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Slippery Pencil

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Everything posted by Slippery Pencil

  1. The instructions don't state much of anything, which is why I'm asking if anyone has experience with a waiver request. All the instructions state is: Extensions of time to file federal tax returns do not extend the time for filing this report. There is no extension of time available for filing this report. If a delinquent FBAR is filed, also attach a statement explaining the reason for the late filing. See “When and where to file” (above) for filing instructions. The account is with goldmoney.com, which is a storage facility. With the huge rise in gold, the account rose above $10,000 two or three years ago. If it is only a storage facility, I don't think it needs to be reported. However, the website states: Is GoldMoney regulated?Since 1 April 2008 GoldMoney has been licensed to operate in Jersey as a money service business (MSB) and is regulated directly by the Jersey Financial Services Commission (JFSC). GoldMoney's MSB license can be verified by going to the JFSC's website at the link below and clicking on the letter "N" to see Net Transactions Limited's (the legal entity that operates GoldMoney) listing: http://www.jerseyfsc.org/money_service_bus...ities/index.asp Aside from being a regulated entity in Jersey, Net Transactions Limited (NTL) has been domiciled in Jersey since 1 April 2008. NTL's status as a Jersey-domiciled company can be verified on the JFSC's website at: http://www.jerseyfsc.org/registry/namesear....aspx?id=127166 That makes me think it needs to be reported. Now maybe, since it has been licensed as a MSB since April 1, 2008, there are no past due reports. But I don't really know how it was operating prior to that date.
  2. Anyone have experience filing past due TD F 90-22.1 forms regarding foreign bank accounts? A friend has been using HRB's Taxcut for years to prepare his own return. This is the first year the software has asked him about foreign bank accounts and he has had a foreign account for 3 years. I told him I'd either be able to help him out or help him find an expert in this area. I don't think there's anything too complex here I just want to make sure I can get the penalties waived. Is the irs fairly lenient in waving penalties on this? I think he had reasonable cause: His return is fairly basic (one W-2, no house), the software claimed it was as good as having a professional prepare the return, the software never informed him of a requirement to file. If we attach a statement explaining all of this, will the penalties be waived? In regard to an foreign requirement expert, is Brian Levy still around? If I recall correctly he did a lot of foreign filings. If my friend wants someone who has dealt with this numerous times I'm wondering if Brian would be qualified. Thanks, dave
  3. The credit is wrong. Click the jump to for the credit (Line 5 of schedule 2) and override the amounts for income and tax taxable in both states.
  4. Why are you including the settlement in taxable income?
  5. Just like state licenses have eliminated bad haircuts, crooked lawyers, untrustworthy building contractors, bad drivers, lousy mechanics, dishonest car salesmen, etc. Just like the SEC regulations have eliminated security fraud and accounting scandals. Just like the USDA has eliminated food poisoning in govt inspected meat. If you think state licensing is going to improve the tax prep business, you haven't been paying attention.
  6. Depends upon state law. Some states require a govt license, because the govt owns us all and we can only do what it permits us to. It use to be you'd get married by the preacher, it was recorded in your family bible, and a couple witnesses signed it. This was a legally binding marriage contract. Some places where a small amount of freedom still exits allow this.
  7. The withholding tables are the same for wages & retirement pay. So yes, their withholding will go down, and yes, if they withhold and pay estimates to break even or owe the max allowed, they will now be underwithheld.
  8. I was going to state that it is one of their vampire superpowers. However, a quick google search came up with this, http://hughevansinvestigates.blogspot.com/...kalot-said.html, which claims that it is a product of evolution and that while in bat form, the vampire bats groom each other.
  9. How can I efile an Arizona extension? The instructions say to check the AZ website but not much info on the site. The program doesn't give me an option to select the 204 to when clicking on efile. Any help you can provide is greatly appreciated.
  10. Not sure what you mean by box 7. If this is a joint return, just delete the 1116 since the tax is under $600. It should then flow from the 1099-DIV input straight to 1040 line 47. The problem may be the category. Above the form is a drop down box to select the category. Select passive and see if that works. If not, curse ATX because their 1116 is a freakin mess. I've made suggestions every year but they don't improve it.
  11. I hope you're not charging him just for getting a second opinion, but for getting that opinion from HRB, where there was a high probability he would talk to someone who was incompetent and would give him wrong advice.
  12. Atticus, I remember that happening and you complaining about it back then. The program didn't carry forward the passive losses at that time. It was after that time that they started carrying over the losses (possibly due to your complaining). I know the 2005, 6, & 7 program all carried forward the losses. As is way too typical for this company, they have once again removed functionality from the program while increasing the price. There is no excuse for the poor programming decisions this company makes.
  13. I posted my question to this board while on phone to tech support. I also posted to the suggestion box while on the phone. After checking with the programmers the technician informed me that they did change the program so as to not bring forward the carryover. Another great improvement by ATX. The ineptness of the programming amazes me.
  14. Client has a K1 from a 1065. In 2007 there was a passive loss carryforward into 2008. The 2008 program is not picking up the loss carryforward. Prior years programs carried this forward. Why is it not being carried forward into 2008? Is this just another programming "improvement" as ATX calls them?
