ILLMAS

If it's a first time client and they bring it with them I usually make a copy of the SS card but not birth certificate. I only request birth certificate when preparing a W-7 amongst other required documents.

LOL I've been doing this since 2007, during tax season I do a manual update everyday. Try this, let do the automatic update, then click on the update icon, then click manual and you will see there are still forms ready to be updated.

And I want my piece of the pie too!!! This bothers me so much, there are so many people out there, that are willing to take any type of job to earn an honest living, then we have the ones that choose not to work because at the end they get rewarded (EIC, public aid etc...) by the government. Over and out!

Just wanted to see if anyone is remember to ask their clients of out state purchases, were no sales tax was paid. As you know the state of Il is broke and wants to collect every penny it can, so far most of my clients have been older couples that know nothing about computers and internet, but I have to ask them anyway.

This is so true, stuff like this happens all the time. I was in my doctor office (paper work office, not exam room) a couple of years ago and here comes another doctor knocking on the door, he wanted to consult with my doctor if he was prescribing the right medication for a guy with genital warts. LOL

In early 2010, TP was not able to continue to provide care for his elderly parent, so he had to put his mother in a nursing home. He pays zero for her expensive, he only provides clothing to her, does the mother still qualify as a dependent?

Your story reminds of this one I heard, a man tells his doctor that he is losing his memory and what he recommend for him? The doctor told him pay your bill first.

Never mind, TP both surrender their policy so it's correct.

I have husband and wife that took out thier money from what it seems a life insurance policy, however box 7, has a 7 as a distribution code "Normal Distribution" the funny thing is the couple is under 50 years of age. I'm I missing something here, or is that how a life insurance cash out work, both TP contributed money towards the policy, however they are being tax on the gain only, but not getting hit with the 10% early withdraw penalty. I would appreciated is someone can assist me on this one. Thanks

Here is something to look at: Certain expenses incurred in traveling for medical purposes are deductible for U.S. federal income tax purposes. Internal Revenue Code Section 262(a) generally prohibits the deduction of personal or living expenses unless specifically allowed by the Code. Section 213 allows a deduction for expenses paid for medical care, to the extent that such expenses exceed 7.5 percent of adjusted gross income. Therefore, you may deduct the cost for certain types of medical procedures obtained overseas. Medical care is defined, in part, as amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body, and for transportation primarily for and essential to medical care. A deduction is allowed for up to $50 per person for each night for lodging while away from home primarily for and essential to medical care if such care is provided by a physician in a licensed hospital (or in a medical care facility which is equivalent to a licensed hospital), and there is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Therefore, it is possible that the $50 per person deduction may be used for funds paid for room and board at a hospital or medical care clinic while obtaining healthcare overseas. A deduction is also allowed for transportation expenses of a nurse or other person who can give injections, medications, or other treatment required by a patient who is traveling to get medical care and is unable to travel alone. Section 213 specifically excludes a deduction for cosmetic surgery or other similar procedures, unless the surgery or procedure is necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease. When combining travel for medical purposes with tourism, determining the amount of the deductible portion can be problematic. When reviewing a taxpayer’s return claiming such deductions, the Internal Revenue Service will look at expenditures first as non- deductible personal expenses and allow only specifically documented medical expenses. It is therefore important to first obtain a doctor’s written statement stating the medical purpose of the trip and the necessity of the travel companion, if applicable. All documented transportation to and from the medical destination, allowable lodging expenses during treatment and recovery, and hospital and physician costs would then be deductible. Any additional costs of a vacation or pleasure nature would not be deductible. Raymond V. Stephano, CPA, CFS, Principle and Founder of Stephano Financial Management. Raymond has over 30 years experience in financial and tax management. He is a graduate of Villanova University and his background includes serving as Treasurer and Chief Financial Officer for several companies. In 1991 he became an independent tax consultant and in 1993, he started Stephano Financial Management, an independent financial service organization.

Thanks for posting this website, I am going to use it as an inspiration, this past summer I took up photography as a hobby and I am learning as I go. Here a couple of pictures I took this passed weekend:

I believe that is correct, however you can itemize them on Sch A.

Ouch, what a burn

Thanks, I googled it and found out my mac computer does it, just have to email the files to myself, open them in the Mac Pc, then send it with a pw.

