kcjenkins

Good decision, Cat. I could only take it half way, wish I had not looked at it. The pictures are sad, but the sound track of his entire family yukking it up over his disappointment after they set him up to think he was getting his Christmas wish, is just plain disgusting.

That is a sick family.

I was at home, in Pasadena, TX, we did not own a TV, but I had the radio on, and when the news came on I walked to the store where Don was working. None of us wanted to believe it could happen here in the USA. Nothing much happened the rest of that day, because everyone was in shock and just watching TV and talking to each other.

Taxed, as I understand it, no Sch C has yet been filed. New business, remember, were not together very long. First step would be to get a copy of the EIN application.

Marco, let me see if I understand the case. Your client was in a partnership, and, if I'm getting your comparison, he had no idea that 1065's were not filed? If that's what you mean, then the first thing to do is look at everything he does have from the partnership. I'm guessing it's just K-1s. But that alone might be enough to beat some penalties. It is actually possible that the returns were filed. IRS does make mistakes occasionally. Main thing is how large a percentage he owned, the higher it is, the less chance, in my experience, that they will abate any penalty.

Ditto, Gail. I admire her for doing it, but very much not for me..

WAY TO GO, RITA !!!!

Clearly, she can not "do it now", and I think all you should tell her is that if she does not want to file with him she has no reason to file at all IF in fact, the business was truly just her business. I'd wonder though, if the husband, as the only earner in the family, did not fund the business and consider himself at least a part-owner, and want to take the loss. That's the thing about small Sch C businesses in a family, often there can be 'ownership issues' if they split up. And we are ASSUMING here that it was a Sch C.

I do know what you mean, Lion, but I still find my bed draws me, whether it's empty or my dog is waiting for me on it.

Jacques Chirac, The French President, is sitting in his office when his telephone rings. "Hallo, Mr. Chirac!" a heavily accented voice said. "This is Paddy down at the Harp Pub in County Clare, Ireland. I am ringin' to inform you that we are officially declaring war on you!" "Well, Paddy," Chirac replied, "This is indeed important news! How big is your army?" Right now," says Paddy, after a moment's calculation, "there is myself, me Cousin Sean, me next door neighbor Seamus, and the entire darts team from the pub. That makes eight!" Chirac paused. "I must tell you, Paddy, that I have 100,000 men in my army waiting to move on my command." "Begoora!" says Paddy. "I'll have to ring you back." Sure enough, the next day, Paddy calls again. "Mr. Chirac, the war is still on. We have managed to get us some infantry equipment!" "And what equipment would that be, Paddy?" Chirac asks. "Well, we have two combines, a bulldozer, and Murphy's farm tractor." Chirac sighs, amused; "I must tell you, Paddy, that I have 6,000 tanks and 5,000 armored personnel carriers. Also, I have increased my army to 150,000 since we last spoke." "Saints preserve us!" says Paddy. "I'll have to get back to you." Sure enough, Paddy rings again the next day. "Mr. Chirac, the war is still on! We have managed to get ourselves airborne! We have modified Jackie McLaughlin's ultra-light with a couple of shotguns in the cockpit, and four boys from the Shamrock Bar have joined us as well!" Chirac was silent for a minute and then cleared his throat. "I must tell you, Paddy, that I have 100 bombers and 200 fighter planes. My military bases are surrounded by laser-guided, surface-to-air missile sites. And since we last! spoke, I have increased my army to 200,000!" "Jesus, Mary, and Joseph!" says Paddy, "I will have to ring you back." Sure enough, Paddy calls again the next day. "Top o' the mornin', Mr. Chirac. I am sorry to inform you that we have had to call off the war." "Really? I am sorry to hear that," says Chirac. "Why the sudden change of heart?" "Well," says Paddy, "we had a long chat over a few pints of Guinness, and decided there is no way we can feed 200,000 French prisoners."

I have some questions about the lack of income for him. How is he living, and paying for his school costs, if he has no income? She might want to file MFS and claim the child, but I really would want to know more before proceeding. I think the issue of the validity of the marriage should be cleared up first, as well, if he's not living with her.

A couple goes for a meal at a Chinese restaurant to celebrate the man's birthday, and order the house specialty, Chicken Surprise. The waiter brings the meal, served in a lidded cast iron pot. Just as the wife is about to serve herself, the lid of the pot rises slightly and she briefly sees two beady little eyes looking around before the lid slams back down. "Did you see that!?" she asks her husband. He hadn't noticed anything odd, so she asks him to look in the pot. Just as he reaches for it, again the lid rises, and now he also sees two little eyes looking around before the lid again slams down. Rather perturbed, he calls the waiter over, explains what is happening, and demands an explanation. "Please sir," says the waiter, "What did you order?" The husband replies, "Chicken Surprise." "Ah! So sorry," says the waiter. "I bring you Peeking Duck."

I second that.

