ILLMAS

Last summer a state auditor was auditing one my associate client, we were wondering why it was taking so long and she requested to be at our office and not request additional information, she was working and making calls. One day we took her out for lunch and she was telling us that she is required to do admin work at TP office, so she asked us if she can use our office when a audit client cancels at the last minute, we told her sure no problem. It been a couple months already and we haven't seen her, very nice lady.

Has anybody ever gone through a union/welfare payroll audit? One of my friend's co. is going to be audited by one of the pension/union fund they were members of in the past. They have request pretty much everything related to payroll (941's, W-2, SUTA, timesheets, employee cards etc...), but I would like to know what are they looking for in particular? Thanks

I am a Mac user too, I only run Windows XP on my office computer via bootcamp, going on 3rd year with no problems, I also have a Macbook Pro that I run the same. I had bought a new 27 inch iMac, however I returned it because it took up a some space from my desk, its almost the size of my home flat screen TV. As for Windows 7 64 bit, I would check to see if some of the program you use are compatible, I recall people had problems with XP 64-bit, because most of the application are made to run on 32-bit.

TP had flooding to her personal residence, insurance co. paid for some of the repairs, and I am trying to fill out form 4684 but I am sort of confused, can someone that has filled one out assist me? Here are area I am having trouble with: 1. Descripton of properties Type: would this be were I put flooding? And is date acquired necessary? 2. Cost or other basis of each property: The total cost of the damage was $24,900 3. Insurance or other reimbursement: Insurance co. paid for $19,100 out of the $24,900, but TP had to pay $3500 for deductible 4. Gain from casualt: 0, TP was out $9,300 out of her pocket 5. FMV before casualty: I am using what the insurance company appraised $24,900 6. FMV after casualty: Again I am using the insurance company appraisal, TP was not better off, became whole again. 7. Subtract line 6 from line 5: Since I am using the same amounts I get zero To recap, TP basement got flooded, insurance valued the damage to be $24,900, insurance only paid $19,100 difference of $5,800 + $3,500 for insurance deductible = $9,300

Ah thanks, detail report is exactly what I wanted. MAS

TP recieved various W-2 for students loan paid by it's employer (Air-Force), in total 9 and only box 1 has amounts, no federal, ss, mc were withheld. The total amount is not big, TP thinks he recieve this because he did not re-list, can someone shine some light on this, I don't understand why the student loans payments were reported as wages, TP is going going to owe some tax. I have heard of corporation paying for worker education and if they leave the company before a number of years, the amount paid is added as part of your wages, maybe this is the case with the military??

I cannot figure how to print out a listing of all the fixed assets for a rental property, is there a way to print out a listing of all, instead of printing one by one? Thanks

Home Construction Q. I plan to build a home and occupy it in 2009 or early 2010. Can I claim the first-time homebuyer credit now and use the funds toward the down payment or other ongoing construction costs? A. No. To qualify for the first time home buyer credit, the residence must be purchased. By statute, a residence which is constructed by the taxpayer is treated as purchased on the date the taxpayer first occupies the residence. (05/06/09) Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before July 1, 2010. Can I take the credit for the construction costs? A. Your home construction contract qualifies as a binding contract, entered into on or before April 30, 2010, to close on the purchase of a principal residence on or before June 30, 2010. If you occupy the home on or before June 30, 2010, and meet the other requirements, you can take the credit. (12/17/09) Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before September 1, 2010. Can I take the credit for the construction costs? A. Your home construction contract does not qualify as a binding contract to close on the purchase of a principal residence on or before June 30, 2010. Therefore, you do not qualify for the two-month extension of the deadline for completing the purchase in the case of a binding contract. However, if you occupy the home on or before April 30, 2010, and meet the other requirements, you can take the credit. If you do not occupy the home on or before April 30, 2010, you cannot take the credit. source: http://www.irs.gov/newsroom/article/0,,id=206293,00.html Hope this help

I cannot speak for the rest of the states, but the state of IL (Office of the Attorney General) requires for non-profit agencies that have revenue over $300K, to submit audit financial statements along with the IL-AG990. It doesn't matter what type of revenue it is (donations, membership dues, contributions etc...), if it's more than $300K. The threshold before 2010 was for revenue over $150K, but starting in 2010 (returns due in 2010) is $300K. Some foudations require for you to have an annual audit if you would like to continue receive funding and other don't. If your client needs an audit and did not budget for one nor has the funds, ask for a one-time waiver for an audit. MAS

I have recieved 3 tequilla bottles over past 2 years from different clients, don't ask me why :-)

The link was on CNN's website, but it seems it was removed??

