Julie

I don't have as much time as I once had to hang out with you guys, but I still don't know how I'd get by without you.

It can be scary being out there all alone, and for me, from the beginning, it's been the ATXers who gave me the courage to keep going.

Love you all!

I think this is the first time I've ever filed an extension for myself. Oh, I have a few excuses: I know I have a net loss this year, and I was sick with a horrible virus from about the end of March (I'm finally getting over it, but still have a bad cough), and running an art gallery is way more work than I anticipated. But I need to do better than this. Feeling very guilty about the lax standards. You guys are reassuring, at least.

I did start my return early, but not to test the software. I have a charming couple come by every year to do that: Dummy and Tax Return, and their daughter Carriage.

Without seeing it, of course, it's anyone's guess. But I would look at the k1 input and make sure that line 14 is completed correctly.

Well ATX finally figured out that I had not checked the general partner bos but still can not create efile like brothers on March 3. The Brothers was filed and accepted on March 3 with no problem not can not create the brothers efile because of the sch se...... what gives????????

Not necessarily. Particularly in the case of a back injury, it may be necessary to buy a much more expensive mattress than one might normally buy for comfort. If you cannot stand or sit for more than a short time, the mattress is much more important than otherwise.

But to be a medical expense, I would think the doctor would have to have specified a particular type of mattress, for example?

Its time for a reality check! A mattress is for comfort and not a medical expense.

Maribeth's using the right procedure....or at least that's the way I do it.

Sorry....I'm busy enough that I can't check in every day any more . (That is good news, btw.)

Accepted. No problems.

I just sent one off...fingers crossed.

I had one of two Sch C's disappear a couple of years ago. Client got letter (1099 was more than remaining Sch C income) from IRS. Client (relative) was very edgy, nervous. I called IRS, faxed necessary Sch C, all was okay. But I lost the client the next year anyway. Oh, well.

I'm dealing with one of these (but from 1998-2000--don't ask) The letter from the collection agency lists the amount that they got for the truck, and how much he still owed. I treated that as a sale price, because they applied that amount to his debt.

So...ATX has your depreciated basis from last year. Just put in the sale date and the amount they got for it at auction (or whatever) on the dispositions page. If he still owes them (mine does) he'll probably have a tax loss. Apparently these things are never cancelled, and they owe the remainder forever. (Of course, yours may have a 1099-C....but mine doesn't.) 4797 should generate normally.

My apologies. However, "Business began last year as a sole-proprietor with beginning depreciation on the truck. How is this disposition treated?" this statement implied the business began in 2008, and I assumed the depreciate you were asking about was for 2008 and not 2007. Sorry about that.

Thanks, KC.

Maybe six or seven years ago, on another board, I wrote a line-by-line explanation of this one (it was a bit shorter then). I don't think I'd have the patience to do that again, but I think people do need to look twice at things they spread around....they may express one's point of view perfectly, but are they really true?

In ATX, if you've been using the loan amortization checklist, all you have to do is check the box that the loan was paid off this year.

I am guessing you have to put in the state income (even though that box on the 1099R is blank).

I am working on a client's return. The client received a 1099R as a result of a Colorado Pera plan. The client lives in Oklahoma. The 1099R has $18.00 listed in box 10 (State Tax withheld). In box 11 it has as the State, (OK) listed. When I look at the Oklahoma Return (Form 511, line 23 "Oklahoma withholding") I don't see this $18 entered. Why is this happening?

Has anyone had this same problem? What did you do about it?

Thanks for your responses!!!!

I just sent one off...fingers crossed.

Has anyone had one of these returns sucessfully efiled and accepted????

Since they are bankrupt, your client's odds of recovery are just about zero. How about a casualty loss claim?

Let me know when you find out. I just did my first RDP, and they should be in to sign in a few days.

Did yours go through? I called ATX and asked it that work around was ok (making sure you DO check the box on page 1 for 'filing status different than federal) and I spent over an hour on the phone and they really didn't know what I was asking them.

Have you found the RDP worksheet anywhere? I was going to use that since I was preparing paper returns rather than the enormous package otherwise required and could not find it anywhere. doesn't work if you are efiling with w-2s but I figured since I was doing a paper file I could use it.

Interesting spreadsheet....I run at the higher end of the things I actually charge for, but there's a lot of stuff I figure is included.

