ILLMAS

This reminds me of the man who betted his attorney he would pee on the IRS agent papers. 87 year old Grandpa is summoned to the IRS office for an audit. The IRS auditor was not surprised when Grandpa showed up with his tax adviser. The auditor said, ‘Well, sir, you have an extravagant lifestyle and no full time employment, which you explain by saying that you win money gambling. I’m not sure that I find that believable.’ I’m a great gambler, and I can prove it,’ says Grandpa. ‘How about a demonstration?’ The auditor thinks for a moment and said, ‘Okay. Go ahead.’ Grandpa says, ‘I’ll bet you a thousand dollars that I can bite my own eye.’ The auditor thinks a moment and says, ‘It’s a bet.’ Grandpa removes his glass eye and bites it. The auditor’s jaw drops. Grandpa says, ‘Now, I’ll bet you two thousand dolars that I can bite my other eye.’ Now the auditor can tell Grandpa isn’t blind, so he takes the bet. Grandpa removes his dentures and bites his good eye. The stunned auditor now realizes he has wagered and lost three grand, with Grandpa’s tax adviser as a witness. He starts to get nervous. ‘Want to go double or nothing?’ Grandpa asks ‘I’ll bet you six thousand dollars that I can stand on one side of your desk, and pee into that wastebasket on the other side, and never get a drop anywhere in between.’ The auditor, twice burned, is cautious now, but he looks carefully and decides there’s no way this old guy could possibly manage that stunt, so he agrees again after checking a couple of details about the bet. Grandpa stands beside the desk and unzips his trousers, but although he strains mightily, he can’t make the stream reach the wastebasket on the other side, so he pretty much urinates all over the auditor’s desk. The auditor leaps with joy, realizing that he has just turned a major loss into a huge win. But Grandpa’s tax adviser moans and puts his head in his hands. ‘Are you okay?’ the auditor asks. ‘Not really,’ says the tax adviser. ‘This morning, when Grandpa told me he’d been summoned for an audit, he bet me twenty five thousand dollars that he could come in here and pee all over your desk and that you’d be happy about it!’

While the client is in NonCollectible status, how often does the IRS check? Or do they do nothing? Yes, they do check in, just yesterday I spoke with a collection agent on behalf of my client, we submitted form 433-B about a year ago, so I would say they follow up yearly. His question was if the business situation has changed during the year, I am still waiting to hear from him if we need to submit financial statements. From the initial conversation I had, the account is active for 10 years and if your financial situation changes they'll come and collect.

Proseries also has it's hiccups, the firm I worked for encounter a problem with a multistate return last month, tech support suggested to prepare it by hand, I let them borrow my ATX program and it was worst. At the end they had to buy either TaxAct or TaxWorks and that solved the problem. The problem had to do with shareholder info not flowing the to states.

I don't know how people can drink those energy drinks, I avoid them like the plague, well anything with caffeine. I would rather drink water then that junk.

At this moment I don't know what plan it is, I am just hoping it's not taxable because of the high payout they received. Requesting a copy of the plan anyway. MAS

10-4 I will have the client bring in the documents. MAS

I wanted to post this question to see if anyone here has had experience with a client that received a payout from Aflac. Are the payouts taxable? I know the premium payments are pre-tax, and I am afraid the payouts are taxable. I will do further research but I just want to get an idea for now. Thanks MAS

LOL you beat me to it, I was going to post it too, because I couldn't tell what penalties are they assessing to the preparer?

I was on hold with the IRS for 1:15 minutes and resolved the issue in five minutes http://youtu.be/Vr_YVQctXVg

Where is he?

Thanks, I freaked out and had the client mail it better, I even walked him to the post office to make sure it was sent and post marked. Now we will wait and see.

Our city passed an ordinance to have scrap metal yards collect personal information from costumers because some of them were stealing city owned man hole covers and selling them as scrap.

Jack, please let me know if they are going to fix NETSETUP, worked perfect for 2011 and prior years, never got it to work for 2012.

New corp wants to make an election, can it be efiled today or does it have to be mailed?

Does anyone by any chance have a worksheet in excel that allocates (pro-rates) sales price to each asset? I need a new one, the one I have always gives me problems with the formulas. Please PM. Thanks MAS

Funny you mentioned Win 7, my computer has been downloading one of those critical updates and it has been so sluggish these past few days, for last 3 days now every time I shut down I get that warning ... do not shut down bla bla.... Everything is slow from my email account, internet, word, excel that I am becoming frustrated. MAS

This how I see it, if you don't have any documents in workpapers supporting your clients loans, then your client doesn't have them either. And what I don't like about this is, that if you have one bad apple in your client list, this can open a can of worms. Note to self, pass on clients that have shareholder loans documented or not I think these two articles sum up what the IRS is looking for: http://www.americanbusinessmag.com/2010/03/ensuring-the-validity-of-shareholder-loans/ http://www.borelassociates.com/topics/Shareholder%20Loans.pdf

Met with an IRS agent today, she mention to me that the IRS has a special department that monitors preparers that have a large number (trend) of tax client with due from/due to shareholders loans. What the department does is they ask you for your client list, select a couple, then they verify your work-papers for due from/due to shareholder to make sure you are doing due diligence and asking questions and documenting things like, when is the loan going to be paid back, is the corporation charging interest, is corporation paying personal expenses etc..... Your clients actions can now affect you to. MAS

Heat index expected to be +100, really in September.

We city slickers cannot tell from the closing statement what part of the cost basis is for land, rule of thumb is to use 10% (accepted by the IRS), Lion I believe you were from Berwyn, so you know its more house then land.

Investment property, but what I meant to say is, I never capitalize components when someone buys a building, they will have to hire a company that does that. For example if they pay 170K for the building and land, I take 10% for land and the rest for the building, I don't break it down by roof, electrical, plumbing etc....

The heating and ac unit came with the purchase of the house, it was never capitalized individually. So it's very hard to determine the basis.

TP had a break in and the insurance co. gave him 10K for the replacement of the heater and a/c unit, TP only spent 7K. The insurance claim was to become whole or complete not to improve the property, would be wise to report the 10K as other income and 7K as repairs, or just to report the net of 3K as other income? Thanks MAS

When I seen your hat, I got so excited just like the guy on this video http://youtu.be/zHDJhCMg2Dk

How old is your equipment? Maybe is time to upgrade, you know there better routers now a days.