DevM

Having a brain Freeze..

Client had a business (Retail store) and did not own the building. State condemned the area to expand for highway. State paid to the client $$$ for Business damage. Landlord paid $$ to break the lease. Client incurred attorney fees and so on.

Is Business damage $$ taxable..? and how about $$ from landlord for breakage of lease..?

Client is a MI resident who worked in VA for a while (job sent him there) and this is reflected on his w-2...BUT now I have a problem.

W-2 Info

Box 1 Fed Wages 11424.00

Box 15 MI Wages 11424.00 Box 17 MI Income Tax 294.18

Box 15 VA Wages 7336.00 Box 17 VA Income Tax 197.37

I want to prepare the VA Nonresident Form 763. While reading the instructions, it states that you do

not have to file a return if your VAGI is less than 11250.00. Just file to get the refund.

Instructions for Line 6 - enter the total amount of your federal adjusted gross income from your

federal return. This would be the 11424.00, which makes his VAGI in the "need to file" catagory. But according to the w-2, his VA wages are only 7336.00, which would put him in the "do not need to file" catagory. I can't find where I can make this correction on the tax form. And you have to attach the Federal return to the VA return, so I have to show the AGI from the Federal.

Am I missing something? Or any ideas? Never did one of these before. Thanks!

Have you put VA wages in Part V Line 45.?

Once you do that you will see on line 16 % of Federal wages allocated to VA.

I should know this - but I don't. I have always paper filed my entities because I didn't do any when I first started, and I don't do many right now. But I am starting to get more and I think I need to start e-filing these returns as well.

When I became an ERO, they did not even allow you to e-file partnerships, corps, and s-corps. I think they had a period of time where you needed to add those entities to your ERO number to file them, but I never updated my ERO application. Is that still the case? How do you do it?

Any help is appreciated.

Tom

Lodi, CA

Tom,

go to eservices if you are registered and update. If not you can register there and update. It is fairly easy and can be done very fast.

Devm

Happy B'day Eli and many more to come.

Devm

I am going to take the exams during the summer.

I will do it the way I did with my drivers license writen test. I didn't study and I passed the first time in DC. Then, I went to VA and I passed it and I got my license. I went back to take it in DC and I failed. I was shocked because I knew all the driving rules in my country since it was part of my daily job.

Does anyone know how long does it take to register with IRS? Let me say that I pass the tests in June 2010 and I submit the form to the IRS, when will I be an EA officially?

I just finished Part I and Part II.(Passed in first time) Have to take Part III. Probably early summer after the season.

I think IRS says around 2 months after filing all necessary forms.

Devm

I understand that you can file black and white W-2s, even though you must use the red and white for 1099SW. If that is true, why does the ATX W-2 print "void" in the upper left hand box? Is there something that I am not checking. These W-2s are not being electronically filed.

I have printed a lot of W2s from ATX software and have not seen any "VOID". Where do you see this..?

Has anyone ordered CWU from TRX and received a copy..?

I ordered it thru TRX and as of today I haven't received it.

Called TRX and their answer is to contact ATX as ATX is shipping everything. Called ATX and says I need to contact TRX.

Devm

Thank you every one. Devm

I installed the TTO program last week and everything worked fine. Upon reading this thread I attempted to open a corp. client to evaluate the depreciation. To my surprise, I got a message on all types of returns that I cannot proceed as I need to purchase pay per return licensing.

I called and was informed that the install codes were sent out incorrectly and they were good enough to provide me with the correct codes. I reloaded and guess what; the new codes didn’t work either. I suggested that they send me a new disk with the correct codes overnight and email them to me so I can load correctly. They said that they will comply.

In addition I addressed the depreciation issue and they confirmed that the history as well as the future was removed. I asked why we were not formally notified of this and had to find out as we go. They simply apologized. Reminds me of the CPE that used to be part of the package & subtly disappeared. I intend to follow up with an email to the CEO of CCH and let them know how dissatisfied all of us are.

I wonder if this is the case only with those that ordered from TRX?

They never cease to amaze me. I for one will be evaluating other options for 2010.

Please let me know if any of you encountered this issue.

Thanks

Mike Dubin CPA

I ordered thru TRX and am not having the same problem. I rolled over a return without problem. Also created a new retrun and no problem.

although Dep. history is gone.

Still reviewing the rest.

Devm

She will be subject to NY State Tax and will need to file IT203 (NY Non-resident) return.

When she files NJ return she will be able to claim credit for taxes paid to NY on NJ return.

Devm

>>Employer never corrected their records acordingly.<<

If he is planning on moving on anyway he should just let it be. A previous employer couldn't touch him. A current employer might demand he repay his share, or might even just withhold it without notice. It's the sort of payroll thing that when it happens, it is really nice to have a union shop steward nearby.

Jainen,

Thank you for the response. I spoke to the client and that's the way I explained to him.

He is going to talk to the Employer about it. Actually for this year the Employer has alreday deducted SS/Med for this year. He is not planning to move away from the Employer.

