BulldogTom

Last year there was an article I read that the IRS would allow preparers to deduct their fees from the client's refund without going through a bank. Has anyone heard anything about this recently? Thanks Tom Lodi, CA

LMAO. That is a keeper. Tom Lodi, CA

Do not let the deadline for filing pass by. There is NO GOING BACK after the date has passed. Your client needs to file the tax court petition on time. The case will automatically be referred back to audit for resolution. You should file your POA and make sure you are getting all the correspondence that is going to your client. Call the IRS and get documentation into their hands right away for the claimed deductions. They will be happy to talk to you, but once the time has run to petition the tax court, you won't get anywhere at all. The information that you rely on is the Code, regulations, and tax court cases. You need to specify where the commissioner has erred in his application of the tax law and show the evidence that backs up your claim. Good luck. Your client needs help, desperately. You should be there for them. If you are uncomfortable with handling this case, engage a seasoned professional who has done this before to walk you through it. It is money well spent on your education. Tom Lodi, CA

Bonnie, are you saying you are not a back seat driver? Somehow I just don't believe you. Congratulations to your son on this accomplishment. Tom Lodi, CA

Seminar for my day job. All week. It is nice to get away from the office, but I think I am getting ready to go home, and I still have 2 days of classes to go. Staying at the Gaylord Texan in Grapevine. Tom Lodi, cA

On line 21, I think you could list the last three in the other section of the entry page. There are some blue boxes there. ATX should then print "see statement" on line 21. That should get you through the e-file barrier. Tom Lodi, CA

KC. I am praying for you and yours. I am in Dallas and everything is about tornadoes and thunderstorms. The damage on the TV is incredible. May God keep you safe. Tom Lodi, CA (Dallas this week)

And the escrow company might have put it on a Form 592B instead of a 593. This is just another way the Republik of Kalifornia borrows money from taxpayers without paying interest. Tom Lodi, cA

Unless the Due Date of the 2007 return was 4/18, I think your client is SOL. The statute is 3 years from the due date of the return. I don't think you get the extended due date on a claim for refund. I think it had to be postmarked by 4.15.11 Maybe someone more enlightened than I could chime in, but I think the statute has run. Tom Lodi, CA

Did Jerome do your taxes? You know he is very smart. Tom Lodi, CA

I replied to your PM. Guess you didn't get it. What you have is withholding on a real estate transaction. Your client should be getting a form 593 from their Escrow Company. When you fill out the CA 540 NR, go to Line 83 (I think) and bunny hop to the worksheet. At the top of the worksheet there is a blue box with a drop down menu for the 593 form. Fill it out and it will flow back to the 540NR. If your client does not have the 593, have him call the Escrow company. They are notorious for screwing these forms up, so check both the 593 and the settlement statement. Let me know if you have any other questions. Tom Lodi, CA

Just sent you an e-mail. Let me know if you still have questions. Have a great weekend. Tom Lodi, CA

I found a thread on the ATX site and ATX is not supporting 2007 and 2008 on windows 7. Only 2009 and 2010. I wonder how long they will allow XP Pro for future versions. I can get some new XP Pro computers, but I don't know how long until CCH forces us to move to Win 7. If I could go 5 more years before I have to switch, I will stay with XP. Tom Lodi, cA

Thanks. Silly me, I went to the ATX (non)support site for system requirements. I should have known that potential marks (I mean customers) will get better information than is on the (non) support site. Thanks again. I appreciate it. Tom Lodi, CA

Anyone have those handy? My software is at home and I am at the office. Can't find it online at the ATX (non)Support site. If anyone can post them I would really appreciate it. I am sending the requirements for my new computers to my Techie. Tom Lodi, CA

I am going to have to upgrade all of my computers this year. After 6 years, they are too slow to run the software. But I want to keep all my programs from 2007 - 2010 on my system. I will be keeping one of the computers with the software from 2000 - 2010 at home as a backup. Which years of ATX run on Windows 7 Tom

It comes from the SS rules on income. After you reach a certain age (I think it is 70), you can earn as much money as you want without having your SS benefits reduced. Over time this explanation has morphed into the belief that you don't have to pay taxes on your SS after you reach that age. Tom Lodi, CA

I have an elderly client who is giving his property and cash to his daughters. I told him he has to file a gift tax return. There will be no tax as his exemption credit will not be used up, and what he is giving them is the bulk of any estate that would be left if he were to pass away. But he doesn't want to file the return. What are the consequences of not filing a gift tax return? Tom Lodi, CA

Thanks Bcolleen. I read the instructions about the request. What I am looking for is suggestions on what to put into the letter for those who have successfully gotten abatement. Any hints on how to write the letter? I asked the client to try and get a letter from the broker stating they did not advise him to take the RMD because the account was new to them. I don't have much hope of him getting that letter, but I thought that might be a good reason. Tom Lodi, CA

Client moved his IRA account to a new brokerage house during the year. The old broker did not tell him to take the RMD and neither did the new one. No RMD taken for 2010. Any way to get the additional tax abated? Thanks Tom Lodi, CA

I am confused. Was that a mis-statement on your part when you said each partner SENDS a K-1 to the partnership? That does not sound correct. Tom Lodi, CA

Client came in last year with a hefty 1099C. They renegotiated the loans on their home and 3 rentals. We went through the insolvency worksheet to exclude the income and reduced basis in all the rental properties on form 982 filed with the 2009 return. I thought I lost the clients after I put them through all of that. NOPE. They have made an appointment for 2010 taxes. So, I know how much I have reduced the basis in the three rentals. How do I change it in ATX? Do I just override the accumulated depreciation in the asset manager? Thanks in advance. Tom Lodi, CA

D- Direct D- Deposit N- Non T- Taxable B- Benefit Could be health insurance. Tom Lodi, CA

That sounds like a good plan. It may or may not work. I am guessing it will because the IRS will have nothing to default the taxpayer on until the return arrives. And if it arrives with the check to pay the taxes due, you might slip through. Tom Lodi, CA

Taxpayers home is in Stockton, ground zero for the mortgage meltdown. Familiar story, husband loses job, can't pay mortgage, can't sell because underwater, etc. So the client finds a buyer for the home on a short sale and the bank agrees. Client moves out in 11/09 and the sale goes through. Client recieves a 1099C in 2010 for the 187K of forgiven debt. All good so far. No issues. But the client also got a 1098 Mortgage interest statement for 2010 where all of the back interest was paid. Over 23K. Can this be deducted on Sch. A? Tom Lodi, CA