fredazcpa

Earnings from a S Corp are not subject to SE tax, that is why the shareholders, if they are "Working" in the Corp need to be taking a W2 wage and withholding and paying the employment taxes this is the area that the IRS is looking into, because it is a way (right or wrong) to avoide paying Social Secuirty and Medicare taxes.

Got this from the official board Q: What are the meanings of the Debt Indicator (DI) Codes on my clients’ IRS acknowledgments? A: The IRS designed DI Codes specifically for Refund Anticipation Loans (RALs). The DI code is present in all IRS e-file acknowledgment files. The DI indicates whether the taxpayer owes a debt to the IRS or one of the agencies managed by the Financial Management System (FMS). The debt indicator codes are N (None), I (IRS), F (FMS), and B (Both): • N (None) – Indicates that no debt was found in either the FMS or IRS files • I (IRS) – Indicates that a debt was found in the IRS files for this return • F (FMS) – Indicates that a debt was found in the FMS files for this return • B (Both) – Indicates that a debt was found in both the FMS and IRS files for this return FMS debts are for past due student loans, child support, federal taxes, state taxes, or other governmental agency debts. If the taxpayer is expecting a refund, it may be offset if a debt is owed. The debt indicator code may be shared with the taxpayer. The taxpayer should contact the IRS directly for an explanation. If you need to inquire about a debt indicator code, call toll-free (800) 304-3107, to find out with which agency the debt is listed.

Lion Now you bring poltics to tax law (LOL), your real questions is when does life beging accroding to IRS at least 9 months prior, therefore the use of 12 months on a new born, and before anyone jumps about those Oct thru Dec, yes I understand, its just that the IRS doesn't

turns out I had to match the number of months lived in home with the months alive, I had entered (because it rolled over) 12 months in home, when the mother had passed away in June, changed to 6 months went though fine, enfact have done another one and not had any trouble with it

Clients mother, whom he has been supporting and claiming as a dependent passed away efiled return, got a reject for Date of Death informatin for a dependent is missing in ATX where (if you can) enter that infromation, I see the box for the child without a SSN, or is this a return that will need to be paperfiled? thanks for the help

First time home buyer docs needed.pdfI got this from a client, they received it from the IRS when requestioned more information for the FTHBC

thank you for the heads up, that is none of their #$%^&* business. I will be billing, print out the bill, then delete from file before sending efile in.

client shuts down business mid year, gave equipment to landlord in exchange for canceling the lease and back rent for 14 months about 38K. The question is this a "sale" of the equipment, which then also be "rental Expense" (client also filing a final 1120S), if this is a sale then there is possible sec 179 recapture. They (shareholders) will be filing for BK when the taxes are done and any (if) refunds are in hand and yes I am getting paid before anything walks out the door thanks

It is 2008 1099R correcting a 2007 year

TP has a 1099 R with a Code P in box seven. with ATX the software does not tax the dollars ($8k), is this correct, in the past I have taxed the excess contributions return in the year rec'd or do we amended the year the excess is from, and is this is the case, what or how do we get the documents to match up Thanks Fred

this was sent to me Economics It is the month of August, on the shores of the Black Sea. It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit. Suddenly, a rich tourist comes to town. He enters the only hotel, lays a 100 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to pick one. The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher. The Butcher takes the 100 Euro note, and runs to pay his debt to the pig grower. The pig grower takes the 100 Euro note, and runs to pay his debt to the supplier of his feed and fuel. The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the town's prostitute that in these hard times, gave her "services" on credit. The hooker runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there. The hotel proprietor then lays the 100 Euro note back on the counter so that the rich tourist will not suspect anything. At that moment, the rich tourist comes down after inspecting the rooms, and takes his 100 Euro note, after saying that he did not like any of the rooms, and leaves town. No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism. And that, ladies and gentlemen, is how the United States Government is currently doing business .

I did and will again as long as he runs

has anyone, or does someone know if you can change an LLC to a non profit corporation? thank you fred

does the Foreign Earned Income Exclusion also reduce the income for a person who is providing services in a foreign country being paid by a foreign company? Cleint tells me nothing has been reported for the two years we are doing 2007 and 2008, but for 2009 they will be getting a 1099 Misc? Thanks Fred

Bcolleen: I just did one this AM, the version number is 15, try getting an updated form from the web, if the auto doesn't to it, go directly to the ATX web site Fred

I just did my test, with 240K in longterm gain, work just find. maybe send me the numbers and I can see if I can help [email protected] just let me know in the subject line

no wonder I am putting on weight

When you fill out the 309 are you putting the OR tax on Part II Line 12, just did my test return, at that is what it took to get the credit for flow to page 1 line 29 and on line 30 you should see 309 in the first box, if not make sure it is there this should do it for Fred

Then in that case you will not have the credit for AZ, but have the credit on Oregon taxes. When it is all said and done you should only be paying taxe once on the transaction, but in to states and it will work out to the higher rate IE AZ tax rate is 3% OR tax rate is 5%, the total tax will equal approx the 5% with 3% to AZ and 2% to OR. That is how the CA works, the one I deal with most offten CA gets the credit, the AZ pays the tax Hope this helps. Fred

Most of the time this only applies to full year residences, if your usuing the NR or PY then your allocating the income allready.

Form IT -2023 Part II (Non business Income and Deductions) line 4 Pension, annities IRA ATX software is putting in column A the total of Pennsion (206K) all but 15K the balance (191K) was rolled over. also has 223K in W2 income of which 123K is from OH, the balance is from TX letting the software to its thing, I wind up with OH tax of zero becasue of the allocation on Page 4 Sch D Line 63 through 65 This does not seem right, I must be doing somthing wrong? thanks for the help Fred

O to be self employed

I wish I could rember the congress person, that on national TV the other morning, had the never to say that for 2009, they have until april 15, 2010 to change the laws. Just shows you how out of touch they are in Wasinghton DC.

first off not all attorneys are tax attorney, yet they think they know it all. Next, not all CPA's do taxes, I have a CPA client, but he doesn't do taxes and doesn't want to , just works with the books of the company. I just point out how the taxablity of social security is firgured out, then go on. If they do not like the answere, let them go on, when tax payer gets the letter from the IRS, the charge them full return price plus 50% to tell them the IRS is right. Fred

Is the 1099B from the new broker dealer or the old one. Either way there was a sale that took place and you will need cost information When I transfere accounts from another broker, you use an ACAT or account transfere, which is a in kind transfere. nothing is sold or bought. I do not make a cent off of the transaction. Some items that are held in brokerage accounts can only be transfere buy selling, but those are rare. This sounds like the new broker wanted to make some $$$ and sold the old stuff out for new stuff. Either that or the new broker does not what the H*** he/she is doing. brokers like to use the word "exchange" instead of Sale, becasue clients know that they will be commissons and taxes due on sales, but not on "exchange". Brokers that do not tell the client what is up, should not be in the buisness, or a client that does not understand what is happening should not be buying and selling in the market.