BulldogTom

I think (don't hold me to this) that the form says "expenses that you paid for improvements to your main home located in the United States". That would mean lost. The kids can't say it was their main home and the parents can't say they paid the expense. Tom Lodi, CA

Jacksorh, Don't withdraw. This is the client that needs you the most. Sure it is a mess, and they are probably lying, cheating taxpayers. But we can't pick our clients. Here is where you can do the most good. Anyone can prepare a 1040 with 1 W2 and EIC (well - almost anybody). Where is your spirit of adventure? Think of the stories you will be able to tell your grandkids about your clients who can only pay in booze. These are the clients we hate to love, but we love them all the same. Just my 2 Cents. Tom Lodi, CA

Facts and circumstances. What part of the internet is ordinary and necessary for his trucking business? If he can tell you for example that his broker only gives him loads via their website, and he must have access to the internet for that purpose, then I say go for it. Logs, exclusive use, business only, you know all the stuff to ask about. If he just "heard" that it is deductible so he wants you to put it on his C, then I would not. My 2 Cents. Tom Lodi, CA

Mapquest!!!!!! They need directions. Now how do you get to the Mustang Ranch? Tom Lodi, CA

Yeah, they only spent $225 on Accounting and nearly 10K on booze. What do you expect? Seriously, for a tavern to operate for a whole year on 20K of revenue is a bit unrealistic to me (I bartended through college). At nearly 50% pour cost, they are pouring some pretty stiff drinks, and they only served about 7K drinks in a full year or about 20-25 cocktails a day. Sorry, you can't make a business go on revenue of $75 per day and have booze costs account for about $35 of it. If those numbers are just missing a zero at the end, the pour cost is still too high. They must be pulling big tips in that bar. Tom Lodi, CA

OK, who changed the Title? KC, you messing with my posts? I like the million $ hook to get them to read it. Tom Lodi, CA [Guilty, Tom, I must confess, I did it to make readers aware that we have sort of changed the focus just a bit. I want everyone to consider evaluating and then reporting, at least one product. Hopefully without any sniping at any other product, just giving us pros and cons of the one they tried. Lion's was a good start, although I hope at the end he has at least one 'con', just to be totally fair about it. They all have some quirks, or weaknesses, after all. KC]

She was a student there and said she hated working at the place. When she graduated, she moved to CA to begin working. She tried to find the owners, but the place closed down. I called the new place, but it is only an answering machine. I was hoping there might be a member on the board from Syracuse who had that company in their W2 database. I tried an online search company and it came up blank too. I guess I will paper file the 3 returns. Tom Lodi, CA

I have a client that we have filed injured spouse (both work) for the last 4 years exactly the same way. 2 years she got 1/2 of the refund, 1 year she got her withholding, and another year nothing. Injured spouse is a crapshoot. You never know what you will get. Tom Lodi, CA

I have a mangled W2 from a company in Syracuse NY. I got the income and withholding numbers off of it, and the client gave me the name of the company. But I don't have the Federal or State employer ID #s. Can any of you please help me out? The employer is: Dakota's Brickhouse Grill, LLC Reichard (unreadable) 426 N Franklin St. Syracuse, NY 13204 The restaurant has closed (I confirmed this online). I also did an entity search on the SOS website and the company comes up. I just need the federal and state id#'s for the W2 so I don't have to paper file these returns. Any help would be appreciated. Tom Lodi, CA

Rick, You are on the track that I was going for. I don't have time to evaluate 5 or 6 software packages this summer (I am hoping Mel has his going and that is the one I want to put to the test). I would be willing to take one for a test drive and then post my feelings about what is good or bad, including customer service. If each of us were to take one and really give it a good workout, then we might be able to get some good ideas about each package. If 10 of us tried brand XXXX and 7 thought it was garbage on business returns but good on 1040s, the people who only do 1040's might want to try it, but those with business clients could save the time of looking at it. Anyway, that was the thought. Tom Lodi, CA

Thanks, that was my assumption, but I wanted to make sure. Time to look for instructions on NY state tax returns. I know how I am spending my time today in between clients. Tom Lodi, CA

Thanks Ann. I went there but it does not address this exact circumstance. Tom Lodi, CA

I sent this mother of 4 home with only 1800 of W2 income (her spouse died the year before, not working, sad story) with no withholdings. No need to file. She does not meet the income limits for the $300 payment. But the IRS instructions say "Parents and anyone else eligible for a stimulus payment will also recieve an additional $300 for each qualifying child. To qualify, the child must be eliegible under the Child Tax Credit....ss#" Since she is divorced, she is going to give her ex a 8332 this year for 2 kids. He is coming in tomorrow. She could really use the payment this summer (her savings and life insurance are running out). Should I file a return for her? Will she get the $300 per child? So confused. Need an adult beverage. Tom Lodi, CA

I have a new client, full year CA resident but with Rental Activities in NY state. Rentals net a loss on 1040. Is a NY NR tax return required? Your help is appreciated. Tom Lodi, CA

