chadlonetree

Client sent me the letter. I am holding it, it is for the 2010 return.

Client received a letter from the IRS that "they may owe SE tax." Their business wasn't very profitable this year and the SE tax health insurance deduction brought their SE tax to zero. I entered their SE health insurance deduction on 1040 as well as the "Magic Blue Box" on top of Sch SE. IRS computers didn't seem to like it. They are going to assess SE tax in 20 days if no documentation is sent in. I have written and sent the letter already, just wondering if I missed something here. Anyone else have this prob?

I called on them to inquire. IRS rep stated the reference code 1301 "really doesn't mean anything." Nice. I was told some of the returns with 5405 have to go to "error resolution" department to complete processing, and some don't and processing will not be delayed. Makes sense to me!!! ..... ???

I have had 2 clients, both efiling 5405 paying back 2008 credit (loan) that have called me stating that the IRS said there would be an additional 3 weeks processing. The return had to be sent to the "error resolution" department to complete processing. Anyone else had problems with returns with 5405 payback and delays in processing, or am I just lucky?

It depends upon the structure. Many denominations or individual churches count the "tithe" of a minister as a required fee (must be stated in bylaws or resolution). In this case it isn't SCH A charitable contribution but a "license fee" that can be claimed on 2106.

I do about 80% clergy returns and have been through the issue countless times in audit. The tithe has always been allowed as a ministry expense if there is language in the bylaws that require it. They can be in the church bylaws, district bylaws, or denominational bylaws. When there has been no language in the bylaws, sometimes the expense has been allowed on appeal, sometimes it has not been. I encourage all of my churches to include language in their individual church bylaws. In most cases the Pastors are already giving more than 10%, we just include that a tithe of 10% is mandatory.

A few things I know. The credit is now refundable, and the form must be paper filed. I am assuming that even though this is just a carryforward amount reported on the 8839 that it too must be paper filed. Does anyone know an estimated date for the release of the 8839? I assume the instructions for 2010 will answer my questions (what documentation must support the adoption even though it is a carryforward), but the form and instructions don't seem to be available on the irs site yet.

Thanks for the input. I have one of the huge screen imacs and love it on the desk. I use a MBP for my laptop. The only thing I use the Windows XP virtual machiene I have on my Mac for is ATX (I have 2001-2009 on it with data backed up on a server) and quickbooks for clients. Everything other piece of software I have began using my Mac. I guess I am going to get a Windows 7 computer and put it in the closet. Then I can run the ATX program for 2008 2009 on that and just use Netsetup to run my VM as a workstation so I can reduce the size of the VM. Sorry if that was boring, I almost fell asleep just typing it. And I am not even exactly sure what I said or if it makes sense.

I think that I may be the only one here that uses a Mac. I run my old Windows XP file using VM Ware. If the ATX program is running on a Windows 7 computer, can you run the net setup from an older Windows XP computer and use it as a workstation? Anyone have any idea?

Just announced. The IRS will not begin accepting Worksheet #3 of the 1040 clergy until March 30. I have been doing them all manually anyway and always have.

I didn't take the risk of the offer, and just installed my full price version of Total Tax Office from CCH. Why am I not as happy as all of you?

You are trying to figure out what the correct thing to do it. The logical thing is to send 1040X ASAP. All of them I processed in the Fresno, CA office last year took at least 4 months to begin processing. They didn't get amended until usually 6-9 months.

Somehow I don't think I could charge the same fee's if the client knew that their tax return was being prepared in my underwear.

I haven't posted anything non-tax related, so this is a first. What time have you guys been going to bed the last two weeks? I have been stopping about 4 am. I learned that if I work hard from 10pm-4am, just one night is like working Monday-Friday 9-5 (I guess that is what most normal people do right?) for a whole week. No constant phone calls, meetings, appointments, interruptions!!! Work while everyone sleeps, then catch some ZZZZ's when everyone is trying to bug me at 8am. It has more than doubled my productivity and is the only way I can finish the season getting everyone filed by the deadline they all seem to freak out about. Just needed a little break.

I just got an Ulu Eskimo knife from a client in Alaska!!!

No you are not misunderstanding my post. The 1040Clergy WKSHT is flawed which is why I spent so much time trying to get Tech Support to work on it at the beginning of the season. That being said, I think it can still be a valuable tool for those who are not experienced with ministers returns if they understand its flaws. Just out of curiosity, if you do not check the f4361 box on Sch SE, how do you have "Exempt 4361" appear on line 58 (SE tax) of 1040 as the IRS requires?

