Lion EA

This just received from CCH: Status of IRS Release of 2012 Government Forms and IRS Approach to Pending Legislation With tax season approaching while Congress remains in session considering legislation that impacts 2012 tax returns, the IRS has begun releasing forms with flexibility to accommodate retroactive changes to 2012 tax law. The current IRS approach is to leave the forms in 2011 format, replacing the descriptions of lines with lapsed tax provisions with "Reserved." To date, Forms 1040, 1040A, 1040NR, 1040 Schedule A, 3468, 3800, 4136, 6478, 6765, 8689, 8820, 8834, 8835, 8844, 8845, 8859, 8864, 8900, 8908, 8909, and 8910 contain reserved fields. Additionally, the IRS has not officially released even draft versions of Forms 1065, 1120, 1120S or 1041.

If you already love ProSystem fx, talk to your sales rep about how to make it work for you financially. I buy it Pay-Per-Return to hold my costs down. I did not like Lacerte as well. Ultra Tax might be a possibility for you, but in the same price range. Try your most complex returns on ATX to see if it meets your needs now and as your clients' financial lives get more complex over time. Prepare returns with Kiddy Tax, AMT, sales of business assets, multi-state returns, whatever you have or expect to have based on your clientele. I have a lot of investors with thick Forms 1099-B. I love to import Excel spreadsheets with a click. Importing K-1s is automatic as is Kiddy Tax. ProSystem fx is a huge time-saver for data entry as well as proof reading. Customer service is outstanding with ProSystem fx, important to me as a sole proprietor. And, the diagnostics are excellent. For my practice, ProSystem fx is worth every penny. I scrimp on furniture, paper, folders, work from home, etc., but buy the best software and the best education I can afford.

It's not logical; it's the law!

Hope you and your entire medical team are at their best for your surgery!

I miss DOS.

Promising is good. Enjoy the holidays. Maybe travel to family/friends or host. And, lots of us would be willing to care for you in CA in cold January!

Don't know where to start, but I have a vague memory that the distribution has to take place after age 55 AND after separation from the job. Does Pub 575 give a link to the tax code so you can go straight to the horse's mouth?

Do you want maybe just 2013? Or, just individual tax payers? Or, small businesses? Details? Broad strokes? If you have a narrow focus, maybe something I've picked up during tax update seminars might work for you. Yes, the penalty for the first year is small, but does increase over the next couple of years. Give me your fax # and I'll send you some things I've gotten that you might be able to distill for small business owners. But, if they have less than 50 employees, they might have little to worry about.

Yes, national employers like Walmart and McDonald's and local employers are providing great support for our deployed heros and returning heros. As should we all. Thank you for drawing this to our attention.

Oh, an excuse to go out to CA now that there's snow on the ground here in CT....

I'm so sorry, KC. But, you already know you're strong. Prayers are out there for you already and continue to stream every day and every night. Go out in your backyard to let out a loud primal scream. Then surround yourself with all the positive, loving people in your life, both close at hand for hugs and help and all of us virtual friends who are here in many time zones to reassure you and listen to you vent and be another layer of support for you at any time. God Bless You and Keep You.

For #1, when her ex claims the child, her return rejects, so the issue is brought to a head. For my other questions, I ask her mother to leave the room (usually sitting there watching the baby) while I interview the daughter to my satisfaction, but it takes two interviews since it's hard to get mother to leave, thinks she's helping or at least trying to help. For #2, I don't do her bookkeeping and she doesn't use a computer program, so I've been happy with her W-2s, 1098, and her written totals for business income and expenses by category. If I have to add up her receipts, I will have to send her away or get her to start in December. I've had no reason to question her totals; when she's had questions, she's included her detail. Will I have to do bookkeeping for any EIC client with a schedule C? She will leave when I tell her how much I charge for bookkeeping on top of tax preparation. Many of you spoke of not turning EIC clients away, but do your price increases drive them away anyway? I feel like I will have to spend more unpaid time on just a couple of clients or charge more to a single mom who can ill afford higher prices compared to the rest of my non-EIC clients. If the government feels in its wisdom that it should give EIC monies to these clients, then why are they imposing rules that make it necessary for tax preparers to take away some of that EIC money to cover the resuling more involved tax preparation? Why don't they just mail a check to all low-income parents apart from the tax preparation process? Wouldn't more money stay in the hands of the supposed beneficiaries that way? Or, mail us tax preparers checks if the government is trying to move more money to us!

