indyscott

My client owes $21K on their 1040 (due to income from sale of business). They can take it out of their invested funds now, or I told them they could pay part now and do an installment agreement. The 9465 instructions say that there's automatic approval on requests up to $10,000, but only if the T's can't pay it all now. Has anyone had a 9465 denied if the T's can pay by cashing out investments? The underpayment penalty rules say that if you have an installment agreement your underpayment penalty is 1/4 of 1% of the unpaid amount per month. That would be plus the interest, which is ___% right now? So, if they thought their rate of return on their investments would do better than the interest + 1/4% plus the $105 application fee, wouldn't they be better off to get an installment for 12 mo for $10,000?? This seems like a bit of a flim flam, and normally the clients cook up enough of that on their own, so I'm not sure why I'm suggesting it myself. I guess if I had a crystal ball and knew that the $10,000 they kept invested would grow a lot, and not shrink instead, I could advise them confidently. I think I've answered my own question..

I use the worksheet in the 1040 instructions for line 16a. You can get it by pressing f-1 from the box in line 16a. It basically amortizes the retiree's contributions/investment in the pension over their expected life. I make a new copy for each subsequent year's return for the client, and put it in the file for the next year. The office of personnel, used to not put anything in the taxable portion box. I think they've started now, but I still use the amount I compute on the worksheet. IRS'll might call me someday and ask why I'm not using the amount reported on the 1099R, but at least I have a logical explanation that I've used consistently.

I do. Anything that reduces a clients confusion is a good thing to me. I put "everything that has to be signed, mailed, or paid" in the pocket on the left side of the folder, and "everything that's yours" goes in the right side of the folder, most of it on a prong fastener. They still get a bewildered look in their eyes most of the time.

The mailing slips to mail returns to a tax authority are part of the client letter tab, which is a not quite obvious to me,... but, when I'm printing, and have to go through all those little check mark things, I know I'm very careful to ask for a mailing slip for returns when I need them, but I never get them on the big print job. I alway's have to print them separately. It's a minor annoyance and inconvenience, but, can anyone tell me why I don't get them on the big job when requested? Maybe it's because I haven't check the box in the options tab of the client letter..

Ought to be a Sch D sale of capital asset. Do you have basis dates & investment?

I think you'll need your "product key" or whatever they call it.

Joel, if I recall correctly, there was a small connection between Paciolli and DacEasy. I recall that the developers of the two products started out together and then later split, hence two products. My memory is kind'a fuzzy about that, if I ever did really know. When I came to DacEasy in 1989 they were well established, (on Version 3), and Paciolli was already about gone. If you could find a Paciolli package you'd have to have to have a pretty old machine to run it on. It'd be interesting to see the tech specs on the package. Probably DOS 3.0, and an 8088 processor. I can't imagine what circumstances would constitute a "need" for that software. I have a Kaypro II w/ CPM, and an Toshiba T4500, w/ a 486 & DOS 5.0. Sorry to get so far offtopic.

I don't recall the old ATX community board moderator not allowing negative comments about the product or support. Of course the support was better then, but I think there were still occasional gripes about the product and support. I would rather say "that's great!", instead of "yeah, right..." I've had another experience with a favorite software product being bought by a large foreign corp. I've been a DacEasy Accounting software "Certified Consultant" since 1990, and they were bought by Sage Software a few years ago. Sage bought lots of accounting software companies, including Peachtree. Sage made all the DacEasy CC's become Peachtree CC's as well, and for several years it looked very worrisome for us DacEasy people that Sage would kill the product. But, they didn't. They continued to develop and support it, and last year we sold a ton of updates. Suddenly DacEasy is a star at Sage this year. They're rebranding the product. The moral is that the quality of the software and the dedication of the user base ultimately matters enough to make even bone-headed new owners aware that they have a good thing. I think the ATX product is quite good, and it seems the user base is very loyal. I'm glad to hear reports that CCH is recognizing the value of what they bought, and making efforts to get back to some of the things that made it great to begin with, eg the in-house message board.

