BulldogTom

I am looking for some help from those of you in New England. My wife and I would like to take a mini-vacation to your part of the country over the long 4th of July weekend. I am looking for some ideas on what is "must see". We are thinking of flying from Sacramento into Boston, NY or Philadelphia on July 3rd and leaving on Sunday, July 6th. What would you suggest to see if this was your only trip to the area in your lifetime? I don't know if we will ever go again, so we want to make it memorable. We will be bringing our 2 boys, ages 12 and 14. Any help is appreciated. Tom Lodi, CA

If you do it that way, I would take the 20 biggest and put them on the return. Add the other three to the gross reciepts not on form 1099 in the revenue section. A short description like XYZ corp 68-11223344 1099Misc would fit on the line with an amount. You have four lines there. Tom Lodi, CA

Warning, this is unresearched, off the cuff. Take it for what it is worth. You know that the basis of this payment is because of the business activity of several years ago. As you point out, the overcharged fuel was included into COGS and deducted in that year. The "refund" is therefore taxable on the Sch. C. If that is the case, the legal fees and interest should also go on the Sch C, because they are based in the same business transactions. It does make the Interest subject to SE tax, but it gets 100% of the legal deducted with no haircuts. What would you have done if rather than a lawsuit, the Proprietor had hired an attorney, proved to Exxon that they violated a contract, and Exxon agreed after 2 years that your client was right and paid the refund, legal fees, and some interest to cover the use of the funds during the dispute. It would all go on the Sch. C, wouldn't it? Another thought is how the Sch C disolved and the Corp came into being. If the corp assumed all the assets and liabilities of the proprietor, then all can go on the 1120. The corp steps into the proprietors place for its claim on Exxon. Again, just thinking (or typing) out loud. Tom Lodi, Ca

I just find it interesting that when it is a Democrat, the story goes "NY Governor implicated...." and when it is a Republican the story goes "Republican Governor of NY implicated...." This morning, MSN does not mention a party until it says Republican opponents of the Governor are looking for his ouster while Democratic allies are waiting for a sign from him. The writing is so slanted. It puts the Republicans in such a bad light, like this Governor is some lilly white angel being smeared by the other party. And his loyal friends are so pure and willing to support him, waiting for the truth to come out before they pass judgement. It makes me sick the slanting of the journalism. Personally, I feel sorry for his wife, who was trotted out by her husband to show support for him at a press conference. The kids have to be mortified. Yet he continues to play political games. I hope they send him to a beautiful alternative housing facility (that is the pc way to say prison) at Rikers Island. Tom Lodi, CA

The smallest ones I have seen have about 30 pages and the sections are separted by tabs. The client says they are simple. A lady brought one in last year that was over 100 pages. It was a simple trust with no real complications, but it was still 100 pages. I guess I don't read that fast.

Locally, they have those lightbulbs for $3.49, but PG&E (our local electric company) was giving a rebate (at the counter no less) so you could buy them for $0.99. I bought 30. They last longer and use less energy. Tom

OH yeah? Mabey not over on that beautiful coast where you are, but when you are in between 2 of the top five forclosure cities in the nation (Stockton & Sacramento), it can happen in a hurry. I have lost 40% of the value of my home, most of it in the last 5 months. If I had to sell today, I probably could not get even that much. Facts and circumstances. Location, Location, Location. It may be that the price drop is valid, maybe not. Your word of caution is well taken, but don't jump to conclusions.

This guy was a former attorney general. Cool huh? As to showing restraint or lack of bias, it only happens when it is a democrat. Look at how the media did not go after Pres Clinton when he was caught with his pants down in the oval office, but when Newt and Livingston were caught in affairs, they persecuted them. I also find it interesting that they have not pushed on Obama's past so hard. Personally, I think everything you did from the time before you turned 30 should not count in politics (you know, we do grow up at some point), but I am cynical about the media, and I don't think they are laying off their favorite candidate just because they don't think it is right to go back to his youth. The media want him elected. It is fun to see Hillary on the outside looking in this time when the mainstream media is showing bias against her. She has been squealing like a stuck pig. I find it laughable. When her husband had the teflon coating, the media was fair and unbiased. Now, she is seeing life from the other side. Cracks me up. Tom Lodi, CA

I was just on MSN.com and I see that the Governor of NY is being charged in a prostitution sting. Because I like seeing the mighty fall, I click on the article. I assume it will tell me what party he is from, but theer is no mention, not even a (D) behind his name. They never mention the Democratic party in the whole article. I had to look it up on a search engine to find out he is a Dem. Could you imagine if that was a conservative republican what the headline would be? Just getting political on a slow day. Tom Lodi, CA

Michael is right. You cannot answer the client's question without reading the trust document. That document gets to make up the rules for everything (within the confines of the law - but with a lot of room to taylor to the grantor's wishes). Ask for the document, ask your client to give you a list of questions that he wants answered, bill for your time. Even a simple document will take 2 hours to read through. Good luck. Tom Lodi, CA

No. Taxpayer needs to sign. Tom Lodi, CA

Agree with Wendy and DevM. It is a feature, not a flaw. The wording could be better, but I like what it does. I keep looking for that one keystroke that will cause the reject. I always like to make sure I have a clean e-file before I print or set it aside until the client comes back to pick up. Tom Lodi, Ca

