ILLMAS

No, talk to the collection agency and fax them the -0- returns, this should solve the problem.

Yes, probably what happen is the client didn't file -0- returns on a timely basis, so IDES uses the last filed reported wage report and uses it as a basis to charge your client, to fix this, just submit -0- returns and you should be okay. IDES will adjust their records accordingly. MAS

If the son was on the mortgage, then the bank shouldn't have a problem changing the name to him. You can try using the 1099-C on the son return, but most likely he will get a notice disallowing it, and you will spend a lot of time going back and forth with the IRS, I had something like this happen with a mortgage 1098. A husband and wife had the husband parent co-sign a loan, parents had better credit and income score, so they became the primary borrower, the 1098 was issued under the parents name and SS#, two years later they get a notice disallowing the deduction on Sch A. The IRS wanted for the mortgage company to change the name and SS# on the 1098 and that would solve the problem, well it wasn't easy, the bank that had originally sent out the 1098 was no longer in business, so the IRS ended accepting a copy of the mortgage loan statement as proof that tax payer were on the loan. MAS

1. Have him/her bring a copy of the quarterly returns for the year in question. 2. Prepare it using ATX 3. Combine the wages on the 941's and put on line 3, ATX will automatically calculate a tax of $56 4. Fill out page 2 using the quarterly returns 5. Fill in your company information and sign it. 6. Have them sign, date and submit payment with voucher (prints automatically in ATX) I would charge between $20 or $40 for this form, $60 if he needs it the same day MAS

Depends on when the backups are being made, most companys have their server make back ups while you are asleep, so if you make a return now, 30 minutes you delete it without exiting out ATX then there is no way to retreive it, but lets say you created the return, exit out of ATX, ATX will automatically make a backup, so if you reopen ATX and go ahead and delete the file, there is a copy under the backup folder :)

Prepaid health insurance, general liability and workmen comp are always a pain to account for every month, I would recommend if the amount isn't that large, just go ahead an expense it every month and recognize the prepaid at the end of the year.

I briefly did work for a Texas corporation, as you mentioned they don't have state tax, but they do have state unemployment tax, sales tax and a franchise tax. You heard that saying don't mess with Texas, don't pay your franchise, sales tax and state unemployment tax in a reasonable time, count on your bank account being frozen. The rest of the payroll taxes would be your normal federal taxes.

LOL if people can barely keep track of their mileage, I doubt they would keep a good records of calls or maybe the only ones that keep a log is an attorney, I have seen clients get a bill for a 10 minute call.

Client was behind on their accounting and finalize it until early 2011.

Yes we filed extensions for every year, so we should have until 9-15-11?

12/31/07

Hello to all, just wondering if there is time left to amend a 2007 tax return? Client just recently filed 2007 and there was an inventory adjustment not recognized in 2007, I don,t want to make the adjustment in 2008 because it belongs in 2007 and I am currently working on 2008 right now. Anyone??

Here is a good reason as to why some large companies maintain a seperate account, but with 2 employees they should have any problems having one account: The principle reason for a business to have a separate special payroll checking account is for internal payroll control and management. “ Small businesses that employ people other than the owner or partners are required by the IRS to keep detailed payroll records.” If a business only has one account that includes payroll, expenses and income, it is much harder for management to keep track of how much money the company has. By keeping payroll accounts separate from operating and expense accounts a manager can see very easily how much the business has paid out to employees for payroll weekly, monthly and yearly. Employees are usually very sensitive when it comes to their pay, so a special account also helps a business to make sure the money is there to make timely and accurate payments to employees. (A business might overdraw an expense account, but by funding a payroll account separate, employees do not have to worry about their paycheck bouncing.) Another advantage of a separate payroll account is the ability for a manager to easily find errors, stolen checks and possible employee misuse of the account. Source: Unknown

The corporatin should charge a FMV interest rate, you can look up rates for personal loans online, then just accrue for interest income (on the C-Corp), paid or not you should still account for it on the books. So now, he owes the loan + interest, same if he borrowed from a bank. What if the owner decides at tax time not to repay this money but to have it as return of capital or dividends? Does he draw a salary from his business (acts a Sole-Proprietor)? If not, the IRS might make convert the loan, capital or dividends as wages and hit the business with payroll taxes.

