BulldogTom

New clients come to me with IRS problem. Being audited and IRS is disallowing EIC, CTC, etc. Wants me to represent because they are their children (named on the birth certificate) and they lived with them all year. Pretty simple, until I look at the letter and the return and her name is not on them. He filed single. She filed HOH. They say tax preparer told them to do it that way (Jackson Hewitt). They also say they told preparer they got married in 2006. Not sure if I believe them or not, but that is beside the point. Do I amend the same way as I would if they were MFS and wanted to go MFJ? Just combine all the numbers on the two separate returns and put in column A on the 1040X? Then put copies of the two tax returns with the 1040X and hope the service does not hose them both? I already have the verbage for the explanation ready to go, so that part is not troubling me. I am pretty sure that is the way, just looking for confirmation. Thanks in advance. Tom Lodi, CA

I want in. Pick me! Pick me! Don't leave me off the team like they did in grade school. Seriously, if you ever decide to put a program together on a relational database platform with the functionality of ATX, I will be right in the front row to sign up and beta test it for you. Since you have another year before ATX software will go away (just my opinion - no facts behind it), you might be able to get up and going for the 2008 Tax Year. Unless you have already started development and could have something out for 2007 tax returns? Tom Lodi, CA

Wow, Eli you need to think about this. Are you ready to go full time into tax practice? And are you ready to bring in someone who you will be dependent on for the success of your business? The above advice is important to listen to, and I believe Mike has given you excelent advice. But the bigger question centers around your life, family, carreer, and mental health. Is your wife up to this change? Are you? Can you sustain yourself for the first year on your savings if this takes a year to generate the cash flow you need to pull it off? Do you have access to a credit line for business expenses? I am sure you know this, but I will remind you of the most important rule of business - CASH IS KING, if you don't have it, or access to it, you can die in bankruptcy with profits on the books. This deal will take some cash to make it work. You will have to sit down and figure out how much and when and for how long. What a great opportunity Eli. Be careful my friend, and take your time deciding if this is the opportunity that will take you where you want to go. Send me an e-mail if you want to talk about this some more. Tom Lodi, CA

Melvin, If you were to open shop, I would be right there with you. Might you consider a joint business venture? We could call the software "two buck Tax" (that is a take off on the "two buck chuck" wine that recently won a gold medal in napa valley). We could get lots of customers, and then take CCH or Intuit to the cleaners when they buy us out. What a plan, your brains, your work, OUR profits. You ready to go into business? Tom Lodi, CA

I am waiting for the Airplane ticket vouchers to come back. Then I will renew. I have a toaster, coffee pot and microwave (well, I COULD use a new microwave, mine stopped spinning the food in circles and I don't know why). I am afraid that what we are going to see is the same thing that happened to my total tax guide. I ordered it, and they sent me the ATX Master Tax Guide instead. Fair enough, since they gave it to me at the same price. Now, they want me to buy the Master Tax Guide that I "ordered" last year for twice as much. Beware that we will be seeing ProSystemfx in our mailboxes this year "at the same price as MAX". That good deal will a one year thing, then we will be stuck with a company that could give a crap about us, now that they have killed a good, low cost competitor. If we stay for the higher cost, they win, and if we leave, there is not many places to go. I fear it will not be long until the big guys swallow the last of the little software companies and we have to choose one of the big ones or go out of business. OK, I am stepping off my soapbox now. Tom Lodi, CA

That is very interesting. I heard that HSBC was completely out of the Tax Return Banking. This is the first I have heard that they will be back next year. Tom Lodi, CA

Please do not respond if you are going to bash RALs. I don't like them, but they are a necessary evil to level the playing field with my competition. Do any of you know what you are going to do about bank products if you renew with ATX? I was with Republic for 3 years with ATX, but it never worked well. ATX and Republic did not play well. I finally switched to HSBC last year, and everything went perfect. But lo and behold, there will be no HSBC this year. I loved Santa Barbra when I was with ProSeries, and I see that Drake has a relationship with them. The RAL crowd is the most fickle of them all. They will bail in a heartbeat if they think their check is going to get held up even one day. There are some of my clients that just want to pay me out of the refund, and while I will hold a check until the refund arrives for some of them, I like the security of knowing that I will get paid when the refund is funded. I need a solid bank to work with. What are the rest of you who offer bank products going to do? Do you know which banks for sure are going to be offered by ATX? Any word on if they will be integrated like HSBC in the ATX software? Thanks for your input. Tom Lodi, CA

I met with the Drake people at Super Seminar last weekend. They should have put better salespeople in their booth. I was ready to switch until they opened their mouths, now I am not sure. Can you tell me what features in the software (not the company) you thought were compelling to make the move from ATX? Price is not a factor for me as Max and Drake costs are so similar that I won't notice the difference. I have loaded the 2006 Drake software and started the setup process and will begin working returns in the next few weeks. I would appreciate your comments. PS, now I think I am going to forego both the Drake and ATX early discounts and wait until November. I am not ready to trust ATX, or to switch to a new software yet either. Tom Lodi, CA

