BulldogTom

OK, so I got one of those letters from the IRS that says we have a mis-match on the ITIN number for a 1099 payment. This particular payment is for rents. We checked our W-9 and the number we submitted is what the landlord gave us. So we sent the first notice B. No response from the landlord yet and the time is running out. I have never had this happen before. I have only sent one Notice B before, and they got right back to me. So if we start withholding, where do we remit the money? Is there a quarterly form or something? Thanks for the help Tom Lodi, CA

I don't normally post these kind of links, but I have never heard something so stupid. And he is a congressman. Check this out. You can't make this stuff up. [url=" Tom Lodi, CA

In ATX (and all software, I believe) you will have to create the electronic version of the tax return. When you have finished the return, you click on create e-file. The software will then perform a diagnostic looking for anything in the tax return that will cause a rejection. If there is such an item, it will need to be fixed prior to send the electronic return. Some of us have learned the hard way that you should always complete this step before you print out the client's copy, because if the client has left when you run this step, invariably you will find something that is wrong with the return and need to get the client back in to fix it. Tom Lodi, Ca

I cannot imagine doing 1200 returns and not e-filing. All that extra printing, envelopes, mailing. The program can be a pain with the "nit picky" stuff, but it gets to be a normal routine. I have been e-filing since 2000 and would never go back. Tom Lodi, CA

I don't have any non-paying clients. I shot them all!!!!! Just kidding. Don't turn me in to the FBI. Tom Lodi, CA

I have been using QB for my tax business for years (1998). Here is a suggestion. Instead of using your chart of accounts account number for your item code, set up a new one for each year return. It only takes a minute to set up. Then, when you create the invoice, pick the year that you are preparing. My codes are 98Tax, 99Tax, 00 Tax, BOOK, Rep (for audit representation), etc. The reason is that I can then run sales reports on the type of work I do. I can see how many current year returns I did, how many previous year returns, what I charged for each, what the average charge by each was. It is helpful. You can have a many to one relationship for your items, so all your tax return prep fee items can post to one GL account (Tax prep or 410, for example) and your write up can go to another. Your income statement stays in summary form but your sales reports give you more detail. Sales by item, sales by customer, and sales by rep (if you have multiple preparers) are nice reports. Just a suggestion. Hope it helps. Tom Lodi, CA

Yes, the requirement is to provide the 1099s in 2012 for payments made in 2011. Good luck trying to get a W9 at the end of 2011 after the payments are made. That is why we are requiring a W9 on file by Jan 1 of 2011. It is not panic, it is just preparation. Tom Lodi, CA

At my day job, we are sending out a letter in October that states if you do not provide a W9, there will be no AP check. I anticipate a large number of collection calls in January and February. On the lighter side - Back to backup withholding. What happens if I go into my local Staples to get my supplies in January, and the total comes to over $600? Do I ask the clerk for a W9? What if she can't give me one? Do I write the check for 28% less and walk out with my supplies? I can't wait to try that one. Can you imagine the look on the clerk's face when you tell him/her that they can get the rest on their tax return? This could be a lot of fun. Tom Lodi, cA

OK, this might be a little ridiculous but under the new 1099 rules, will backup withholding apply if you don't get a TIN from the vendor? Say I call PG&E because I do more than $600 with them and ask for their TIN. If they don't give it to me, do I withhold 28% of the bill and send it to the IRS? If that is the case, then I might have some fun with the vendors that piss me off on a regular basis. Can you say "Backup withholding for AT&T"? Just asking. Tom Lodi, CA

Finally, a common sense action from the IRS. I especially like the idea of having the IRS allow the tax prep fees to be deducted from the refund. No more third party bank products to worry about. I could then eliminate any fees assocated with the bank products. This could be very good. Tom Lodi, CA

I think the basis reduction takes place on the first day of the year after the cancellation takes place. In other words, you depreciate as you normally would in the year of the cancellation, and then reduce the basis for the following year. Tom Lodi, CA

Eli, Have not seen you on the board in a long time but wondering if you are OK. Saw a news story that the Rio Grande flooded and there is a lot of damage. Praying you are safe my friend. Tom Lodi, CA

I would get a POA and call for the client. Chances are they will not remember what you told them. Just my 2 cents. Tom Lodi, CA

Hey, I took a dozen balls and still came back with 5. That is a very good round for me. You are more right than you know Mike. Tom Lodi, CA

Jeff, Thanks for the tip. Had a great round of golf this morning. Tom Lodi, CA

Thanks. Warm Springs it is. Tom Lodi, CA

Going to Boise for a week. Thought I would get in a round of golf. I'm not rich, so I am looking for a reasonably priced course. Any suggestions? Thanks, Tom Lodi, CA

And if you treat it as a sale, I think you have a related party issue that will cause the loss of 5K to be suspended. Tom Lodi, CA

I am with Mike on the 8879. I like the error check on e-file. But then I have to remember to go to the e-file tab and delete. It would be really cool to have an option to "create e-file pending signature" and that would show in the e-file tab. So you would get another status in that tab telling you the return is done but you need to check a box for "signed 8879 recvd" or something like that. Tom Lodi, CA

CA is notorious for not entering the POA. Generally, I give them a week, call them, and end up faxing directly to the person you are speaking with. I would not wait for them to contact you. Call them and get what you want. They should fax it right over to you or give it to you verbablly. Tom Lodi, CA

Perhaps he is thinking about Roth Conversions? Tom Lodi, CA

My engagement letter says I don't pay interest. I point that out to every client. However, in the few cases where I have made a mistake and there is interest involved, I usually pay it. In Denne's case, I would pay it too. Just my 2 cents. Tom Lodi, CA

TaxmannEA, Not sure what the issue is in the tax return, but if you have everything ready to go to represent the client, the IRS just handed you the ticket to the tax court. It may be a blessing in diguise. I love dealing with the auditors that are assigned at the final level before tax court. They are generally very knowledgable, easy to work with, and professional. The few times I have had the opportunity to deal with an auditor reviewing the file prior to the tax court date, I have have always gotten the proper result. If you are ready to proceed to tax court, just think of this as a way to bypass the beaurocracy and get straight to resolving the taxpayer's issue. And no, I have never heard of a NOD coming as the first contact. You should call the IRS and see if they have any additional info for you. Tom Lodi, CA

Every time I think maybe this TRX company is worth a shot, something like this happens. They make a "big announcement" only to pull it due to confusion. Seems to be the story of their existence, at least from this far off perspective. I got a demo disk from them and was planning on looking at it this summer. Probably not now until I know for sure what software will actually be showing up if I order. They need some stability. But, if CCH makes a major change to ATX, I might look at them again if they have a couple years with the same software. Tom Lodi, CA

I think what Jainen is saying is that what Denne "has" to do is governed by the engagement letter. If there is no engagement letter, then the liability is potentially unlimited or governed by local law. Tom Lodi, CA