Lion EA

I hate PTPs. I have yet to start my PTP investors' returns. I did lose one this year with lots and lots of them, and even though it was an expensive return for many reasons, I'm not so sorry to see him go. Plus, he's a lawyer. At this point, I'm still keeping his mother's return and one of his daughter's. But, even if I end up losing the whole family next year, it'll free up so much time for new clients without his dozens of late-arriving K-1s with mystery data.

https://www.taxpackagesupport.com/(S(zesuff550mxc5fv0xnp2ll45))/k1SupportHome.aspx

Line 21, no SE tax.

Yes, works also when your client gave one or two IC's info to their payroll company along with employees, but you prepare the rest of the 1099s from your bookkeeping. No way is Paychex or ADP or whoever going to provide you with info, nor do they have to. You file what you're hired to do, even if given to you piecemeal. This works for original 1099s, even in batches. 1096 to sum each filing separately. Not the method to amend a previously filed incorrect 1099, though. Definitely e-file to get them in by the end of March.

Do you prepare taxes for Jerry Springer's TV guests?!

If they have employees, the employer can contribute and deduct 25%. If SE, the SE taxpayer can contribute 20% per the formula you stated. No employee vs. employer contributions, as a SEP is an employer plan. Maybe he has it confused with a SIMPLE where the employee, including a SE taxpayer or partner, can contribute, PLUS the employer can match the 2% or 3% per the plan. Ask him for a cite supporting his understanding.

Yeah, the newish client on IA, I tell her each year we can extend. I have another who'd been on IA also before coming to me, and we extend every year; she then contacts IRS after filing to combine balances due just like John said. First gal is a worried, type A and was referred by other good clients, so I've pushed hers up a bit each year. This year, I had a bunch drop off right before her. I'll work through those that beat her by a week and then work on hers IF everything is in her folder. But, next year, I'm telling her what my rush fee is and letting her decide whether to pay extra or extend.

Downsized, meaning he's using the equipment less than 50% in business?

No, you create the new 1099s with the new 1096 that summarizes the new 1099s only and file it. The old 1099s were already filed with their corresponding 1096. Unless you are actually CHANGING/amending a previously filed 1099...

Just had an email from a client who dropped off over a week ago (actually, uploaded to FileShare on my web site) saying he's gone March 12-16. After reading it twice, I realized he meant April and emailed him that he's going on extension. I told him "just in case," but I wouldn't have gotten to him until really close to 15 April, so it's definite in my mind. He's elderly and prepared his own returns in the days of a 15 March deadline. I'm elderly and don't even know what year it is while preparing 2013 returns! I had to look up today's date to put it on a doctor's form, so it took me a couple readings of his email before I realized that the dates he wrote are already gone and what he actually meant. I napped and goofed off all of yesterday, well church and lunch with hubby and a load of laundry as well as the nap and some TV, so am a couple of returns behind where I want to be right now. I may spend 1 April transmitting extensions to relieve some pressure.

And, if not qualified for an education benefit, then maybe a charitable donation for her out-or-pocket expenses while volunteering, if a US charity was involved, maybe by placing her or training/supervising her.... Otherwise, it's just personal growth/mental health/vacation.

Box 14 is information only. If his employer included info there, great. If not, you should not enter anything onto a W-2 that is not there. (Don't know why your software doesn't let you enter what's in Box 14, though. Suggest an enhancement to them for next year.) Didn't he acquire the stocks upon exercise? 04/25/2013 Date Sold is the date he redeemed them according to the letter you quoted, but you'll have to look to that or other information from your client for the date. It sounds very much like a same day sale, or a date close to 04/25/2013. His Cost Basis is $2,226 And, his Proceeds sound like $2,226 unless there were any commissions or fees taken out.

For the pimps, you must report worldwide income but cannot deduct expenses for illegal operations.

Box 14. Code V may be nonqualified stock options. I think his OCOMP is probably Option Compensation or Other Compensation, and the $ amount is right for the scenario described. Does this transaction flow the way you expect it to, Yardley, in your software?

I also raise fees. BIG fee jumps. Charges for the new forms plus research or consultation or anything that fits. If the fee is large enough to cover my time, including the time I need to vent and recover afterwards, then I'm OK. And, if the big fee jump each year drives them away, then I'm OK also. But, I still file a correct return, no matter how much they pay me.

