Wayne Brasch

My guess would be that they are trying to get things resolved before coming on here just to add to the confusion. If the managements of the 2 firms are working out their differences, give them time to do so before responding here. Apparently CCH hs some differences that they need to have addressed with TRX. Hopefully they will keep in mind that we all are effected by their continued relationship with providing a good software product for both companies.

I feel as if I missed somthing. Is TRX selling the exact same program that ATX will be selling for Tax Year 2009?

From my point of view last year and TY2007, I did not feel that TRX was selling any tax software, but they were offering buying into their ALLIANCE, that provided Intellitax software as part of being within the ALLIANCE. It now happens that TRX has a contract with CCH to provide the software as Intellitax did, to be a part of being with the TRX Alliance. There are several other benefits provided aside from the software package provided. Do not lose sight of those differences when you are debating this issue.

If your only reason for going with TRX is the software, then maybe you are not ready to be a part of the Alliance. Yes, it is a major reduction in cost, but also offers other benefits. IMO

Daune/CA

Well, Terry, they were not offering ATX before, just TaxWise, which is why most of us were not interested before. But now that they are offering our program, I sure am. And I don't think I'm worried about how CCH will react, because they would not be selling it to TRX if they cared about losing a few current customers to them. As I said elsewhere, it's marginal cost to them.

KC, that is not totally true. TRX did offer ATX if you requested it instead of TW. I had signed with TRX for the 2007TY and again for 2008TY. After the sale by ORRTax, they sent the TW software, but I requested ATX instead, as they had mentioned it in some correspondence after the ORR sale was made. This year I requested ATX and got the TTO pkg, much more than I had expected, I thought it would be more like the "old Sabre". I am not going to be practicing anymore, so I am not renewing with TRX. However, if I were to continue, I would have no qualms with renewing TRX.

As I understand it, ATX is the company that produces the software. If we buy that product from another buyer, how does that help ATX to produce such good product. I would also rather talk to a ATX tech than one that just sells this product. Teck support as well as this good board is very important to me. I guess when you have a good product everyone wants to get a piece of it.

In the 2 yrs that I have been with TRX, I have found their Tech Support to be even better than what I received frm ATX over the 5 yrs I was with them alone. I had the opportunity to use the TTO this year, even though it is way more than I need. It was, at least, equal to the 1040 Tax Ofc pkg that I had for 2 yrs from ATX. Someone mentioned they would rather have the 1040 Express and MTG, you could even buy them separately in print version and save many more dollars with the TRX pkg, it just happened that I received them with the TTO pkg this year. Although I am retiring from tax preparation, I was totally satisfied with TRX and their very compentent Tech Support. As I have stated before, their use of "screenshare" for helping to solve problems, impressed me very much. I am not much of a computer literate, so this benefited me no end, and saved alot of time in accomplishing the desired results.

Daune/CA

I tell them the combination of the interest plus FTP penalty is the equivalent of borrowing the money at a 13 - 14% APR. Not exactly HELOC rates, but less that standard credit card rates. There's no loan application process or possibility of being turned down,the debt won't ding their credit score (provided they don't let it get to the point that a lien is filed), and they will still have any existing lines of credit open & available if needed for emergencies. Some of those positives are worth a point or two premium on short-tem financing, especially in these uncertain times. For someone facing that situation, this sort of knowledge is very useful and helps them to make more informed choices.

One example of how it could work is something along the lines of the policy followed by the state of NC. If a taxpayer is otherwise compliant, they can obtain forgiveness of 100% of a first penalty and 50% of a second penalty. This option can only be exercised once every 3 years, but it's available with virtually no other restrictions by simply filling out a one-page form.

John H, it is too bad we can't get you on TV to explain it like that so people can make an informed decision. My beef is that the TV people do not help folks in most situations, but make things more puzzling for them.

There is a need for other states to learn from what NC is doing. CA can't pass a budget on time, so I do not see them doing anything that would help folks.

I think the anchor was technically wrong but corret in practice.

It all hinges upon what one means by "Extension of Time to Pay".

If one means that the IRS is giving people a little extra time to pay with no consequences, then it definitely it not an extension of time to pay.

