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swiftax

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Everything posted by swiftax

  1. Can I mail the 8879 with the 1040. Again, I do not ask TP to sign the 1040 but only the 8879. Thanks Jeff
  2. I am looking at a W2 and it does not have a SSN!!!! TP has 2006 return which has ITIN. He is not carrying one today but name on the w2 is same as the name on the ID (issued in a foreign country). How do you deal with this situation? Thanks Jeff
  3. Just would like to know what kind of formal checklist, if any, you use to make sure you are not exposed to this penalty. Thanks Jeff http://www.accountingweb.com/cgi-bin/item....at=%o%20%B%20%Y Excerpt of the link above: The IRS rules require tax preparers to actually flag the deductions they aren't at least 50 percent sure will pass IRS scrutiny, the Denver Business Journal reported. While preparers previously needed to believe the deductions had a "realistic possibility" of being accepted, now they must hold a "reasonable belief" of acceptance. If unflagged deductions are determined to be unreasonable, the penalties kick in. "Here's a classic example," said Joe Nelson, head of the tax practice for BKD in Denver. "A lot of times you'll ask a client, did you have any non-cash charitable contributions? He'll say, 'Yes, I had $300.' Well, do you have a receipt? He says, 'No, it's an estimate. I know I gave the stuff.' Before, you'd accept that. But now it raises the question of whether that is a more-likely-than-not position ... You could expose yourself to a penalty that is 50 percent of the fee because of an innocuous charitable contribution like that."
  4. Yardley He is filing as HH. Thanks Jeff
  5. What do you do if a return is rejected because filer's SSN and name does not match IRS Master file. (I sent and resent it numerous times without any success so I gave up) Do you mail the return with 8879? I do not ask my clients to sign the 1040 but only the 8879 and because of that the 1040 form I have does not bear client's signitue. Any advise appreciated. Thanks Jeff
  6. Heard about this: http://proadvisor.intuit.com/content/progr...ew.jhtml?lid=qb What do you think? Thanks Jeff
  7. Thank you all. I like Catherine's idea and will try QBSS. Jeff
  8. Anyone has suggestion for a good accounting software. A client who owns a computer business approached me to do his accounting for 2007. He gave me list of receipts and bank statements. This will be my first exposure of doing this kind of work. What are the risks and rewards? I appreciate any advise. Thanks much Jeff
  9. Understood. But my question is can a brother claim his sister as a dependent and file as HH. Sister's income is $8K. Thanks
  10. The dependent is his sister and could be claimed by her parents. But parents do not want to claim her.
  11. TP is 21 and claims that his sister of 20 years old with income of $8k lives with him. He claims that in 2006 he filed as a HH and everything was accepted by the IRS. His sister's income was also $8K. When I told him that he cannot file as a HH he was not happy and is on his way to collect his papers. As far as I know if the dependent is a relative and made more that $3400 s/he cannot be claimed as a dependent. Am I wrong? Thanks Jeff
  12. I decided not to do this service and advised the client to get a certificate of good standing from the VA state secretary. That will show the business is in good standing with the state. Thank you for the advise. Jeff
  13. They are here two in No VA. Wisdom Tax also has also a guy wearing "What's up doc" outfit.
  14. If they consider him an employee how can he be a self employed? Thanks
  15. Someone came to me today and asked me to validate the existence of his company so that he will an online certification. He wants to sell stuff over the internet and online company which secures sites asked him to have a letter from a CPA stating this business is in business. The internet company has listed some instructions for the CPA to follow such as: 1) Agree legal name to permanent audit file (if audit has been completed 2) Bank account: Request a letter from the bank confirming the existence of the account for the benefit of the client. After performing these steps they want the CPA to state: We have performed the procedures enumerated above which were agreed to by the management of the client, solely to assist you in evaluating the company's application for an premium certificate...This agreed-upon procedures engagement was conducted with attestation established by the AICPA. Has anyone seen this kind of request? What is the reasonable fee to charge. Thanks Jeff
  16. TP is US Citizen and works for World Bank in DC. On his W2, no social security and medicare tax were deducted but on the W2 it says that " US staff must pay SS and Medicare tax at the self employment rate on wages for services performed inside the US." TP's 2006 return, previous preparer considered the TP as self employed and prepaed schedule C. I am not sure that is accurate but would like to know your opinion. My other question is how will TP pay the SS and medicare tax. Remember the W2 no tax has also been deducted. Thanks much jeff
  17. Thanks much. I could roll it over.
  18. In 2005 I used 1040 software. I exported a file and tried to import into MAX 2006 but I am getting an error message "This export file was created by a different program version and cannot be imported." Has anyone resolved this problem? Please help if you can. Thanks much Swiftax
  19. Taxpayer applied for SSN for his new born baby and do not want to wait for weeks until the SSN arrives. How do I deal with this. Can I enter "APPLIED" in the SSN section of the dependent? Thanks Shii
  20. I got my software last night...yes I am late in the game. Installment went find but when I click on open new return it won't open. All I see is a blan k page with a message "Opening New Return" and the system freezes. Anyone experienced this. Thanks Shii
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