Lion EA

I spent 11 years at Block where we had a blank in the middle of the DCN number that we would hand write in after the return was transmitted and the number showed up on the Rapid Refund monitor. The client never had the full DCN number on the copy they signed nor on their copy of their return. And, Block never sent 9325s to clients. Could a big outfit like that get away with doing it wrong all those years. I do remember an "audit" where they had to separate disclosure forms or something from the 8879s, but not a word about the handwritten numbers on every form.

I have this new little clock that has four other functions such as temperature. Late at night, my computer hard drive whirrs and the light blinks and then the clock lights up and beeps and changes to another function. They talk back and forth like that for awhile until they realize that I'm still in here watching them. Then, they're both quiet, no more unexplained lights. I change the clock back to time. They also talk to each other when I leave the room; the clock will be on timer or some other function when I return. I remember an old science fiction book and movie where the Russian and US computers talked. It didn't bode well for the people around them. Maybe I should dunk my clock in a jar of Chi Chi's mild salsa.

If the employer put his payment to the moving company on the W-2, then your client deducts it. If your employer did NOT put that particular payment on the W-2 (and there's no reason to put it on the W-2 since it's a tax deduction), then your client does not deduct it because he's already gotten a tax-free benefit. Did the employer put both taxable and non-taxable items on the W-2 or did he separate them out on the report you have and only gross up and include the taxable items on the W-2?

And, if the employer paid the deductible items directly to the moving company, for instance, and did NOT include them in the W-2, then the employee might have nothing left to deduct on his return.

The employer can pay anything to an employee, but most things will be taxable compensation to him. If the employer pays as compensation something that is deductible to the employee, the employee then deducts. For moving expenses, it's pretty much limited to moving his stuff and moving his family. That's why the employer pays taxes on the non-deductible items, grosses them up. Looks like a huge W-2, but the employee did not actually pay in all those withholding taxes, his employer did on his behalf, well within the circular formula used to calculate them.

10/1 for m/d (not 10/01 for mm/dd) we tried that a few posts up

10/1 and 12/31 or do you not have to put the 12/31 if the taxpayer did not leave the state?

A very :bday:

It's been awhile, but I think if it's not the spouse, that Form 1310 IS needed for a refund.

My clients seem frantic for me to finish their returns before 15 April and I stop working. I don't stop working. There's extensions and fiscal year clients and people who forgot/couldn't get it together and new clients and estimated tax payments to recompute as situations change and bookkeeping and courses to take and that issue I promised to research further after tax season and....

She has to own it for two years and use it as her personal residence to use 121. But, she gets a step-up in value on DOD (or alternate if used by estate) and houses certainly haven't been increasing in value rapidly where I live. She could discuss FMV with a local realtor. She might not have a profit or just a small profit and would get cash out of the house by selling sooner than two years.

A very :bday:

My partnerships are pretty profitable lately, so I haven't had that situation for a long time. But, why can't a partner loan the partnership some money to get through a rough patch, to pay payroll taxes, or pay down high interest credit card debt, or whatever, and expect to be repaid as they become more profitable? Why can't you have a Loan From Partner on the Balance Sheet?

Going to bump this up in hopes one of you has a partnership that added benefits this year and can give me a head start on the research. Insurance companies must be pushing HSAs this year. I seem to have several LLCs that have paperwork in their stuff, but only one that actually made a contribution, and she's a Schedule C. Now, this partnership is asking how it works, what's the max for their SIMPLE and their HSA and...

And, a SIMPLE for partners in a partnership. How does the employee/employer parts work when there are no employees, only partners? And, why are these coming out of the woodwork this close to 15 April?!

The Minnesota legislature recently enacted legislation to conform with the December 2008 Internal Revenue Code, including certain bonus depreciation provisions. This legislation will be retroactive to January 1, 2008, pending the governor’s signature. In reaction to these legislative changes, the Minnesota Department of Revenue has announced that effective April 7, 2009, Minnesota will reject Individual electronically filed returns that include Form M1NC, lines 3-15. Release 2008.03041 contains these legislative changes for the 1040, 1041, 1065, 1120, and 1120S programs, and is tentatively scheduled to post the evening of Monday, April 6, 2009, to coincide with the Minnesota Department of Revenue’s Individual electronic filing changes. Affected returns should be recalculated on Release 2008.03041 and submitted after April 6. Scans will be available the week of April 6 to identify affected returns in each system. Sincerely, CCH, a Wolters Kluwer business

LLC, two member H&W, taxed as a partnership. Can partnership contribute to HSA? Have gone through this with employees and have just confirmed a SMLLC and how it works, but what about a partnership? Does partnership contribute to HSA and then include on K-1s? Then partners deduct on 1040? Or...? Thanks for all direction.

I lived in Santa Barbara during the 70's, in case you needed any more trivia. I never rode Diablo, though.

Another marriage penalty.

Oh, Pancho. Oh, Cisco.

I have too many. Don't think I'll get the ones I promised. And, I began telling clients they were going on extension 15 March! But, I had a huge amount come in early March. All are bigger than prior years. Three have had corrected brokerage statements arrive. Three have called to ask how to work their HSA for 2008 and never had HSAs in prior years. Three have started new businesses. Three are brand new clients not in my system. They don't fit on the book shelf I use for my active files any longer. Those that used to come in big fat folders now arrive in big fat binders. I'm exhausted. I tried to talk a couple more into extensions, but no takers. If anyone is bored, I can put you to work and house you in my guest room...

Did you check with Kyle/Kerry and their crew? Kyle had a very nice techie Susan get my printer printing again.

Wait a minute! That means Kyle's a double agent. You guys have too much time on your hands in these long winters! Come down to CT and help me prepare fifty more returns by the 15th. That'll keep you out of trouble!

How many people e-mailed you?

Don't even JOKE about it. It was too short a time ago to not still smart. We'll send you barbeque, Eric. Or, would you like my first born? Eric, how could you encourage him?!