ILLMAS

Client bought brothers business that is a Texas corporation with a NOL, and merge the business with his Illinois corporation. The type of business is the same, but it was just in different states. The Illinois corporation has been profitable and it took part of the federal NOL from the Texas corp (IRS accepted the NOL)., now my question, can he also take the state's NOL and apply to either a carryback or carry forward NOL for IL (different states)? Thanks,

Just wondering if anyone has every dealt with a executive bonus plan before? I read over some material, but it seems its basically a bonus (with tax deductions) and using that money to fund life insurance with cash value at end of term. I want to know the pro and cons, if anyone knows. Thanks,

I have a client that owns two company's let say A and B, company A is a construction company and company B owns the building that company A rents. Company B has no employees, all the employees including the officer/owner are paid through company A, health insurance is offered but no retirement plan is offered. My client personal banker suggested to move the officer/owner salary to company B to take advantage of the company contributing up to 25% to his retirement (SEP). I mention to him, that is it's obivious the plan will only benefit the owner, but the rest of the employees are being left out, which is discrimination to the rest, even though it's two separate companies. I'm I somewhat correct not to agree with the personal banker? Thanks

I have a TP that actively participates in his rental properties, he has a loss of about 50K, but nothing is following to the 1040, shouldn't a max of 25K flow as a loss? His income is about 115K. What should I check in ATX to see why it's not flowing through or what else do I need to review. Thanks

The check was made to the church right? So the only thing they would need is an acknowledgement letter, they can reference the family it helped out, an acknowledgement letter from the church could be support incase of an audit.

Hello, for anyone that has taken the EA exam, which study material do you recommend? I am looking into a used set if possible, so if someone has one I will be interested in it. I have seen a couple on ebay and craigslist, but don't which one to go with. Thanks The only CON I see in buying the used material is that I won't have access to their online exam??

Howdy, one of my client informed that she recieved an inheritance from a family member, I have not had a class like this before, so my question are: Is the estate taxed first then the money is distributed to the family members or the inheritance is distributed to each family member and they are resposible for claiming it to the IRS? Also, for people that recieve an inheritance and have a pension, can the pension be adjusted because of the inheritance, my client is afraid she might lose part of her pension and insurance. Any help is appreciated. Thanks

So the credit would be 2K, 10% of the purchase price? If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated cannot exceed the smaller of $7,500 ($8,000 if you purchased your home in 2009) or 10% of the purchase price. See Purchase price on page 3.

I also think he will qualify if it's going to be his main home, in this case it is an apartment and he should only take 1/6 of the credit. From the IRS form 5405 instructions: Main home. Your main home is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence.

Around the area I reside and work, RE agents are marketing the 8K credit, "Get 8K with the purchase of this home". I just love it when the R/E say "you should of consulted with your accountant first" after the damage is done. They simply wash their hands and now it's your problem.

I just wanted to share this with everyone in IL, one of my client recieved a letter that is a scam. Here is the alert from the IL Secretary of State: WARNING! A non-governmental firm called "Illinois Corporate Compliance" is contacting Illinois businesses in an attempt to collect a $150 fee to file corporate meeting minutes. Please be aware that corporations are NOT required by law to file minutes with ANY government or private entity. It is recommended that corporations do NOT reply to the solicitation

In my opinion, Peachtree and Quickbooks stink for retail sales, they are perfect for wholesale. I would recommend going with a POS system that can be intergrated with Peachtree. Some POS system lack some features like check writing, bank reconciliation, journal entry and most important payroll (can't prepare 941's, W-2's and sometimes no tax table). One of my client also sells clothing at retail and wholesale, the POS system is used only for retail sales and Quickbooks for wholesale and for all the accounting, the only down fall about this combination is when clothing is bought for retail sale, it has to be entered into the POS system and wholesale in QB. Now if they buy clothing for the wholesale side of the business and they want to sell some of the clothing for retail, they have to prepare an invoice from QB to retail (A/R) and in the POS it's entered as inventory (A/P) to wholesale. In short two invoices are created but they cancel each other out. QB sells a POS system, but I cannot comment on it because I haven't used it.