But if one means that IRS is allowing the taxpayer to acknowledge that they owe, that they can't pay right now, and that they intend to pay later (along with interest and a very small FTP penalty), then the 4868 does constitute both an extension of time to file and an extension of time to pay. The instructions on the 4868 acknowledge that fact when they make it very clear that the extension will be valid even if the taxpayer doesn't pay the full amount owed.

I think IRS is very crafty with their extension policy. They proclaim loudly that the extension is not an extension of time to pay, then they directly contradict themselves by allowing people to acknowledge that they owe but they are not paying. The validity of the extension had much to do with a proper estimate, but absolutely nothing to do with whether it's accompained by payment. This has the practical effect of getting taxpayers to acknowledge the liabiilty and then giving them several months to begin crafting a plan to deal with it.

Mostly it is an extension of time to file w/o penalty, but there is penalty if they do not pay timely. They can still pay later, but there will be penaties accessed.

On Sunday nite, a TV anchor told his listeners that they could "delay payment" by filing an extension!

I emailed "Fox40" Sacramento and advised that the anchor had erred in his statement. Told them that too many already believe that and they need to get it right. To my amazement, they chatted with a "Tax Expert" from HRB about this topic of extension of time to file but not to pay on Tuesday. It was evident from their questions that they were using my email as a basis for their questions. Even with HRB they finally got it right. Apparently, some do try to get it right. Surprising that with all the good EAs and CPAs in Sacramento that they must use a HRB "Tax Expert".

Kick back and enjoy the time until the "Tax Man Cometh Again"!

Daune/CA

Done? Are you kidding? I have three new clients coming in today, one client from last year coming in this evening, and I am expecting at least two more from last year. I am never done until April 15th. And then there is all those extensions that I have already filed and it goes on and on and on and on and on!

Deb!

I used to do that until I realized that by moving the deadline to April 8th, those who are always late would continue to be "late" but late for April 8th instead of 15th. After several years I moved the date back to April 1st. Began to enjoy my wife's birthday on April 13th and no more stress on the 15th. After being in business for many years, you can dictate the day that you want to finish. Starting out, you have to endure to gain clients, but later you can dictate when you will not accept anymore.

Even when I operated in the Montgomery Ward stores, I was not open on Sunday! We still got the clients, they just came on the days we were open.

It is a matter of attitude and holding to it.

How do you report it on the return? I have never had one of these and need guidence.

Linda and buddy

Report it on the SE as housing allowance. Any amount over the actual allowance must be reported as line 21 income.

Ooooooo,, I like that one! And I do have at least a couple of folks with whom I am sorely tempted to share this piece of opinion/advice.

OOO! What has happened to all the friendly people in OH. I lived in the NE part of Ohio with all those friendly farmers, have they all gone snippy nowdays, or is it just the Tax Stress talking :unsure:

HAPPY EASTER TO ALL. May the Lord bless each of you as much as this board has blessed me thru your caring and advice. Especially, thanks to ERC for making this board possible.

Happy Easter!

Daune/CA

The IRS will always assume that any income in box 7 of the 1099 MISC is self-employment income. Sounds like this company incorrectly issued the 1099-Misc. They could have included this in his W-2 wages. I think it would be best to contact the apartment complex and ask them to correct their filings. If you put this as other income on line 21, you can be sure to get a notice from the IRS. JMHO

Terry D.

This is housing allowance for convenience of employer. It is taxable for SS, but not for income tax.

If someone was married in a religious ceremony (by a member of the clergy) but does not have a formal marriage certificate from a civil court, are they considered married and filing jointly?

If they are living as though married and have a certificate of marriage from the religious community, I would treat them as MFJ until denied by IRS. I would not ask IRS for ruling, but should for some unknown reason be denied by IRS, I would treat them as they appear to be living.

Next questio is bank products? Do you have to go through the CCH site to process them like in ATX? Or do they have another way of working with the bank? Is that $10 charge in play with the TRX version?

Sorry for all the questions, but I am seriously looking at dumping ATX this year. I am looking at Drake, but if I can get ATX without the bank products headaches, I may go that way.

Tom

Lodi, CA

In the 2 yrs that I have used TRX, I have NOT used any bank products thru them. It has worked out well for me. Upon the changeover to TRX from ATX, they had a conversion package that worked fairly well for me. I am sure they will do the same for whatever pakg they present next yr.

