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salary paid to the shareholder would be deducted on page one of the 1120S under officer salary- assuming it was actual w-2 income with payroll deductions, etc.

It has been a couple of years since I did the research on this issue for another client - but when I looked at this issue even if a shareholder personal guaranteed a loan such personal quarantee did not increase their basis in such corporation. Therefore I would say that based upon your facts, no the shareholder's basis does not increase by using the house as collateral. Good Luck

I would attach a letter to the amendment and specifically request the IRS to apply the initial overpayment to the amended amount due. Good Luck

I would send a letter to the 1040 clients asking if they want there files and that they must respond within 30 or 60 days and that if you do not hear back from them, then their files will be shredded. good luck

I do not believe that the IRS makes a distinction on whether or not you are a CPA or not. My policy is to keep client records (1040) for seven years - when I checked I recalled that the IRS said 6 years. If you are a CPA your should also check with your State Board. I checked with Ohio and they do not have any formal requirements. I have an engagement letter that each 1040 client signs that states among other items my record retention policy. good luck

Rich, Yes it helps alot - THANK YOU SO MUCH -

I need help with a NY State Income Tax Return - Client lived in Manhattan then moved to Brooklyn, NY - Question: Is Brooklyn considered "New York City" I need to know this for the city income tax calculation. THANK YOU TO ANYONE WHO RESPONDS

I also tell me clients to call their PC Insurance Person to make sure that if something happend to the babysitter in the house that they would be covered by their homeowner's policy -in regards to taxes - my clients usually complete the Schedule H Good Luck

I just got off the phone with my better half and she said were having fish sticks also! I wonder who else is having fish sticks tonight?

Sounds right to me and the politicians can't figure out why the economy in NorthEast Ohio is in the tank (other than health care). I am in Cuyahoga County that has about 44 different municipalities and all with their different city ordinances in regards to taxes. I truely find completing city income tax returns the most problematic. To make matters worse, these cities have a program with the State of Ohio whereby they (the cities) get a listing of every taxpayer that has filed an Ohio Tax Return. This one eldery client of mine is 90 in the nursing home and gets a letter with a subponea from the local suburb ordering her to a hearing as to why she did not file a city tax return. Of course the client is very scared and you explain to the city tax collectors that your client is "exempt" from city taxes because she is retired and has no "earned" income. It is nothing but a waste of time and tax dollars. I normally am not one to rant and rave but I Hate city tax returns!

FYI - I know that the topic has come up before in regards to requesting an audit reconsideration. I had requested such a hearing in May 2007 and just had my hearing today with the IRS. Basically the IRS allowed about 80% of the issues or items that we were requesting. So instead of the taxpayer owing 12-k they will owe about 4-k. As I mentioned in a prior post it can take alot of time and effort to properly prepare but it is worth it if you believe that the facts are in your favor.

After I have completed a client's tax return -my secretary calls to see if they want to pick up their copy of the return and their original source documents. This year more clients (even those that are close with 5 mile radius in my suburb) are saying drop it in the mail. I am thinking of tacking on a $5 fee on top of my tax prep fee for "mailing fee" Does anyone out there do this? Again thank you in advance for your comments

I would not classify it as a personal loss - when your client "co-signed" they were equally legally liable for the debt. If your client loaned the other person money and had a note signed and then that person filed bankruptcy then you have a bad debt that I would deduct but not under the circumstances in your original post

I myself would not deduct anything for business use of the home.

As others have stated their is no statute limitations on returns that were never filed. In regards to refunds on a tax return; must be received three years from the due date - this also includes extensions. So if an extension was filed on the 2004; then the client will actually have until 8/15/08 for tax year 2004 or 10/15/08. Good luck