Lion EA

CT starts with federal AGI and has no separate capital gain tax rate.

Sun spots! And, thank you Eric, for staying on top of this.

I've had no success at anyone filling out organizers accurately. And, I insist upon seeing the original documents anyway. For Schedules C, E, business entities, I insist upon some type of Q&A via telephone or email or in my office or.... Many start with their QB file or P&L and BS, which is better than a hand-done organizer. Many followed me from Block and were used to some type of interview format. Others came from big NY CPA firms with unopened organizers or organizers filled out with huge errors (mortgage interest paid as interest received, no 1099R info as they paid tax on that already!, that kind of thing). And, I too have had the comment about if I have to fill that out, I'll just do my own tax return. Or my kid said if I fill it out for him, he'll do my return for free. I don't send out general newsletters. I spend out information specific to a client(s). I want to do a bit more. I have an opt-in choice on my website for clients to receive newsletters, but no one has asked for newsletters. I have many clients that are very private and really don't want email or snail mail but will take my phone call if I think they need to know something.

I don't know what the original question said. But, your revised question talks about EIC and not being able to interview the clients. You HAVE to do the due diligence. But, I too am swamped with prior year and other late returns, so would refuse any business, even referrals from current clients.

I use the Intuit one that I just type into QB or into any internet connection to Intuit with no reader of any kind. No monthly fees as a ProAdvisor. I also have their free reader that can go on my iPhone or other device. I almost never use the reader. I use PayPal, but have not used their reader. I saw that Costco has a service. My kids use PayAnywhere with a reader. Their inlaws use a service with the cheapest rates but the worst customer service. My hairdresser bought a system with a machine from Staples. Lots of choices out there, so price out what your expected usage is to compare options and get the best one for your business.

I would check the NAEA and NATP webinars and your local chapters for live education. If in the northeast, the NY/CT-ATP has a November dinner meeting on the topic. Check with your software also. I'm leaving at dawn for CCH's User Conference, and ACA will be covered in their Update course. I'd guess the CCH courses will find their way into webinars soon. Don't stress until after the elections, as Congress may mess around with it some more before it's final anyway!

I voted, but as others said didn't have time to spread the word. As we say about the Cubs, "Wait'll next year!"

Sometimes, they're already an LLC but getting more profitable and want to be an S-corp to save SE tax or even a C for fringe benefits. The organizational costs to the CT secretary of state as well as the annual reports to her are much cheaper for LLCs than for corps. Or, their barber told them to do it. I tell clients the lawyer organizing or incorporating in CT isn't doing anything they can't do themselves on the SOS website. But, the lawyer can put their operating agreement down on paper for them to sign now and save them larger litigation fees later when a disagreement arises, such as dealing with beneficiaries when a member dies. You might get along great with your other members, but do you want to be in business with their spouses and children?

Form an LLC per his state law. Form 8832 to elect corporate taxation. Read the instructions and deadlines. Organizing the LLC is usually easy. Having a good operating agreement if more than one member is the part that needs a lawyer familiar with your state law. What do you do when the members disagree, one wants out, one dies, one wants the other to leave, spouse inherits, one wants to sell, etc.? Those are the things to put in a legal document now while everyone is getting along, before anything goes wrong.

It's gotten too corny for me.

My least favorite is the family size info. If Mom has a child living with her but ex-husband claims the child and has child on his health plan, Mom has to have some info from Dad, right? Or, Mom pays the penalty since child is in her household, right? Makes for a new way for spouses to argue, stick it to one another, use the child, take more of our time.

Rita, you are truly out standing in your field.

ProSystem fx. In the time it takes to deal with ATX issues, you could prepare a few more returns in Pro fx and earn enough to pay for the more expensive software. By the way, I like both ProSystem fx and Ultra Tax better than Lacerte. Just sayin'. Send for the demos.

Can you download it when you're done working for the day or going to be out at lunch or to a client's site or even working fewer hours after 15 October? Create your own disk. (When I worked at Block, I worked afternoons and nights so was often the last person to leave. It was my job to start the back-ups on my way out. The manager made sure all was well first thing in the morning upon arrival.)

That sounds about right. I had some late clients that I filed in November.

And, your state may assess a penalty. Have had only one VA client, so don't know.

Thank you.

US Citizen goes to SIngapore for two years as a professor and house master at National University of Singapore. Left 1 August 2013; has satisfied the physical presence test now. Do I put his wages on line 7? Dummy up a W-2? Or, do I start on Form 2555 and it will flow. I don't want to double up or go in a wrong order and miss something. I thought I understood the theory, but the practical application of reporting on the return is leaving me shaky. Especially since I started this last Friday but my computer overheated and shut down and Dell argued with me and still hasn't fixed it. Enough ranting; I wasted too much time with Dell. Gotta make this flow the way I know it should. Thanx for any pointers.

I have had luck using the procedure for partnerships that all was reported on personal returns even though S-Corp return was late. You could also try for the one-time abatement. I'd coach the clients in what to say/write and have them try, using the ratio of the penalties to their income, supporting a family, a few tears, etc. It's worth a try before exploring bankruptcy.

The intelligence level of bankers is dropping (just like at the IRS). I hardly ever meet one who can read a tax return. I have had to explain my clients' returns many times. Not understanding why an S-corporation pays no federal income tax, what guaranteed payments are on a partnership return, a zero at the bottom of the first page of a 1040, OIH for a schedule C, depreciation, depreciation, and depreciation.

There's a form that both buyer and seller include with their returns that breaks out the types of items that make up the sale of a business. Also, the sales agreement probably has more or better detail, pricing the furniture and equipment, for instance. Essentially, it's whatever she paid for it.

Some days I wish I'd taken Latin like my mother told me to do! I took Russian during the cold war, because a science major really needed Russian or maybe German. Like that did me any good.

Her purchase price might have included an amount for depreciable equipment, that washer and dryer, for instance.

I had one client on Kickstarter during 2014, but her project did not get funded. If your client kept a spreadsheet, he probably has all his expenses listed. Most of these Kickstarter projects offer things in return for various funding levels, books, tee-shirts, an iPhone app, original artwork, etc., so the purchase or creation of those things, if outside their normal manufacturing or business expenses, also create expenses. For example, my client was going to ship tee-shirts, stylus (what's the plural?), etc., in January 2015; so we'd discussed paying for them during 2014 to match the year she would receive the income. In her case, she has huge expenses for developing an iPhone app, so the $5,000 she was seeking would still leave her in the red this year.

I appreciate what NYSSEA did (and does) for EAs. In fact, I sent money to their legal committee or whatever was asking for monetary help when NY registration first appeared and EAs had to comply that first year. My favorite group for education is the NY/CT-ATP. Our two-day December Seminar will include NY and CT updates as well as federal tax courses (yeah, 16 hours of CE for CPAs but only 14 for EAs). http://nyctatp.org/