JRS

I sent an email to Braeden, questioning the change, but yet no response...................

Is it possible to set up a poll on where forum members stand on switching to TRX or staying with ATX/CCH? I know I am still pondering the switch, but am still a little quesy about the change.

I, too, have a very small practice. I use the PRS version and have been able to buy any additional returns at a fairly good price. My total outlay and the ability to prepare 1040,1041, 1065 and 1120's, still costs me less than Max at around $1100. The only hang up I have with TRX and the $299 version, which I probably will buy, is the no efiling of "business" returns. I can live with that, even though they are my money makers. The main push ATX gave me towards TRX, was the email to renew and the statement: "It hasn't been easy. The state of the economy has put pressure on everyone, and made even the most routine business challenges much more difficult. We know that...and we certainly don't want to add to your problems. So we're holding the line on pricing, with no price increases for the 2009 tax year program." Even with the 10% early discount, my initial cost went up almost $40.00

Catherine: Thanks for the spread sheet. See's dark chocolate bordeaux, PLEASE!

You might already know, but the website below has corrected withholding tables for California. They changed the ones that were originally published for 2009. www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm

Similar situation a few years ago. Filled out form 4852. We figured what the W-2 should have been with FICA and all the rest and sent it in. Accepted by the IRS with no problem. Had the client call the IRS from my office and that started an investigation of the employer. End result, the employer was eventually arrested and tried in federal court for not paying employment taxes. "Tax Protester" who lost!

New requirement for me and a good way for me to remember to donate.

I would also add my thanks to all in this community. I, like most of us, probably are on a few other boards, but the knowledge obtain here is the greatest.

Community Property: In California, married couples may own property as "community property with rights of survivorship" which is essentially the same as joint tenancy, except that the entire property receives a basis step-up upon the death of one spouse. In this case, a later sale by the spouse of $1.0 million would not cause a taxable gain. I have no cite for this, but I read somewhere the IRS will only honor the full step up, if the property is titled as above. If just Mr & Mrs, 1/2 step up. I think it was on the Tax Almanac Board a couple of years ago.

It depends on the deed. If it is John and Mary Doe, she gets the 1/2 step up basis. There is another way of titling the deed where the surviving spouse gets a full step up in basis. The only problem is I can't remember how it needs to be titled and my title is in a safe deposit box. I believe, and am probably wrong, it needs to say joint tenancy.

This year, the Internal Revenue Service is offering a new way to file an extension request for free. This year, anyone, regardless of income, can e-file their extensions at no cost from a home computer using IRS’s traditional FreeFile or the new FreeFile Fillable Forms introduced this season. E-filing a request for an extension using either form of FreeFile is safe and secure, the IRS said, and taxpayers will receive a confirmation to keep with their records. However, as always, the extension requests need to be filed by April 15.

I don't have any LLC, but I received the notice from a tax site I use for Ca tax laws. Maybe you can search it and find your answers. http://www.caltax.com/Pages/home.aspx

IRS newswire dated 4/17/2009 Issue Number IR-2009-037

LLC case — Supreme Court declines review The U.S. Supreme Court has declined to review the Ventas case pertaining to LLC fees paid by LLCs with income from both California and non-California sources. (Ventas Finance I, LLC v. FTB (August 11, 2008) 165 Cal.App.4th 1207; Cal. Sup. Ct. petn. den. on November 12, 2008, Case No. S166870) This means that the California Court of Appeals decision is final... almost. The case will be remanded back to the Superior Court, with instructions for the court to properly calculate the fee based on California-source income for years prior to 2007. According to the FTB, they will issue a notice sometime in the next few weeks with instructions on when and how to obtain refunds for LLCs that have income inside and outside the state of California and have filed protective claims for refunds. For now, you should file a claim for refund for any LLC that had income outside the state of California in a year prior to 2007. The statute of limitations is four years, so for a calendar year LLC, you must file a claim for refund for a timely filed 2004 return prior to April 15, 2009.

TRX has posted on the TRX thread.

Credit or debit card convenience fees charged for paying federal individual income taxes electronically are deductible for some taxpayers who itemize, the Internal Revenue Service announced today.

IRS Suspends Tax Practitioner for Failing To Provide Service Related to Offers in Compromise WASHINGTON — An enrolled agent was suspended from practice before the Internal Revenue Service by the Office of Professional Responsibility on April 6 for not performing services related to offers in compromise (OIC) paid for by taxpayers. Enrolled Agent Richard Hargus worked in California for two separate, now defunct companies that specialized in tax resolution services, which included submitting OICs to the IRS. Multiple taxpayers paid the companies for Hargus to resolve their income tax liabilities through the OIC program. In many instances, the taxpayers either did not receive the services for which they paid or received very little assistance with resolving their tax issues. An offer in compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Absent special circumstances, if a taxpayer has the ability to fully pay the tax liability in a lump sum or through installment agreement payments, an offer in compromise generally will not be accepted. Tax practitioners are subject to the regulations issued under Treasury Department Circular 230. Specifically Circular 230 provides that a practitioner must exercise due diligence in preparing or assisting in the preparation of, approving, and filing of tax returns, documents, affidavits, and other papers relating to Internal Revenue Service matters. Following an investigation by the IRS, Hargus admitted a lack of due diligence in these taxpayers’ situations. The IRS suspended Hargus from practice for a period of time lasting at least 18 months. The IRS is taking a closer look at tax resolution companies, and is also litigating known OIC abuses to ensure that tax professionals fulfill their legal and ethical obligations to their clients in dealing with IRS tax matters.

Did the same thing and also asked if they could email the answer to a couple of my questions.

Ikon is a futures, currency metals commodity broker. It looks like there was a mark to market calculation at year end. I would have the client (or you) go online to their "live chat" and have someone explain the "1099-B" I have dealt with commodity and currency futures but, never seen anything like you describe.

In my area, the IRS insists we follow the instructions for the schedule. I was "advised" the broker summary does not work!! From the instructions for Schedule D: You must enter the details of each transaction on a separate line of Schedule D. If you have more than five transactions to report on line 1 or line 8, you can report the additional transactions on Schedule D-1. Instead of reporting your transactions on Schedules D and D-1, you can report them on an attached statement containing all the same information as Schedules D and D-1 and in a similar format. Use as many Schedules D-1 or attached statements as you need. Enter on Schedule D, lines 2 and 9, the combined totals from all your Schedules D-1 or the attached statements. Do not enter “available upon request” and summary totals in lieu of reporting the details of each transaction on Schedules D and D-1 or attached statements.

I used ATX's PDF printer once and it locked up. Since then I use pdf factory and no problems.

Here is a site that will give you a quick idea about options: http://www.optionseducation.org/basics/whatis/default.js Another place to look is : http://www.fairmark.com/index.htm - use their seach. Without knowing how your client "played" the puts and calls, I can't tell you how to handle. If they "Buy" the Put or Call, it is handled just like a stock. If they "Sell", it is handled like a short sale. If the option is "assigned" or "exercised" then you add the "premium" to the basis.

I always handle them as individual items, just like equities. Unless they expired or exercized on the same date AND the options were identical, i.e. Call JPM June 30.

It's about time...It's about change. !!!!!!!!!!!!!!????????????????

I have had a few "broken" links where info is not following to Ca from the feds. My main one has been K-1's from both 1065 and 1041 not flowing, especially when there are differences. I have been overridding and also making my own links.