cred65

Hope you can open this word doc. My first try to attach a file. HR BLOCK.doc

The S corp sold the assets subject to the liabilities which included the stockholders loans of $353K in 2007. No cash received. The purchaser has defaulted on the buyout (in 2009) and the stockholders received app $20K each in 2008. I did not prepare the S corp return but the balance sheet for the previous year reported these amounts as shareholder loans vs contributed capital. The S corp issued K-1's to the stockholders that included "Net Section 1231 Gain" of $265K each. As best as I can determine this was for assumption of the liabilities in excess of the basis of the assets. Included in liabilities was the stockholders loans of $353K. The stockholders received no cash since this was a distress sale. In summary, I am of the opinion that the balance of the loans would be a Business bad debt and reported on Form 4797. How should this be reported on Form 4797. Any opinions or further questions? TIA

Originally had a problem with e-filing and was forced to manual file. Since the extension deadline is now 9/15/09 the return was late. Client received a penalty notice $180 and I sent letter requesting abatement on 11/30/09. Yesterday the client received CP504 threatning a levy. In the meantime I had received no answer to the 11/30/09 letter. I have sent a second letter yesterday as a follow up on the original request of 11/30/09. Any suggestions? TIA

Does anyone use this procedure? Any advantages? TIA

Do you need any additional software?

Is it the agents authority to abate the penalty. In this case it is app. $6K.

I just received it!

Agent wants to disallow principal portion of corp payment for SH auto that was used 90% for business nor any depreciation. This also resulted in a large constructive dividend to SH. The agent also informed us that we need an auto reimbursement plan between Corp and SH. Any advice. TIA

The property was used 68 days for business by corporate customers and company sales personnel. IRS Agent proposes taxing as constructive dividends all payments which were deducted as rent. Are these dividends taxable as Qualified Dividends taxed at capital gains rate? TIA

I have the same problem and called twice. They used the excuse about the holidays. I downladed from their website. The activation codes are there also. Itworked.

How much is this "Fixed Asset Manager" going to cost? I seriously need it.

Is there a fax number to record Form 2848 ASAP? What is the normal wait period to get recorded in IRS system? TIA

Is there a better way to obtain lost tax documents other than Form 4506-T? I have two clients that are very ill and cant find records. TIA

NATP article "Sorting Out Software" URL. https://www.natptax.com/2009softwaresurvey.pdf

If the property is sold within two years of the exchange the transaction would become taxable at that time, Sec 1031(f).

They claim that they received company info from IRS & want me to visit their website taxmarketingguru.com. No way.

on ATXers.

without affecting the other returns in my tax database. TIA

Is the requirement based on the previous three years average, or does it include the current year plus the two previous years average? TIA

I recently subscribed to CPE Depot for $149 annual that includes 175 courses that is mostly online. It's great if it is approved in your state. Check it out.

However, the audit will not be complate by 9/15. Also, I expect audit adjustment for 2006,7. The corp will have a taxable loss for 2008 so no tax due. So my question is whether to file current year return or wait until audit is complete? TIA

Jainen is really a fed spy fronting as a blogger. His real name is Doug Shulman.

I have the same problem. The virus blocks incoming updates of antivirus software. My IT guy could not remove it at my office and will need to take it to his shop and attempt to clean it out. This is a full day job. In the meantime I will be installing a new computer since the infected one is about 5 years old.

Could someone provide me with the link to the topic about transferring client data to new computer system. I believe that there was a discussion about this in pre-season. TIA