I guess this is a good thing for the IRS to verify if TP really qualifies, now I know one of my client is going to be calling me regarding the same notice. I requested a copy of the closing statement, my client closed on 12/23/08, the only thing my client might not have on hand is a tax transfer, but I will inform them to be ready. Thanks

Thanks, I forgot the IRS mis-applies payments and it takes months for them to correct them.

Sorry, it is 1090-Misc line 7 nonemployee compensation. I double checked the return and there is a change to SE tax by a very little amount.

TP submitted an installment agreement in early April to start paying in mid May, since she hadn't recieved an acceptance letter I asked her to call the IRS and find out what's going on. Well they barely approved it and she needs to start paying in mid June, TP is prepared to send a payment for May, if I ask her to send the payment anyway for this month, she won't null or void the agreement if the IRS agree for her payment plan to start in June? I don't see it is a problem of her sending the payment with the IRS earlier (reduces penalties and interest), but I just don't my TP to have any problems of sending a payment earlier.

I have a TP that got a corrected 1099, the difference is only $430, they reported $430 less on her 1099 originally, the difference does not have an impact on her tax return. It's it worth to amend the tax return to show an additional $430 or let the IRS make the correction?

You mean the nonsense of a professional casually discussing an easily-identified client's audit with an outsider? Ouch, you are right, my bad. Good point Well, I don't see why the IRS shouldn't audit a high income taxpayer. Probably a small 2106 deduction is unusual at that wage level, and they may wonder what it means. Apparently the taxpayer himself has some issue with the deductibility of unreimbursed expenses, the tax preparer thinks it's a matter of special note, and even you find the setup surprising. Did your confidential source say how they would respond? I believe they are going to comply with the request.

Today I was speaking to with my former employer during lunch, and she has a TP who is a portfolio manager for a top stock broker and his salary is something I will never earn in my whole life time, even if I lived a couple of times :-). He has about 15K in unreimbursed employer expenses and only takes advantage of about $2,500, well apparently he recieved a letter from the IRS requesting proof of his expenses. He pays over 1.3 million in federal taxes and the IRS wants to see proof of his expesnes, you got be kidding me. Has anyone ever seen this nonsense before?

Hi, you would have to setup a new preparer, you will need a PTIN or SS# for that person.

One of my clients called me today a little concerned about a discussion she had with one of her customers who happens to be an accountant, the accountant told her, "you know, your accountant can make you or break you'. So she asked me, so what do you think about this? I told her that is true, an accountant can make you or break you if you give them full control of your accounting, and when I mean full control, you allow them to write checks on your behalf and sign them or they ask you to pre-sign blank checks and they care of everything. I told her, so don't worry, you are pretty much responsible of all your business activity, you pay the bills, so your accountant (me) cannot break you. :-) Geesh, how come I never receive a call like, how much do I owe you, let me send you a check LOL.

I called Medlin and they confirm the software does not keep track of vacation and sick time I am looking for a software that will do that, anyone?

Thanks, I just downloaded the trail version, however I don't see any vacation or sick time tracking on the demo nor do I see any refference to the program keeping track of it. Can someone that uses Medlin, inform me if the software keeps track of vacationa and sick time? Thanks

I have a client that uses Fund-EZ, this program does not have the capability to do payroll, so they use QB just for the payroll. QB yearly payroll service fee is getting expensive every year, so I am wondering what program is out there to do payroll? I am looking for a program that is not expensive, prints out pay stubs, allows to prepare quarterly returns, and year end filings (W-2's, 1099's etc....) Thanks

Client was notified that she cannot take a loss from a partnership because her AGI is over 150K by the IRS Auditor, we were surprised to hear this, can someone confirm this? Background: Client owns a rental property that is a partnership, her part of the loss was 46K, I am surprised that ATX didn't catch this for this correct??