ed_accountant

I also roll over one client at a time. It seems to be easier to view the open / unfinished returns...

Enough about tax forms... Im working half day and then off to the mountains.. Have good new years !!

Canadian taxes like the US are complicated. I suggest that your client hire a Canadian accountant to assist your client in filing and registering the Company to do business in Canada. I believe the withholding is due to the LLC not being registered in Canada as a Canada business. Therefore they are withholding at the highest rate. Just like in the US when a LLC or Corporation does business in another state, the LLC or Corporation must register in that State and file state returns and pay state fees and taxes.. We can't be experts on everything and making mistakes can be very costly.. Good luck

I am in agreement. I only use tested and proven tax software. I would not switch to New tax software unless it was proven and out for a few years.. I use ATX and Lacerte for tax prep and Tax Tools for tax planning.

I would suggest you tell the client that it is too late for year 2008 and file on time for year 2009. I believe you will also need form 8832, Entity Classification Election, filed with your form 2553. You file these forms together. For year 2009, you have until March 15 to make the election. See the instructions on both forms.

You should call ATX and request a new install code. It is possible they gave you a PRS install code accidently... I have MAX and do not get that error...

John Force racing is incorporated. With increase of audits on the self employed, I would suggest that your client incorporate. Good luck

Thank you all for the responses..

Hi, The majority shareholder of a corporate client had a dispute with his former partner, the minority shareholder. The dispute was settled in arbitration and the majority shareholder purchased all the shares of minority shareholder. The minority shareholder was a shareholder from 1/1 - 11/30. As of 12/31 the majority shareholder owned 100% of company. Here's the problem and my question: The minority shareholder has requested from me a copy of the corporate tax return. My client refuses to give me permission to give him a copy. I have not reponded to the minority shareholder and would like to stay out of the new dispute.. I believe I am obligated to give only my client a copy of the tax return unless I have written client approval and copies of K-1s to shareholders.. Is that correct? Thanks

No loss unless the truck is sold. What is the FMV of the truck? If the truck is distributed to the owners, it should be treated as a sale to the owners. Gain and loss would caculated based on FMV versus net book value.. Often, the FMV is close to net book value so there is really no gain or loss...

Here is the link to U.S. v. KAMALU: http://pacer.ca4.uscourts.gov/opinion.pdf/064956.U.pdf Very interesting... 10 counts of "Willful preparation of false income tax returns"

My clients have asked me also to prepare operating agreements and I always refer to an attorney or for the do it yourself clients, Nolo Press self help books. $60 bucks and they can download an LLC operating agreement... http://www.nolo.com/article.cfm/ObjectID/E...11/182/245/ART/ Thanks

Make the correction on your system and compare the tax cacluations before and after the correction. If there is no change, Do nothing. Respond only if the IRS contacts your client. Data entry mistakes happen.. You would only amend if there was correction in the income tax calculations.

Happy Belated Birthday, I enjoy reading your replies. Thanks for the help!

California Franchise Tax Board gets its 1099 information directly from the IRS, so I would guess that your client, either a Corporation or LLC, used California address and received some 1099 information to that Califonia address. Somehow, Franchise Tax Board has your client in their system. They do not send random letters. My opinion is that your client is "doing business in CA" thus is required to file in CA. If you have sales and an employee in the State you are doing business. Your client should: 1) register with the CA Secretary State as a foreign corporation or LLC http://www.sos.ca.gov/business/bpd_forms.htm#corp 2) File the CA Franchise Tax Board forms and pay the minimum taxes of $800 for each year and penalties.... Thanks

