GERALD

No, you can install from the archive CD. I had to do this a couple of weeks ago, due to having to replace main computer. I could not find one year's archive (don't remember which one), so I installed the initial setup CD, and to my surprise, was still able to download the update for that year.

Gerald

Enter them one at a time like I do ! I did one last week with 45 transactions. I always explain to these clients that the more the trades, the higher my bill.

If the trades were all with one broker, and you enter one total that agrees with theirs, it might fly. Then again, ??

Why do you say you cannot enter all transactions?? There is no limit on the number that I know of. You might suggest to the client that they keep a spreadsheet in Sch D format, and you could use that as an attachment to the return. I do quite a bit of trading and I keep the spreadsheet up to date during the year, and at year end, I just print it off and good to go.

Jainen has excellent advise on this issue. Those of us with representation experience know that in situations such as this, straightforwardness is almost always the best approach. If the client has a weak excuse in some area, admit it, but as Jainen points out, say that now that he has professional help, the case will be resolved promptly. The auditor is expecting both of you to lie so keep him/her off balance.

My last representation was about six weeks ago. A wish I didn't have client came in with a big box of papers on his mother who had not filed returns in years. He is her guardian and POA. Probably 75-100 letters from the IRS covering a five year period. The issue was stock sales in her brokerage account, not reported. Every year netted out to losses, lady didn't owe anything, but obviously, without filing IRS had no way of knowing that. They were within THREE DAYS of levying her brokerage accoun for over $60000. He wants to know what I can do!!!!!

I quoted him an obscene fee, payable in advance, told him I could prepare the returns that afternoon and to meet me at the nearest IRS office the next morning. We were assigned to a nice lady who listened very patiently to my explanation. The client excused himself for a few minutes and when he left the room she asked me how this situation got this far. I told her he was an obnoxious know-it-all, and a total jerk and a--h---. When she got up off the floor from laughing, she said, rules prohibit me from commenting on that. I'll see what I can do. She got the levy stopped.

Gerald

Yes, a self employed person can use the Federal per diem for M&IE expenses. Lodging, of course, has to be substantiated by a receipt. The software only calculates the non deductible part , after you have calculated the total expense, days x rate, and carries the deductible part to page 1. Lodging, of course goes under travel. I always print out the calculation worksheet and include with the return.

Thanks for the input, Gene.

Gerald

Long time clients lost home to fire. Beautiful 6000sf, paid for home, less than 10 years old , totally leveled. Despite attempts at sorting rubble, absolutely nothing salvaged. Site has been bulldozed. It happened 3 weeks ago. The wife operated a home based custom sewing (draperies, curtains, slip covers, etc ) business serving a high end clientele. The last 3 years sch C's show an average of 100k in sales, 50k net. She said 2007 was as good or better than previous years. Of course , all records were destroyed, so we have to reconstruct. Duplicate bank statements are only partially helpfull because about 30% of her receipts were in cash, which she then used to buy materials . She is a former bookkeeper and kept very detailed records of and reported all cash transactions, even down to nickle and dime stuff. She brought me her books every year to back up her income statement, so I know how accurate they were. Plus, she is just plain one of the most honest people I have ever known. We are meeting next week to reconstruct and file a 2007 return, with which we will attach a full explanation. I have even considered attaching copies of prior years' sch C's (marked DO NOT PROCESS) to show that this years is in line.

I just wanted to run this by the board to see what experience any of you might have had with the IRS in similar situations.

Gerald

I totally agree with you Deb. I am in a small city , also, and we tend to do things a bit differently than the big boys and the franchise preparers. We have quite a few non-filing seniors at our church and I am having an item put in this Sunday"s bulletin that I will file for them at no charge. I have also begun calling former clients that no longer file and offering the same service. I still feel a loyalty to those people who stuck with me for many years. Of course, if a stranger walks in and wants to make a donation to the sun and fun fund, that will be OK too!!

Gerald

I do exactly what you do, Taxman. Our PO says you can't get street delivery within a 1/4 mile of PO, which includes about 1/2 the town, including me. Using both solves the problem, at least here.

