JerryH

There is a number associated with the reject that will correspond to the number in IRS publication 1345A the Supplement which may not be in print now. the numbers correspond to every line item on the return. dependents start with ssn #1 is =175 next one is 185 then 195 and 4th one is 205.

If both tps have at least 700 in long term care payments then the ks s form allows 1400 in deduction. Input the amounts on sch a of federal under the long term care item on medical work sheet and it will carry to the ks s form.

It's ordinary per this ruling, just can't find where they want it reported. Tp used the loan to get the loss in a prior year then got his $ back in following year. Loan was only for about 2 weeks. Thanks for replys. JerryH IRS Revenue Rulings Code Sec. 1376 -------------------------------------------------------------------------------- 26 CFR 1.1376-1: Adjustment to basis of stock of, and indebtedness to, shareholders; increase in basis of stock. A shareholder-creditor of a small business corporation derives ordinary income from the repayment of a loan made on open account to the extent that the repayments exceed his basis in the loan. REV. RUL. 68-537 An electing small business corporation, as defined in section 1371 of the Internal Revenue Code of 1954, repaid to one of its shareholders a loan made on open account. The shareholder's basis in the loan was reduced by the amount by which his share of the corporation net operating loss exceeded his basis in the corporation's stock. Held, the installments received by the shareholder in retirement of the loan must be allocated in part to a return of his basis in the loan and in part to income, but the income is ordinary income and not income from the exchange of a capital asset. See Joe M. Smith and Florence P. Smith et al v. Commissioner, 48 T.C. 872 (1967). The situation here involved is distinguishable from that in Revenue Ruling 64-162, C.B. 1964-1 (Part 1), 304, since in that Revenue Ruling the corporation had issued its shareholder a note as an evidence of the indebtedness and such note was a capital asset in the hands of the shareholder. -------------------------------------------------------------------------------- © 2008 CCH. All Rights Reserved. CCH® Master Tax Guide Top Federal Tax Issues for 2008 1040 Express Answers 1041 Express Answers 1065 Express Answers 1120S Express Answers Business Quick Answers All States Quick Answers Find it Fast Kleinrock's Compliance Guide 1040 Kleinrock's Compliance Guide 706, 709, 1041, 1120, 1120S, 1065 Kleinrock's 1040 Kleinrock's Payroll Tax Kleinrock's 990 Federal Daily Tax Bulletin Federal Daily Tax Bulletin Archive Federal Tax Bulletin Back Issues Employment Tax Briefing Employment Tax Briefing Archive California Tax Bulletin New York Tax Bulletin Kleinrock CPE Annual Review CPE Federal TaxExpert® All States TaxExpert Employment TaxExpert® Federal Archive Library State Archive Library

Where on 1040 does one report the income from a 1120 S repayment of loan to shareholder who now has a -0- basis due to prior yera losses?

They have shown the excess and earnings on the check stub. don't have payors id etc and would like to efile. There was no withholding . could this go on misc income line vs the wages line?

Anyone know how to report an excess 401(k) distribution received in 2008 that is taxable in 2007 without having a 1099R (It won't be issued until jan 2009). Tp wants to file 2007 and pay tax now instead of waiting for 1099r and paying interest on balance due. Thanks

I had the same thing execpt one of my 1065's showed a reject when it had been accepted by IRS on 2-7. I thought it was a name thing so shortend the name and got an immediate reject saying it was a duplicate. I called IRS they have the return accepted in feb with no problem. Haven't had time to ask tech support whats going on. will assume all is well for now.

No, If their was substantial gainful activity the disability would be in question. If it were passive income no problem. It still has to do with definition of "qualifing Child" which doesn't have the income limitation.

Whats the distribution code show. I've had several with no taxable amount shown with a code 6? saying its a nontaxable exchange. Seems to be something new ( at Least to me) this year.

The disablilty qualifies the child (any age) as a qualifing child. The income limitation doesn't apply to a qwalifing child.

She needs to have a residence somewhere or else all the lodging and meals and car she gets thats not on the w2's would be taxable as she has no tax home other than where shes working. Better to move to fla or tx before starting the travel route.

" I _really_ like being able to "drill down" (i.e. follow the "jump-to bunny") when I have a question as to where number comes from (although I _don't_ like it when the bunny hops in a circle and brings me back to my starting point!). I _really_ like the ..." My son worked for cch prosystems call center last year. He was told that the main reason cch bought atx was so they could use the bunny in their system.plus they have access to all of us that can't afford and don't need their high priced pro system.

If your using windows you need to install to a file in other than the "Program" file in order for it to work. there is a knowledge base document on atx web site that will guide you through the process. good luck!

What about the 16 yr olds in 2007 that won't qualify a parent for the $300 in 2008? Will parent get $ this year based on 2007 return or will they look forward to 2008.

The IRS policy is to enforce 6 years without compelling reason to do more or less. Fraud and or excess of refunds will help determine the number of years to enforce.

