kcjenkins

The IRS is starting this year's Earned Income Tax Credit due diligence compliance audits of return preparers. To select preparers for audits, the service will "look at returns with a high chance of errors competed by the same preparer," according to the EITC Central section of IRS.gov. The audits review at least 25 EITC returns for the preparer's due-diligence records, the "probing questions asked" and the client's responses, and all questionnaires, checklists and worksheets. Audit visits will also include a review of EITC claims for compliance with Revenue Code Section 6695(g). Compliance requirements include: Completion and submission of Form 8867; Completion of the EITC worksheet; Compliance with the "knowledge" requirement; and, Compliance with record-keeping requirements. Non-compliant return preparers face penalties of $500 per return and other consequences. IRS auditors will also review a preparer's PTIN registration status and personal federal tax filing requirements. The service's EITC Central contains more information on preparer EITC due diligence training resources. The IRS estimates that between 21 percent and 25 percent of EITC payments were issued improperly during fiscal 2012, or approximately $11.6 billion to $13.6 billion. Those estimates may be understated.

As long as the child is a dependent, only the parents can claim the credit. If they are entitled, file a 1040X with the worksheet and documentation. Often those IRS-generated 'changes' are wrong.

Given the ever-increasing appetite of government for revenue, even if extended, it may be extended at a lower amount.

The current IRS goal is to increase audits of partnership tax returns with an emphasis on administrative matters in addition to the usual compliance issues. The IRS's initiative is to provide advanced partnership examination training to their revenue agents (aka “auditors”). Partnerships that are following their operating agreements and complying with applicable filing requirements will have less to fear than those who have been careless on the details. Knowing that the IRS will be coming to the table with a competitive edge, you should arm yourself with as much knowledge as possible. Two resources I recommend for partnership audit preparation: IRS Partnership Audit Technique Guide – this is the IRS manual for their auditors to use when auditing partnerships; very helpful to review prior to representing a client in an audit. IRS.gov page on audits of small businesses – an overview of rights, required records and FAQs. If you have other resources or tips about audit preparation, please share!

http://www.itdirectdeals.com/Microsoft-Windows-Server-2008-R2-Standard--64-bit--with-5-CALs-oem-Download_p_331.html It's a $400 program, but has a lot of valuable features. If you are running several computers, it should be a worthwhile expense.

Jack, I don't mean to be a bully, but I removed your last post, as it was diverting into Politics, which we are all trying to avoid in this forum.

Remember Oliver Stone's movie "JFK"? His theory was that LBJ was behind the murder.

From Wikipedia Her Notable rulings On April 15, 2010, Crabb ruled in a suit that the Freedom From Religion Foundation filed in 2008 against the Bush administration that the National Day of Prayer is unconstitutional. This ruling was unanimously dismissed by a federal appellate court in April 2011 due to lack of standing. On November 22, 2013 Crabb ruled in another suit the exemption of a housing allowance from the income of clergy was unconstitutional. If you go to http://www.robeprobe.com/find_judges_result2.php?page=1&judge_id=2959 it's interesting the extreme opinions she generates from lawyers. I did not read them all, but I read enough to see a clear pattern, that lawyers who appear before her consider her very dictatorial, very biased, and very anti-religion. She had favorable ratings from those who were against the National Day of Prayer, a ruling that was unanimously reversed by the Appeals level Other than that one ruling, her most common rating was "Very Bad". the worst rating you can get.

Lucille decided to give herself a big treat for her 70th birthday by staying overnight in a really nice hotel.. When she checked out the next morning, the desk clerk handed her a bill for $250.00. She demanded to know why the charge was so high "I agree it's a nice hotel, but the rooms aren't worth $250..00 for just an overnight stay - I didn't even have breakfast!" The clerk told her that $250.00 is the 'standard rate,' and breakfast had been included had she wanted it. She insisted on speaking to the Manager. The Manager appeared and, forewarned by the desk clerk, announced: "This hotel has an Olympic-sized pool and a huge conference center which are available for use." "But I didn't use them." ''Well, they are here, and you could have." He went on to explain that she could also have seen one of the in-hotel shows for which they were so famous."We have the best entertainers from the world over performing here." "But I didn't go to any of those shows.." "Well, we have them, and you could have." No matter what amenity the Manager mentioned, she replied, "But I didn't use it!" and the Manager countered with his standard response. After several minutes discussion, and with the Manager still unmoved, she decided to pay, wrote a check and gave it to him. The Manager was surprised when he looked at the check. "But Madam, this check is for only $50.00 "That's correct I charged you $200.00 for sleeping with me." "But I didn't!" "Well, too bad, I was here, and you could have."