Wow, read this if you have time, I only read about two sentences... http://i2.cdn.turner.com/cnn/2010/images/02/18/stack.letter.pdf?hpt=T1

An associate of mine, informed that one of his client recieved a 1099A, but the problem is she hasn't foreclosed nor has the house been sold, our guess is that she was in the process of foreclosing, then her bank sold the note to another bank, so this new bank they are not going to get paid and issued a 1099A for 2009. Anyone heard of something like this before?

Thanks, now that I have interviewed the client and know all the facts, it sure sounds like it was a casualty loss, here is a little background, underground sewer pipes collasped causing flooding, insurance company paid to have it replaced. Client never had any problems with the pipes running through the walls until the basement (sewer pipes) were replaced, plumber didn't want to take responsiblitiy nor the insurance company, but at the end, insurance co. paid to open/close the walls but would not pay for the pipe replacement, so TP was stuck with the bill. Her deductible was $2500 for the basement repair and $1000 for 1st fl/attic + 3150 to have the pipes replaced total casualty loss of 6650. MAS

I did a bit of research before hand, TP had flooding in her basement and her insurance covered all the damages, TP paid around $2,500 for the deductible, she also had extra work done which she is aware is not part of casualty loss and she won't be able to deduct it. Second issue, the insurance company found a problem with a pipe that vents on the roof (sewer pipe), the insurance company paid to have the walls opened/closed but for the pipe replacement, here is where I am stuck, is the pipe considered a casualty loss because the insurance co. paid for the wall opening/closing or is this more like an improvement since the TP had to pay out of her pocket. I couldn't find an answer with the IRS, but if someone has encountered this issue I would appreicate it, if you can guide me to get the proper support before I notify the TP if it's deductible. Thanks

One of my friend/associate is a CPA, and he only prepares a couple of tax returns a year, he asked me if I can efile a tax return for him, he is also using ATX, I already imported the return, do I have to set his company and info to be able to use my ERO? Thanks

A couple of my clients that had multiple jobs during 2008 are seeing a lower refund this, how can their employer correct the withholdings?

Since 2008, so she recieved benefits for the whole year of 2009.

Thank you, I was seeing 2008 under the 2008 organizer, but I just changed it to 2009. MAS

I cannot figure out how to get the prior year amounts to appear on the 2009 organizer, I didn't realize the prior year amounts were blank until a client called me today. So if someone can let me know where to check off that would be great. Thanks

TP after retirement continued to work, she did recieve SSA benefits during the year, TP doesn't remember getting the $250, would it be wise to only claim the difference from $400-$250=$150?? Thanks

Yes Diane is correct, I went back to check the IRS instructions: "However, the credit operates much like an interest-free loan, because it must be repaid over a 15-year period. So, for example, an eligible taxpayer who buys a home today and properly claims the maximum available credit of $7,500 on his or her 2008 federal income tax return must begin repaying the credit by including one-fifteenth of this amount, or $500, as an additional tax on his or her 2010 return." MAS

Ok I have a client coming this afternoon and they were eligible for the $7,500 credit that has to be repaid over time, I am looking at form 5405, on the second page I see the repayment section, however it seems like form is for people that sold or disposed. On Part IV, is that where I put down the amount ($500) they are paying back for next 15 years? Thanks MAS

We always get snow here in Chicago plus extreme cold temperatures, but I am starting to despise it every year more and more. I used to love the snow as a child, but when traffic is moving at a snails pace I hate it. MAS

Hello to all, a TP client of mine asked if I could amended an installment agreement request for 2008 to include the tax due for 2009. I really haven't had a case like this before, I have included various years in one installment request, but not gone back and added a year. If this is possibly, I would combine 2008 + 2009 tax due and just state it's for two years? Thanks