BulldogTom

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

Technically they are late and she could get hit with a penalty, but I've never seen it happen. I've mailed them a couple days late before and never had an issue. I even mailed my 1040V and payment a week late last year and never heard from them. Tell her to drop them in the mail and never worry about it.

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

All the frivolity aside, this illustrates a point I've wondered about. How does anyone really separate themselves and personal assets from their business LLC and the business assets. It has always seemed to me that if someone were sued, they would sue both the LLC and the individual and how could one defend themselves from this even if they had dotted all the i-s and crossed all the t-s.

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

I should write it on the calendar, jainen, lbb, & OldJack agree to agree. lbb

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

But how does the SS tax get paid, if the Box 7 amount is not included in Box 3?

Booger

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

Never did a hairdresser's return before. Box 1 (Wages) shows 30,000, Box 3 shows 23,000, and Box 5 shows 30,000.

Box 7 shows 7,000, and nothing in Box 8.

Reading instructions for Form 4137, it appears that this Form DOES NOT APPLY, unless there are tips reported in Box 8.

My question is does Form 4137 need to be filed for tips reported in Box 7?

Booger

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.

Tom, the portion that you elect to write off this year, up to $5000, is taken directly on the return, as long as you do the election. If a Sch C, or F, put it on the 'Other Expenses' section. There is not a specific line for it.

That seems wierd, it does not go on the depreciation schedule? I trust you, but it seems that it should go on the 4562.

Thanks KC. You are still the greatest. When are you coming out to see your grandkids? I will take you to dinner (or have you over for some California BBQ - what you southerners call "grillin') if you want to drive up.

Tom

Lodi, CA

OK, I got the elections statement, and I entered the Asset with the Z and §195 description. I even found the box on the global tab to make the election to deduct start up costs.

I have poked and clicked around and cannot get more than the normal amortization to show up anywhere.

Shouldn't it be an additional amount on the 4562? And it should flow to line 13 of Sch. C? If so, how do I get it there?

Your help would be greatly appreciated.

Tom

Lodi, CA

Tom,

Also, In Asset Entry, oOn the Asset Input Sheet, you can select "Z-Amortization" in # 4 "Asset category" and then in # 5 you can select # 8, "Amort - 195 - Bus start-up exp".

Hope that's what you're looking for.

That is the ticket. Thanks. You guys are the best.

Tom

Lodi, CA

How do I make ATX do this? I don't see a place in the asset entry or on the 4562.

Any help is appreciated.

Tom

Lodi, CA

That is what I did. Full year CA return with all income and losses and a NR for the other state showing just the loss.

Tom

Lodi, CA

I get mine through CNA for $165 per year. Got it through a broker out of SoCal called Dimarik (sp?). They were advertised at a California Society of EA's publication. Very happy with them. Every year they send me an invoice in Oct, Nov, and the one I pay in Dec.

I have a small practice also. Just me and the missus and the two children (receptionists).

Tom

Lodi, CA

Is that the same "Bob" from a certain "male enhancement" commercial?

Tom

Lodi, CA

I know, I know, you guys are doing tax returns. But I have an opportunity to get into a great company if you can get a 401K audit done for a resonable price (not cheap, reasonable). The books are in good shape, the fiduciary has good records, should not take a lot of time. PM me via this board if you are seriously interested and qualified to perform this audit.

Tom

Lodi, CA