BulldogTom

I used to be a season ticket holder when I lived in Fresno. Haven't been to a live game in years. Last one was 2 years ago in Reno. I was going to get the tickets for the Cal game at Candlestick, but my oldest son will be playing his first college game that day, so I will have to keep up with it on my iphone. Where do you live that you can go to every game? Tom Lodi, CA

When a couple splits and they file MFS but the previous year was MFJ, how do you fill out the 2210? Do you split everything 50-50 when filling out the form? Thanks Tom Lodi, CA

I like to work in my yard. Have several fruit trees and a small garden. Lots of roses. I also like to BBQ, or what you folks down south call "grillin". We do it Santa Maria style out here on a hotter grill for less time. Tri-tip is my specialty, but I also like ribs, brisket, and of course rib eyes. The best possible weekend for me is to get up early on a Saturday in September, get the yard work done, take a dip in the pool, light off the BBQ and watch a WORLD CHAMPION GIANTS game, followed by a Fresno State Football game. Tom Lodi, CA

Thanks. apreciate it Tom Lodi, CA

If anyone from OR would like to tell me the answer so I don't have to go looking on the internet, I would be eternally grateful. Do I have to register to e-file an OR40P for a client who moved last year? Thanks Tom Lodi, CA

None of our business, but I hope you are OK. I noticed you are not as active on the board, but I thought there just weren't enough challenging questions that you could show your brilliance on. We think a lot of you around here. Take care of yourself. Tom Lodi, CA

New one on me. Client has an NOL carryforward from a prior year that is used up this year. When I create the e-file, I get a red error stating an NOL explanation statement must be completed when and NOL carryforward is present? So when I click on the red error,it takes me to the statement. What the HECK am I supposed to explain? They have a carryforward from a prior year and are using it in this year to offset income. I am thinking of putting "Take a look at line 21." Is this something new? I cannot ever remember seeing this before? Anyone have some verbage that the IRS is expecting to see on that explanation statement. Thanks Tom Lodi, CA

Not so much here. But now that I got my last 1120 out of my hair, I might be feeling better in a couple of days. But I know the procrastinators are right around the corner - you know the ones who are always going to get organized and make an appointment for April 5th thinking that will give you plenty of time to get their 5 rentals and the new business they started and forgot to tell you about done. Tom Lodi, CA

In CA, if you are required to pay electronically and pay by check, you get a penalty. I think it is 10% of the payment. For larger clients, it can be a big bill. How do I know? When I first came to my day job, I needed to make a sales tax payment right away. No one told me they were required to pay electronically and I did not have the prior controller's passwords to get in anyway. Sent the check and got a bill 6 weeks later. I called and got it abated pleading ignorance, but they told me the next time there would be no abatement. Tom Lodi, CA

We used the client ID box and put in "Sch A" for all the returns that we were holding for e-file. It was pretty easy to see. I also use the completed button for accepted e-files and only look at the incompletes. I agree with Rita. I would like something in the return manager to say that a return was not e-filed. Occasionally there is a good reason (like the homebuyer credit)that the return was not e-filed. For the first time in the history of my practice, I actually forgot to e-file a client's return last year. I have no idea how that happened. They got a letter from the state of CA saying very politely that they always file a return but they did not get one last year. Talk about an "OH CRAP" moment when I went to the e-file tab and did not see their return. Totally my fault. We are going to go through every completed return on April 10th this year and double check that the returns have been e-filed. Tom Lodi, CA

How do you get the CA depreciation information onto the CA SchB for the depreciation differences. TP is an 1120S with 8825 rental activity. All the assets are in the asset entry, but not linking to CA. There has to be a magic box somewhere to link this. Any help appreciated - and if you could hurry that would be great. Tom Staying up all night until this return is done.

