GERALD

Margaret, you do not pay the tax on the personal return. Pay it with the SMLLC form 725/LLET, filed separately. The $175 was a compromise. Several years ago, the state passed a new corporate license tax bill, that caused a lot of smaller companies that had paid $30 for years to be hit with bills in the hundreds and thousands. I had one S corp, relatively small, whose license tax went from $30 to 1600. After a near revolt, they revised it the next year so that most companies, be they C, S, or LLC, pay the $175. Large companies will pay a hgher tax based on gross receipts, gross profits, etc.

I don't think I have seen a local channel, network news channel, or cable news/business channel that has not had somebody on from H&R, Liberty, JH, or some local or national CPA firm being interviewed and giving tax advice. I also read three major market newspapers on line and they all have tax columns with questions answered by a local tax preparer, sometimes on a rotating basis. I don't see anything in 230 that restricts participation in that type of news/information programs.

Thanks for all your help. While I have been in practice many years (winding down tho), I have about a 95+% "cultivated" clientele and rarely have to deal with some of these sticky issues.

Thanks to both of you. This is a 30 day letter, and we still have a few days to respond. It is particularly frustrating to me since I have prepared her returns every year beginning before the children were born. They live within a mile of me and have lived with her every day of their lives. Her first husband was killed in a freak accident in 1999, and she has done a wonderful job of raising and supporting them, and now she has to prove the right to claim them.

Thank you for your response. Yes, I faxed in a POA over two weeks ago, but it took until yesterday for it to get on file. I made the phone call this morning and the agent refused to resolve it over the phone, saying documentation and proof had to be sent in. Exact quote: " If you claim eight dependents on your return and one is disallowed, all are disallowed. It's the law." End of conversation.

Familiar scenario. Husband claimed daughter on 2008 return. So did ex wife. IRS decided in favor of ex wife. He doesn't really agree, but accepts. Now, the problem. In 2007, he married a widow with two young children that she had always claimed, and were claimed on their joint 2008 return. They received a notice disallowing all three exemptions for 2008, even though the original inquiry only listed the one in question. According to IRS agent, law says if one cild is disallowed, all children are disallowed. Of course we are getting the info together to prove they are entitled to the exemptions, but I'm curious if anyone else has had this and/or knows the code or Reg. that spells this out.

I had a similar situation about 5 years ago. Couple married in their 60's, she died in'o6, received a 1099C in '07 for 10K in her name & SSN. Did nothing. Never heard a word.

RitaB While you are in the vicinity, wave at my son as you pass by. He & family live in Mt Juliet.

I agree that only the self employed spouse's part B premiums should be deducted as SE health ins. HOWEVER, I think medicare supplement policies are a different story. You cannot buy family plan supplemental policies. Every policy has to be individual. If both premiums are paid from the business account, I have no problem treating them as SE health insurance.

Jack, how do you delete a return from the program? I have wanted to on occasion, but the program tells me I cannot delete e-filed returns, which is a real bummer.

Sorry, I misread the date as 6-15-2011. Terry is right, it would be a 2009 form, just as it would be for any corp with a fiscal year ending in 2010.

What was DOD? I appears to me that they elected a fiscal year ending February 28. In that case you would be using a 2010 return.

No, I just have a note on the front of their permanent file folder. I think you could make the asset way work, but I don't like to clutter up returns.

Prepaid motgage insurance must be amortized over 84 months, or the length of the mortgage whichever is shorter. There are also restrictions if the refinanced principle is greater than the principle before refinancing.

I think everything will be OK once the push is over. HOWEVER, I dispute their comment about a "short time" at efc before going to IRS. I have a bunch that have been there over 24 hours without being transmitted to IRS.