Does anybody know if one can out a password on PDF file from ATX. A client as asked me to send them a password protected copy if their return, so if anybody can help me that would be great. MAS

"I do have clients that tell me stories of their married friends each filing as HOH and splitting the kids" I hear the same stories too, to bad the IRS hasn't cracked down on these individuals :)

Just out of curiosity, what EITC abuse/fraud are you seeing with your clients? With todays technology I don't understand how people can get away with EITC fraud, I understand abuse, claiming a child lived with you and they don't or lying saying you provided more then 50% support. When I was an aprentice, I do remember correcting tax return of individuals who put down dependents they didn't have (used fake names, SS# or SS# applied for), but this was in the mid to late 90's, today I just can't understand how they can cheat the system. Someone please explain. Thanks

This year a have client coming to see that had identity theft and has had trouble with IRS due to this, how do I go about getting an ITIN? Do I have the client contact the IRS directly and provide documentation of the identify theft, or do I submit a W-7? Thanks

This may not answer your questions, but would recommend to your client to get a pre-qualification for a loan first, let me tell you, banks have gotten very strict. I see it kind of hard for banks to lend if you have negative equity, but again have him do all his homework first before taking the plunge. I am sorry to hear that, but do you know if the TP refinanced during the years and just wasted the money? I hear a lot of people complain they owe more then what the house is worth, but they tend to forget they took out all the equity and bought a car, paid credit cards, vactions etc...

Hello to all, I want to get your opinion about organizing tax returns after I have scanned them. So far any 2010 return I have prepared I am no longer making a paper copy for my records, basically I scan the TP return + all docs used to prepare it (W-2's, 1098, 1099s, notes etc...) and I created a folder called Tax Return Files and I created sub-folders 2007, 2008, 2009, 2010 (2007 was the first year I was on my own), so right now I have only done a few returns and been putting them in the 2010. Now here is my dilemma, would be wise just to create a folder for each client and just put all years in the clients folder, I think that would be easier to search, because you know what client you are looking for instead of going by year, anyway please comment, trust I am not the most organized person in the world. MAS

Line 21 — Military pay earned Write the amount of military pay that you received from the U.S. Armed Forces or the National Guard of any state. You may not subtract the following: combat pay that is not included in your federal adjusted gross income, Line 1 pay you received under the Voluntary Separation Incentive, from the military as a civilian, under the Ready Reserve Mobilization Income Insurance Program, for duty as an offi cer in the Public Health Service For more information, see Publication 102, Illinois Filing Requirements for Military Personnel. FYI don't forget to select special type wages for military personnel on the W-2, if you don't then it will be taxable wages in IL. MAS

Something many people forget, is that there are applications running in the background taking up memory. For example if you have various years of quickbooks on your pc, it's probably running in the background. My PC use to load very fast, now I have to give 10 minutes, if I try to open any program I get the Not Responding message, so if your computer is old and tired, let it load for a couple of minutes, hell I have see clients PC where they would never turn off because of the time they had to wait to load :)

New TP called to make an appointment and she was telling that she visited the local IRS and was told she can claim loses on her tax return and that the government would cover dollar per dollar, but she had to see a tax professional to prepare her tax return. I have never encounter a situation like this before, only casualty loses, but I wanted to see if someone can guide in the right direction. I find hard to believe the government would cover dollar per dollar on loses. I did a quick search and it seems the area is a disaster area designated by Pres. Obama. Seven counties (Carroll, Cook, DuPage, Jo Daviess, Ogle, Stephenson and Winnebago) were designated a disaster area by President Obama. Before visiting a DRC, residents of those counties who had flood damage between July 22 and Aug. 7 are encouraged to apply for disaster assistance. Call 800-621-FEMA (3362), (TTY) 800-462-7585 seven days a week, 7 a.m. to 10 p.m. CDT, or apply online at www.disasterassistance.gov/. Help in other languages is available. TP already received money from FEMA, but she claims it was not enough to cover her loses, I explained to her FMV on items and how you cannot claim 100% of the cost. Well any guidance will be greatly appreciated. Thanks

Hola Pacun, have you considered calling the Tax Practitioner Hotline first? You can explain to them what is going on, open a case for the tax payer, they might want proof to support his claim which I don't think would be a problem. A letter from the principal, teacher or friends supporting his claim would help. Marco

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