Some big-dollar tax deductions that affect businesses are set to expire in 2013, so now’s the time to make sure your company considers taking advantage of them for the current tax year. Doing so may allow you to buy more equipment, send less to the IRS, or both. Senior Consultant Peter Brown of Sageworks , a financial information company, talks with accountants daily and said quite a few of these professionals are working on year-end planning right now, setting up client meetings and making calls. “Many accountants are trying to contact their clients and engage with them to help them identify and maximize deductions in order to save some money on their taxes,” Brown said. “They’re also encouraging clients to work with them now so they won’t have to file as many extensions.” Michael Lortz, shareholder at Portland-based accounting firm Geffen Mesher , specializes in working with entrepreneurs and privately held businesses and said deductions related to equipment purchases and spending on research and development are among the things that could go away in 2014, assuming Congress doesn’t act to extend them. Here’s a rundown on some moves to consider: Section 179 deduction. “Under the Section 179 deduction, businesses can write off dollar-for-dollar their equipment purchases,” with certain limits, Lortz said. For example, a business could buy a new truck, new machinery, or new servers and deduct the first $500,000 in costs for the 2013 tax year. Without an extension by Congress, the allowed first-year deduction drops to $25,000 in 2014. “That’s a pretty significant incentive to purchase and place into service any fixed assets or equipment,” Lortz said. He noted that making sure the equipment is placed in service by Dec. 31 is important. “So, for example, if you were to order some new servers and you ordered them December 30 and installed them after January 5, technically, they don’t qualify for the deduction in 2013,” he said. Purchases exceeding $2 million start to lose that first-year deduction of $500,000, too, he noted. Real estate purchases aren’t covered by the Section 179 deduction, but if you’re a tenant and you’re making certain leasehold improvements, you might be able to write off up to $250,000 of those expenses, according to Lortz. First-year bonus depreciation. Larger companies that spend more than $2 million on capital equipment should look into the “first-year bonus depreciation” allowed in 2013 but set to expire, Lortz said. Under that rule, brand new equipment can qualify for a write-off of 50 percent, with no limits, so $5 million of a $10 million purchase could be expensed. R&D tax credit. Another tax-related item set to expire in 2013 is the tax credit for research and development. It has been extended numerous times over the years, and it’s one that tends to get extended, sometimes retroactively, Lortz said. Despite the high-tech-sounding name, this credit is not for tech companies alone. “If you’re having to come up with new ways of doing things, new processes, you very well might qualify,” Lortz said. Check with your tax advisor on the specifics of your situation, he suggested. “Many businesses that might qualify for this tax credit aren’t aware that they qualify,” Lortz said. “The key here is making sure they’re talking to their tax professionals, saying, ‘Is there anything we do that would qualify for the research and development tax credit ?’” Another planning issue that small businesses should be looking at if they haven’t already this year is their business structure, Lortz said. The impact of new taxes for 2013 that are part of the Affordable Care Act (including a 3.8 percent tax on net investment income, which can affect investors in a business, and a 0.9 percent tax on earned income) can be reduced if your business is structured as an S-Corp. “Those new taxes just give businesses another reason to take another look at whether they’ve got a good entity,” Lortz said. “Businesses ought to have taken a look at this structure already, but a lot of folks were crossing their fingers that the law would get overturned on appeal. If they had put off planning, it’s time to start.”

https://www.facebook.com/SurfDogRicochet

Hey, Eric, we appreciate this site, and you, very much. So those of us who wish to donate [i just did] will, and you just need to put up with us!!!

All those were Sch C, Sch F or LLC + 1040. Never even considered it for a Sch A.

Might consider doing what I did years back. I picked out a few good clients and offered them a special deal, if they paid me by Nov 30, they could not only speed up the deduction, they could lock in last year's price [for the couple that I knew were going to have a more complex return that year] or get a small discount [for the others]. Ended up with 6 regulars that paid each year in Nov, which used to be my slowest month.

If you get a phone call from someone claiming to be from the IRS, here’s what you should do: If you know you owe taxes or you think you might owe taxes, call the IRS at 1.800.829.1040. The IRS employees at that line can help you with a payment issue – if there really is such an issue. If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill or the caller made some bogus threats as described above), then call and report the incident to the Treasury Inspector General for Tax Administration at 1.800.366.4484. If you’ve been targeted by this scam, you should also contact the Federal Trade Commission and use their “FTC Complaint Assistant” at FTC.gov. Please add "IRS Telephone Scam" to the comments of your complaint.

Get documentation from the employer RIGHT AWAY that he did no work in CA and that it was an error on the W2 because CA will assume it's CA income based on that withholding. Taxpayers address means nothing about where the income was earned.

Taxed, you missed the joke. If he breaks the CFL bulb over a pile of clothes he wants to see gone, they will be contaminated and dangerous, and MUST BE DISPOSED OF AS HAZARDOUS WASTE.

Have you considered printing the W2 Summary by Payers? Not sure what the goal is here?

Of course. Always extra work involving payroll, if nothing else.

60 miles, does that mean he's no longer using the local housing provided? Depending upon the type of plan the employer has, the reimbursement for business travel may or may not be taxable. There are two types of plans: Accountable Plans - An accountable plan is not taxable to your employee. Amounts paid under an accountable plan are not wages and are not subject to income tax withholding and payment of social security, Medicare, and Federal Unemployment (FUTA) Taxes. Nonaccountable Plans - A nonaccountable plan is taxable to your employees and is subject to all employment taxes and withholding. Accountable Plans - (Nontaxable to your employee) In order to qualify as an accountable plan, your reimbursement or allowance arrangement must require that your employees meet all three of the following rules: There must be a business connection to the expenditure. This means that the expense must be a deductible business expense incurred in connection with services performed as an employee. If not reimbursed by the employer, the expense would be deductible by the employee on his/her 1040 income tax return. There must be "adequate" accounting by the recipient within a reasonable period of time. This means that your employees must verify the date, time, place, amount and the business purpose of the expenses. Receipts are required unless the reimbursement is made under a per diem plan. Excess reimbursements or advances must be returned within a reasonable period of time. Reasonable depends upon facts and circumstances. Amounts paid under an accountable plan are not wages and are not subject to income tax withholding and payment of social security, Medicare, and Federal Unemployment (FUTA) taxes. It sounds to me like he still meets the three tests, since that small amount is clearly for travel, and he still lives too far away for a reasonable commute. But if in fact he is commuting, then I think it becomes taxable.