BulldogTom

OK OK alright already. I did it. I sent them a suggestion that they get off their @$$ and get my form so I can make some money off this client! Not really, I politely asked for an update on the status of the form, noting that it did not change from last year. Happy now KC. We will see what comes of this. Tom Lodi, cA

Yes. Ain't life good sometimes? Tom Lodi, CA

Patty called in and I looked it up on the (not)MyATX website. "In Progress" is all it says. Tom Lodi, cA

I would be very cautious about claiming the kid if the spouse has told your client they are revoking the release. I am not sure what the proceedure is to revoke (I think I heard it had to be in writing), but you have been notified that the release is in question. Preparing the return and including the child could lead to negligence penalties if the IRS knew you had knowledge that the release was revoked. Not good for your client. I think he should talk to his counsel. But of course, that will cost him more than the tax value of the child. Tom Lodi, CA

Status = Draft In Progress This client always gets everything to us in a hurry. Wants his refund. Has a bank product. I am sitting on this waiting for the stupid passive activity form. GRRRRRRRRRRRRRRr @ ATX. I can't remember waiting for this form in the past. It is not like it has changed much over the years. Thanks for letting me vent. Tom Lodi, CA

Nice one Maribeth. Your kitty looks angry too! Sic um. Tom Lodi, CA

That transmitter fee is paid to ATX, not SBBT. ATX is pulling your leg that they don't know what is going on. Call and raise some you know what with them. Tell them to pull you out of their fee collect program if they won't fix the problem. Talk to sales and get a supervisor on the line. This is simply larceny on the part of ATX. Tom Lodi, CA

You are lucky it is early in the tax season. Come about April 9-14th, you would get a smart @$$ response about where to send it. But we are all being polite right now. ;o) Tom Lodi, CA

Never mind, I found it. Reg 31.3121( b ) (3) clearly says "father or mother". No other family members count. Oh well. Tom Lodi, CA

I read that PapaJoe. But what is the definition of a parent? Could it be a grandparent also? I might be trying to stretch the code here, but with 529 plans falling just like every other investment, a Roth IRA invested in CD's is what the parent wants to do for the education of his child. It is a good plan, but he needs income. Tom Lodi, CA

If an LLC is taxed as a partnership, and a 50% owner employs his minor child in the business, does the LLC still pay employment taxes? The other partner is the minor child's grandfather. Thanks Tom Lodi, CA

Thanks Maribeth.

I sent one last night, got the federal in 2 hours, still no CA. Please post if you get yours. I will do the same when I get mine. It is 5:30 PM Pacific Time on Tuesday. Tom Lodi, CA

I know what the plan is. Salary deferral, reduces income, taxable when withdrawn, no early withdrawal penalties. Dumb question - are the deferrals taxed for SS and Med? I am sure they are but can't find it in black and white anywhere. Another dumb question - which is better - 403( or 457? Does it depend on the plans? Any risk of losing your contributions? Who directs the investments in a 457? Is it plan specific? Any help appreciated. Thanks Tom Lodi, CA

Thats right! And if they give you any lip, I will chew them out for you. Tom Lodi, CA

To Kyle and Tax guy, If I had it to do over again, I might have actually taken the CPA route rather than the EA route. But I don't like auditing. It is getting better (lawsuits have a way of cleaning up an industry) but audit is alot like home appraisals, made to order. I found that to be very distasteful in the one plus year I spent working for a CPA while in college. When I was offered a position in a large regional CPA firm after college, I passed on it and took the EA exam instead. Unfortunately, our society does not do a good job of promoting its designation, and no one really knows what we do. That is why I don't support the society. On the other hand, the CPA designation brings instant credibility. @ Kyle - I love tax work. It is really cool to work with clients to get them the best result on their taxes. And I love representing clients before the IRS. It is the best part of what I do. When that letter comes in the mail and the client has no clue, and you take them through the process and get them the proper results from their tax situation, it is a great feeling. On the other hand, I don't like clients who try to use me as a pawn to cheat the government. I am not in this to help others break the tax laws, and I resent when clients try to use me for that purpose. I spend a lot of time and money keeping my skills up to date. Your comment about keeping up or getting out is right on the nose. You can't really do this half way. It will bite you in the @$$ if you try. The more you learn, the more there is to learn. If you ever want to get into this business, the best way is to work for someone else to get experience. Usually, that means one of the chains. This is the place where HRB is valuable. They carry the liability while you learn. And their teaching material and classes really are good. I took their class when I first started, and my wife worked for them for 6 years before I had enough clients to bring her into my practice. We are building slowly over time, but building steadily. Some day, perhaps in 4 or 5 years, we will be able to work at just the tax business and I can give up my day job. Sorry for the long post. Tom Lodi, CA

If I remember correctly, you put it in when you actually print the check. You process the bank product, and when they send the check print authorization, you input the check number and send it back to them when you print the check. Have not done one yet this year, but that is how I remember it. But don't trust me, I am too forgetful to be relied upon. Have a great season Eli. Tom Lodi, CA

Thanks Bob. Tom Lodi, CA

HCE (company vice president) has $1000 returned in 2008 from 2007 contributions because company testing limited his eligible contributions. I never did one of these before, but I think he has to ammend the 2007 return? Correct? Is there any way to make the adjustment on the 2008 return? Thanks for the help. Tom Lodi, CA

Even though the checkstub loans really tick me off, I have to say there is one HRB commercial that I thought was really funny. The one where the guy is sitting in his office at work and he keeps hearing tax terms. In the room next door, the boss walks by and catches 2 co-workers whispering those tax terms into to the ventilation system so the other guy can hear them. Boss - "What are you doing?" Co-Workers - " Driving Jim crazy." Boss - "He doesn't have people?" Co-Workers - "No." Boss - "OK, carry on." I thought it was funny. Tom Lodi, CA

this can also lead to some tax deduction bunching planning. We pay our Property taxes in Dec and April in our county. If I am a homeowner and I am close on my sch A every year, I could pay the Dec tax in Jan and take the Standard deduction increase this year, and next year I would have 3 tax payments (Jan, April, Dec) to increase my Sch A. Just a thought. Tom Lodi, CA

Well, let me guess, she wants a ral? Guess what, the bank will not fund it. Tom Lodi, CA

Jainen, You are supposed to be the Compassionate Liberal on this board. Why aren't you "Feeling their pain" (to borrow a phrase) and finding a government solution to their problems? It is not nice to rub it in that you live in paradise. I think the sensible thing for government to do is to ship you to Maine in January so that we all are treated equally. And don't forget to pack your surfboard! Tom Lodi, CA

Wow, how are you adding that up? Are you including the Instant RAL? Because the fees are limited to $100 plus the $30.95 service fee plus the $10 ATX Extortion Fee. On a $5,000 Regular Ral, I come up with $140.95. Of course, I add in my $19 for filing out the App and going through all the disclosures. Have you looked at all the crap we have to print and have them sign this year? What a joke. Their lawyers are working overtime. Tom Lodi, CA

SBBT contract says you can't use another bank. You sign up with them exclusively. Tom Lodi, CA