I'm not worried about fraud. I'm worried about the time it will take to pour through bank statements to highlight biz deposits and to review biz bills paid and to explain why I need doctor bills with home address for the child (actually, ex-husband pays child's medical bills, so that won't work, and he's preschool age, so no school records yet). What do I need to prove child lived with mother all year (half year)? And, to take into account the gifts to mother and son from client's parents and on and on and on. What documentation do I need to keep? For how long?

That will help me sleep better. Thank you.

My clientele in expensive Fairfield County, CT, is such that EIC is rare. However, the two I have do worry me. One is a freebie, daughter of a long-time friend (also a freebie) who has children but won't disclose much about her ex-husband or who lives with her or if she has any non-W-2 income. If I were charging her and if her mother had not helped me when I was a single parent, I'd have sent her to HRB long ago. The other is a divorced mother who teaches violin from home and has a couple of minor W-2 gigs. Her family lives locally (but not with her) and contributes generously to my client and her son. She drops off her folder with a page-long list of her income and expense totals. Do I now need to have her bring in bank statements, receipts, etc.? And, copy them for my files? She's a sweetheart and a referral from a long-time client, so I hate to send her away. But, with only two EIC clients, I won't have this due diligence stuff down to a science and likely will miss something that keeps me awake at night or spend WAY too much time on these returns while others wait in my queue.

I get most of mine from my local NY/CT-ATP group with 14 more credits (plus CT and NY updates that don't count for my EA) coming from this weekend's seminar. I also got a bunch at CCH's User Conference. I use free IRS webinars as well as a package from Tax Talk Today. I used to use our local NAEA chapter CtSEA's education, but it's a bit farther away than NY/CT-ATP. I also belong to NATP; between them and NAEA I could get what I need online and from reading their publications and taking the tests.

Yes, some states have been open but will also close e-filing 23 November. NY has been closed already! And, a late open next tax season.

Congressional inaction.

The IRS is having a webinar on the RTRP exam on 12/9/12. If you would please share this with your members I would appreciate it. Sincerely, Joe McCarthy IRS Liaison 203.415.1015 Are you a practitioner who still needs to take the Registered Tax Return Preparer Test? If your answer is "YES", then this FREE one-hour IRS Live webinar is for YOU… Topic: Get Prepared: A to Z Details on the Registered Tax Return Preparer Test Date: Wednesday, December 19, 2012 Time: 11:00 a.m. (Pacific); Noon (Mountain); 1:00 p.m. (Central); 2:00 p.m. (Eastern) What's Covered: · Why the test is important · Who must take the test · Why the test should be taken soon · How to schedule the test · What study tools are available · What to expect on test day · What happens after you pass or fail · Info about a new return preparer public listing · How to decide between the RTRP test and the Special Enrollment Exam to become an Enrolled Agent CPE: Certificate of Completion offered - Earn one CE credit - Category: Federal Tax Law Information & Registration: Click on the following link to register: http://www.visualwebcaster.com/IRS/89770/reg.asp?id=89770 If you registered for the October 31st broadcast, you will need to re-register. IRS Video Portal Home Page

I think I discovered that the IRS can go back to the beginning of all depreciation, which could be 40 years ago, so I would think they can trace back an NOL being used in the year under audit.

I think the treasury came up with the form as a way to sell savings bonds. Another social issue pushed into our laps!

Happy Thanksgiving!

I charge by the form, so yes it does cost them to use this method. But, it's usually cheaper then the fee their banks charge them to wire funds to their IRA at the last minute. And, it's always less stress than trusting a soon-to-be-ex to write a check. I don't push it on them, but if they ask me if it's possible, I explain it to them and let them choose what they want to do.

I have a couple of clients who fund their IRAs with their refunds, part of their refund going to that brokerage account and part going into their checking or savings account. I've had couples that are divorcing but decided to file MFJ that send their refunds to their separate bank accounts. I'm not fond of this form, as I have to read up on it everytime someone wants to use it due to the ordering rules if a refund is less (or even more) than expected. But it is the client's choice to use if it meets his needs.

It snowed in CT, so definitely below 32 degrees last week.