Ode to Thanksgiving May your stuffing be tasty, May your turkey be plump, May your potatoes and gravy have nary a lump. May your yams be delicious And your pies take the prize, And may your Thanksgiving dinner stay off of your thighs!

Absolutely, accessing professional help sites is simple good practice. And, in today's world, absolutely essential. Just the need to download IRS pubs, etc, is justification enough for the iPad or other eReader.

No you are not a bad boss, but you should not feel bad if he does not come back. Either he knows enough to do direct input, or he does not. If not, you will be wasting time all season, double-checking every return he does. Safer to your reputation to have no employee than to have an incompetent one. Not to mention better on your peace of mind.

WOW. I have no doubt that will be appealed. Churches see that as a way to pay less salary, of course.

My method tends to reduce that, but anytime you see a reaction like that it's a good idea to mention, without directing it at anyone specific, how your costs have increased too.

My point here is that as TAX PROFESSIONALS, our clients expect us to know more than just "they will probably be extended". They still expect us to warn them of what MIGHT happen, as well.

Joint Committee on Taxation, List of Expiring Federal Tax Provisions 2013-2023 (JCX-3-13), January 11, 2013. This document can be found on the Joint Committee on Taxation website at www.jct.gov. SOME OF THEM MOST RELEVANT TO INDIVIDUAL AND SMALL BUSINESS T/Ps expires 12/31/13 14. Credit for construction of new energy efficient homes (sec. 45L(g)) 15. Credit for energy efficient appliances (sec. 45M(b ) 17. Employer wage credit for activated military reservists (sec. 45P) 18. Work opportunity tax credit (sec. 51©(4)) 20. Deduction for certain expenses of elementary and secondary school teachers (sec. 62(a)(2)(D)) 21. Discharge of indebtedness on principal residence excluded from gross income of individuals (sec. 108(a)(1)(E)) 22. Parity for exclusion from income for employer-provided mass transit and parking benefits (sec. 132(f)) 23. Treatment of military basic housing allowances under low-income housing credit (sec. 142(d)) 24. Premiums for mortgage insurance deductible as interest that is qualified residence interest (sec. 163(h)(3)) 25. Deduction for State and local general sales taxes (sec. 164(b (5)) 27. 15-year straight-line cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements (secs. 168(e)(3)(E)(iv), (v),(ix), 168(e)(7)(A)(i) and (e)(8)) 30. Additional first-year depreciation for 50 percent of basis of qualified property (secs. 168(k)(1) and (2) and 460©(6)(b ) 35. Increase in expensing to $500,000/$2,000,000 and expansion of definition of section 179 property (secs. 179(b (1) and (2) and 179(f)) 41. Deduction for qualified tuition and related expenses (sec. 222(e)) 42. Tax-free distributions from individual retirement plans for charitable purposes (sec. 408(d)(8)) 45. Treatment of certain dividends of regulated investment companies (“RICs”) (secs. 871(k)(1)© and (2)©, and 881(e)(1)(A) and (2)) 49. Special rules for qualified small business tock (sec. 1202(a)(4)) We all know that many of these will, at some point, be extended although whether they will be identical at that point is not known. Also the current atmosphere of open warfare between the parties may delay the action on even these.