If you check the 4361 box on sch SE in the program, you can enter zero on worksheet 4 on the 1040 clergy and everything is correct. It will show Exempt 4361 on pg 2 of the 1040 where required and zero out the SE tax. At the beginning of the season I tried 6 or 7 times to get ATX to update SCH SE or the 1040 clergy to get the program to zero it out once the box on Sch SE was checked, but you can imagine how that went. No response. I have just been doing it manually. You can actually read about it on this forum back in Jan. Make sure you are sending in 8453 with 1040 clergy for efiles.

Thought I would throw in my 2 cents (or cent and a half). About 80% of my business is ministers tax returns (about 300 a year). This year you should be filing the 1040 clergy worksheet. You enter designated housing allowance, then the actual amount used. ATX will automatically report the unused portion on line 7. If your minister is a w-2 employee and has expenses (auto, mandatory giving (not contributions if mandatory by the denomination or church bylaws) and any other expenses on 2106, it will reduce the SE tax liability by taking the percentage of taxable income divided by total compensation. If your minister is a Sch C, it will do the same thing for Sch C expenses (using worksheet 4). Let me know if you have any questions and I can help any way I can.

Had a client that didn't file for 8 years. He wanted me to file all of the years as he was getting lien notices. The guy would have received refunds of $3-4K a year. The IRS would only pay him his refunds for the previous 3 years. Some people???

I JUST GOT MY FIRST EMAIL BACK FROM TECH SUPPORT!!!!!!! The only problem is that it is 03/01/08 and I sent my email on 01/28/08. The email only included the minimum hardware and software requirements for ATX. THANKS. I have been a customer since 2001, that really helped!!! Sometimes I will put up with crappy service at a restaurant if I know that I can only get something I really want there. I don't know if this is going to be like that. I love form entry. Anyone know of any of the others that are form instead of worksheet entry??? I will check out the link with the list of other companies, but if anyone has found a form entry based software give a shout.

I used ATX 01-06 on XP and never had a problem. Bought a new computer with Vista this year. The program crashed all the time and I was having a terrible problem with the printing (PDF or Printer). I bought VM Ware software to run a virtual machine of XP and had no problems. Since I was running a virtual machine anyway, I bought a Mac and run the VM software with Windows XP. I love it. I have windows XP that takes care of all my business needs (ATX, QB, Office) and have all the fun toys of MAC (sound, video, photo). Never thought I would ever buy a Mac. Never would have if Microsoft didn't release the devil that is Vista.

:angry: I have had it. Here is an email I sent to ATX. The only problem, this like all others, will probably go unanswered. "I have been an ATX user since 2001. I was just reminded of something as I was reinstalling previous versions of the software on a new computer. I saw wonderful graphics during the installation like”24/7 technical support.” I used to have an issue, would call, my call would be answered right away, and the problem would be resolved. I am still waiting on a response from technical support since Feb. 2nd (yeah that is more than 3 weeks if you care). Form SE is not calculating correctly when checking the box that Client has Form 4361 on file with IRS. My only conclusion is that CCH does not give a s%$@ about their clients, and I, as well as many of colleagues that I have, will not give a s$%@ about buying your software anymore. I am not alone. Check out any of the professional forums about the unified voice of dissatisfaction of your product (not necessarily your product, but more of service and support). I do not like to take a harsh and direct tone. However, this is the 4th email that I have sent to your disgrace of a technical support department. The other 3 that were polite and trying to get help have gone unanswered. Yes I waited 3 hours for phone support. They said they would get on the issue and get back to me. That has been 3 weeks as well. Please resolve the problem, or give me a refund of this years software so I can purchase an Intuit product to complete this year’s tax season. CHAD ATX Customer #1XXXXXX"

Do a few OIC's a year. Mostly 1040 income and SE tax liabilities. From my experience, best case is to make a strong case for doubt of collectability. If they don't think they will get any money they will settle for payment plans of small percentages of the original amount. I am always able to get penalties and interest waived as well as the payment plan being interest free.

I am having issues with printing as well. It seems like half of the time when I go to print, or pdf a return the program will crash and close itself. Even when there are no other programs running on my computer, even when I touch nothing after print or create a pdf. I emailed tech support...but you know how that goes.

Ture. Good call. I don't remember the last time I did anything but efile these forms. I thought I rememebed the red forms being on the IRS website??? I do know the IRS threatens a small fee if you send unscannable forms, but I have never known the fee to be enforced? Anyone been or seen a fine?