kcjenkins

I'm with Taxbilly on this. I'm sure the form will be available soon, but I have no problem at all with telling a client "this is an area where the law has just changed, and I need to take the time needed to be sure I give you the best tax treatment available in your specific set of circumstances". A few days taken to see what the options are, and what the IRS is going to say about how to apply it, is not going to harm anyone. And rushing in might. I do not believe any of my clients would object to that position, because they trust me to do the best job for them.

First problem I see with filing late election is that to do that you have to show that they 'thought' they were a sub S, and they reported on their personal returns as such. You do not have that here. So I believe you are going to be stuck with the corp being a C for the first years. That of course means that any NOL is stuck in the corp. But, if he has been taking out salary in proportion to what he thought the corp could 'afford', then perhaps there is not much NOL, or profit, and you can get the C corp books up to date and filed, then determine what to do for 09.

Well, the efile report will give you all the ones transmitted, and if you compare that to the ones in the return manager, that should identify them. I do not mark the 'completed' box until I have an ACK, so if I look at all the incomplete returns in my return manager, I know they have not yet been acked. Then I look at the 'transmitted' to see if anyone is in the incomplete but not transmitted that I think should be an efile.

This one just hit my funnybone big time.

It is common practice for the check to go to the attorney, who then pays out the funds to cover expenses, reimburse advances, if any, etc. The normal thing is that he then prepares a 1099, which would normally be for the entire taxable amount, which includes the attorney's portion, and the expenses as well. He's going to have to report the $200K, then deduct the expenses on Sch C and/or Sch A. I know that is not what you or he want to hear, but that is the law. Download Pub 584 and Pub 584-B for a starting place.

So true.

Glad to hear that. One of these days all the states should get to that point. I hope.

Terry, you did get that you had this part backward, right? The Housing Allowance reduces Income tax, not SE tax. And if he's opted out of the SE with form 4361, it's not subject to either tax.

Hey folks, lets lighten up a bit. Terry did not say 'all Hispanics' or 'most Hispanics'. he just stated something that he is seeing in his area. Are we supposed to be blind to reality, for fear of offending someone with the truth? In my area, this same scam is common, primarily with the 'white trash' community. Yes, some blacks and some Hispanics probably do it too. There, have I offended everyone yet? Come on, we all see enough 'scammers' who play the EIC games, and it's not unreasonable to be offended by their actions. But being offended by someone mentioning them is going a bit far, IMHO. Most of the Hispanics I know are hard workers, it is true. It's also true that the most vicious gang in the country is MS-13, who's members are mostly from El Salvador. Does that mean that we should fear all Hispanics? Or that we should fear no Hispanicss? I'd prefer if we simply recognize that saying someone is Hispanic is no different than saying someone is European. It's not a judgement on them.

Yeah, I always have a couple of OK returns that have to be mailed for that same reason. Thank goodness AR changed to allow all individual returns to be efiled, a few years back. Now if only they'd allow 1065s to be efiled.

Well, frankly, it seems to me that is a non-issue., because you can already create it, you just can't file the return yet because it's in draft form. But you should not be sending in a 2008 amendment yet anyway. It's not going to get processed yet, but it could slow things down if it gets there before they finish processing the original return, which takes, in my understanding, a couple more weeks after the client gets his refund. I NEVER file one until after the client gets his refund, or a full 6 weeks on a balance due return, because it's going to only screw up the system if they are not done in proper order.

I hope you are right, but it's my understanding that Louisiana only allows efile if you are a full year resident.

:bday: AND MANY MORE, I HOPE.

An important new fact on this, folks. Per Notice 2009-12, IRB 2009-6 page 446, credit may be allocated between unmarried "owners" in any reasonable manner.

No, he did not support him for more than half the year.

An excellent explanation!

The VA will send probably those payments, just like SSA does. And the other gov workers would presumably get them directly from the same agency that pays them their retirement.

No, losses in a 401K are treated just like gains in a 401K, not taxable or deductible. Only way to take a loss is if the t/p cashes out his entire 401K, and actually ends up with a 'real' loss, not just a drop in value. IE if he put in $40K over the years, and at 1/1/08 it was worth $150K and now it is worth only $75K, he feels like he lost $75K, but in fact, he's still got an untaxed gain of $35K in there.

I agree, it's one thing we'd all like, to be able to set up our own personal 'default printing pattern' and have it stick. One thing I would suggest, Each year, near the end of the season, ATX asks us about things we would like to see changed. If ALL of us would request the ability to set a 'print default pattern', then perhaps we might get it next year. They have, every year I've used them, added at least one significant 'improvement', that was requested by lots of us. IF we take the time to request it, through the suggestion box and through that final 'survey' as well, maybe they will make it a priority. I know of no single change that would speed up my process more, frankly. I get the return done, then have to sit there, clicking this and unclicking that, before I can print. And MOST of those 'clicks' are ones I have to make for every single return.

At least, it seems this one is going to be done from the SSA directly, rather than through the IRS, which means, according to the SSA site that we do not have to do anything on this one, nor does the taxpayer. It's going to come as an extra payment for SSA. http://www.ssa.gov/payment/

Yes, that is the other alternative. Depends on the state, tho, some state's non-resident returns are a real [expletive deleted] to do. :spaz:

Have you tried closing the program then reopening it? Sometimes that is all it takes to reset things. Other things you could do if it's still large, is while it's open, hold down the control key and hit the minus key at the same time. That will make whatever screen you are looking at in the program smaller, just as hitting the control and plus keys will make it larger.

Yes, since his employment ended each time, and only commenced again more than a month later, and each time for an even shorter period.

Also, you might be able to verify the rent by contacting the person or business that the checks were written too, in case he paid some of them by cash or some other means. And just don't take on more responsibility than you need to,. It is his audit, not yours. You took his data, in good faith, and HOPEFULLY you kept his handwritten P&L, which is YOUR defense.

Margaret is right, the original paving would be a land improvement, but the repaving would be a repair, and deductible each time it is done. This sort of repair seldom lasts more than a year or two, in my experience.