Catherine

Client brought in last year's return prepared by HRB and preparer fees were $125 for a 1040EZ and $87 for bank fees.

AnnieR

That's just disgusting. I wonder how some people can look themselves in the mirror every morning.

Basically, all those things you mention are also common to Sch C, D, and F as well. So starting off with a new corp, with a single owner, is ideal for the first return, IMHO. Everyone starts somewhere, and I'm of the group who thinks it's better to start with a brand new corp, than to take over one that may have been messed up by others, before. As long as he's going into it with care, and getting good advice along the way, [which is why he's posting here], I think he will do fine. It's the folks who charge blindly in without even thinking about it that scare me, not the ones who ask for advice and council at the start.

By the way, Taxguy, where are you located? Might be some state issues that could come up, so knowing will help us help you.

Bingo, KC!! All those things Taxguy has probably seen. And if you've had Sch C clients with anything but tiny businesses, you've seen balance sheets, too. This sounds like it could be a great way for Taxguy to "get his feet wet" with clients whose situation he already knows well and whose business is not particularly complicated.

I would _not_, however, recommend to Taxguy that he start specializing in corporate returns for multi-state entities with subsidiaries -- YET.

Catherine

My color is green! What did or didn't I do? When were yours transmitted?

I have no acks at all yet, either. :angry:

I had a beer at Christmas called "Naughty Elf"....a very dark beer....half of a bottle made me a little woozy.

My favorite is Samuel Smith's Oatmeal Stout. Super dark; yum!

I would think that your first corporate tax return should be one that has filed a previous tax return so you can see how it was done before.

@OldJack: There are pluses and minuses to that. Done well, a prior-year return can be a huge help. That said, there are two big problems with beginning your first-ever corporate return for a pre-existing corporation.

First one is I have _never_ seen adjustment accounts on an 1120-S prior-year return done by someone else on that were correct (frequently they are left _blank_). Not fun to have to go back and fix (if it can even be done with an older corporation).

Second one is that those prior-year returns _rarely_ come with full depreciation schedules including assets, date in service, prior year depreciation, choices made on asset life (and there sure are assets where the wrong schedule has been chosen), fully depreciated assets still owned... again, not fun to have to excavate and re-create. Easier to do it right the first time, without an incorrect "cheat sheet" as a template.

Catherine

Well, if you're ever going to do them, starting with a small, new business run by people you already know is a good way to go. Have you dealt with K-1's from S-corps? Then you know what the return will be heading for. Take a look at the forms and see how similar in many ways to the 1040. Ask if it's a c-corp or s-corp, take a look at the books if they'll let you before committing. For s-corps look carefully at the OAA and AAA accounts and get them right; losses are limited to capital invested but many times this isn't tracked properly.

The other thing is, if you try and figure later it's too much for you, you can back out gracefully. People respect you more when you tell them, "I'm not comfortable anymore and think you need someone who does more of these returns than I do." Especially folks you already know.

Catherine

Oh geez, thanks <joelgilb>. I always spell it "Cobain," because my favorite band of all time is Nirvana and their lead singer was named Kurt Cobain. So when I try explaining it, or typing out Cobian, Cobain automatically comes out as that is what's on my mind. Thanks so much for the correction and giving a heads up. Sorry to everyone.

Gee, I was thinking "Nirvana backup".... Smells Like Tax Spirit? B)

<snip>

If anyone wants a brochure mailed, emailed, faxed or hand delivered, just let me know and I will get that out right away! Well, maybe not the hand delivered part, but I sure would like to get out of this arctic weather we are having!

You're welcome down here tomorrow to help me dig out from the foot of snow we're expected to get. ;-)

And when my current subscription runs out, I will be checking you folks for online backup.

catherine

I have a problem with the wording, also. I have a client who is a tour guide. The travel agency does not require her to report her tip income (and doesn't do anything with the info even if reported). When I fill out the form, I will usually add a comment that she is not required to report it. She's never told me that IRS has ever questioned it.

I'd planned on adding a statement. It will about double the length of this otherwise super-simple return, LOL.

Catherine

None here.....same as last year. Makes one wonder where they go.........or if they go anywhere.

Ain't that the truth!! I sent some W-2 data to Massachusetts online in January of last year (direct login from the client) -- to THIS DAY it still shows "processing" as the status; same status as it had immediately after being transmitted. Over a year!

It's my shoulders also from tiling my head up to look thru my byfocals at the computer screen.

I ended up getting a pair of "computer glasses" just for that purpose. I was getting the _worst_ cricks in my neck. No more! Now to stop the hunching, somehow.

OMG!!! mine too...

For me, it's my shoulders, from hunching forward. No matter how much I try to remind myself to sit up straight.

On line 7 of 1040, use the bunny hop and there is a place to include the income. Then you will need to file Form 4137 to report the social security and medicare tax

Deb!