Being personal rep does not mean personally liable in most circumstances. If the estate was properly administered and closed, there are no assets to go after and highly unlikely IRS would pursue. Is the amount large enough to create a tax liability, if a tax return was filed for the deceased? To be honest, I have routinely ignored 1099C's in similar situations over the years and have never had a comeback.

Gerald

It is clear from my readings that 100% is medical expense if the individual is there due to a physical condition and the availability of medical care is a primary reason. I faced the same situation with both my parents, although I did not need to use 100% to offset their income. I have a little problem with the term "Adult Family Home" because around here that generally means a facility where residents are able to care for themselves to some extent, although some facilities have different levels of care where they can move from assisted living to skilled nursing care units as their condition worsens.

Based on what you say, I certainly would take the 100%.

You have my sincere sympathy in having to deal with this. I don't care how good the care is, there is no such thing as a "good" nursing home. It is a depressing situation and my prayers are with you.

Gerald

I have updated every day and no problems that I know of.

Gerald

And so stupid!!!

Your husband and you will be in my prayers. May god's healing power be with your husband, and his love comfort you during this difficult time.

In Central Ky, we have averaged 97.5 for daily highs for August, with many 100+ days and very little rain, altho we had about an inch last night. All heat records have been broken this month. Running 7-8 inches short on rainfall. Dairy farmers are folding fast, and cattle operations are facing a selloff situation before winter due to lack of feed crops. My son lives in central Tenn. and says that central and western Tenn farmers are totally devastated by heat and drought conditions. If prayers will help any, I will do my part. I know an awfully lot of fine people who are facing tough times.

Gerald

I agree with the majority. Let them choose whether or not to be identified. They should be welcomed.

By the way, just curious. Did anyone else who contributed to the expenses of this board and sent a check notice that it was sent to an address right next door to ATX"s HQ?

Hmmmm!!!

KC-Have you had any contact with Suelcla? I don't recall seeing her post on this site.

Look up!!! You will see the word "Donate". It will give instructions on how to help defray the cost of the board.

Redneck is on the right track. Dealer's are not allowed to use the installment method for sales from inventory. Also, interest income received in the ordinary course of business, ie, dealer financing, is ordinary business income-Sch C.

Extensions mailed yesterday, last pickup 11:00 EDST.

Gerald

As I mentioned above, I am now recognized. But, it was happenning initially even though I never logged out. I found out on the other forum many of us signed up for that if you logged out, you had to log back in, so I never did that here since both forums seem to operate on very similar software.

I had that too, the first few times I logged in, but now I am recognized. Maybe there is a time lag factor, or you have to sign in x times before you are recognized. Smarter heads than mine know the answer, I suppose.

Funny you should mention the hat business. I have an older gentleman who did that for years. When I asked him why, he said to find out if I was going to shoot first and ask questions later!!! Always on the 12th-14th. Wonderful fellow, other than procrastinating on his taxes. A high school teacher of mine. I get his info earlier now because he has fairly advanced Parkinsons and his son and daughter-in-law take care of all his financial affairs, but he still insists on coming with them when they bring his info.

I was talking to him one time about something he needed to plan for in the year ahead and he told me " Son, at my age I don't even buy green bananas".

We all have our pita clients, but sometimes it is nice to be reminded of the good ones.

Friday night, my wife and I went to a small town a few miles away to eat at an old fashioned, family run diner, widely known for good "country cooking". We had been there awhile when I saw a long time client and his wife being seated on the other side of the diner. We smiled and waved at each other, and went ahead and finished our meal. I asked the waitress for the check and she said it was "taken care of", and pointed to the client.

We went over to thank them and mildly protest, but he said " you deserve a little extra for taking care of us all these years" and his wife said "yes, we have to take care of our taxman". Mind you, this was the same older couple (anybody older than me is getting on up there) who sat in my office two weeks ago and wrote checks for over 6k for 2006 and their first quarter estimates.

What a pleasant way to wind up tax season.

Gerald