Example. I charge $100 for a basic tax return. But I don't add on anything for child care, EIC, education credits, retirement savings or interest income. So it's still hard to make the comparison.

Attached is a spreadsheet I compiled comparing fees I found on the internet of 5 different tax prep firms. It's about five years old. I tend to drop the highest and lowest fee and if my fee is close to the average of the remaining three I'm pretty comfortable with it.

Uh...I think that's in Cir. 230. Don't remember the statute, but I'm sure we do have to keep that info confidential.

>>Don't we have to keep our clients' identities confidential? <<

Well.. we all do keep them confidential for our own protection, but that is not a requirement or a violation of any law or ethics that I know of.

I explain to them that, as of August of 2007, they need more information than previously. The new law requires that they be able to show that the item is worth the claimed deduction, and that, if they are donating anything of real value, they should take pictures in advance. In addition, the new law requires that donated items be in "good used condition," and that items of minimal value (the law mentions "used underwear") are not deductible.

Despite my warnings, I have several clients who bring me a receipt from Goodwill with no dollar values and no description of the donated items....just a generic description such as "3 Boxes of women's clothing" clients then expect some type of charitable contribution for their Sch A.

What do all of you do in this situation? Does't IRS now require more detail in this area?

Advance EIC is often a mistake. By the end of the year, that person may no longer qualify for EIC, and they definitely won't have the money to pay it back. And it's so rare that I miss it occasionally, too.

As for needing the money month by month, sure they could use it. But they'll never have enough money to get that old car repaired without getting a single large check. Sometimes they already have the car in the shop, and can't get it out until they get their tax refund(and you wonder why they like RALs?). An extra $167 a month will disappear into groceries and day-to-day necessities, but a single large check allows them to buy a used car or fix the old one, with maybe a bit left over for the kids' shoes.

A long time ago, working at HRB, I did see a fair amount of EIC fraud...but it was almost always caught quickly, since the legitimate parent of the child usually filed at about the same time. When we could identify the fraud, we'd send them away, but they'd go on to another office where they weren't known yet. In general, they always want a preparer who's never seen them before.

In private practice, I don't see it at all. I still have EIC clients, but generally I know them well, since they've been with me since my Block days.

Julie

I've seen it once.

And totally missed it (initially). Was on auto-pilot and my mind just skipped that box. Caught it on the second go around, but it was cool since return was a freebie for a friend of a friend and she understood.

I like the idea of advance EIC. Then again if I could do it without paying interest or penalties I would wait until the last moment I possibly could to pay any taxes. I always tell people including customers that *my* goal is to owe $1000 each year in my "You need to adjust your withholding so you don't get another $12k refund" speech. Sometimes I convince them to adjust withholding to a refund of "only" a few thousand. I guess it's easier to save money if you're forced to through withholding, even if you're giving up earning interest on it.

Have you updated your software? Try a "custom" update and pick those forms by themselves.

Babysitting throws in another set of possibilities: If the "employer" claims a credit for the child care expense, and she does not file a tax return reporting the income, she will almost certainly hear from the IRS.

Look in your profile.

Well, so far, I'm being rejected by everybody. It was about 6 years ago that River City charged the $100. They seem to have dropped the practice. I still have not gotten anything from HSBC. The only bank that has not rejected me outright is Chase, and they're waiting for that loss ratio. That I can't get.

I only need them for a few clients, but those are the ones who've been with me since day one, and I would feel seriously lost if I lose those few over this issue. (Looks like I've lost one already. Someone who's been with me since my days at Block and referred lots of her friends over the years. Must have RAL today. I can't do it.

Yes, believe it or not, in California, our property tax is about $350 a year. This is because it's grandfathered under prop 13, which prohibited reassessment on owner-occupied homes, back in...1976 or so? At any rate, my husband already owned our home when it was passed. This is a modest little bungalow, badly in need of repairs, but, still, a real house with a yard (and no mortgage).

An i jaded by Long Island rates but except for maybe trailerparks, are anyones real estate taxes less than $1000. i think we are safe just puting in the max of 500/1000 for 90% of our standard deduction clients and only have to get real numbers from those in small co-ops etc.

My clients are calling and asking for reassurance: "It isn't the big one, is it?" "No, relax, it's the little one." "Whew!"