ILLMAS

I efiled a couple of corporate extensions and were accepted, what is my proof to attach to the tax return once finalized? I know Proseries gives you some number on the bottom of the extension, but I don't see anything on the one that I printed out.

Thanks

Last year I filed a final return for a general partnership that was selling antiques, but the one partner who was most involved got really sick and so they said they had stopped the activity and donated most of the stock. I treated the inventory as distributed to the partners and then each got a donation per the reciepts they had since the partners actually donated the pieces, not the p'ship.

So now the sick partner is doing better and once and antique dealer, always an antique dealer, I guess. He's picked up some more stock and has been trying to sell it on ebay, but did not have any sales but incurred some selling expenses. They are looking to getting another space in an antique mall nearby. So, if they are firing up the p'ship again, can I use the same EIN? file it as a first return, or just ignore that I checked the 'final' box last year? Or, since the expenses are pretty low, just ignore them until they are going in full swing? ($950 in expenses approx)

Have the partners check with the IRS to see if they can reinstate the prior FEIN, also (if applicable in your state), you would have to check to see if the partnership was dissolved by the state. Things can get complicated, if they closed the bank account already and want to reopen another account, the bank is going to ask for a certificate of good standing along with a copy of the FEIN assigned by the IRS.

Client buys sports tickets, then sells them over Ebay for a profit. I've been putting these sales on Schedule D as a short term gain. I felt that this created an investment sale, and not a self employment transaction since he is not in the business of selling sports tickets and has a regular job. He never makes enough to create any self employment tax and it's not a regular thing, although he's done it for a few years now. What is the right way to handle these sales?

Diane

I see this as a business because there is a cost of doing business (Ebay Fees, Shipping and Handling Fees, Paypal Fee), after you take those costs in consideration + the cost of tickets, less whatever he gets for them is his profit.

I have a TP that is a doctor, every year he tells that he wants to go independent but what holds him back is the cost malpractice insurance. He is really not interested in the tax benefits between a regular Corp and an S-Corp, he is looking for additional protection against his assets incase of a lawsuit. Can someone who might have a case like this share what be better for him.

Thanks

How in the devil do I make the 1040X appear? If I go to add forms, look for 1040X it reads on "On CD", I inserted the ATX CD, clicked on the form and it seem it's working, but nothing. Any idea? Just a note, I update the forms every morning, I do the manual update, select all.

Never mind, I got it working.

Well some good news, after breaking my head trying to figure how Quickbooks keeps track of vacation and sick time by the minute, it was driving me crazy not being a able to match to a spreadsheet I prepared, very simple but very big differences between QB and my spreadsheet. Not the only problem, client employees were thinking they had more sick days becuase of how I setup the time tracking. To avoid all this, go to Company, then Preferences, then General, then click on Hours and NOT minutes, this makes a huge difference, at least to me, it more reasonable and clear.

We did all of our extensions on Tuesday, the 10th. They went through just fine, no problems, and have already been accepted. I am puzzled as to why ATX would need you to update your 2007 files. That is an issue I haven't seen before.

Maribeth

Hello, can you guide me on how to file an extension electronically? Anyone

Thanks

I have an s-corp client that runs their own payroll but has retained my services to process all of the payroll taxes. they use QB and a remote connection really simplifies things. I pay all payroll taxes through the EFTPS system. The client received a letter from the IRS concerning a 940 deposit that the IRS assessed a late filing penalty. My confirmation shows the settlement on 10/31/2009 and filed before 8:00 PM on 10/30 because the client asked me to wait until a deposit was received. Regardless, the payment was timely on my end. This client insists on holding my invoice until I prove that the penalty was generated from something other than my fault. Can a client withhold payment for any kind of reason? My logic is, my current invoice was for services provided at a different time so PAY ME. My engagment makes no reference to me having any liabilty due to late filing errors. If I simply forgot then I would feel like I owe the client something but this is not the case. What is the best way to handle this? This has only occured twice in our short two year realtionship and both times due to the client not having the money on time.

Terry D.

Have you seen the IRS notice for yourself? The IRS has been sending "This is not a Bill" notices, however it does look like a bill, it shows how many days the payment was late and what would of been the penalty and interest if charged. I have a client that is a weekly depositor, I also file via EFPTS, sometimes I make the payment a day or two late, a couple of months later they get the "This is not a Bill" notice.

I was wondering if someone has a spreadsheet or template to keep track of vacation and sick time. I did a setup on quickbooks but I want to reconcile to something else. I don't think QB vacation and sick time tracking is the best and it confusing to the employees. Send me a PM if you can help me out.