You didn't like Maxwell? Shame on you. He took 3 hours to get through a client interview. He was thorough. Tom Lodi, CA

Not exactly, but close. The rebate is the amount of tax paid on the 2007 return, but no less than $300 and no more than $600 for singles. Double that for married. The additional credit is per child at $300 each. Using your example, if they made 20K and had 4 kids, there is no tax liability. They would get $600 for married filing joint and meeting the minimum income requirements, and $1,200 (300 x 4) for the kids or a total of $1,800. At least that is how I am reading it. Tom Lodi, CA

I think the issue is not the quality of the truck, but that the sleeper on the truck rises to the level of a "living space". If that is the case, then they "live" at that space, and not at their home. The "living space" now becomes the tax home. The deduction for business travel away from home is then lost, because they are not away from their "living space" home when they eat. Interesting, and I can see the IRS making this point. On the other hand, they should vote, keep a drivers license, and hopefully and office in the home for their administrative duties at the place where they live the other 65 days per year to strengthen their argument that they are away from home on business. Tom Lodi, CA

<<Yes, it does. The income can come from any source...even Social Security.>> No - it doesn't. From the IRS Website announcement. "Also not included in qualifying income are non-veterans or non-Social Security pension income (such as those from Individual Retirement Accounts)." Only veterans or SS pension payments qualify. If your client has only private or individual pensions outside SS, no rebate. Tom Lodi, CA

I don't know if it was me. I wrote a letter to the Lodi News Sentinal that was published a couple weeks back. Had to do with the FEMA flood map designations. Did the Sac Bee pick up my letter? I don't read the Bee. Tom Lodi, CA

Let me change the facts and see how you would answer. Instead of the 3k getting him a tax benefit (eic), it puts 2,999 into the 25% bracket, and the 4% bracket in CA, along with the 15.3% SE tax on 93.5% of this cash. The taxpayer is now looking at an additional tax bill of $1,299 for telling you about the 3K. Would you still file the schedule c and put it on the return? For the record, I think you need only worry about HOH and can he survive a cash t analysis of providing the support. If he can't, file him as single with the dependent. The 3K is a non-issue in my book. You know what the law says about income from any source, regardless of the tax benefits or detriments that result. My 2 cents. Tom Lodi, CA

I vote for Ahhhhhnnnnolllld as the Terminator. Black leather, Harley, sunglasses. Rebel without a cause look. Right out side the office. (hey, ask your people if I can write off a Harley if it becomes the ATX mascot?) Tom Lodi, CA

If it was possible for Eric to give other software companies a demo page or link to a demo page of their own, would you appreciate that. I know many of us are looking to get new software next year. If there was a working demo of Drake, Proseries, Taxslayer, or any other software out there where we could try it and comment on those trials, would you find that helpful? I have not asked Eric about this, but why ask if there is no interest, right? Just a thought. Tom Lodi, CA

KC is right (as always). It is not my client, and I know you want to do the right thing. Unfortunately, the 90 day window has closed, and the IRS has no incentive to open it back up. This is the real tragedy in this situation. Losing the appeals/tax court track are huge rights that the taxpayer has lost. The IRS does not need to let you go there, and it gets harder to get the proper result for your client if you cannot use the traditional methods and your client does not have a lot of $$ laying around to pay for the taxes, representation, and legal fees. I have a client in the same mess. They don't know what they should be doing, but they know that what has happened to them is not fair. I know it too. But they let the 90 days go by in 2003, 2004, and 2005. I can fix 2006 and I am well on my way to doing that. I can make 2007 right and make sure they get the proper result that they are entitled to under the tax laws. But they are poor (yes, I am basically doing all of this pro bono) and cannot afford to go the court of claims route (at least not yet - I am still working on that one) for the back years where they got hosed. Cientax - good luck. I know you care about your client, and that is a good thing. My advice is to forget about the audit recon route. My experience was that the process is not set up to benefit your client. Use your time and energy on a different tack that will produce better results. I would recommend amending the return, putting everything in order the best you can for that amended return, and see if you can get the IRS to bite on that one. When the IRS ignores or rejects the 1040X, file the claim for refund. They have to pay the taxes and sue for the refund after the IRS ignores them for another 6 months. It is not a pretty scenario. Again, good luck. And if you have a better approach or get better results on the audit recon, please let us know. Tom Lodi, CA

The workaround is to move the interest to line 48. Unbelievable is the word I used when it popped up on my computer. According to other posts, the progammers believe this is the proper programming per IRS regulations. Un-be-liev-a-ble Welcome to the new ATX...powered by idiots at CCH. Tom Lodi, CA

I think they will not have to file a return if they are elderly or disabled vets. I read that the IRS will get the information for seniors from SSA and the disabled vets from the VA. I think the only people we have to file a return for are those who make less than the minimum filing requirements and at least 3,000. That will kick their return into the system and get them the $300 in the summer. Tom Lodi, CA