Diane

An 1120S shareholder purchased $30,000 of inventory on her personal credit card for the retail store filing as an 1120S. The entry on the books was Debit Inventory/Credit Loan to Shareholder. Shareholder has since filed for bankruptcy and had the credit card debt canceled. No cash was involved in these transactions. I've been told by the bankruptcy lawyer that since there was no cash, the loan can't be repaid. How will this be handled on the books of the 1120S? Where can I put the $30,000 since it no longer (apparently) qualifies as a loan. Paid in Capital? I don't know since there is no cash involved; does the shareholder still have equity in the 1120S?

S Corp has a loss this year. The only basis of the Stockholder is a loan. Can the Stockholder choose not to take the loss on his 1040 so that the loan basis amount doesn't change and we can suspend the loss until a profit is made. Diane

Does anyone use LogMeIn.com for remote access to clients computers? I will have to access one of my client's QuickBooks files on their computer. They are using QuickBooks POS for their retail store. I'm not finding any convenient time to get on their computer and do the work that I need to do; so I'm looking at remote access. That way I can do my work at night, from home, after the store closes. Any ideas or comments? Diane

I've been evaluating TRX for 2 weeks now. I like the way the program works. But -- my problems are: 1. I do quarterly and annual payroll reports, including W-2's and 1099's, for 4 clients. I would have to find alternative software to handle these. That includes finding software that would also do the efiling. 2. I do 2 1041's. One of which is Maryland. They do not have the Fiduciary form for Maryland. I would have to either do it by hand or try to do a fill-in form on the internet. 3. I do 2 990's. They both require Schedule A. TRX does not have those pages. Again, I would have to do by hand or try to do a fill-in form on the internet. 3. I have several clients with Maryland Personal Property Tax Returns. Again, I would have to do a form fill-in on the internet. 4. Their tech support is wonderful and friendly. I've had to use them twice in the last week because one of the returns I was working on suddenly started to crash the software. Then I couldn't access the return. They accessed my computer from their location and removed and reinstalled the program. Later, I again could not access that particular return. Had to call and ask them to send back a copy of that return that they had so they could check it out. Restored that file, so far so good. But I still get an error message every time I save the file. I'll probably have to reinput. 5. I do 1 PA20S tax return. There are too many areas where the figures have to be input manually instead of being carried over. The PA RK-1 has to be input manually for each shareholder. So, at this point, because of so many areas that have to be handled outside of the TRX software, I will be staying with ATX. I guess I've gotten used to having everything in one place and being able to complete my tasks within one software package. Diane

Thanks for the info on the Comments section of the Client Profile! I, too, never noticed the single line down at the bottom. Diane

I guess I'll have to call. Maybe it's not available on the Business returns. Diane

I'm currently evaluation TRX and am inputting an 1120S. So far, so good. But, I would like to put something in the Comments section of the Client Profile and it is grayed out. I can't click in the space or enter any info. Does anyone know why or how I can fix it? Diane

Need more info. Client donated this stock. Since he took the Average Stock Value on the day of sale, is it subject to the 30% limit?

Thank you KC. I'll have to do more reading using your links. I am so unfamiliar with this. Apparently it happend in the year 2000 and he is now contributing the stock to a charity. So, I will have to do more reading to try and understand his questions. Thank you again. Diane

I have a client who is telling me about this transaction and asking questions about the basis of the stock. I have no idea what this is. Does anyone? Diane

Early this morning I finally got my extensions accepted. I'm with you on the 'years off my life' thing. I only do around 125 returns, but this anxiety over the efile this season has been nerve racking. I've also had a couple of returns ready for paper file just in case. Diane

Have extensions efiled 2 days ago. Still in 'Validated by EFC' stage. I'm hoping I'm not the only one. Diane

No payments are made, thank goodness. Wouldn't want to have to deal with that. He has an NOL carryover with some accounts receivable coming in. That's the only reason he keeps it going. Diane

