kcjenkins

I totally agree with JohnH, the red flag issue is a non-issue, but dealing with it is how you minimize the problem. If you can show that they are now and in future doing it right, the worst that happens is a bill for some back taxes, but you can not change the past. What the IRS wants most to see is that the problem has ended.

That is the kind of service attitude that leads to new customers!

GO TO http://www.almanac.com/moon, TYPE IN YOUR ZIP CODE, AND YOU CAN FIND THE TIME OF MOONRISE.

No need to prorate those, they would be deductible in year paid. You are simply going to capitalize the repair expenses. You could, however, if you wish to, make the election to capitalize the property taxes, pursuant to IRC §461©. You will find that election on the General tab of the Elections form.

Now, Jainen, it's the wrong date to be picking those nits. Yes, you do not use 'actual housing costs' but you DO use the Fair rental value of the home. Use the worksheet 1 Pub 501, page 20, for an easy way to not only calculate it, but to document it in your records.

And also, when you file a paper return, you DO NOT ATTACH 1099s. They are information forms only, not included with the tax return, which is why you do not get three copies. Line 21, explain in the blue lines at the bottom, like Margaret said. I've done it many times, and never had a single problem from doing it that way.

I use Chrome, and when CCH pops up that window, I just continue on as if I obeyed them, and it lets me in using Chrome, anyway. Anoying to have that pop up each time, but if you just go on in, it does let you.

Lunch? What the heck is that? Does it go on the 4562 or the Sch D?

I agree, although I basically do that by moving the 'status' field next to the phone number, and then entering my codes for 'data received' 'in process' 'ready', 'transmitted', 'extended' and 'acked'. I can then sort by that status with a single click. But yes, I would like to see the filters for Incomplete, Complete, Marked expanded to include Efiled.

Sorry, I was thinking about the 1065 K-1, because with an S Corp, you do not actually have 'active' and 'passive' shareholders. If they are 'active' in the business, they get a W-2, but you just indicate whether ordinary income is passive on Sch E, line 28, column (g). Look at the bottom tab 'Codes' to see details.

Look at the K-1, this income info should be in Line 11F, which is entered on the 'Detail - Items' tab. And in Line 20, Code H is recapture of Investment income, to explain the entry on 11F.

And if you have not done it lately, [being busy doing tax work, probably], take some time to run a defrag, since usually when we have any sort of problem of that type it relates to the computer rather than the program. Using it so much, unless you run an automatic defrag regularly, the hard disk can become quite fragmented, and that can lead to problems.

Blame it on the complexity of the tax code, writing program code for this extremely complex and convoluted tax code has to be a real PITA. Did you report the problem, so that they can fix it for us quickly? If not, go to the suggestion box and do that now. Only takes a minute, and they have been great this year about fixing anything we tell them about. It's good to have a work-around, but getting it fixed is even better.

If you say no they will not send you the check, is what happens. Yeah, it seems a dumb question, but it's just the IRS version of CYA, getting in on the record that you have promised them that you will follow the law in distributing the refund.

Well, that is not really true, since the t/p is supposed to keep his own records of income, and not just rely on the 1099s he gets. In fact, a corrected 1099 to increase income always makes me wonder if the client is only reporting what he gets 1099s for, rather than keeping records and reporting all his actual income, regardless of whether he got a 1099 for it or not? If the change is significant, I'm going to be asking my client more questions about how he keeps up with his income, that's for sure.

I have been told twice, by two different auditors, that they do not want to make changes to a t/p's file if the difference in the tax is less than $50. It costs the government more to process the amendment than they get. So I'd say the materiality test is not how much income, but how much change in tax liability. And that if it is less than $50, there is no need to file an amendment. An IRS employee may feel the need to file for less change, but it's highly doubtful that the amendment would be 'required' for a change of $13.

On the K-1 Input sheet on the entity return, the place to indicate active or passive is the Section H boxes on the input sheet. This then carries to the 1040 K-1. On the 1040 K-1 Input sheet, for one you did not do the entity return and automatically pull it in, you do it by checking the box on the input sheet, or by checking the box on the top of the Detail Sch.

E. Important Revenue Rulings or Revenue Procedures PER DIEM / MEAL REIMBURSEMENT Section 4.04 of the following revenue procedures allows a special per diem rate for meals and incidentals of drivers in transportation industry. Rev. Proc. Period Limit 2007-63 10-01-07 to present $52 2006-41 10-1-06 to 9-30-2007 $52 2005-67 10-1-05 to 9-30-2006 $52 2005-10 01-1-05 to 9-30-2005 $41 2004-60 10-1-04 to 12-31-2004 $41 2003-80 11-1-03 to 9-30-2004 $41 2002-63 10-1-02 to 10-31-2003 $40 2001-47 10-1-01 to 9-30-2002 $38 2000-39 10-1-00 to 9-30-01 $38 2000-9 1-1-00 to 9-30-00 $38

Nope, none here.

It's a checkbox on the K-1

Sure, Rita, we are happy for you. This time of year, a bit of distraction is welcomed, IMHO.

Tom, I agree with Julie. I'd also put this on a W-2. It is only a little more work, but it gets it all where it should be, in the most correct manner, and even avoids the entire 'no W-2' issue.

Thanks for sharing those.

If there is no income in them, what would there be to report?

I do not include the 'as originally filed', as they already have that. But if I DID, I'd just make a copy of the original, and that would have the original preparers info on it, so what is the issue? The only thing you need to sign is the 1040X, any 'as amended' copy would just be a supporting schedule, and should not be signed by anyone. You do not want it processed, it's just for information to the 1040X, which is what you want processed.