kcjenkins

Yes, they know who they are! And we are, after all, only human. We can only do so much. And for these last three days, just answering all the phone calls from the procrastinators will take most of our time. Thank goodness half of them I have already extended. Because even doing that takes time.

Don't you just hate it when clients are waiting at the door? I come in the back for that reason mainly. I hate to not have a minute to put down my things, get something to drink, etc. Don't feel bad about being a bit put out by him, or for being short with him. That present was a 'guilt easer' for him. He KNEW he was in the wrong, that's why he brought it. OK, it was nice, but still, this is the 13th, after all.

http://bigcharts.marketwatch.com/

There is often a big variance here on tax value vs actual FMV. Especially in those "piny woods" counties. I would say he would be much wiser to pay the reasonable fee it will cost him [probably $200 - $300] to get a written professional appraisal. They do this based on 'comparable sales' in the area at the time, plus professional judgment, and the IRS will generally not dispute these like they will the 'guesstimates' that clients are so fond of.

Hey, that is not fair, to blame the accountant when the client chooses to do things themselves and then screws it up. Why shouldn't the person who straightens out their mess get paid a fair fee for getting them legal and cleaning up the problems. It's not like the accountant caused the problem. The client did, probably because they thought they were saving money by doing it themselves, and did not want to pay someone even to get it set up right at the beginning. I don't feel bad charging is such a case, because it is only fair. There is real value in putting someone back on the right track, after all. How often have we seen a client who tried to 'fix' their own goof, only to make things worse, before finally coming to us? And it's then worse than ever to fix.

I think the one point that some are missing is that if it is going to take a lot of work to 'split' the Sch C, doing a 1065 is not only 'proper' but also cost efficient for the client and for you. I think sometimes we can't see the forest for all those trees in the way. Either you are cheating yourself, but doing a lot of extra work and not charging for your time, or you are charging the client for the extra time when you could have transfered the assets to a 1065 easier than you could split them, and then the 1065 is no harder to do than the one Sch C. Sure makes it easier 'down the line', too, when items are sold, disposed of, etc.

Tom, you do make a valid point. :lol:

Yes, and given that a few states allow something like that, it adds to the confusion. Hang in there, it will calm down soon.

Yes, it is a 'claim of right' so you need to figure it both ways, then do the one that gets her the best tax outcome, overall. It is often the 'claim of right' treatment that is the best, but not always. Don't forget to do the 'lump-sum worksheets on the SS payment, also.

File a 1040X. There was a time, back in the old days, when the IRS let you file a 'corrected original' before 4/15. Now, they prefer a 1040X, even though from a technical point, that 1040X will in fact stand as 'the original return'.

I do not think the 50K is taxable, MN. It was a payment to him for a tort against him, and should not be taxable to him.

Report Server: Planned downtime April 14-15 04/10/2009 In anticipation of high efile volume on April 14th and 15th, we will not refresh the Report Server (online reports that you schedule and run from the support site) after the April 13th daily refresh. We will resume the daily refresh after the 2am drain for timely filed returns on April 16th.

Report Server: Planned downtime April 14-15 04/10/2009 In anticipation of high efile volume on April 14th and 15th, we will not refresh the Report Server (online reports that you schedule and run from the support site) after the April 13th daily refresh. We will resume the daily refresh after the 2am drain for timely filed returns on April 16th.

