Lion EA

And, for ProSystem fx anyway, the 31 October deadline is something like 8 a.m. CDT !! Not midnight. Again Profx will give a pop-up when trying to efile to ask if this return qualifies for the later extension and remind you that penalties may apply if the answer is no.

The IRS claims they are going by zip codes. My software company told me they would announce if an update goes out Tuesday morning with any designation for individual returns. For NY returns, use the special condition code box and enter D3; if paper filing, also write Hurricane Irene on the top center of the front page (NYS Dept. of Taxation & Finance N-11-8).

Everything has to happen inside the IRA, income, expenses. And, he can't have any personal use. Only know some vague provisos, so please look up the rules if you're going to help this client.

Definitely Monday 31 October. The IRS is continuing e-filing through 31 October. CT and NY seem to be continuing e-filing through 31 October. IL will accept paper returns through 31 October but e-filed returns only through 17 October for CT residents like me who own IL farmland. Need any other state info?

IRS computers are down for scheduled maintenance each Columbus Day Weekend. Lousy time, I know. This explanation from CCH: The IRS will be down from 9:00 p.m. ET on Saturday, October 8, 2011, until 5:00 a.m. ET on Tuesday, October 11, 2011, (Columbus Day weekend). A routine system maintenance build and the annual power outage used by the IRS to perform critical operation and maintenance programs, to enhance building infrastructure, and to upgrade various computer systems is scheduled to occur during this time. Returns received by ProSystem after 9:00 p.m. ET on Saturday, October 8, 2011, will be sent to the IRS after the outage on Tuesday, October 11, 2011.

I know how you feel. I had two long weeks back to back in August for a memorial service and my husband's family reunion, both out of state, one with no cell service/no wifi/no communication, and with only two days in between -- long enough to do laundry and repack and return the most urgent phone calls, but not a block of time to bang out a complex return -- so I was effectively not working for over two weeks in August. I had no say in the timing of either event. And then there was my husband's shoulder replacement in June, my back spasm that kept me flat on my back on muscle relaxants for a whole week in July, and of course Hurricane Irene for seven days of no power, no water, etc. Throw in my brand new Dell crashing for the entire month of March, and I have lots of clients on extension and am WAY behind working my way through them. WIth my software, I still transmit the returns, I just won't hear back until Tuesday. So, at least they're off my desk except for the 8879s I stack up until I receive the Accept. Go have a fabulous weekend. It's not your fault clients wait until the last minute!

Me, too. (That whole shoemaker's children thing.) I usually do mine last. In CT we now have a 31 October deadline. But I own farmland in IL, which will honor the federal deadline but not accept e-files after 17 October. So I'm going to try to transmit mine by 17 October if at all possible. Trying to get most of the complex returns out by 17 October so I can e-file including states. Will still have a few more after 17 October that may need paper state returns. Just finished two for NC clients who were NOT in a county in Hurricane Irene's path. Have an S-corp that I don't e-file and would save until the end if I were doing his personal also, but he does his own personal and is anxious for his K-1. I might wait for the 18th to complete his, though. And, I had a woman who has an average return that we bang out in a couple of hours while she sits here; she just called for an appointment !! I tried to book her 18 October or later, but she's going to VA to care for a sick brother by then and needs it sooner, so she's coming in this Friday.

IRS computers are down for scheduled maintenance each Columbus Day Weekend. Lousy time, I know. This explanation from CCH: The IRS will be down from 9:00 p.m. ET on Saturday, October 8, 2011, until 5:00 a.m. ET on Tuesday, October 11, 2011, (Columbus Day weekend). A routine system maintenance build and the annual power outage used by the IRS to perform critical operation and maintenance programs, to enhance building infrastructure, and to upgrade various computer systems is scheduled to occur during this time. Returns received by ProSystem after 9:00 p.m. ET on Saturday, October 8, 2011, will be sent to the IRS after the outage on Tuesday, October 11, 2011.

LLCs are a very state-specific entity, so maybe preparers from MI and TX will jump in here.

Is his business still operating in Michigan? Or is it in Texas now? He probably has an annual report to Michigan and maybe a business entity tax there. Then, he probably has to register with the secretary of state in Texas as a "foreign" company doing business in Texas and have similar reports/fees in Texas. If he's no longer doing business in Michigan, he may want to look into dissolving his Michigan LLC and organizing in Texas. Poke around on the secretary of states' websites in both states to find regulations and forms and fee schedules.

Update: I ended up sending an e-card from my American Greetings account with an Amazon.com gift card attached to arrive on their anniversary. I also sent my husband out, armed with address labels, stamps, and return address labels, to buy and mail a card that will be only slightly late but so they have a physical card to display. They are out in the boonies and shop online alot, so hopefully the Amazon.com card will seem more thoughtful on my part than forgetful. Thank you, everyone, for your good thoughts.

She's the executive chef at my favorite restaurant !! But, an AmEx gift card they could use anywhere... Thank you for a great idea!

OMG. It's their first anniversary! I need a card. I need a gift. I'll be late! What kind of mother am I? Maybe an e-card. And flowers? Are flowers a cop out? They can use money, but a check seems unimaginative for a mother to give on a first anniversary. If I'm out of ideas already...

Also, for drop-off points I was looking for lawyers, insurance offices, realtors, companies that suggested confidentiality and that might want my clients to know where they're located. Then my chiropractor offered. Figured a doctor's office would work. Used Curves due to the town it was in, but thought my clients might feel it's too open and too female. But, it's the favored drop off point by my clients, women and men! I think it really is location, location, location.

