ILLMAS

For accounting clients, I prefer them to use Miscellaneous or Uncategorized instead of them creating a new chart of account for everything, last year I cleaned up a companies chart of accounts, we went from have 8 pages to 2 pages.

It's unbelievable how many people have jumped on the soccer fever bandwagon, our hometown MLS soccer even gives out free tickets and people still don't attend.

I have a question, TP was force to pay a management fee as part of the bankruptcy/restructuring process to a third party assigned by the courts, they call it a management fee, however they don't move a finger nor are a management company managing his properties and I was wondering if there is another name that can used instead of management fee? He is a real estate professional and having management fee on his tax return can cause a red flag (went through it already, association fees were being enter under management fees on Sch E), so I need to find another name for it. Hopefully someone can help me. Thanks MAS

I think if you give more information regarding your clients situation, someone can answer your question. MAS

Make sure to include any foreign income and fill out the FBAR if he/she qualifies.

The schedule has been posted: http://origin.library.constantcontact.com/download/get/file/1102937022353-30/Schedule+Handout+%28Chicago%29.pdf

Jack, we can walk over to Millennium Park and have a beer during his speech

Bump

I have 12 kittens we are giving away in Chicago, free to a good home, PM if interested.

I am not licensed to prepare audits or do compilations, but based on what my clients are paying (Chicagoland area), $4,500 would seem fair including the 990.

A cowboy named Bud was overseeing his herd in a remote pasture in Texas when suddenly a brand-new BMW advanced toward him out of a cloud of dust. The driver, a young man in a Brioni® suit, Gucci® shoes, RayBan® sunglasses and YSL® tie, leaned out the window and asked the cowboy, "If I tell you exactly how many cows and calves you have in your herd, Will you give me a calf?" Bud looks at the man, obviously a yuppie, then looks at his peacefully grazing herd and calmly answers, "Sure, Why not?" The yuppie parks his car, whips out his Dell® netbook computer, connects it to his Apple iPhone4S®, and surfs to a NASA page on the Internet, where he calls up a GPS satellite to get an exact fix on his location which he then feeds to another NASA satellite that scans the area in an ultra-high-resolution photo. The young man then opens the digital photo in Adobe Photoshop® and exports it to an image processing facility in Hamburg, Germany. Within seconds, he receives an email on his Palm Pilot® that the image has been processed and the data stored. He then accesses an MS-SQL® database through an ODBC connected Excel® spreadsheet with email on his Blackberry® and, after a few minutes, receives a response. Finally, he prints out a full-color, 15-page report on his hi-tech, miniaturized HP LaserJet® printer, turns to the cowboy and says, "You have exactly 1,586 cows and calves." "That's right. Well, I guess you can take one of 'em," says Bud. He watches the young man select one of the animals and looks on with amusement as the young man stuffs it into the trunk of his car. Then Bud says to the young man, "Hey, if I can tell you exactly what your business is, will you give me back my animal?" The young man thinks about it for a second and then says, “Okay, why not?" "You're a U.S. Congressman," says Bud. "Wow! That's correct," says the yuppie, "but how did you guess that?" "No guessing required." answered the cowboy. "You showed up here even though nobody called you; you want to get paid for an answer I already knew, to a question I never asked. You used millions of dollars worth of equipment trying to show me how much smarter than me you are; and you don't know a thing about how working people make a living - or about cattle, for that matter. This is a herd of sheep."

Who remembers when this happened?

You should advise them to go ahead and file and to be prepared to pay any late fee or penalties for not filing on time.

The USA next two matches are going to be nail biters, Portugal even though they played lousy against Germany are very good, Germany is in the top four to win the World Cup. I really wished the US had more soccer fans like other countries

I have World Cup fever

I was caught off guard today, TP asked me if he sells one of his building while he is in bankruptcy/reorganization that he if can exclude the gain because of the bankruptcy? I said probably not, but that I would find out, does anyone know if this is true? Thanks MAS

Filing with an ITIN -- • The IRS issues ITINs for federal tax purposes, and ITINs should be used for tax reporting only. • ITINs do not authorize a person to work in the U.S. or provide eligibility for Social Security benefits. • Tax returns filed with an Individual Taxpayer Identification Number reporting wages paid are required to show the Social Security Number under which the wages were earned. This creates an identification number (ITIN/SSN) mismatch. In the past, returns with this mismatch could only be filed on paper. Due to programming changes the IRS' e-file system can now accept these returns. The taxpayer's correct ITIN should be used as the identifying number at the top of Form 1040. When inputting W-2 information, the SSN should be entered exactly as shown on the Form W-2 issued by the employer. It is now possible to e-file a return with an ITIN/SSN mismatch. • If a primary taxpayer, spouse, or both have ITINs, they are ineligible to receive the Earned Income Tax Credit (EITC), even if their dependents have valid SSNs. If the taxpayer and spouse (if filing jointly) have valid SSNs, only dependents with valid SSNs – not ITINs – qualify to receive EITC. Seeking an ITIN -- • ITIN applicants must show a federal tax purpose for seeking ITINs. Most will demonstrate a tax purpose by attaching an original federal tax return to Form W-7, Application for Individual Taxpayer Identification Number, and mailing, with their proof of identity and foreign status documents, to the IRS address listed in the Form W-7 instructions. • In cases where a current year tax return has already been filed that excluded a spouse or dependent who needs an ITIN, the taxpayer should complete Form 1040X, Amended U.S. Individual Income Tax Return, showing the ITIN applicant’s information, and attach it to Form W-7.

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I have these questions on a property that is in a land contract, interest only financed and $300K outstanding mortgage, TP is considering returning the property since he has not been able to resell it. 1. How do you dispose of a property (in a land contract) that is being depreciated? 2. Since there is not going to be any money exchange, will the basis of the property be $300 - 25K for depreciation = $275K and the agreement is $300K, does the TP have a gain of $25K? Thanks MAS

Ok thanks everyone. MAS

I sort of remember one's credit card is not charged until they ship the product (like in October and November)? I renewed early and my credit card was charged already. MAS

Who is going to be attending the IRS nationwide forum in Chicago July 1-3, 2014?

Have you considered taking a tour of the Freemasons or Masonic sites. I've been in DC once but didn't know they existed.

I think the IRS has been visiting the ATX forum, look at the topic for the 2104 IRS nationwide tax forum: 23. Is This Deductible? My Barber Seems to Think So! (T) (F) Your clients receive bad advice all the time. Worse yet, they bring that bad advice to your office in the form of "my neighbor tells me he deducts <insert crazy, completely illegal idea here>." As a paid preparer, you're signing that return and only legitimate deductions may be included. The course will address deductions in general, the concept of "ordinary and necessary," and deductions some professions, such as fire fighters, law enforcement, and transportation workers, believe are acceptable. Presented by the National Association of Enrolled Agents, www.naea.org.

I think the problem came back this week, I was okay for a while, but this week it's happening every time I open ATX2013.