http://online.wsj.com/article/SB123958260423012269.html

:read: MN adopted federal tax law changes with exceptions that may impact your MN returns 04/11/2009 Attention Minnesota taxpayers filing their 2008 individual income tax returns: Minnesota has adopted federal tax law changes for tax year 2008, with exceptions that may impact your Minnesota returns. Previously filed returns that may be affected will need to be marked "completed" prior to receiving any newly released updated forms. This will preserve amounts as originally reported if an amended return is required. Legislation enacted April 3, 2009, adopts all of the federal tax provisions enacted after February 13, 2008, with the exception of the federal deduction for educator expenses and the deduction for higher education tuition and fees. The bill eliminates the need for Schedule M1NC, Federal Adjustments, and requires the two federal deductions to be added back to Minnesota taxable income on Schedule M1M, Income Additions and Subtractions, for tax year 2008. Because the 2008 Minnesota forms and instructions were printed before Minnesota adopted the federal changes, they include adjustments for the difference between state and federal law. Now that Minnesota has adopted all but two federal provisions, you will need to follow the guidelines below for filing or amending your Minnesota return. If you have not yet filed your 2008 Form M1-- Do not complete Schedule M1NC since the schedule is now obsolete. If you claim the federal educator expenses deduction and/or the college tuition and fees deduction on your federal return (lines 23 and 34 of federal Form 1040 or lines 16 and 19 of Form 1040A), you must add back these deductions on line 12 of Schedule M1M (Rev. 4/09). Disregard line 29 of the schedule. If you are a part-year resident, a nonresident, claiming the child and dependent care credit or claiming the K-12 education credit, be sure to use Schedules M1NR, M1CD and M1ED revised April 2009. If you have filed your 2008 Form M1 and included Schedule M1NC-- If you added back only higher education tuition and fees and/or teacher classroom expenses (lines 1 and 2 of Schedule M1NC), there is no further action for you to take. If you added back tax-free charitable transfers from IRA accounts or made any adjustments other than the deductions for tuition and fees and educator expenses, you must file an amended return, Form M1X. The IRS and MN extended the due date to file and pay taxes for MN and ND flood victims until May 15th. However, the IRS will not accept direct debit dates for payment that are after April 15th for e-file purposes prior to an April 15th filing date. User will need to wait until AFTER April 15th to submit a direct debit payment via e-file. Our e-file team says this is an IRS validation issue that the IRS has not updated and thus not a program issue.

No, that is the only way that it can be taken other than by itemizing.

No, you can not net them, because this was to collect non-taxable income [inheritance], not for the protection or collection of taxable income. I agree it does not feel fair, but it is the law.

http://articles.moneycentral.msn.com/Taxes...axesNotYet.aspx Arkansas 94 Days to work April 4 Tax Freedom Day 37 Ranking Connecticut 120 Days to work April 30 Tax Freedom Day 1 Ranking New Jersey 119 Days to work April 29 Tax Freedom Day 2 Ranking New York 115 Days to work April 25 Tax Freedom Day 3 Ranking California 110 Days to work April 20 Tax Freedom Day 4 Ranking * Ranked by number of days worked, most to least

No, it means it is not shown at all. No tax on the income, but also no deductions allowed. The folks who live around the Masters Golf Club love this rule.

That is correct. Amend the one who filed, and add the other one, and paper file it.

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And tell him how LUCKY he is that the company did hold out PA tax, since he would have gotten no offset for taxes paid to another state. I just had a guy who had to write a check to the state for over $3K because he worked half a year, at a very lucrative wage, in TX, and the company held out no state tax on it. I warned him to have the company hold out AT tax any time he works in TX or TN in future.

Sorry, but there really is a good reason for doing it right, even beyond just the fact that you want to do things right. A Corp is a separate entity, a legal 'being', and if you mix personal with corp, you risk what is called "piercing the corporate veil". That means it jeopardizes the very protections that he formed the S Corp to gain. So doing both returns is a legal necessity, IMHO. It's part of his cost of obtaining the benefits he formed it to get. And, hey, it's good for your business too. Don't feel bad about charging him for two returns. He made that decision when he formed it, and he's a grown-up who understands business is business.

Thanks for warning us. So if you turn off the 'estimate' tag before you delete, does that protect the other tags? Like you, I use that to tag items I want to ask about.

I second Terry's suggestion. It's not like anyone is being harmed by ignoring this goof. The workers still got the right amount of income in their combined W-2s. The IRS and SSA got the right amount of taxes, and so did whatever state you are in, [wish you would add that to your profile]. So no harm, no foul, as I see it.