I'm in the QB ProAdvisor program, so get a good deal on accepting credit cards. Look for a program that takes fees only when you process a payment, without monthly fees. Then it's worth it to get paid promptly, be able to take credit card info over the telephone, not drive to the bank with $4/gallon gas, etc. How about PayPal? I think clients can pay via PayPal using their credit card without having an account; if they have an account they can pay by check or card. I've heard that it's pricey to get the fees into your bank account. But, I don't have many that pay via PayPal, so I leave it in PayPal as that's what I need to use to pay for my NY/CT-ATP dinner meetings with CEUs six times per year.

You will love your commute! I use my mailing address. I have a mail slot in my front door for drop offs without an appointment. I've gotten most clients to realize they have to make an appointment to pick-up, sign, pay, etc. I can take credit card information over the telephone, and clients can pay via the PayPal button on my website. Sometimes my husband will handle a pickup. And because he's retired now, I have sent him out to make deliveries. I put lots of post-its on everything with directions re signing and what he's to bring home to me! Not sure about next season, but I've had inexpensive very part-time help who've done pickups and deliveries for me as well as some filing, sorting, running adding machine tapes, clerical duties, etc. Some clients want me to email, fax, or upload via FileShare on my website their signature pages and return for review; then they return the signed pages, usually via the same method. I can always mail them their tax folder later; hubby does post office runs for me too, and bank runs. Clients mail, FedEx, email, fax, upload to my website, bring me documents at church,etc. I have two drop-off points in neighboring towns, my chiropractor and the Curves where I work out. Surprisingly, clients like to drop off at Curves. The owner lets me put a sign on her door. I have a card swiper for my iPhone, but haven't sent hubby with that yet.

Sorry, are you filing the Forms 1099-S for your client the seller? Or, did your cient receive a Form 1099-S and you're e-filing his personal return?

One way is to report the $240,000 on his Schedule D and then report (120,000) on the next line. Depending on the space available in your software, say something like reported by other beneficiary, Name, SSN

I don't know how ATX handles it, but the default is to claim over the next two years. So, look for a checkbox or something if you want to take all income in 2010. (Only jumped in here since no ATX user had answered yet!)

From this week's NAEA e-newsletter IRS Grants Disaster Relief E@lert would like to revisit news NAEA has posted on its social media sites (Twitter and Facebook) IRS in two press releases has granted disaster relief for Hurricane Irene victims. More specifically, in IR-2011-88, IRS announced that taxpayers whose preparers were located in an area that was under an evacuation order or a severe weather warning because of Hurricane Irene (even if the preparer was not in a federally declared disaster area) will have until September 22 to file returns normally due on September 15. On the same day IRS released more expansive relief targeted at taxpayers located in federally declared disaster areas. IR-2011-87, which has been updated at least four times to expand the federal disaster area, postpones both filing and payment deadlines to October 31, 2011. This extension includes corporations and businesses that were on a September 15 extension as well as individuals (and Sched. C businesses) that were on an October 17 extension. The press release details the counties and municipalities covered by the relief. While this relief is certainly welcome, it prompted questions from a few sharp EAs who wanted to know exactly how their clients are treated properly. Naturally, your GR team chatted with IRS in order to provide you with good, timely advice. With respect to the short extension, EAs should keep in mind that the extension does NOT provide relief for payment of taxes owed, so the filing deadline is moved one week, but the payment deadline does not move. Further, we are informed that there is no requirement to self-identify or notate the return taking advantage of the one-week window. Nonetheless, we suggest you note the returns you are filing, perhaps by referencing (and attaching a copy of) IR-2011-88. With respect to the more expansive relief, the key question revolves around the fact that IRS shuts down the e-file system shortly after the end of the individual extension period (in this case, October 17), yet return preparers are required to e-file (under pain of a disreputable conduct charge in Circular 230, amongst other fines and penalties). Clearly, EAs cannot file these returns electronically because IRS will not make the e-file system available (yes, we asked, just for the record—no, we did not say ‘pretty please’ but would have if we thought it would have made a difference). So what to do? We suggest attaching Form 8948, Preparer Explanation for Not Filing Electronically. And before you gang up on E@lert and suggest that this advice runs contrary to advice IRS offers on its e-file requirement FAQ page, E@lert concedes the point. FAQ 12 states “preparers do not have to complete Form 8948 and attach it to any paper return IRS does not accept electronically,” while FAQ 19 further states, “only returns that cannot be e-filed are exempt from the requirement.” You are not required to use Form 8948. We just think it is a very good idea to do so.

NY does this, too.

Maybe preparers wanting tax season work, or even off-season work. And, the corresponding firms needing an extra preparer, full-time or part-time, for the busy season.

NAEA has negotiated group coverage. Read about it at NAEA.org

My software has a Return Notes and Return Lists that ARE transmitted with the return and Preparer Notes that are NOT. Your software probably has different terminology but similar functions.

Found a few notes from that seminar. CT's DRS set up the Business Employment Tax Audit (BETA) Unit with 10 employees. It was so successful at bringing in money, that it was increased to 30 employees by 2009. If an employer does not have a signed and dated CT-W4 on file for an employee, they will be charged 5% of all wages paid plus interest and penalties; obviously a given if the employer treated the employee as an IC. If the Attempt to Evade penalty is imposed, it's another 25%.