Once again Thank you.

Devm

Was the W2 for employment or was it for something like sick pay? The client might be obligated to pay the social security and medicare taxes with their 1040 in some cases. Usually, if they are liable for the SS/Medicare their will be codes in box 12 with the amount of the uncollected taxes and this will carry onto the tax return on page 2, other taxes.

W2 is for Employment. Originally client was on OPT so no Ss/ Med. for 2007. In 2008 client recevied green card. Client informed the employer and provided copy of GC.

Employer never corrected their records acordingly. Client questioned the original W2 after filing taxes why SS/Med were not deducted that's why client received W2C with Box 3 and Box 5 filled in.

Devm

Hi,

Filed a Tax return for a client where NO Social Security or Medicare was deducted. Now Client recevied a W2C which has only amounts in Box 3 (Social Security) and Box 5 (Medicare). Still nothing in Box 4 (SS Tax withheld) or Box 6 (Medicare Tax Withheld).

I am trying to fill out Form 8919 and amending the return. Is this correct..?

Devm

The owner started his own business in Oct 2007, had an attorney set up an S-corp for his repair business and a separate LLC for the building. He had H&R Block prepared his 2007 return. He came to me late in April 2009 since he is a neighbor. I advised him that if he had a separate LLC for his business with a different EIN, he should not report the building on the same tax return as his repair business. He therefore does not pay rent because he would just be paying it to himself. It can be structured, however for that way in 2009.

I see this as 3 different entities. S Corp should pay rent to LLC even though he owns both. If LLC has a different EIN it should shouw on Sch E.

He should Expense the RENT in S Corp and needs to show Rental Income on Sch E.

Devm

In general, the partnership does not usually die unless at least half the partners change in the partnership. But there can be lots of qualifiers to that, depending on the partnership agreement and state laws as well.

Thank you all for responding. I have asked them to send me a copy of partnership agreement so I can review.

Once again Thank you.

Devm

Hi,

I know if there are two partners and one of them wish to get out of it, the remaining partner would need to get a new EIN and it would be considered as disregarded entity, but if there are five partners in an investment partnership can one partner sell his/her share to someone new?

I pulled in a bunch of acks earlier this AM with no problem.

I just transmitted and also pulled in a bunch of ACKs. No problems here.

Devm

I can't figure out how to select the pdfFactory as my printer. The only option it gives me (when I use change printer) is adobe pdf. This lets me choose k1, but it is k1s for all the partners insead of just 1 partners k1. Aaargh!

I would just open the return & goto K1 for that partner and click on print page. This way you will only get one partner. Have done it many times.

Devm

But, some of the enhancements they list sound pretty interesting. And the "no price increase" is a definite positive. Just the fact that we will have the program for another year is a deciding factor for me, I have ten years of ATX icons on my desktop now and have no desire to change programs ever again. That button has never bothered me one bit. Some things you have to learn to live with.

Yes. I also got the email.

Funny though that I also got a call from TRX which gave me a price of $699 for ATX.

Devm

B Jani, thank you for telling me that the ATX returns are going through. This is a new client, referred by and existing one. They've come quite a distance to see me, so I don't want to just try it & see if it works.

I am in NJ and have been e-filing with ATX for the last few year without any problems. No need for NJ8879.

Devm

Man, I hope ATX gets that out fast. I have 4 returns sitting here waiting to go. For you big firms, that is not a lot, but for a little practice like mine, that is four unhappy clients who are not out telling their friends how great I am.

Tom

Lodi, CA

FORM 8582 is needed only if you have a LOSS to report.

Devm

NJ

Wondering if there is a list of do's and don'ts for things to do (or not do) on the networked computer?

For example, my practice has been to do all rollovers, updates, e-files, etc. solely on the "server".

Today, the only thing I do from the "network" computer is data entry and printing.

Is this the recommended practice? Or am I being too cautious?

Thanks,

HV Ken

I have everything on the server. The only thing I do from the server is to update the program. (occasionally I might do Netsetup for workstations).

All rollovers, dataentry, printing and efiling is done from my workstation for the last 2years and haven't seen any problems.

I have also checked the efile'd returns under E-file manager tab on the server and shows the same as on my workstation.

PS: (Efile is done only form one workstation and not ALL workstations)

DevM

you are kidding me. right? i was only told its 3 machines and have been going in circles deciding which machine to use for my third- since this year i want a few others to assist me and i don't want to set it up on a network.

Thanks KC

KC is correct. It is 3 users and not 3 computers. Last year when I replaced my laptop, I just installed again and imported all tax returns for all the years without any problems. I have ATX on my server, desktop and laptop. Devm

I don't know the answer to taht, but I always rollover from workstation and never had a problem. Devm

Lexmark E250dn laser printer....approx. $249.00 from www.lexmark.com

I have used two of these for over a year (one at home, one at office) and I love them!

We have been using Brother HL5140 and Multi function Brother without any issues for several years.