BulldogTom

I found that on the Sch. M. after I posted this. What I did not see in the instructions was anything about attaching form EIC. I don't think I need to, because by definition there cannot be children on an EZ, and the calculation is just the wages compared to the EIC table. At least that is what it looks like to me. Tom Lodi, CA

OK, working on a 1040 EZ. Single, no kids 30 years old. 1500 in income. 150 in FWH. Qualifies for EIC and MWP credit. Do I attach the EIC and Shc M? It looks like the 1040EZ is calcing it all without the forms (and that makes sense because it is supposed to be a quick form to fill out). So I am thinking they don't need the schedules. Sorry for the basic question. Tom Lodi, CA

Thanks to you all. I thought so, because I wasn't getting a red error when creating the E-file. But I wanted to make sure. My first EIC return of the year. Tom Lodi, CA

The form 8867 is still a draft. Does this cause any e-filing problems? Thanks in Advance Tom Lodi, CA

You could get a tax id number for the partnership. What I don't know is the rules for the state of Texas. Can they get everything set up retroactively? And will it cause issues with the Texas Franchise tax? Would they be better off as an LLC taxed as a partnership or S-corp? They need to set this up the right way. Applying for a tax id number and filing a partnership return can be done, but is it the best thing for them to do? I don't know, because I don't know enough about the state laws. And I don't know if they have time to do it? Tom Lodi, CA

I am not sure I understand what happened. Is there a partnership or not? If not, your client has another sch C to complete. If he made payments to his cousin for the services the partner provided, then it would be appropriate to issue a 1099 to the cousin for the "independent contractor" services the cousin provided. Are they fighting? How do they want the taxes to be completed? You need to make sure you know all the facts before you start putting the tax return together or start issuing 1099's. Send me an e-mail tonight if you want to discuss in more detail. Tom Lodi, CA

Are you sure? I think if you put the wrong name, in about July you get a letter from the IRS saying the name and TIN don't match. Tom Lodi, CA

When you have an LLC with a dba, what line do you put the DBA on? I have an LLC with a long name that rent is paid to. The LLC is not exempt from 1099 reporting and is dba another name that is very long. Its W9 says Haxxxx Inxxxxxxxxxxx Gxxxx LLC, dba Pxxxxxxx Bxxxxxxx Pxxx My problem is that all of that there is not enough space on to print on the line for name number 2. I can't put the first part in the Name line because it is not a person and I can't break it up in First Initial Last. Do I put the DBA on the first address line? Help. I am having a brain freeze. Tom Lodi, CA

The only way to keep from getting the CP 2000 is to report the entire amount of issued W2G's on line 21. I think I will continue to educate my clients and let them decide how good their records are and what their tolerance for an inquiry. HOwever, if it is me and I am so fortunate to have winnings from a casino in the future (that hasn't happened before, so I might be due), I am netting those bad boys out for the day. You bet I will have great records to prove it too. Tom Lodi, CA

I think the way this reads is not a change to the law, but what the definition of winnings is. Winnings will be determined at the time the chips are cashed in. Everything that makes up the net from the day is considered "winnings" or "losses". All "winnings" still go on Line 21 and all "losses" still go on sch A subject to Line 21 limitations. So the law has not changed, the definition of what is "winnings" seems to have changed. I think you are right. Airtight documentation is going to be needed. The first time the auditor gets a log that only has winnings on days that there is a W2G, I think the taxpayer will be in trouble. Tom Lodi, CA

It does not happen as fast. The bank takes the application, and when the taxpayer's refund arrives at the bank, the bank takes its fees, forwards the preparers fees, and then forwards what is left to the taxpayer's bank account or authorizes the preparer to write a check to the taxpayer. It is not a loan. It is basically a way to make sure the preparer gets paid, with the bank taking a fee to broker the deal. It is fee collect except it can be paid in a check as well as a direct deposit. Tom Lodi, CA

KC, that is the point of this case being so important. If the IRS and the courts are going to allow daily netting based on the definition of a transaction, we will be able to get more losses through. If the definition of a transaction is not the individual pull of the handle, but the results of all the pulls of the handle during a gambling session, then the taxpayer nets his session wins and losses. And then on top of that, any other sessions that don't result in a net win go to sched A. This is very taxpayer friendly, and I can't believe this is what the IRS wants. It will result in many mismatch letters for W2G not equalling line 21. I would think this will require a good set of records to win on, but if you follow the rules and can show each session/transaction in a log and the results, you should be able to use this. Tom Lodi, CA

You can get the exact same thing (as long as it is direct deposit) through Fee Collect for $26. That is a $15 fee to SFS, and the technology fee of $11 to SFS. It is the same bank too! I am really hoping there will be a bank out there soon that does not work with ATX software but lets you submit directly. That is how Republic used to to it years ago. I would like to tell CCH to take their technology fee and shove it where they sun don't shine, and I am not talking about Alaska in the winter. Tom Lodi, CA