Thank you Maribeth. Your help is appreciated. Tom Lodi, CA

But there was no carry forward on the 2005 NOL. I took the entire amount back to 2003 and carried nothing forward. So there is no worksheet to move forward into 2004. Now I am carrying 2006 back to 2004. That part is easy. My question is what to show for the 2005 year on the 1045. I think you are saying to show the 2005 amounts on the 1045 and adjust nothing. Then I will carry the 9K forward to 2007, and I will use the NOL Carry Forward worksheet next year? Am I understanding you correctly? Tom Lodi, CA

Thank you Maribeth. I think you answered my question. But please allow me to understand what I thought you meant for me to hear from what you said? So I will show the amount of the NOL that can be used on the column for the second preceeding year (2004), and in the next column (first preceeding year) I will show the originally filed 2005, with no adjustments? Then I will attach (per KC's post below) the carryforward worksheet? Am I on target? Thanks again for your help. Tom Lodi, CA

I appologize for not having done the research yet, but I thought I would ask here first since I won't get a chance to look it up for a few days. Client has an NOL in 2005. I carried back the whole thing to 2003. All good, no issues. Client has already spent the check. Client has an NOL again in 2006. I carried most of it back to 2004. 9K left. Since 2005 was also an NOL, what do I show on the 1045 for that year? Do I leave the 2005 numbers as originally filed, and carry the amount forward? Or do I leave that column blank, and carry forward (I think that will make the IRS computers go tilt)? Any help would be appreciated. I have put this on the shelf since the end of tax season and need to actually get it done sometime this summer. But I have had more fun building a redwood deck and installing a hot tub in my back yard. Tom Lodi, CA

I already sent the snail mail version, but I do appreciate the information. If I am with ATX next year, I am sure it will be useful. Tom

OK, I have one client that I am putting on Extention. I was going to try to e-file it, but I could not get the signature, so I mailed it. Could someone walk me through the process of e-filing an extention without the client to sign the form? And since I use Practitioner Pin for all my returns, how do I go about removing the pin? Any help appreciated. Tom Lodi, CA

I am sure I don't know what you are talking about. Was that ancient history or something? I was really bummed that I did not get to go to that game. Dispite the outcome, it would have been a trip of a lifetime. And of course, hope springs eternal in Bulldog land. We get a Big12 team in Bulldog Stadium this year (Kansas State). And in two months, my oldest son (age 13, 6'1", 200lb, nose tackle) will be going to the Fresno State football camp. Hopefully he will catch coach Hill's attention and get on his recruiting list in a couple of years. Since he was 7, it was his dream to play for Coach Hill. What will your kitty cats do with all the talent they are losing (Russel, Bowe, Landry)? Might be a re-building year in the Bayou? Tom Lodi, CA

Cathy, Here Kitty Kitty? Bring it on. Tom

OK, it took a while, but now I think I have my "Avatar". It is funny that I never knew what an "Avatar" was, even though my 11 year old watches the cartoon "Avatar - the last airbender" every single day. Thanks for the help. Tom Lodi, CA

I added a picture to my profile. I am just checking to see when it shows up. Tom Lodi, CA

Where are you seeing the prices for next year. I went to the catalog and it is the same price as last year for MAX ($1,065). I have a feeling that is not the 2007 price. Or is it? I got the e-mail but it does not have a price, just a 10% discount for ordering early. I am not inclined to order early, because I don't know what is going to be there when tax season comes along. I guess I am just pessimistic (sp?). I am going to be looking at Drake. They are going to have a booth at the CSEA Super Seminar in Reno, so I will check it out there. If I don't like it, I still have time to get ATX's discount. It is a shame that ATX was purchased by CCH, because this was the most flawless year they had. No real e-file screw ups (remember 3 years ago?) and all my CA forms were timely. I was looking forward to many more years with ATX, because they really got it right this year. Oh well, we will see what the future holds, but I don't have high hopes for a long relationship with ATX. Tom Lodi, CA

Eli, I am real glad to see you got here. Too bad you are not up to your eyeballs in tax returns. Tom Lodi, CA

:unsure: I am looking for the tax court petition forms in ATX. I can get them online directly from the Tax Court Website, but I would rather have them as part of the client file in ATX. Not having any luck. Does ATX software include the tax court petition. BTW, the client is divorced. Ex claimed the kids in 2005, but lived with her all year. He filed first, she got a notice of deficiency because she did nothing when the IRS notice of redetermination arrived. It came to me at this late stage, so I am helping her file the petition, knowing that we will get diverted to appeals for resolution. But I still need the client to file the petition to protect her rights. Tom Lodi, CA