Lion EA

Good catch. I skimmed right over the numbers, thinking the only problem was the W-2 amount not reported on the 2441. When you fill out 2441 for one child, the flex dollars will be allowed, but with one child, no additional credit; and I see you claimed an additional $2,900 in child care that won't be allowed when you fill out the form completely and correctly. So, yes, you will owe additional tax. If after correcting Form 2441, you agree with the IRS amount, pay it quickly to stop the interest. If you do not agree, call them to ask if you can fax a corrected Form 2441 to them for them to recompute the tax you now owe, or Form 2441 with Form 1040 pages 1 & 2 to show them what the tax should be. I also agree that you should amend any other open years with a similar mistake ASAP to keep interest from continuing to run up.

Prepare Form 2441 both pages reflecting the monies that were reimbursed by your flex account and should not be added to income as well as the excess upon which you took a child care credit. Call the number on your notice to see if you can fax them Form 2441 to clear up the matter. If your tax calculation was correct, but Form 2441 was not complete, then that should do it. If the $4,000 showed on your W-2 but not your Form 2441, then they are adding that amount back into your wages and charging tax on it. Call with a separate fax available (use your cell at Kinko's if you have to) so you can remain on the line until they receive your fax.

He will need to roll it over to a trustee who specializes in IRAs holding real estate, especially farm land, who can calculate how much to keep liquid to make mortgage payments, pay the bills, etc., from the IRA. He will need to avoid personal use of the farmland, which I think includes working on it himself or directly paying workers, but ask the trustee. The trustee company he chooses will have him sign the appropriate paperwork to roll the current IRA into the new one.

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One of my hold outs, I've been talking to. This year, I talked to the husband a lot about upcoming mandatory e-filing and sent him home with articles for his wife to read. They are more accepting than I expected: It is what it is-type of response. So they will probably be fine and not return to DIY. My others are more my fault than theirs. They are individuals that also have trusts or other entities that I have not yet been e-filing. Therefore, they chose to mail in all of their returns since they had to mail in some. So, if I get on the stick and start e-filing entities, they should be easy to convert. CT has its own bizarre system and doesn't accept entities through my software company the way it accepts individuals, so I just haven't taken the time to see how it's done. Guess I finally have to learn CT's system this off-season. I still want an easy to fill out opt-out form, though. CT doesn't have an opt-out form but does require a written opt out. NY has a nice opt-out form.

Don't know it's exact name, but there is a trade organization for forensic accountants. They probably have a review of college programs in forensic accounting. AICPA might have, too.

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Thanks for the update, Barbara. That's great news! Keep up the good work. I'll keep up my prayers for you and your entire medical and support teams.

If you use QB anyway for those clients, then check out the QB payroll.

A good bit of this is done by your software company, but here's the IRS statement (I think you should call the e-Help Desk): Acceptance When the IRS completes the processing of the IRS e-file application we will acknowledge its receipt with a letter, and assign identification numbers, after suitability is passed, and where applicable, issue password for testing based on the provider option you have chosen as follows: EROs, Transmitters, Software Developers, Reporting Agents and Intermediate Service Providers will receive an Electronic Filing Identification Number (EFIN) for the home location, which is each location based on the firm's business address; Transmitters and Software Developers will also receive an Electronic Transmitter Identification Number (ETIN) and a password for testing. After your application is processed and all involved parties pass the suitability test, you will be sent an acceptance letter. Transmitters and Software Developers must also complete testing before an acceptance letter is sent. Once accepted, you do not have to reapply each year as long as you continue to e-file returns. After testing is completed satisfactorily, Transmitters will be issued a password and EMS Login that authorize them to transmit e-filed return data during the filing season which is scheduled to begin January 12, 2007, and continues through October 15, 2007 for individual income tax returns. IRS e-file for Business and Information returns is a year-round electronic filing option. Testing is required each year for transmitters and software developers. The IRS will send you an e-file marketing/ promotional kit that entitles you to identify yourself as an "Authorized IRS e-file Provider". We support IRS e-file with advertising on radio, television and in print and provide material that you can customize for your own advertising and promotion. For additional assistance, click on the e-services tutorials or call the e-Help Desk, toll-free at 1-866-255-0654.

John, you could sign up to e-file, just in case, and then never ever really e-file. That way, you could dip your toe in the water with maybe one return, maybe your own if you don't want to expose any of your clients to technology. Or, e-file your own or someone's extension next year even though paper filing the return. Once you try one, you might find it's a bit like potato chips and you can't stop at just one. Just one copy to assemble for your client, unless they like theirs e-mailed to them or uploaded in .pdf format creating no paperwork for you at all. Your copy can be saved in your computer and the government copies e-filed, so a savings on paper and toner and time and file cabinets. And, an even bigger savings if multiple states that require federal or other state copies. Your clients will be thrilled with you that they don't have to trek to the PO and wait in line to have their fat packages weighed. A single-sheet payment voucher would be the most they have to mail, and nothing to mail if a refund or a direct debit. They will love you that they receive their refunds faster. My clients started with e-filing and then direct deposit and then direct debit Your clients will love you that they're all done when they sign and can forget about taxes for another year. You can raise fees on clients that love you. I'm a 63-year-old gray-haired lady but no neanderthal; I love e-filing.

http://www.irs.gov/efile/article/0,,id=131140,00.html Go to IRS.gov and click on the Tax Professionals tab and then along the left click on Basic Tools for Tax Professionals. The steps are laid out in outline form for you. Get set up now and e-file some of your extensions to get your feet wet.

I'm happy with Norton now. Had a horrible experience with McAfee long ago. However, when my Norton subscription expires, I will probably go with the one VMS recommends. My husband had VMS install it on his computer when they were fixing some problems he had some months ago and is very happy with it. Can't remember the name now, but VMS installed it for him while they were working on his computer anyway. I do have the spyware that VMS installed on my computer when they set me up with back-up and checked out my computer before tax season two years ago.

A very :bday:

A very :bday:

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If you've already taken one or two EA study courses as you say, then list your weak topics. Go straight to the IRS Pubs for those topics. Make sure you read all the examples in the Pubs. After that, review your course texts and sample tests from your courses and see if you're comfortably in the passing range now. If not, look at what you missed, list your weak topics. Rinse and repeat.

If her check to the FTB is cashed, that would indicate they received her return. I used certified mail/return receipt requested sending an IRA contribution for my daughter in law. The PO tracking never showed anything beyond it being received at my local PO. The two receipt confirmations I sent the same day tracked in minute detail to their recipients. Even the supervising post master could not track my certified envelope. Ultimately, the check cleared, but the PO tracking still shows it sitting here in town! Think I'll use FedEx or UPS next time.

Yes, it is. And, in states like CT, a retired teacher would get a $250 credit on her tax return. Now, if she had earned income also, she might already have had the $400 credit, so it's a wash. But, if not, then give her preparer a week's vacation and call him again. (It takes the IRS weeks to process amendments anyway, so no rush to do it yourself if you don't want to.)

Someone mentioned putting $1 of interest on the return as an AGI of $0 seems to reject at e-file. But, I do agree that due diligence suggests you ask some questions. How does he buy food, clean underwear, gas for his car, send birthday cards to family, etc.?

I think your husband is smart to be nice to his wife who shoots a rifle! You look great, Catherine! I bet you have no collections problems with your clients, either! Just post this picture with the caption Payment Is Required At Time Of Service.

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Did my own extensions! My returns will be after I get everyone else filed.