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.

I know very little about scan and fill having never used it. However, I did see an extensive discussion of this on another board and the 99% consensus of those who were doing it or had tried it was "NEVER AGAIN". They had to many problems and spent more time double checking and correcting errors than if the had just keyed in the info to begin with.

Without any research, it is just my opnion, I would say no because it was not a licensed medical/care facility.

If he is completely retired, he probably isn't licensed anymore. Most retired CPA's usually let their license expire due to continuing education requirements.

IRS Notice 2011-11, dated 1-25-2011, says that a paid preparer can continue to file without a PTIN, if "THEY HAVE MADE A GOOD FAITH EFFORT TO OBTAIN A PTIN". This was issued for the benefit of those whose applications have been delayed, or still in process. My opinion, no effort, no can do, although filing one return probably would slip through.

Gerald

Lynn, you might find this interesting. It was in an article in the February issue of Consumer Reports Magazine and was the result of a survey of average prep fees for 2009 returns. It was conducted by the National Society of Accountants.

Return prepared by:

CPA, EA-itemized deductions $229.00

" " non- itemized $129.00

H & R (net average fee ) $187.00

Gerald

This may or may not be what you are looking for, but here is my thought. Any C corporation, be it Mom & Pops Diner or GE has to follow the rules, although I know it is not done in a lot of small businesses. To pay a dividend, the Board of Directors must meet and declare a dividend of $xxx per share, payable a certain date to shareholders on a certain date. Since that was not done, you do not have a dividend. You have a advance?, bonus? Uncle Sam would undoubtedly call it ordinary income to the s/h in most situations. My suggestion is to have him pay it back,with interest, and do it right for 2011, and it would have to be for both shareholders. Then it would be a qualifying dividend.

Yes, I think so. I didn't set anything in preferences, just let ATX route it the best way. IRS estimates 80% of 1040's can go through MeF. Interestingly, 1040EZ's and 1040A's are not in the MeF system, so a 1040 will process faster. Go figure.

Modernized Eectronic Filing (MeF) applies to 1040 and about 20 commonly associated forms. Returns qualifying are supposed to receive expedited processing and IRS goal is that Acks would be sent in a few minutes to a couple of hours. Returns not qualifying are called Legacy returns and are processed in the usual manner, Acks in a couple of days. We don't have to do anything, ATX server makes the decision, UNLESS, we, for what ever reason, want to elect Legacy (pre MeF) processing. I have probably told you a lot of stuff you already know, but this is my understanding from the ATX Webinar on electronic filing. As with most people my age, my understanding is subject to frequent revision!!

Gerald

K C-Margaret is right on the chili. It is love it or hate it. Cincinnati style chili has cinnamon in it. Personally, I love cinnamon, but not in chili. I've tried it. YUK!

Hopefully, the horse meat is for pet food, not for us!!! You can argue either way for sch C or F- the result will be the same. The horse boarding usually has expenses more commonly associated with farms, i.e. feed, vet costs, mineral supplements, etc. Regardless of whether the horses are raised or purchased, it can still be run through F. It is probably best to run both operations through the same schedule to avoid having to allocate common expenses such as depreciation, utilities, insurance, etc. I tend to favor sch F, but as I said, the result is the same.