BulldogTom

If you don't mind following up on this...How do you do that? Tom Newark, CA

SWEET. Please don't post this on the other ATX board. I don't want ATX to know about it. They might pass the info on to the IRS. Tom Newark, CA

I have been dealing with this for 5 years with my kids. We have them download the transactions on their account every year and keep them for backup in the file to show actual payment dates and dates the scholarships were applied to the charges. The transaction history page is really helpful. Tom Newark, CA

I hate this crap too, but I will give it a shot. How much of the purchase price (principal) was paid on the contract? I don't know what a land contract is. I think it would go like this: Original Basis 39K + gain recognized - amounts of principal paid on note. So if the 51K from the purchase price was all on a note, and the buyer only paid interest on the note before they walked, I come up with 54K for the basis (39K + 12K + 3K - 0). This is on the fly so check me on this. Tom Newark, CA

Thanks for the info Max. Tom Newark, CA

OK, so they made me sign up for the e-services website. I want to go looking for the transcript of the taxpayer's 941 returns. Can I do that on e-services or do I still have to call and wait on hold? If so, how do I go about that process. I tried on the individual and it only shows 1040 series tax returns. I tried on the business and it only shows income tax returns. Thanks to all of you for your patience with a website challenged member. Tom Newark, CA

Sorry, but I disagree. A redemption of Stock is a sale or other disposition. I don't think it is a distribution of profits which would give rise to a dividend. If I am wrong, please show me where you are getting your info. I don't do many of these, but I am pretty sure that is just a return of capital in a stock redemption and not reportable on a 1099 DIV. Tom Newark, CA

rfassett is asking the same question I have. I believe you have to liquidate the stock. It cannot exist any more. I am not sure a 1099DIV is the reporting mechanism. I think you need a stock redemption transaction recorded on the books as the final entry to zero out everything. Tom Newark, CA

Notice also (in ATX) that on your business returns there is an authorized signer sheet that pops into the return. There is a lot of information on that sheet. ATX says will not be needed this year except for the name and address. I think they are going to tighten up and make everyone prove who they are when they sign a return in future years. Tom Newark, CA

Student at university accepts a summer internship with SETI Institute (search for extra terrestrial intelligence) doing research projects. Paid a flat $5000 for the summer session. SETI issued a 1099MISC box 7. Obviously, student is not in the trade or business of searching for aliens. Student is a student trying to pay tuition and get a resume item. But I can't seem to find a specific piece of guidance that says an educational stipend for research is exempt from SE tax. Any help would be appreciated. Tom Newark, CA

Got my first Federal Ack this evening. Waiting for CA. Sent the return on Saturday. Tom Newark, CA

Yeah, I got that. But my question is about the software. I figured out the DNI and the deductions and distributions. I am struggling with how to show this on the K1 in the software. Thanks for the backup documentation. I know you don't use ATX anymore, darn it. I was hoping you could help me with the buttons and boxes and settings in the software to make this all come out the proper way on the 1099. Tom Newark, CA

Bump. Where I am right now is the trustee wants the trust to pay the tax on 2/3 of the gain and distribute the 1/3 to the nephew. I am trying to work in the software to show this on the K-1 and the only way I can make it happen is to show the Nephew at 100% and the other two at 0%. I don't think that is the way to do this correctly. Any help would be appreciated. Thanks Tom Newark, CA

It is ridiculous that we are entering all of the information into their system for them, and they still take 30 business days to approve and 10 days after approval to activate. The state of CA has no interest in working with the tax professional community to service their clients. I would really like to leave this state. There is just nothing good about this government. Tom Newark, CA

Nope. I stand behind my work and if I make a mistake I will correct it. I pay for penalties if it comes to that. That is my guarantee. Tom Newark, CA

Thanks for the hint Deb. I don't have that field filled in, but I will do so and see what happens. I have heard the same about the upload, but now the FTB is requiring all POA's to go that way. I was holding out until I absolutely had to go there, but now I absolutely have to go there. Tom Newark, CA

As a follow up, there is a place on the FTB 3520 to put my email address on the form, but when I try to access that field, ATX says the field cannot be modified. Is this a mistake in the ATX software or a user entry error by me? Thanks Tom Newark, CA

I have never filed a POA online with CA. Do they require individual POA's for each taxpayer when married? I don't see a place on the form to add the spouse. Anyone out there who can give me a quick tutorial on how to file the POA since the FTB says if you don't do it online they will wait 90 business days before they (don't) get to entering your POA if you fax it in. Thanks Tom

Maybe, but it is my practice and my rules and I don't get in the middle of a divorce. Tom Newark, CA

I have a policy that I will not prepare MFS for divorcing couples unless it makes more sense for lowering taxes. I sit them down and tell each of them that if they fight during the process I will not prepare either of their tax returns. I will prepare the return based on the information and whatever way works best to lower the overall tax bill is how I expect them to file. They tell me which account the refund gets deposited to and we go on our merry way. If they don't like my rules, they can go on their merry way. Tom Newark, CA

This was the biggest year in terms of W2 volume that I have ever had at any of my day jobs. I just printed and uploaded 436 W2 forms and it took me less than one hour (most of that was printing time). The BSO process took me about 5 minutes to create the file in my payroll software and upload to the BSO website. I am going to get to see the Raiders play the Texans today. Too bad my Fresno State boy Derek Carr will not be playing. It was looking promising for the Raiders until he went down with that broken leg. Have a great weekend. Tom Newark, CA

Abby, so that I don't have to look it up, can you tell me how to do this? Thanks Tom Newark, CA

You hit the nail on the head about the software provider. There is another way to do it in their documentation, but it requires multiple steps, and they recommend the check method in their documentation. We create a non-cash fringe earnings code in the software, and uncheck all the subject to boxes for FICA, SUTA, FUTA and WC. Then we tell it to include the amounts in Box 1 & 16 on the W2 and explain it in box 14. When the check runs, it should subject the earnings to Fed and CA withholding but nothing else. Again, as you said, we ignore the W4 and disable Fed & CA withholding when we cut the zero dollar check. I know you think it is wrong, and you are probably correct. But the effect is to get the W2 to say what I know it is supposed to say. And I know that I should be subjecting this to WH as directed by the W4, but I also know that the owner pays his estimated taxes and the CPA will ensure that the owner is not in a penalty situation. It looks like "the ends justify the means" to me. The IRS gets a W2 the way they want it and the wife of the owner does not have a reason to pick up the phone and bitch at me. You are a pretty smart cookie. Tom Newark, CA

Thanks for your advice. In my case, the software provider we use for payroll recommends adding the non-cash fringe to the final payroll check to bring the W2's in line. The corporate CPA has already calculated the estimated taxes for the owners, who have other interests outside the S Corp. The estimates have been made timely. The owner salary is reasonable (I wish I made that much on my paycheck). I am not worried that there will not be enough withheld for taxes, I was worried that the owner's wife would call me on the carpet for a paycheck that was not the normal amount. I am wary of the IRS.....I am more fearful of the owner's spouse. Tom Newark, CA

I just watched the Tina Fey movie Whiskey Tango Foxtrot. Billy Bob Thornton has a line I will never forget in that movie. I will clean it up for this board but you will get the idea. Tina Fey to Billy Bob - "What do you think about this war in Afghanistan?" Billy Bob - "It is like having sex with a gorilla, you keep going until the gorilla is done wanting to have sex". If you saw the movie, you know what he really said. Same principle with a fired client...it just keeps going until they are done. Tom Newark, CA