ILLMAS

I think the farmville postings might be automatic, a friend of mine past away over the summer and I was getting updates months after her passing. At first I was scared, but let's hope she is okay.

Amen to that!!!

No, no rollover, we called the broker to confirm if there was any rollover because TP didn't remember if he had returned some money back. And TP hasn't made any contributions in many years, for the last couple of years he has pretty much took out all his and his wife IRA to buy real estate.

1=early distribution

I had a TP go with someone else to finalize their tax return, he called me back to let me know the other tax preparer was able to reduce his liability by only making a certain portion of a IRA distribution taxable. TP took out about 210K (early distribution) form his IRA account, he had them withheld the 10% for the penalty, box 2a (Taxable Amount) is zero and box 2b is checked off (Taxable amount not determined). According to what I see, the total amount should be taxable, if there was an amount on box 2a, then the difference between box 1 and box 2a is what would be taxable. Can someone please let me know if this is possible, or what basis is used to determine what portion of the IRA is non-taxable, I am afraid that once the IRS sees the attached 1099-R will right away know 100% is taxable. Your thoughts?? Thanks

suburban strip club owner was charged Thursday with criminal tax offenses seven years after Internal Revenue Service agents seized $12 million in cash he had stashed in a warehouse. Authorities began investigating Michael Wellek in 2000 after he had gone 11 years without filing a personal income tax return, according to the charges. Despite operating profitable "gentlemen's clubs" in Elk Grove Village, Harvey and Markham, Wellek told the IRS he never paid taxes from 1989 through 1999 because he didn't earn any income, authorities alleged. His attorney, Terry Ekl, said he anticipates that Wellek, 63, of Libertyville, will plead guilty to both counts he was charged with — obstructing the IRS in collecting taxes and filing a false tax return for 2000. Ekl said Wellek still owns the three clubs, Heavenly Bodies in Elk Grove Village, Skybox in Harvey and Cowboys in Markham. In 2003, IRS agents found bags holding $12 million in cash in an Elk Grove Village warehouse controlled by Wellek. Each bag was marked with a date and the name of the club from where the money had come. The seizure of the cash came to light in 2004 after Wellek filed a federal lawsuit seeking the return of the $12 million. U.S. District Judge Amy St. Eve turned down the request. Wellek later challenged the government's seizure of all $12 million, contending he owed less to the government, but St. Eve concluded that an IRS levy of more than $11 million was "appropriate under the circumstance." In court filings, prosecutors contended that the $12 million was the "fruits of the crime" and couldn't be used to pay taxes he owed the IRS. But a federal appellate court disagreed on that point. Prosecutors alleged that in 2000, Wellek made more than $2.1 million in income from two of the strip clubs but that he reported making only $115,769 to the IRS. When the IRS began investigating Wellek, he made false statements to federal agents, claiming he had no personal income from 1989 through 1999, authorities charged. In 2002, he underreported the gross receipts of the three clubs by at least $1.45 million. Wellek paid $3.1 million in taxes on the revenue from the clubs in 1999 but actually owed more, prosecutors said. Wellek was also slapped with a $1.2 million fine for fraud by the IRS in 2004. His challenge still is pending in U.S. Tax Court. If convicted, Wellek could face up to six years in prison, authorities said. A spinoff of the federal investigation led to charges against 15 individuals, including 14 former Chicago or suburban police officers, who didn't report income they earned moonlighting as security guards at Wellek's clubs. FYI I have never visited any of these establishment so I really don't know how these establishments can rack up so much money.

No no no, you don't hate Quickbooks you hate your client for not knowing how to use it. If QB is PROPERLY setup and your client knows what he is doing, you wouldn't have these problems. But I think just made you more money, because now you are going to charge your client for fixing his/her mess + the tax return preparation fees. Nothing is free in this world, hey I charge extra if I have add clients receipts. MAS

For the first time, I am not going to fill out Sch L (balance sheet) on a 1120, client only brought in income and expenses plus they are under 250K in assets. I always make sure the BS ties to my accounting record, but for once the hell with it.