Expiring Provisions JCX-3-13 (January 11, 2013) List Of Expiring Federal Tax Provisions 2013-2023 JCX-1-12 (January 13, 2012) List Of Expiring Federal Tax Provisions 2011-2022 JCX-2-11 (January 21, 2011) List Of Expiring Federal Tax Provisions 2010-2020 JCX-3-10 (January 29, 2010) List Of Expiring Federal Tax Provisions 2009-2020 JCX-20-09 (March 09, 2009) List Of Expiring Federal Tax Provisions 2008-2020 JCX-1-08 (January 11, 2008) List Of Expiring Federal Tax Provisions 2007-2020 JCX-1-07R (January 11, 2007) List Of Expiring Federal Tax Provisions 2006-2020 JCX-71-2004 (December 13, 2004) Description Of The Tax Technical Corrections Act Of 2004 JCX-1-2004 (January 21, 2004) List Of Expired and Expiring Federal Tax Provisions JCX-1-03 (January 07, 2003) List Of Expiring Federal Tax Provisions 2002-2010 JCX-56-01 (June 20, 2001) List Of Expiring Federal Tax Provisions 2001-2010 JCX-1-99 (January 20, 1999) List of Expired and Expiring Federal Tax Provisions, 1998-2008 JCX-53R-98 (July 09, 1998) List of Expiring Tax Provisions, 1998-2007

CPAs Worried over Uncertainty in Expiring Tax Provisions Washington, D.C. (November 21, 2013) By Michael Cohn The on-again, off-again nature of the federal tax provisions traditionally known as tax extenders is leading to uncertainty and unnecessary complexity, according to tax policy experts at the American Institute of CPAs. With 2014 approaching, CPAs are busy meeting with clients to discuss year-end tax planning, and the uncertainty over what is happening with the tax extenders is making those consultations more difficult. “Typically, as a part of that process, we will discuss with clients transactions and the timing of those transactions—should it be before year end or after year end, for example—but that process is especially difficult with 57 tax provisions expiring on December 31,” said AICPA Tax Executive Committee chair Jeffrey A. Porter in a statement. “It is challenging to advise clients if you do not know what the tax laws will be in 2014.” Some of the expiring tax extenders are significant, noted AICPA vice president for taxation Edward Karl. “For businesses, these include increased expensing under Section 179, where the limit is dropping from $500,000 to $25,000, the 50 percent bonus depreciation, the Work Opportunity Tax Credit, and the credit for research and development expenses.” “The on-again, off-again nature of the expiring provisions creates a lot of uncertainty, and that uncertainty then creates more complexity in the tax code,” said Porter. “It’s not unusual for the expiring provisions to be reinstated retroactively, also adding to the uncertainty and the complexity for long-term planning. Many taxpayers have come to anticipate that these expiring provisions are going to be retroactively reinstated. If they’re incorrect, that can prove to be a very costly decision for a small or medium-sized business. And the impact is not just limited to businesses. There are a number of individual provisions that are expiring, such as the deduction for state and local sales tax, the above the line deduction for tuition and tax-free distributions from individual retirement plans for charitable purposes.” Karl anticipates lawmakers will consider the tax extenders at some point, but that the timing is uncertain. “We encourage Congress to act now to either extend the provisions or to signal that it intends to allow them to expire,” he said. “We also urge Congress to make permanent those provisions that it intends to extend. In addition, we encourage Congress to enact future tax changes with a presumption of permanency, except in rare situations in which there is an overriding and explicit policy reason for making provisions temporary, such as short-term stimulus provisions or when a new provision requires evaluation after a trial period.” For a complete list of the expiring provisions, click here .

In my opinion if a Tax preparer has to use an interview method, they are not competent enough to do tax returns for others. Anyone competent can do them much faster using direct input.

Living in TX at the time, I also remember the fairly wide-spread speculation about LBJ's possible connection! He was well known within the state as a dangerous person, with powerful connections.

I agree, but I did one small change on that. I always showed everyone the "current" charge, then showed their "discount". I don't think you can just assume that they know they are getting a preference unless you show them that on your bill. Plus, if they do make a referral I don't want to have to explain to the new client why he's being charged more than the person who sent him, if his situation is similar. It also makes it easier to gradually increase the fees for longtime clients, while you still give them the same percentage discount.

Well, in my family,,, both my husband and all my sons are actually great in grocery stores. Maybe with the boys it's because I taught them all to cook well. But I still laughed until I hurt watching that. We all know some men who fit it perfectly, don't we?

http://www.wimp.com/pitbullkitten/

If you have not seen this, it's certain to give you a laugh. See why men shouldn’t do the grocery shopping: http://www.youtube.com/watch?feature=player_embedded&v=-YFRUSTiFUs