I would suggest capitalizing and amortizing over 3 years or it's estimated useful life due to the large amount. Per, http://www.irs.gov/publications/p946/ch01.html "Computer software. Computer software is a section 197 intangible and cannot be depreciated if you acquired it in connection with the acquisition of assets constituting a business or a substantial part of a business. However, computer software is not a section 197 intangible and can be depreciated, even if acquired in connection with the acquisition of a business, if it meets all of the following tests. It is readily available for purchase by the general public. It is subject to a nonexclusive license. It has not been substantially modified. If the software meets the tests above, it may also qualify for the section 179 deduction and the special depreciation allowance, discussed later. If you can depreciate the cost of computer software, use the straight line method over a useful life of 36 months. " Here is an interesting link to an IRS examination Technique guide: Retail Industry ATG - Chapter 3: Examination Techniques for Specific Industries (Electronic Business, Online Retail) http://www.irs.gov/businesses/small/articl...=141491,00.html "The tax treatment of the following items may result in potential tax issues. Many of these potential issues boil down to capitalization versus expensing and timing of deductions. The tax treatment of these items is still under consideration by Counsel and issues involving the tax treatment of these items and online retail should be referred to the E-Business & Emerging Issues staff for assistance. Business Start-up Costs (Internet Business) Acquisition of Domain Name(s) and Website Development Costs Acquisition of Hardware Acquisition of Intangibles, including Costs of Production of Literary Content, Graphics, Sound or Video Acquisition of Software and Software Development Costs Lease Expense Catalog Costs Research & Experimental Expenditures and Credit "

You both have to be using the same version of the file to transfer the data file back and forth. You can purchase older versions of quickbooks on ebay for fraction of the original cost.

Pdf Factory is the way to go. I have been using it for years. I love how you can combine print jobs from different programs and save as one file.

I just found that my insurance company has a sample letter, as follows: Example Response To Lender’s Request For Verification Of Client’s Self-Employed Status Dear Lender, You have requested that we provide you with certain information regarding [Client] (hereinafter referred to as “our client”). Our client has consented to our provision of the requested information. We have prepared the income tax returns for our client during the period from __________through__________. Those income tax returns have each included a Schedule C and Schedule SE, Self-Employment Tax computation. We prepared the income tax returns noted above based on the documentation and other information provided to us by our client. We did not audit, review, or otherwise verify the accuracy of such documentation or information at any time, and we have not and do not express an opinion or give any other form of assurances regarding the same. By providing you with this letter, we have not established with you any direct or indirect client, contractual or quasi-contractual relationship. We do not understand or anticipate that you or any third party will rely on the information contained in this letter as a basis for entering into or continuing any contractual or other relationship with our client. We fully expect that before you or any third party decides to enter into any such relationship with our client, that you and/or that third party will exercise an appropriate level of independent due diligence. Accordingly, and use of this information is solely your responsibility and judgment. By accepting this letter, you acknowledge all of the above, and also that we are under no obligation to provide you or any third party with any additional information at any time, including but not limited to any changes or corrections to any of the information we have provided in this letter concerning our client. Thank you. Very Truly Yours,

Thank you for all the responses. I also found through an internet search that the Aicpa addressed this issue with an article. Here is the link: http://pcps.aicpa.org/Resources/CPA+Comfor...ter+to+Lenders/ Thanks

Hi, Mortgage companies are requiring letters from CPAs confirming self-employment status.. How is everyone handling this? I have been trying to avoid but I have been preparing letters for my clients only. Thanks

Atx Versions 2005 and 2006 did not calculate the NOL carryforward correctly or the NOL deduction. I have not tested it version 2007 since I avoided using ATX for NOL clients. For my NOL clients I used lacerte pay per return tax software.. You will need to review the forms and calculate it manually.

Now that tax season is over and I have had time to reflect and relax, I am overall happy with the software. I plan to renew and will renew early taking the discount.

My minimum for business entities is $550. I increased my minimum fees a year or two ago to avoid the the price shoppers. My minimum return fee of $250 for individuals is equivalent to two hours. I estimate I spend at least two hours on every return which includes meeting with clients, input, telephone calls, assembly, etc...

What is everyone charging? I am in CA, and my minimum charge for simple individual return is $250. Many of my clients ask for an estimate of fees.. How is everyone increasing your fees? Do you send a letter? or just gradually increase your bill? This may be a touchy one or too much information for the internet.. Feel free to share - Thanks