ILLMAS

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

I would see this as one W-3 since the FEIN is that same, usually dba's are setup locally or within the state of business. MAS

How much are you going to charge him for all those returns?

Here is something from the IRS: Q1. What is the Making Work Pay Credit? A. In tax years 2009 and 2010, the Making Work Pay provision will provide a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns. Q2. How will taxpayers get this credit? A. For people who receive a paycheck and are subject to withholding, the credit will typically be handled by their employers through automated withholding changes to be made in early spring 2009. These changes may result in an increase in the amount of take-home pay. The amount of the credit will be reported on the 2009 income tax return. Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit on their 2009 tax return filed in 2010. Q3. How will the self-employed (those who do not receive Social Security, Veterans Affairs or Railroad Retirement Board income) claim this credit? A. Self-employed taxpayers can claim the Making Work Pay credit on their 2009 return filed in 2010. Self-employed individuals should evaluate their expected income tax liability and determine whether they want to make any adjustments in their estimated tax payments. Q4. Can private pensioners (those who do not receive Social Security, Veterans Affairs or Railroad Retirement Board income) claim this credit? A. Private pension recipients are not eligible for the Making Work Pay credit unless they have earned income. However, because the new withholding tables reduce the taxes withheld from all taxpayers, pension recipients may not have enough tax withheld from their pension benefits to cover their tax liability on those payments. The IRS recommends that pension recipients evaluate their expected tax liability for the year and consider whether they need to make estimated tax payments or adjust their withholding on Form W-4P, Withholding Certificate for Pension or Annuity Payments. Q5. Are employees required to have a valid Social Security number (SSN) to be eligible for the Making Work Pay tax credit? A. Yes, eligibility for this credit is conditioned upon providing a valid SSN. Q6. If a taxpayer is eligible for more of a credit, how can it be claimed? A. The modified tables take the anticipated credit into account through reduced withholding. However, the Making Work Pay credit will be reported on all filed 2009 income tax returns, along with the taxpayer’s withheld income tax. Taxpayers receiving less than the full amount of the anticipated credit through reduced withholding will still be entitled to the full credit on their return.

To avoid using red forms, just efile them. I have been efiling my clients 1099 and W-2's, except today, I guess the SSA does not accept if an employee uses an ITIN as a SS# for work MAS

Got it, thanks, just one more concern I have, the wife, she had zero income, and from the instruction, the credit is for EARNED INCOME, would it be correct just to claim the $400 for the working husband? Thanks

Ok my fisrt return and I alreay have a questions regarding the making work pay credit. I have a TP that worked pretty much the whole 2009, so somehow he already recieved the $400 during the year, now his wife didn't work, and from reading the instructions, anyone can claim the credit if they have earned income. ATX is giving an $800 credit, I am afraid it's double dipping for the husband who worked and and it should be zero for the wife. I attended a tax seminar about 2 weeks ago and the presenter said to go ahead and claim the credit, since the instructions are not very clear. Can someone please inform me on how to go about claiming the credit. Thanks, MAS

One of my client called me to inform me that their apartment was damage by fire from the next door nieghbor house. The building they leave in has insurance so they are going to take care of any damage to the property, however they didn't have any type of rental insurance and many personal items were damage, they filed a claim with the nieghbor insurance, but they haven't recieved any type of compensation or heard from them. My question is should they wait until the insurance company reimburses them for their loss or make the claim in their 2009 tax return regardless of the insurance reimbursment, since the fire happened in Nov. 2009? Thanks MAS

I bought the books on Craigslist and locally, some guy bought them for his wife that was going to take the exam, but wife decided to take the CPA in California, instead of Illinois. These are the Gleim EA book, they sell for around $300. I am aiming to take Part I in Feb 2010 and the rest during the summer.

I am excited my EA review books came in today, bought them used dough, but are in mint conidition. Anybody else getting ready? I have not decided when to take the exam yet.

I have efiled several 1099's and the status has not changed for a couple of days, is this normal? Also, is there any form I need to have my client sign for efiling 1099's?

I don't if any has posted this but no efile for first time home buyers if they are claiming the credit, must paper file and submit copy of HUD statement/closing contract. Mas