So it sounds like TRX does what CCH would not. Stnad behind the product and support their customers. Or am I missing something?

At least for me, TRX has stood behind their product. They also offer many other free services with their product, ie tax folders for clients tax returns. Their tech people have been very good in helping me with any problems I have had, and without a major time wait to get them on the phone. I have never had a problem with efiling with TRX.

Yes, I would say my point is that TRX stands behind their product and offers great customer support!

Gee, I am glad I was not reading the board yesterday. I would probably had a stroke, but a good April Fools.

I too did not read this board yesterday. I was shocked at first and thought it was good that I decided to retire after this year, and then to my delight found the "April Fool's" joke. Hard on an old man!

This forum has really helped me over the tenure, thanks to all of you that make it what it is! Keep up the good work and fellowship, even the jokes

Best of everything to all.

TRX's website is trxalliance.com. Check it out for yourselves. Sounds like a great deal.

I used TRX for tax yr. 2007, and being satisfied with their support and program, I decided to use it again for 2008.

I then signed with TRX for 2008 and later decided that I would retire. TRX would not refund my $299, so I decided to stay with them for one more year, since I had already paid for it. To my delightful surprise, when TRX sold Intellitax, they sent me Taxwise, which I did not install and requested that they send me ATX. To my surprise they did send me the ATX total tax office pkg. Way more than I expected, but working out very well for me this year. This will be my final year doing taxes as I am now over 75 yrs old and it is time to retire from the headaches of tax work. For my final year it has been good to have the ATX pkg.

Best to all of you in the coming years.

Daune/CA

That is along the lines of what I am thinking. What I did is take the difference between the number of shares he had and the new number of shares and said he sold them. Then I took the remainder and said he exchanged them share for share.

I will put some numbers to it.

Client holds 1575 shares with a basis of 10,000 or 6.34/share. He recieves cash of 3,933 and 1074 shares of stock in the merged bank. So he sold 511 shares with a basis of 3,260 for 3,933 with a gain of 673 and exchanged 1074 shares of old for shares of new with a basis of 6,760

Something is telling me this is not right. I can't put my finger on it though.

Is it possible that he has to add the value of the new stock to the cash recieved as the sale of all 1575 shares, calculate the gain, and then act like he puchased back shares in the new company?

Thanks again for your help. I just can't find anything that is on point in my research.

Tom

Lodi, CA

This is similar to a split. Zero basis in cash sale and zero basis in new shares being held. Old stock still retains original basis.

I am afraid my response would have been, "If H & R is so good, why are you here today?" While pushing their stuff back to them. Don't need PITA clients. Some of the regulars can push the bar too close to snapping. I'm getting way too old for this anymore.

It was only 61 around here, but the sun was shining!

A breezy 78 yesterday and probably similar today, but less breese.

Mel, you are cruel.

Out here in CA, there is a small company that runs the fair circuit in the summer. They make some of the best cinnamon rolls, and they smear a bunch of cream cheese on them and sprinkle them with walnuts. It is the best $6 I spend at the fair every year. And you can watch them make them right through the window of their trailer.

The fair is still so far away, and so is Hawaii.

Hey Mel, if I take my wife to Hawaii for a three day weekend in April, will you make some rolls for us? I am serious. I have to take Patty for a long weekend after tax season for missing our anneversary in March. I was going to take her to Monterey, but Hawaii would work too.

Tom

Lodi, CA

Yes, and send enough back with Tom that he can share them in California. I need the Cinnamon Roll fix too!

I agree Tom the fair rolls are super. Did you know that Pillsbury makes their "Grands" cinnamon rolls with the Cinnamon used by the people at the fair. They are good too! Now you have me hungry for them.

Daune/CA

I hate those RR things. All these years, I've just put the tax withheld in box 4 of the input. I have never even noticed the selection thing up there. When I selected the option, and changed the tax from box 4 to box 9, mine doesn't go to 1040 either. I'm sure someone can help us. Remember that song that says, "wish I didn't know now what I didn't know then"?

Cheer up it could be worse. So I cheered up and sure enough it got worse! :(