RoyDaleOne

Well, the fees you mentioned have to be capitalized anyway, so on that front you are okay.

This is really not a CCH issue, because the same problem most likely would have existed if ATX had not sold to CCH. I had an issue with some computation before ATX sold, the answer was use the override, we are not going fix the problem. I would like a simple contract addition that states that if CCH fails to delivery the product ordered by 01/15/2009 you will be only entitled to a full refund of all the amounts you paid for such product. Also, a couple of other minor things.

Great advice! I try (not always successful) to return all client records, including ones I prepare such as depreciation schedule, every year. Another CPA firm in town sends a prepaid postcard with a checklist of items mailed and a place for the client to acknowledge receipt.

Finish the bookeeping and sent a bill for that. Don't work on the tax return. If the client says anything or does not pay the bill maybe you could try; 1. Because this is a final year of operations I need to get paid for the bookkeeping. 2. It is my(our) policy to not do .... unless payment is current. 3. ??? After you get paid then you can raise any question about the documentation you want. Also, note that there is a huge fine $5,000 for each item that is incorrect and possible lost of practice before the IRS etc... Heck, I don't know.

I have one client in that status. First, customer service send me a fax that says the return was accepted by the IRS. Second, customer service has twice now told me I was SOL in getting the status changed on my computer.

I would create a general ledger with an opening balance sheet as of 01/01/2007 that contains the balance sheet only from page 4 of the 2006 1120S. Enter the 2007 transactions into the journals for 2007. Unless, the client authorizes you to investigate 2006 or prior and agrees to pay for the work you are wasting your time. Keep the client in compliance for 2007 and forward.

Paperport.... You can create any tree, folder, or directory structure you like. Annotation, search, etc. sorry I use it in to scan and annotate files that I later transfer to ATX Doc so my in dept knowledge is limited. ?? In dept limited Just noticed that my version of ATX now knows about ATX Doc and when to the correct client to save the print pdf file. I scan the pages on to Paperport's desktop so I can arrange them the way I want.

Why do you not have the original trail balances for each year?

Do you prepare out-of-state income tax returns without being licensed in the state you are preparing the returns for?

Paperport...

It works, and I am using it. However, I am still trying to decide how to rearrange my directories (folders). I am trying to get 90% paperless. I know for now 100% is impossible. The work flow around paperless office I see could be a problem. I tried highlighting amounts on like the 1099's to proof the returns, when I have an error how do I handle it. For example I was highlighting the amounts in the pdf file of the return. Up jumps an error, okay, now what, I need to fix the return and get a new pdf file. Lost all my highlighting!!! Bad, bad... Anyway, outside the checking routine it works. I doing away with, slowly all of my "old" files. Scan, scan, scan..... Anybody need some file cabinets?

"My client sold his share of partnership to the other partner with a gain." If this is the way the transaction actually happen, the K-1 is incorrect. There is a conflict between the facts of the transaction as posted and how the K-1 was prepared. Clarification of the facts is needed. I am inferring that the ordinary income and the withdrawals were on the number lines of the K-1 and not as supplemental information supplied with the L-1. I am inferring that the partnership had no reportable sales to outside parties to generate the ordinary income. Additional the amount of the withdrawals just happens to be the same as the agreed upon price for the sale of the partnership interest between the parties. If this inferences are correct let me know and I will try and post what I think should have happened. The other option is that the partnership liquidated the selling partner's interest. If you want, you can let me know that also and I will post what I think should have happened.

Sound like you hasve hot assets see the IRS audit guide for partnerships.

Yes.

I try to stay out of these discussions. However, I just could not comment on the software license from CCH. Well, I recap it. Your rights are almost nonexistent. CCH contracts with you to provide nothing, well almost nothing. CCH rights are supreme. I suggest you don't read the license, if want to feel assured about CCH is going to do. I have no complaint about CCH or ATX and I plan on renewing with ATX.

Basis 100,000 Repairs 50,000 Total 150,000 Insurance proceeds $200,000 - 150,000 = $50,000 gain Basis = $50,000 Is this a business gain and not personal because of the status as rental property?

ATX sold a write up package, I know I own it. This goes out of support 12-31-08, well that when my program support expires. I was told that this product is being dropped. CCH sells a write up package, I know I own it.

Contribution in excess of the amount permitted may be carried over and deducted by the employer in succeeding taxable years, subject to the deduction limit. "Code Section 404(h)(1)©". Excess contributions will constitute current income to employees and, if not withdrawn, are subject to a 10 percent excise tax. "Code Section 4979(a)". Form 5330, "Return of Excise Taxes Related to Employee Benefit Plans." may be required.

I received an update to the ATX Fixed Asset Manager. My first impression is that this version is 1,000% better than previous versions. Every feature is much improved. It is not as complete as I would like, however, I am going to try and use it later this year. The one feature I tried that worked great is to import the fixed assets from the ATX tax program. Saved a lot of time. I need to have book or GAAP depreciation for the clients that I do GAAP financial statements.

For real estate I nudge to LLC's. For non-real estate I nudge S Corp elections or C Corp elections. However, you should review the business plan and act accordingly. Stock for stock swap going public is in two or three years for a couple billion is a good plan. It depends on situation as we all know. However for real estate I recommend the LLC structure as a parntership. The flexability of changing the ownership structure and the allocation of earnings or profits in the future is the reason behind my recommendation.

Nudge ----> easier to accomplish some other tax things, cheaper to operate.

http://www.taxschool.uiuc.edu/taxbookarchive/2002/index.html See Business Entities. Really like this site, see all the archives.

I think I saw somewhere that the acutal number of users are greater for ATX against TaxWise. I would guess that TaxWise revenues are higher, but, TaxWise growth maybe more limited because of the higher fee structure.

http://www.saxtax.com/ This program handles a requirement for a tangible personal property tax return for each county a business has such property there. I was told by ATX that feature would in the final version of the ATX program for 2007. The forms were there, however no means to transfer the amounts you needed. In essence you had to enter all the tangible personal program again. This includes the fixed program as well as the ATX tax program. By the way this includes rental properties, one house owned personally that is rental is required to file the form. Aside from that it does tax, amt, internal, and other depreciation schedules. The problems I have with the ATX programs, or, at the ones I remember are: 1. You could not enter last deprecation schedule (2006) as a starting point you had to enter 2007. Now, I anal and I want to check my entries against last year. 2. It did not compute the prior deprecation field for you. I know it may not be correct, hover, it could show up a problem if way off. Anyway I like that feature so I wanted it. 3. I don't recall that you could set up templates for asset groups for standard useful life policies. Either by client or overall. 4. There was no transfer to the tax program, as I recall for fiscal year taxpayers in the program. 5. You could not print a prior year depreciation schedule. 6. I am not sure about this but I like a recap print out that has beginning, additions, deletions, end balances for cost and depreciation summary balances. Also, I like a detailed list of additions and deletions. Yes, in years passed I used CS II depreciation (Creative Solutions), at that time it was a much better the the ATX offering. I have used TASSC, Creative Solutions, MicroVision, BNA, an in-house program I wrote (and sold), some of Intuits offerings, something from CCH.

http://www.irs.gov/irb/2006-39_IRB/ar13.html FYI.