The problem I have with this is on the Form 4137, Line 1a -- "Name of employer to whom you were required to, but did not report all your tips". The employer does get tip information from the wait staff - but specifically does NOT accept this information from the counter staff. That means this person may be subject to a 50% penalty for not reporting information that the employer will not accept.

So I was wondering if I'd missed something somewhere. But it sounds more like the employer is missing their own duties. Sigh.

Catherine

Can't find guidance on this anywhere.... (it's probably staring me in the face and I'm just not seeing it, like the USB cable I looked for for a half-hour that was on my desktop in plain sight).

Client has part-time work in a restaurant. This person is NOT a table server; instead is responsible for getting sodas and fountain drinks ready for servers, but does wait on some few folks who sit at the counter. Instead of server wages of ~ $3.00/hour, client is paid $9.50/hour because no tip income is expected. However, client did get about $600 total tips last year.

How do I report this? I won't bother folks with the different ways I've considered and looked up.

Thanks,

Catherine

And frankly, since in our business, our computers and our databases are our lives, double protection is not enough, you should always have a minimum of three different backup sources.

Ditto and more!!

I have MozyPro online secure backup that does a daily backup in the background. I have it set for "faster backup, slower computer" but have noticed NO diminution of computer speed with that. We have on-site backup hard drive that happens (...not as often as it should) for "cold-metal restore" capability, as MozyPro does DATA, not executables or system. That on-site mirrors itself to a second drive weekly (automatically), and the mirrored disk gets swapped regularly with an identical one in an off-site safe deposit box. Then I close every tax year by putting pdf's of all returns and scanned original documents on an archive-quality, gold-coated CD or DVD, which also goes into the safe box.

On another forum I read, one man a couple years ago had his office burgled during tax season; all computers and peripherals taken. Thanks to an auto-backup system and an external hard drive he took home daily, they lost NO work, just ("just" -- hollow laugh) a couple days to replace equipment and re-load programs. Learned my lesson from his story!

Catherine

My older daughter brought home this story today:

One of her co-workers is a 24-year-old college graduate.

When the boss handed out the W-2's, my daughter's response was "Great!". Her co-worker looked at the envelope in his hand and said, "So, what is this FOR?"

Catherine

I just want a backup of my system and data files that will automatically perform this at off peak times.

More important than the drive, then (assuming you pick decent hardware), will be your backup software. We've been very happy with Acronis True Image. Personally, I don't use the scheduled task for automatic backup, but don't see why it shouldn't work as well as the rest of the system.

Catherine

I prefer the flash drive.

taxbilly

Beware: flash drives can (and DO) fail without warning. If that's your only backup, at least use multiples.

What do you want from the external hard drive? Network access to files? Daily backup of returns? Ease of taking work home; just pick up the drive and go? All those can change the type of drive and setup thereof. So, more details, please.

Catherine

How long can I expect it to take to get ack's on 1099's? First ones I submitted were on 1/15 (nine days ago, now), and status is still just "Transmitted to EFC". Is this usual (note I did NOT say "reasonable")?

Catherine

I signed up this year for Fee Collect in case any client really wanted to use it. However, the returns I've been working on all get plastered with SBBT RAL-form nonsense and warnings of disclosures needed and all kinds of stuff -- but nowhere do I see just a Fee Collect option (I do see the Audit Shield option on the billing invoice options page).

So, where can I find out about how to use Fee Collect without spending a month plowing through stuff that doesn't apply? And if I decide that this is just not worth it, how can I "un-apply" for this so-called "convenience"?

Thanks, all.

Catherine

Actually, she is blonde, but don't tell her about this post.

The best blonde jokes I've heard have all been told to me by blondes.... The smart blonde women I know seem to take a real glee in blonde jokes.

Catherine

I loved it and sent it off to a couple of friends who will also appreciate it. Thanks!

Catherine

I don't get it?

Can you say "crunch your keel?"

Catherine

Hello to all -

Do any of you mind being mentioned on this board as being our beloved VMSUS customers? Sometimes when I speak with people they ask for referrals to speak with, or other members ask who else is a member of this forum and also our customer. I keep that information to myself, but I wanted to find out if anyone would mind if I did every once in a while, mention you by username. If you do not mind, just reply to this thread. If you would rather not be mentioned, send me a personal message. I do appreciate all that you guys have done. Thanks in advance!

Sure, why not?

Catherine

The process is the same as for 1099's except for submitting directly to SSA. I have never seen any instructions that require a signature authorization. Our cover letter to the client does indicate that we will submit the W-2's to the SSA on their behalf and we do have a blanket authorization signed by the client that directs us to electronically file tax returns and informational reporting to the respective agencies as requested by the client.

We generate the W-2 submission file but we do not submit to the SSA until sometime in February. Just in case there is an address wrong or an amount or a social security number.

Maribeth

Doesn't the client have to sign Form 6847, which is then faxed to the IRS before you can e-file? Only once; good basically forever.

Catherine