Up to $5000 of startup costs can be expensed by making an election on PT VI of 4562, and attaching a separate statement detailing the costs. It is to be done in the year that the business activity begins. Sounds to me like the business hasn't begun, and s/not deduct those $ in 07. The return to file is Sch C on 1040. A single member LLC is a "disregarded entity" by IRS.

Yes, things can change quickly. Marriage is one thing you hope you can count on lasting a good long time. I hope it happens for you. My marriage is a blessing I'm grateful for.

Two things.. First a gentle reminder that typing in all caps on a message board is generally interpreted as yelling. I know a lot of people keep the cap lock on most of the time, but the message board is generally not a good place for all caps. Second, although I don't know beans about the specifics of income taxation in Arizona, your clients probably came from a different state when they moved to Arizona. They would be part year residents in each of the respective states. Most states have tax returns for part-year residents, where you apportion their income. You likely need to file a return for each state.

Doesn't matter to IRS what worksheet of input form you use to get them into the return,.. just be sure you don't underreport the gross receipts. They WILL match the totals.

Capital loss deductions are limited to $3000 per year

no sweat... he's got "people"...

You mean the "Print Options" tab on 4562? You can select to group assets by activity, or to print all assets. I couldn't find it in "global option on the asset page".

Work—work—work, In the dull December light, And work—work—work, When the weather is warm and bright— While underneath the eaves The brooding swallows cling As if to show me their sunny backs And twit me with the spring. ATTRIBUTION: Thomas Hood (1799–1845), British poet. repr. In Complete Poetical Works, ed. Walter Jerrold (1906). The Song of the Shirt, st. 8 (1843). Just tryin' to get my number of posts count up..

I am registered with SSA Business Services, which I use to check SSN's for new employees. Is the Accuwage efile different from the ATX efile? I'll look at the SSA Business Services website to see what I can learn there. I'm just a little confused by why the ATX program prompts me to use Accuwage if I can efile through ATX direct, like any other efile I do. I've prepared w2/w3 in ATX and created an efile for them. I've just been waiting to transmit it to ATX until I heard something from y'all on the message board.

SHOOT ME NOW! SHOOT ME NOW!!!!

Apparently the automatic DST adjustment didn't kick in last weekend. My time settings are selected correctly, but my board display time is an hour behind.

What's the due date for efiled W2/W3. I missed sending one in, but can I still efile it? I've never efiled W2/W3, but it looks like it's the same/similar to any other efile return. Also, what is "AccuWage"? The program prompted me to start it if I wanted, and it looks like a SSA internet thing, and wanted to start with a test file. I just cancelled it.

I wish people would keep their personal vehicles out of their corporations... But, charitable donations of an S-corp are supposed to be separately stated items, to be passed through to the shareholder, and handled by the shareholder as they would have handled them if they were the donor. It should go on Sch K line 12a, no?

I think they do have a Capital loss. They acquired the property at the date of death (or alternate valuation date) at it's FMV, ie the appraised value. Their proceeds from disposal of the property are less than their basis, that's a Captial loss.

I think you're sort of on the right track, but what you call a "business bad debt" is not something that belongs on Sch D, I think. It really has nothing to do with Capital Gain or Loss. P1 contributed his own money to his own captial account to pay the 3rd party loan. That increases his basis in his partnership interest. When you say the Partnership went "belly up" I think you probably have more accounting to do for winding up of the Partnership's affairs. When you close out each partners captial account, you'll know if they each have a gain or loss. Sounds messy.

Thanks to all for your replies. I've not ever paid very much attention to Sch K on the 1120S. I'm going to pay a little closer attention from now on.

When I use Fee Collect, the Federal Refund amount in the client letter comes up as "$0". When I edit the client letter, it shows a paragraph for Bank Product, and the refund amount is set as "Bank Product Proceeds". I can edit it to insert the correct amount of the refund in the letter, but I don't understand why it isn't getting the refund amount from the variable in the master letter form. Has anyone else experienced this & figured it out?