Swifttax, Before you give up... I had a reject 3 times on W2 not matching master file. Everything was correct. I deleted the record for the W2 and entered it fresh and it went without a hitch. I think sometimes the form gets corrupted. It may be the case with you. You may be able to delete and redo (I know, it can be a lot of work when it is the 1040 form), but it may just be a random symbol in the form that you cannot see. I was pulling out what hair I had left on mine, we restored all the fields and retyped etc. Tom Lodi, CA

Are you getting paid your full hourly rate? I would probably not do it. You might lose a client if you don't but this could end up being a vicious cycle. And then you are the bad guy if it does not turn out the way she wants. But, as you have already started helping by writing the first letter......... Are you getting paid your full hourly rate? Tom Lodi, CA

What took you so long to find us - or have you been here all along and just "unmasked"? Welcome. tom Lodi, CA

Mel, What are you doing typing on the board when you are supposed to be adding features to my new software package?????? Shame on you. Back to work..... NO SOUP FOR YOU!!!!!!!!! How is life in paradise? Tom Lodi, CA

I would fall on the side of the letter from the doctor. I would take the position that the IRS is not a medical expert and make them prove that the doctor is falsifying documents to help a mother get a small benefit from dependency and HOH. Of course, the phrasing of the requirement that the proof be in "such form and manner" suitable to the Secretary is not to be taken lightly. But a medical professional is pretty good evidence to take with you to tax court (assuming the letter passes the "smell" test). If it is my client, the daughter is at home and will be for the forseeable future because of the disability, I take the exemption and HOH. Tom Lodi, CA

"Won the recent 07" means they put a hold on the refund (as we expected), we called on behalf of the client, IRS then sent us the nice letter saying you get your EIC. Getting the right result for the client is a win in my book. We expected to have to go through an audit. Better than expected results. Especially when the client has been jacked around since 2003. I am just wondering if there is a reg or code section that I missed that mentions this "recertification" process. Tom Lodi, CA

We are doing great Eli, and I hope you are too. The form 8862 requirement is mentioned. I realize what that is. My real question is what are the code sections that the IRS is relying on to be able to say that they have recertified the client? I am going to be fighting for 2004 and 2005, and the client is in the middle of a 2006 audit. All have to do with blanket rejections of EIC because the client was rejected for EIC in 2003 and never got good representation. So now, in 2007 we win and the client and his kids are "recertified". Can I take that back to prior years? What does "recertified" mean in a legal sense? Does this only apply to 2007 and forward? That is why I want code sections and regulations. Then it does not mean whatever the auditor wants it to mean. I am just looking for every advantage I can get. Tom Lodi, CA

I have a client that I am fighting for EIC/CTC/ACTC/HOH for several years. We just won for 2007, but I am troubled by the letter that says the client has "recertified" for the EIC for 2007. Under what IRC code sections or regulations does one find the requirements for certification and recertification for EIC? I still have 2006, 2005, and 2004 to get for him, and I don't want to have missed anything. Thanks in advance for your help. Tom Lodi, CA

This just happened a few weeks ago, and might be the answer you are looking for. Client has a Sch C trucking business. Asks what he should do about LLC/Corp/S Corp. He is planning to hire drivers and buy more trucks. We started talking about liability. What happens if he falls asleep at the wheel and takes out a bus full of kids? Everything he has is at risk regardless of entity choice. What happens if one of his drivers falls asleep at the wheel and takes out a bus full of kids? IF he has not pierced the veil and has done his due diligence in hiring and training (per the standards of his industry, state, etc), his business assets are all at risk, but his personal assets are not if he has an LLC or Corp. Not so if he has a Sch. C. It is not pleasant to talk about taking out a bus full of kids, but it makes the point, because everyone know that if your business hurts a kid, you need a lawyer. It also leads to the discussion about how much insurance you need. I firmly believe that a successful business will have 3 main advisors: Accountant/Tax advisor, Insurance Agent, Lawyer. In the above example, he needs all three. Tom Lodi, CA

Get down on your knees and start praying because this is surely a sign that Armaggedon is here. The end is near. Tom Lodi, CA

Sorry, I did not read your post closely enough. It looks like the establishment the client worked at has failed to with hold the SS and Med taxes on the tips the client reported to them. I would double check with the employer to make sure they did not withhold, or ask them to correct the W2. I worked for several years in the restaurant and adult beverage industries. That is where I got most of my first clients when I started, and I never saw a W2 with reported tips and no with holding. That is an employer responsibility. It really sounds like the maker of the W2 just screwed up. Sorry that I did not read the post properly the first time. I hope this helps. Tom Lodi, CA

No. Form 4137 is for UNREPORTED tips. The tips on her W2 are reported to the employer. Now, Betty Sue should be telling you about the "other" tips that she gives to Jerome. He is real smart and knows that if Betty Sue does not have the tips at the end of the night, she doesn't have to claim them. Tom Lodi, CA

16. Your tax preparer is named Betty Sue, is a hairdresser the rest of the year, and has a husband who is reeeeeaaaal smart.