You can also highlite the pin and hit the reset button if you have this years master set up wiht the new pin. it is a pain. Also the letter saying return has been efiled vs will be without having to click on state and federal to change it is bothersome. I'd like to see a fix for that. Another problem seems to be the roll over gives tp credits for estimated tax calculated on the 2006 file that rolls over esp on state.

I had a similar situation. I don't believe they qualify for the rebate this year but hopefully the income will be up in 2008 so they'll get it when filing the 2008 tax return next year.

Report the truth and let the chips fall. Claim any expenses some have some don't. as long as you don't just have income to max out refund with eic and no expenses such as day care without any it shouldn't be a problem. May be more of question if tp doesn't have enough income to support himself. IRS is going after the over 100,000 group anyway. They know if they go after the fraud in eic etc they'll never get their money back.

You could try audit recon. or pay tax and file a claim and or make an offer based on doubt as to liability. Client and auditor are neither too bright. Always a mess if they let the 90 days go by. good luck get some$$ uup front Did they stick her with se tax?

My HP 1300 seemed to lock up when trying to print from the program. I could print a test page from the printer menu and the return would print from another work station and after I quit the program and went back into it. I believe I clicked on printing a page and also tried to print 2 copies of return in quick succession. this is the first time I'ce ever had a problem with the hp1300. maybe need more memory?

Meals and other expenses also must be a condition of employment to be deducted. For example, firefighters can deduct expenses for meals or a common mess if required by their employer. Cooper v. Commissioner, 67 T.C. 870 (1977). Otherwise, they are non-deductible personal expenses. Rev. Rul. 56-49, 1956-1 C.B. 152. OBSERVATION: This is the same requirement that applies to the exclusion for employer provided meals and lodging. See Section 19.2. see Robert E Cooper v commissioner 67 tc 870. If the station/shift the ff is on requires participation in the common mess then it is deductible. Of course they all say it is required but most of them can do their own from home. 2% limit keeps most of the honest now.

More Clients and more work for next year. from the Jt committee report accessed from the cite shown above. Thanks for the reference I've looked all over for the straight answers to this riddle. Alot of customers will be surprised to get no check or smaller than the max. Rebate checks Most taxpayers will receive this credit in the form of a check issued by the Department of the Treasury. 2 The amount of the payment will be computed in the same manner as the credit, except that it will be done on the basis of tax returns filed for 2007 (instead of 2008). It is anticipated that the Department of the Treasury will make every effort to issue all payments as rapidly as possible to taxpayers who timely file their 2007 tax returns. (Taxpayers who file late or pursuant to extensions will receive their payments later.) Taxpayers will reconcile the amount of the credit with the payment they receive in the following manner. They will complete a worksheet calculating the amount of the credit based on their 2008 income tax return. They will then subtract from the credit the amount of the payment they received in 2008. For many taxpayers, these two amounts will be the same. If, however, the result is a positive number (because, for example, the taxpayer paid no tax in 2007 but is paying tax in 2008), the taxpayer may claim that amount as a refundable credit against 2008 tax liability. If, however, the result is negative (because, for example, the taxpayer paid tax in 2007 2 To the extent practicable, the Department of the Treasury is expected to utilize individuals’ current direct deposit information in its possession to expedite delivery of these amounts rather than the mailing of rebate checks. 5 but owes no tax for 2008), the taxpayer is not required to repay that amount to the Treasury. Otherwise, the checks have no effect on tax returns filed for 2008; the amount is not includible in gross income and it does not otherwise reduce the amount of withholding. In no event may the Department of the Treasury issue checks after December 31, 2008. This is designed to prevent errors by taxpayers who might claim the full amount of the credit on their 2008 tax returns and file those returns early in 2009, at the same time the Treasury check might be mailed to them. Payment of the credit (or the check) is treated, for all purposes of the Code, as a payment of tax. Any resulting overpayment under this provision is subject to the refund offset provisions, such as those applicable to past-due child support under section 6402 of the Code.

Check with IRS.gov They used to have a course

It does have to do with the permissions at least my lock up problems seem to be solved because of that. I sent an email sunday and got a reply yestr which only gave me an incident # that got me to a 2nd level tech this am after a 20 min hold. we tried all sorts of stuff but I hadn't turned off the "allow simple file sharing" and cn=onsequently couldn't get to the area to check to box to allow full control of the program file by the work stations. I still had a problem accessing a return from a workstation that had a form that had just been updated today. Had to open it from the server first. Also Rollovers seem to take longer from the workstations but at least they seem to be working. Time for bed. Good luck to all. I was impressed with the tech support I received once I got to the 2nd level. Maybe an email first to get an incident # will get you bumped up sooner.

I have this same issue plus my program locks up when trying to use 3 comuters and /or after several hours use. We have to shout down and reboot. I too emailed tech support Sun. I haven't heard from them yet. I hope we get this figured out I would hate to use stand alone comoputer programs and have to keep track of all returns from 3 seperate co mputers. esp with efiles and having some control over work flow.