I look at my stacks every year. This year with Congress' sequester delaying the start of tax season, my stacks were growing by 1 March and I considered telling everyone who came in that they were going on extension, just in case. But, I seemed to be on track, so I didn't call it then. Well, at least 20 returns, including businesses, multi-state, 1099-Bs with hundreds of pages, etc., all dropped off over the next seven days. I let it go through the weekend of the 15th and then started saying Extension. One is arguing with me as she was already on an installment plan before she came to me a couple of years ago and thinks she needs to file by 15 April (I think she can file an extension, but have been pushing to get hers done each year). I feel overwhelmed but will probably finish those I promised but still have enough extensions to keep money rolling in through 15 October. Waiting until after St. Paddy's Day was probably a mistake, though. So, next year it's probably 15 March or earlier for sure. I also don't publish my cut off in advance. If people ask, I say prior to 1 March is great and prior to 15 March with everything turned in is probably doable and after 15 March is almost always an extension. I guess when people turn their calendar page and realize it's March, they suddenly think they better drop off their tax materials. But, if K-1s or their biz expenses or corrected broker statements are still dribbling in -- I date their folders when I receive the LAST piece of information.

Yes, Yardley. His W-2 ordinary income is part of his cost basis. A "same day" or close to it sale of his shares would result in zero gain/loss, or a very small loss due to broker or transfer fees, if charged. Do report on 8949/D even if your client didn't bring you a 1099-B (use "C" if no 1099).

Let her research. She'll appreciate you more. Then you increase her fees.

Shareholder/employee "borrowed" money from his corporation and is not going to pay it back. It would not have been available to him if he weren't a shareholder/employee. Compensation, dividends, not a loan to shareholder if no expectation of repayment. Sounds related to compensation or related to investment in corporation to me. TP's personal loan to BFF sounds more like a gift and depending on the amount TP may need to file a gift tax return if he has no expectation of repayment from BFF. Follow the money.

I have the middle vertical for data entry, right vertical for government forms, left horizontal with email on the right half or client documents and Chrome tabs on the left half for email from two big biz clients, this and other tax prep boards and Facebook so I can concentrate hard. How do I insert a picture from my computer?

The birthdate will tell the story. IRS looks at only the first four letters of the last name. Doesn't like punctuation, though, so toss the comma. I'd put First Initial Last.

$1,000. Plus extra time explaining after paying -- add to next year's bill. I charge a fee to compare TT or anything else to the return I generate. Often the real liability is greater than with TT, because people put their mortgage on A and C or take 100% for meals or deduct political contributions as charity or deduct private grade school or SAT prep or vitamins as medical or depreciate their rental house over 15 years or....

I'm about like JM. I reside in CT and prepare a number of NY commuters, some with other states. I tell them another state adds about $100, even though I end up charging less for some easier states. A foreign country credit/FTCA maybe as much as $250 without the FBAR. I would be invoicing her with detail about the $700-1,000 and then if a continuing client including a line for Loyal Client Discount for whatever I felt fit her situation. My suggestion: invoice what it's really worth based on the forms, your time and effort and training and knowledge, etc., showing the detail. For instance, a lot for 1116 (is that the #) if required over just taking the foreign tax as a credit. Then add a discount, maybe 10%. Let her do her own research re what others charge. In NY, it's going to be a lot. She'll appreciate you more if she herself discovers what others would charge her.

Now add 4 more W-2s for for the spouse who's a nurse and at least two childcare arrangements where they forgot to get the tax IDs and 140 pages of stock trades with wash sales and the NY commuter with the days out of NY that he forgot to get from his calendar and the volunteer trip to Guatemala and the HSA and they forgot the 1098 from their home equity loan and they sold their VT ski lodge and two of the kids are in college so now you need their bursar's transcripts and he didn't call for the property tax amount on the leased cars and why can't they deduct their political contributions and the money they pay to their Polish parents (visitor visas with no tax ID #s) to watch the kids and did I tell you that wife started selling Mary Kay and I don't have to give you this form for interest that's tax exempt do I and you don't need this form where I took money out of my 401(k) since they withheld 20% for taxes and unemployment isn't taxable is it and.... I spend more than 45 minutes answering questions. Oh, yeah, and you can do my kids' returns right now too since they have only W-2s. Yeah a couple from summer jobs in CT where they live and a couple from MA jobs where they went to school and another from NY where they interned and the K-1s from the trusts grandma set up and...

If the corp sells something, then it will flow to you in the normal way on your K-1 and you'll report accordingly. Put the money in the corp bank account, If you sell your stock in your corp, Schedule D. Put in your personal bank account. Did you close a previous corp during 2013? Distribute all assets to the shareholders? Follow the money.