Thanks Everyone! I'm now going to call my client. Diane

I have a client with an 1120 fiscal year of 7/1 - 6/30. We filed the 2006 tax return for year ending 6/30/2007 last year. IRS is calling my client and telling him that they have not received the 2007 tax return; that the fiscal year end of 6/30/2007 should be a 2007 tax return and not a 2006 tax return. Now, I've been doing these taxes for 25 years and never had a problem with the year of the tax return. The IRS person told my client that she has been there for quite a while and knows what she is talking about. But, you couldn't even file a 2007 corp return on Sep 15 because they don't even have the forms out yet! She's telling him he has to file a 2008 tax return for this June 30 year end. Am I nuts? Have I been doing this all wrong for years? I can't seem to find in writing that you file according to the beginning of the tax year not the end of the tax year. I need help now. I have to call my client this afternoon. Diane

I have a client who passed away last year. He always had IRA, Pension, Social Security income. No interest or dividends. And he always owed addtional taxes because he never paid any estimates. I don't think there will be any difference in his last 1040 tax return. The daughter is trying to finish up her Dad's stuff. I'm not sure what they are doing about his 'Estate' (not sure he even has one). He lived in Florida, so I, again, don't know much about Florida rules. I don't do those returns. But, she is wondering if there is a balance due on his 1040 how does it get paid? If there is no money, who pays the taxes? By the way, anyone out there from Maryland and/or Florida that does Estate stuff? Diane

Freezing on me too. Have to Ctrl Alt Del just to get out. Hope this doesn't last long. Diane

I am also a one person operation; working out of my home (since the 1980's). I, too, have a husband who runs most of my errands; including the Post Office and Office Depot. I know it's not easy to do, but during tax season I spent 5 days in Ocean City (MD) and 4 days in San Diego. That kind of schedule makes sure that I'm always caught up. I work like crazy in the days before I go away, then work like crazy when I get back. Right now I'm trying to finish up and, hopefully, I will be done by the end of this week. (I don't do taxes on the 15th). So, at this time I don't have any particular plans for after the 15th, except to sit back and look at my To Do Board and see that it's empty! Happy 15th! Diane

I have a client who moved to New York City. Part Year MD and Part Year New York City. What forms besides the IT 203 have to be filled out for New York.

This is what I had to do when I was locked out. Go to sign in screen. Put in your customer #. User is Admin In the Password spot type in your activation code that came with the software disk. (My problem was the activation code they had on file was one digit different than the one I received with my software disk.) Then reset password. Hope that works. Diane

I have a client who disputed the amount on her 2007 1099. She had cancelled checks, etc., that showed a different amount. She asked that I write to them (on my letterhead) and ask for verification of the amount they used. I did, and they wrote back that they had included a Dec. 26 check in the 2007 1099 and not in the 2006 1099; and they showed a copy of the check. They should have included the amount in the 2006 1099; but, the amount is going to be taxed either in 2006 or 2007. This would require an amended 2006. The 2007 return has not been done yet. Now, the client wants me to write them again asking for verification of the amount on the 2006 1099. This time she has no copies of cancelled checks, etc., to prove otherwise. I told her I was not comfortable asking for verification (using my letterhead) of an amount that she can't even prove; that, for 2006 she will have to write the letter. What do you think?

Form 7004 reject: Efin must be listed in the eFile database and in accepted status. Do we have to do something different for this extension form to be efiled? I don't efile Corporate returns, but I do efile the extensions. What do I have to do now to be able to efile 7004's. Diane

Thank You!

Cash distributions out of previously taxed income should reduce the PA AAA account (per their instructions). If I put the distribution on Line 7 of AAA account it flows to Line 14 of the RK-1. The PA 40 return on line 4 says to include Line 1 plus Line 14 of the RK-1 on that line. But the cash distribution is not taxable. What am I missing here? This S Corp has always been an S corp.

I have a new client. Their 2006 tax return shows an NOL of $30,000. I see no evidence from the copy of the return they gave me that the election was made NOT to carryback the NOL. I also see no evidence that a Form 1045 was filed, or a 1040X. If none of these were filed what would be the first year of the carryback? I guess what I mean is - how far back do I go to do a 1040X? Do I amend 2003 or 2004 first? Sometimes I can't quite figure out what years are still open. Diane