  15. Attached is a spreadsheet I compiled comparing fees I found on the internet of 5 different tax prep firms. It's about five years old. I tend to drop the highest and lowest fee and if my fee is close to the average of the remaining three I'm pretty comfortable with it. Fees_Comparison.xls
  16. Client has two qualifying children but only paid child care for one. Form 2441 says you can claim up to $3000 for one qualifying child and $6000 for two. It doesn't say you have to pay for care for both. Am I allowed to claim $6000 since they have two kids? Code sec 21: ( Definitions of qualifying individual and employment-related expenses For purposes of this section - (1) Qualifying individual The term "qualifying individual" means - (A) a dependent of the taxpayer who is under the age of 13 and with respect to whom the taxpayer is entitled to a deduction under section 151©, ( a dependent of the taxpayer who is physically or mentally incapable of caring for himself, or © the spouse of the taxpayer, if he is physically or mentally incapable of caring for himself. (2) Employment-related expenses (A) In general The term "employment-related expenses" means amounts paid for the following expenses, but only if such expenses are incurred to enable the taxpayer to be gainfully employed for any period for which there are 1 or more qualifying individuals with respect to the taxpayer: (i) expenses for household services, and (ii) expenses for the care of a qualifying individual. Such term shall not include any amount paid for services outside the taxpayer's household at a camp where the qualifying individual stays overnight. ( Exception Employment-related expenses described in subparagraph (A) which are incurred for services outside the taxpayer's household shall be taken into account only if incurred for the care of - (i) a qualifying individual described in paragraph (1)(A), or (ii) a qualifying individual (not described in paragraph (1)(A)) who regularly spends at least 8 hours each day in the taxpayer's household. © Dependent care centers Employment-related expenses described in subparagraph (A) which are incurred for services provided outside the taxpayer's household by a dependent care center (as defined in subparagraph (D)) shall be taken into account only if - (i) such center complies with all applicable laws and regulations of a State or unit of local government, and (ii) the requirements of subparagraph ( are met. (D) Dependent care center defined For purposes of this paragraph, the term "dependent care center" means any facility which - (i) provides care for more than six individuals (other than individuals who reside at the facility), and (ii) receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit). © Dollar limit on amount creditable The amount of the employment-related expenses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed - (1) $3,000 if there is 1 qualifying individual with respect to the taxpayer for such taxable year, or (2) $6,000 if there are 2 or more qualifying individuals with respect to the taxpayer for such taxable year. The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggregate amount excludable from gross income under section 129 for the taxable year.
  17. Thanks again for the reply. It's very insignificant. The prior OT is $8 & $33 compared to $48 & $360 for Own Tax. The $41 total makes a $12 difference on the return. I'm going to take it based on my assumption that O.T. stands for Owners Tax and it has something to do with moving into CO in 2007 but not registering the cars until 2008. Thanks for the help. grace & peace, dave
  18. There's an option for "Other Country". I believe that efiles ok. They did away w/ "various" a year or two ago.
  19. Thanks Julie, There are four dollar amounts on the registrtion. They moved to CO in 07, so 08 is the first year they're paying the CO Own Tax. The four amounts are "Prior O.T.", "Own Tax", "Lic. Fee", & "Title Fee". I know the title & license fee aren't deductible, but didn't know what "Prior O.T." was. The only thing I can guess is the O.T. stands for Owner Tax and since they moved in 07 the prior is for the part of the year they lived in CO.
  20. What is the "Prior O.T." on the Colorado Registration/Ownership Tax? Is it based on the value of the vehicle or something else? Thanks.
  21. After John's reply I have to break out this old story. This story may or may not be true from experiences I may or may not have had with the IRS if I ever did even work for them. During my short employment tour with the IRS in the mail room, i've found several harmless ways to mess with them and receive no recourse. Always put staples in the right hand corner. Go ahead and put a row down the whole right side. The extractors who remove the mail from the envelopes have to take out any staples in the right side. Never arrange paperwork in the right order, or even facing the right way. Put a few upside down and backwards. That way they have to remove all your staples rearrange your paperwork and re-staple it (on the left side). Line the bottom of your envelope with elmer's glue and let it dry before you put in you forms, so that the automated opener doesn't open it and the extractor has to open it by hand. If you’re very unfortunate and have to pay taxes use a two or three party check. On top of paying with a three party check pay one of the dollars you owe in cash. When an extractor receives cash, no matter how small an amount, he has to take it to a special desk and fill out of few nasty forms. Write a little letter of appreciation. Any letter received has to read and stamped regardless of what it is or what its on. Write your letter on something misshapen and unconventional. Like on the back of a Kroger sack. When you mail it, mail it in a big envelope (even if its just a single EZ form). Big envelopes have to be torn and sorted differently than regular business size ones. An added bonus to the big envelope is that they take priority over other mail, so the workers can hurry up and deal with your mess =) If you send 2 checks they'll have to staple your unsightly envelope to your half destroyed form. Always put extra paper clips on your forms. Any foreign fasteners or the like have to be removed and put away. Sign your name in ink on every page. Any signature has to verified and then date stamped. These are just a few of the fun and exciting things you can do with the man. These methods are only recommended when you owe money.
  22. In spite of Wisconsin's "DO NOT STAPLE" on the first page of the individual tax return, for the handful of Wisconsin clients I have, I assembly the forms in order and staple them. My question is, where should I staple the W-2s? Should I put them behind the W1 ahead of the 1040 as the assembling instructions say, or since they don't want them stapled, should I put the W2s on top of the W1 so the can easily detach them and proceed to lose them or do whatever they desire with the detached forms?
  23. You have to register to efile business returns to 1040s. Check the reject code. If it says something like you're not authrized to e-file business returns, you need to register. You can do so online http://www.irs.gov/taxpros/providers/artic...d=97657,00.html http://www.irs.gov/efile/article/0,,id=98246,00.html
  24. This guy lived on Monkey Chow for a week. Quite hilarious. http://www.angryman.ca/blog/2006_06_01_archive.html http://www.angryman.ca/monkey.html
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