TP recieved a notice: "Please provide a corrected Form W-2, Wage and Tax Statement to support the changes you are making to your income and withholding. You should request this corrected form showing your corrected ITIN from your employer." Is the IRS saying it's okay to use an ITIN for work? I amended TP tax return to reflect wages he earned under a different name and SS# that does not belong to him. TP is afraid his employer will not amend the W-2 to reflect the requested change. Any idea on how to resolve this issue? Thanks MAS

Ah they live on fantasy island, you should of said that since the beginning j/k. I see it this way, but it's only my opinion, don't quote me on this. I would exclude the FEMA money on thier tax return, however lets say the cost of rebuilding the bridge is going to cost them $100K and FEMA gave them $60K, I would just capitalize $40K and not the $100K, since FEMA gave them the $60K. Now for the old bridge, don't know if you were depreciating it in the past or if it's fully depreciated, but you are going to have the task of disposing of it on the books and tax return. MAS

Is it a loan? Is going to be repaid back?

To elect to have a NFP status you will need to re-apply for a new FEIN#, there you can elect the closing date of the fiscal year (06/30/10) and notify the IRS of a previously assigned FEIN#. But I think there is other things you need to look at first, you may need to contact the state and attorney general office in your state to see what is required. Having NFP status doesn't mean you are 100% Tax Exempt, for example the NFP will have to pay for sales tax. I am just wondering why not keep the current status if it's a homeonwers association? They are also tax exempt to a certain degree. MAS

In the past he did have an office (management office) in one of the buildings, but since 2008 he moved his office to his home.

TP has about 18 properties and out of the 18, 14 are within a 1 mile radius. His home is about 10 miles away from the properties, also if he is around the area he is always looking to buy more properties. What would be a good way to allocate the vehicle use amongst the 14 properties? I should I just create 1 fixed asset on 1 property and then allocate to the rest using a % on rent collected? FYI there is no mileage log. Thanks

The actual extension should be sufficient, if you e-filed the the extension I would write the day it was accepted by the IRS on top of the form. Or if it was mailed, just write down the day it was mailed. MAS

I did check it, and this morning I tried re-registering however it give me an error message saying I have already registered under that email address I used. Later on today I will register using another email I have. Thanks

Almost 24hrs later and I still haven't received my temp password via email????

I only got as far was registering for a user name, I haven't recieved my temporary password yet.

Never mind, I found it. http://www.irs.gov/taxpros/article/0,,id=210909,00.html

Please post link for others. Thanks

Maybe he can call and request a transcript for the year, I would think the IRS would have something on file regarding the K-1. MAS

I've been buying the proadvisor package for past few years, actually today QB 2011 came in. I buy it more for the enhanced payroll service, I am able to do all payroll quarterly/year-end forms, no need to use another software. My accounting file is still in the 2007 version. Another great benefit is tech support, this come in handy for clients that have unstable PC.

I dislike quicken (for business use, ok for personal use) because it doesn't give you a balance sheet or trial balance, makes what is supposed to be a very simple tax return into a complex one!!!

I was approach by an ADP sales person and everything seems fine with the service, but she was not able to answer my question. Are quarterly filings included in the price? So if anyone knows, please let me know. Thanks

Client wants to include his child earned income on his tax return so that the IRS can just deduct whatever is owed from his refund, I did some research and it seems the child is responsible for his/her return and any penalties and interest. I need to get back to the client and I just wanted to confirm it's not possible, only if there were some investments, then those could be included on the parents tax return. From Pub 929 Responsibility for Child’s Child’s earnings. For federal income tax purposes, the Return income a child receives for his or her personal services (labor) is the child’s, even if, under state law, the parent is Generally, the child is responsible for filing his or her own entitled to and receives that income. tax return and for paying any tax, penalties, or interest on If the child does not pay the tax due on this income, the that return. If a child cannot file his or her own return for any parent may be liable for the tax. reason, such as age, the child’s parent or guardian is responsible for filing a return on his or her behalf.