Thanks

I just got a call from my coworker and the same thing happened to him, however it was Sch E for him. He printed the return right before e-file, TP received a different amount on her refund! This really sucks, I will be looking at my returns more carefully from now on.

My client received a car allowance (use of personal vehicle) as part of his salary, however the amount he gets is less then what his actual expenses are. The allowance was basically used in fuel costs, but put in alot of miles on his car. If the car allowance is part of his W2 earnings, can I deduct the 100% expenses + mileage on form 2106 or do I have to reduce it by the allowance he recieved?

Thanks

I am thinking yes he can deduct the actual or standard mileage since he was being taxed on the car allowance, but I could be wrong.

First of all, thanks for reminding me that I have to do the 1120-H for the POA that I do bookkeeping for. I had not even thought about it!

Yes, you will complete the top portion where the lines have letters not numbers, but you'll report the interest income on line 2.

Perfect thanks

I have new business client that files an 1120H, they really don't have any income besides interest they earn. The assessment fees they collect is used to cover operating expenses, utilities and repairs, what ever is left over stays in the bank account. My question is I would only have to file out the top portion of the 1120H, since they really don't have any income and the assessment they collect are considered exempt function. Can someone with experience guide on this one.

Thanks,

Possibly you read that a withdrawal can be made from a 401(k) if a homeowner was facing foreclosure? That's one of the few technical reasons an active employee can make a withdrawal.

How would I account for that, I have client that took out 25K to avoid foreclosure "dire situation" on his home?

Thanks!!

Hello, what form do I need to prepare to get the credit for energy efficient windows? Also, are applianances that are energy star excluded from this credit?

Thanks

My client took over his daughters mortgage because she and her husband no longer could afford it. He brought in the quick claim deed and the mortgage note, but there was no sale. What was owed was basically transfered to the father + new settlement charges, should the cost of the house be capitalized on my client tax return or should I capitalize the amount he assumed? The house was being rented since the beginning of 2008, so it has to capitalized.

Thanks

I had something like this happened to me last year, don't remember what form I deleted 1099 linked to Sch C, fixed asset or automobile worksheet. I deleted one of those forms and deleted the Sch C, do remember deleting any forms by any chance?

What a lucky guy :D

So on Sch E, I will expense the remaining "points 2004" and "refinancing cost 2004" under other expenses, this TP paid 7K in points amortized over 15yrs, the remaining balance is about 6K, the remaining on the refi cost is about 2K. Then I would just delete the two assest entries? I don't think the disposition applies to these entries because it's not a sale or abandonment.

Thanks

I have TP that paid points in a refinance in 2004, his loan was for 15yrs, so I amort the points over the life of the loan, now in 2008 he refinanced again and paid points for the same commercial property, how do I expense the remaining points from 2004? It's not a sale nor abandonment. Same questions goes for the refinancing cost paid in 2004, I also amort over the life of the loan.

Thanks,

Who uses QB payroll. I have always used it but now after today I will be looking for somethink else!! I have about 8 payrolls I do, in the past I have put up with intuit raising there prices year after year. THis January the yearly fee for payroll was 239.00. Today I get a call and they say I am on the wrong program I need be the enhanced version of QB and pay 349.00 a year because my version only offer three EIN numbers and I have more. They give only to Friday for me to decided if I want to pay the new fee or no payroll. Its the middle of tax season. They are the ones that keeps sending me the renewal. They know how many companies I do payroll for. Now I get two days to change or pay the additional fee.

Just venting.... But I will be changing payroll programs. this summer I will check out new one and I am not paying for another year. What a lousy way to do bussiness.

An ADP representative visited me last month and she was telling me about a service called Wholesale for accountants, basically you run all your payroll through ADP, includes 941's, SUTA, FUTA, W-2's etc..... Your client won't know you are using ADP, ADP bills you and you bill your clients. I don't remember the monthly cost, but it's not that bad. Here is the link:

http://smallbusiness.adp.com/accountants_wholesale/index.asp

One of my client called to today to let me know he has no business right now and if he can collect unemployment compensation like his other employees. He is on the payroll, the business pays SUTA for everyone includiing the owner, is there any restriction on the owner collecting unemployment? This is a contruction company. I checked the IL Dept of employment security, but couldn't find an anwser.

Thanks

Cool, thanks :-)

Can 1099's be processed through ATX like the W-2 and be filed electronically? I ran out of pre-printed 1099's and a new TP needs some for his subcontractors.

Thanks