Careful Rita. Your statement is true only if the account has been open for 5 years or more. Tom Lodi, CA

I have been waiting for this to happen. I hope the IRS goes that route with every single one of them. Then I hope the government makes oxycontin a controlled substance as well so the IRS can do the same to all those "pain management" doctors who are peddling that as well. It will be interesting to see who steps up and pays for the court case on this one. It has to go to court and be appealed. I am looking forward to seeing how it comes out. Tom Lodi, CA

I am with Maribeth. I have not had a problem with early withdrawals. If this is the case, you should call the IRS for the client and find out what they see on their end that caused them to take it early. Please let us know what you find out. If the IRS is actually taking payments early, I will not offer that as an option for my clients in the future. The IRS can process the check if they are going to change the rules. Tom Lodi, CA

Stay safe Jainen. The one thing I learned while I was in the Coast Guard at Bodega Bay is that you cannot trust what the ocean will do. Perhaps you should go have breakfast in the mountains this morning? Not like you are scared, but just because a nice breafast at 300 feet elevation is a beautiful thing. Tom Lodi, CA

Any of you out there on the coast, especially in Northern CA and Oregon, my prayers are with you that this will be a non-event. Hopefully you are at higher ground already. They are saying the first waves will come in at about 7:30 Local time. In about a half and hour. May God protect you and yours. Tom Lodi, CA

Julie, did you mean Box 1 of the w2? Box 2 is federal withholding. If we do the W2, box 1 would be amount of Premiums, all other boxes blank. Is this the correct way to do this? Thanks. Tom Lodi, CA

Our policy is $75 to amend plus the cost of preparing the return. Returning clients that we prepared and they come up with more info is $75. If we made the mistake, it is free. For a new client that brings me their return from another preparer and it needs an amendment, I will guage the likelyhood of them becoming a continuing client and what they will bring to the table in the future and price from there, but a minimum of $75. Tom Lodi, CA

<<I would bet because they want it done cheaper.>> I would bet you are right. They told me so. Funny how losing money makes people look for a bargain. I am not looking to amend last years return. Let that dog lie right where it is. But I do want this year to be professionally done and audit proof. That is the way I work. Tom Lodi, CA

No, that would be real drama. Wouldn't you just love to see the HRB preparer and the CPA sitting there with the client as the IRS auditor went through their return and asked for the documentation for all the deductions. How about a Q&A afterward asking how they were $1,300 apart on the refund. What if both of them were wrong and the IRS had a completely different number after audit. That would be "must see tv". Tom Lodi, CA

Kea hit it on the head. If the challenge was to get the biggest refund (regardless of accuracy) they should have included some preparers that the IRS busted for filing false returns. What they should have done is brought in the IRS to audit all three returns when they were done and see who really produced the best results. Tom Lodi, CA

Thanks to you all. I will discuss with the clients. Tom Lodi, CA

I type them all in. But I have a small practice. Charge for every line item on the D. Beefs up my bill. Bring them on. I need the money. Tom Lodi, CA

This s-corp is 18 years old. Normally profitable, but not the last two years. Looking at last year tax return prepared by someone else, it looks like they did it a bit "creatively". Added the payments as supplemental information on the K-1. Premiums not deducted at Corp level. No mention of a book to tax difference on the reconcilliation. They just made it go away, but put it on the K-1. Scratching my head on this one, because the CPA who prepared it is very well known in town. The clients could not get another CPA to take it. They have some level of apprehension about the preparation last year and shopped this year's work. They came to me because I rented my office from them a few years ago. I think the clients are just looking to do the right thing, and they are not sure it was right last year. In reading up on this in my Master Tax Guide, I think the corp can deduct the payments. I think the shareholder must bring the amount of the premiums paid into income, and because it is income to him, he has earned income (like a guaranteed payment to a partner). If the corp was profitable, the shareholded could deduct as SE Health Insurance, but because there will be a loss on his K-1, only to the extent that he has net earnings from the corp (net of K-1 loss and Premiums paid on his behalf taken into income) can he deduct as SE health insurance on his 1040. Am I anywhere close on this? Thanks for your help.

S-corp has insurance plan but no employees. Owners do not take salary. One owner participates in health plan. Premiums paid by S corp. Where do I imput this on the K-1 and allocate to this shareholder to make taxable on his 1040? Is there a place for this on the k-1? Thanks Tom Lodi, Ca