See pub 502, maybe you can call it lodging instead of rental???? http://www.irs.gov/publications/p502/ar02.html#en_US_publink1000178972

The recession has hit everybody really hard.... My neighbor got a pre-declined credit card in the mail. CEO's are now playing miniature golf. Exxon-Mobil laid off 25 Congressmen, 16 Senators.... I saw a Mormon with only one wife. The bank returned my check marked "Insufficient Funds" I called them and asked if they meant me or them. McDonald's is selling the 1/4 ouncer. Angelina Jolie adopted a child from America . Parents in Beverly Hills fired their nannies and learned their children's names. My cousin had an exorcism but couldn't afford to pay for it, and they re-possessed her! A truckload of Americans was caught sneaking into Mexico . A picture is now only worth 200 words. The Treasure Island casino in Las Vegas is now managed by Somali pirates. And, finally.... I was so depressed last night thinking about the economy, wars, jobs, my savings, Social Security, retirement funds, etc., I called the Suicide Hotline and got a call center in Pakistan. When I told them I was suicidal, they got all excited, and asked if I could drive a truck.

1. Because he is a next day depositor, does he have to deposit for every paycheck he cuts outside his normal cycle, or is it OK for him to pick up all those small checks with his next payroll? If bi-weekly depositor (based on pay dates), then he needs to pay the payroll taxes the next day, so any payroll checks paid outside the normal payroll cycle would required to be paid (payroll liabilities) the next day. What happens if you just wait and pay with the normal payroll cycle deposits, well when you prepare the 941 sch B, if you compare deposits, you will notice that you didn't pay one and other one is over paid, the IRS will send you a notice for the one that was not paid and may charge penalties and interest. To avoid all this hassle, advice your client to make the checks in advance (in prior pay period) or to have employees wait until the next payroll cycle. 2. On his software, the Schedule B is showing those liabilities for the quarter on the day the checks were written. But the payments were made in the next quarter with the payments for the July 1 PR liabilities and coded to the 3rd Qtr in his online payment. Shouldn't those have been split out? How to fix if this is wrong? The liability is recognized when the check is written out, so if the check date was July 1, 2011 that is considered the 3rd quarter of 2011, so what they did is correct, now if you want to accrue for the days in June, you can do that, but it won't affect your liability deposit, it's still due the next day. Hope this help.

Speaking of cost, just wait to you start paying for CPE hours, and hopefully do don't need to fly to another state for CPE hours. This will be the killer and worst of all your CPE hours have to be tax related.

If the return was filed before April 18 2011, it should be in their system already, if your client just brought in their information because they were going to need it for banking purpose, then advice the bank and use the extension for 2010.

I was part of an IRS audit back in 2009 and here were the arguments: Company vehicle expenses for supervisors and other key employee who do not have a fiscal office to report to, was allowed 100%. Employees do not maintain a mileage log, all the cars and vans have the company logo. (Employees do take the vehicles home and visit different offices directly from home.) Auditors position: No change Officers vehicle expenses are being deducted 100% Auditor position: Since officers take the car home, that was not considered business use. Adjustment: 80% was allocated to business use and 20% to personal use, the amount from the 20% was not allowed and allocated as income to the shareholders 1040. Us: We did not agree with the auditors adjustment and suggested for the 20% to be reported as a constructive dividend and not as additional wages or other income. Client paid 15% tax on the dividends vs paying a high tax because their high income. Auditors position: Accepted our suggestion.

To be on the safe side, I would say YES, you do want to show the IRS that are more then 2 partners. I seen a return where the preparer put only 1 (100% owner) partner and right away the IRS sent them a letter saying it had to have more then 2 partners to be considered a partnership...... If I remember correctly, the IRS wanted for future returns to be reported on Sch-C.

Have you check to see if the financial statements retained earning=net assets match the 2009 tax return? Don't be surprised to find out they don't match, that is the first thing I check. Clients sometimes void cleared checks, enter checks in the wrong year or enter crazy journal entries that affect prior year retained earnings. MAS

Usually you don't pay FICA on unearned income, which is your case.

I did too, just haven't had a chance to go visit the site.

In certain cases the IRS is longer releasing refunds until the tax payer is up to date with their filings and the same goes for a payment plan.