The rate for SBBT before they went belly up was a little over 1% for all loans from $300 - $7000. The max fee was $87. The additional fees are: $32 account set up fee to SBBT, $10 CCH Transmission fee, $11 CCH technology fee, and the preparer's add on fee for the application (I charge $19). So in my office, for a $7000 refund, the fee is $159. Tom Lodi, CA

John, Thanks for interpreting "Jainen speak" for me. I did not think of it that way. I thought he was being a little anal about the expenses, especially after reading all his posts about the loan from a shareholder. I have to remember that Jainen always has a point, but he disguises it well. Tom Lodi, CA

Denne, Is there anyone at the house with you? If not, lock the door. Take care of your own safety first. I would tread very carefully with this guy. No more work, period. However, I would give him copies of anything recent that has been paid for, free of charge. I would send him a fax this morning that includes the letter you sent in the mail and the invoice for services not paid. Let him know that anything unpaid for will not be provided. Tell him you will meet with him at a certain time, and have someone at the meeting with you as a witness. If he shows up unannounced, tell him you will call the police if he does not leave. If he doesn't leave, call the police. If he agrees to a meeting time (a time of your choosing)have everything ready to give to him. Hand over what has been paid for and any source documents he has provided. Tell him what work you have already completed that you will provide when payment is made. Don't negotiate, tell him. Remember to have a person in the meeting with you. You should not meet with this guy alone. Good Luck. Stay safe. The payment is not worth what this could turn into. Tom Lodi, CA

I am going to ignore Jainen on this one. That is a far stretch. And neither of the shareholders are looking to get the money back or take a deduction for the amounts paid out of pocket. That is not the issue and the amounts are so small they don't amount to enough to bother with. The real issue is the company never engaged in business. But, they are a company and there is the minimum tax for CA. That is not an issue either. They will pay it. Interest on the late tax is not an issue either, they should have paid it and it is late. Not and item they are worried about. The real question is the penalties. They are pretty steep for a company with no taxable (or non-taxable) income. I don't have real hope that the state will have a gracious heart right now. I am more optimistic that the IRS will be forgiving given the circumstances. Thanks for your reply OldJack. Tom Lodi, CA

I looked up Denne's profile and she is in Michigan. I believe that is still ground zero for the recession. That may be why the fees are so low. But I was shocked when I saw that number as well. $90 per month to do all the bookkeeping and sales tax AND payroll tax? That is a head scratcher. And then to only charge $45/hr for a PITA client you just fired? You are way too kind Denne! Tom Lodi, CA

<<Does anyone know the exact cutoff date to sign up for FeeCollect?>> I got a second e-mail (Candice in Customer Support is ON tonight) after I asked that same question. No cut off date. You can sign up any time you want. My employee/spouse just called the local Jackson Hewitt office and asked if they were going to have Ral's this year. They said they did not know. Their response was "with all the bailouts and bank troubles, we don't know for sure if loans will be offered this year." Tom Lodi, CA

Wow, that was fast. This is the e-mail I recieved from Customer Support. Looks like this is a viable option if there is no bank willing to take on the rejects from SBBT. Good Evening Thomas, This is Candice, contacting you in response to the e-mail you sent in. You can switch to Fee Collect by going to the Support Site and going to Fee Collect on the left hand side of the Home Page. I am also including the Fee Collect FAQs for your convenience. Tom Lodi, CA

This just keeps getting funnier. Thanks for the comic relief. BTW, my youngest son (age 13) has aspirations on that little po-dunk college in Cambridge. I keep telling him he better be real smart and get a scholarship because daddy has a Community Collge budget. Tom Lodi, CA

I don't do a lot of Ral's. But I put it in my advertising this year. Can't change it, the inserts are already run. I wonder what is going to happen with Jackson Hewitt? This is their bank as well. They are going to lose a lot of customers to the green box if they can't deliver the loans. I wonder if MetaBank will be processing loans for JH, just not us? You would think some bank would extend their deadline for SBBT customers. I just sent and e-mail to ATX/CCH customer support to see how I go about dropping SB and to see if I can still get enrolled in Fee Collect. RT's make no sense at all with a $32 set up fee and a $10 transmitter fee to ATX and an $11 technology fee to ATX. That is a $53 fee to give the client the same thing you could give them for $15 with Fee Collect. I will do no bank products at all this year if I can't get to another bank. And if ATX will not allow me into Fee Collect, I will just do post dated checks. Tom Lodi, CA

Thanks Catherine. That is what we have been doing, but it would be nice if the program did it automatically. I think I will modify the master invoice and add a line for the Schedule D with the form charge, and leave the default setting to charge per item. Then I will just have to click on that charge and it should add to the the invoice. Tom Lodi, CA

Thanks KC. I know this. But it is an expensive education for the client. Wait till I tell them about not paying the State of CA for the $800 annual tax and penalties and interest. That will be fun as well. Tom Lodi, CA

Just got the e-mail from SBBT. They will not offer RAL's this year. Only RT's. Not able to get another bank. Advertising is already printed and going out in this week's paper. No way to change that either. What a crappy day. I wish there were no RALs. I wish taxpayers did not want them. I wish I could win the lottery tonight and say screw it all. Tom Lodi, CA