Lion EA

Thanks guys. I prepared the 1120S, think I handled those situations. I do NOT prepare the payroll nor the owners' (H&W only shareholders, one more employee also on SIMPLE plan not a shareholder) personal returns. But, had a call from owner/client while he was in his preparer's office getting the joint return done. It's been about a month and many not S-corp returns since I prepared this S-corp, so answering questions via telephone from home was difficult in my sleep-deprived state. I think the health insurance was right, on the S-corp return and as handled by payroll, and so was my advice to them tonight. The employees wrote checks/the company wrote checks near year end for the SIMPLE, and the payroll company said it was too late to include on W-2s (they did the health insurance, though), so I don't think that was handled right by payroll. I reported the S-corp expenditures on the cash basis, so return reflects what happened but not what should've happened. I guess I need to advise my client to have payroll correct the W-2s, last quarterlies, annual payroll reporting. After tax season. Why can't the complex ones happen in January before I'm this tired?!

More than 2% shareholder/employee of an S-Corporation: 1.) Health insurance premiums paid by the S-corp add to employee W-2 wages box 1 only? Deduct as adjustment or on Schedule A? 2.) SIMPLE Plan. Add to W-2, boxes 1,3, & 5? Deduct as an adjustment? What if payroll company did NOT include SIMPLE on W-2? No further action?

You want the building owned by an LLC that is NOT taxed as a corporation, even an S, or owned by the two individuals splitting income and expenses. So, you need to know which your clients think they are. As has been suggested, you can get an EIN immediately on-line if they don't have one. Put them on extension!

Thank you, Gail, for posting the results of your research. I bookmarked the pages you provided. With the ones I had coming from Roth IRAs, I had the luxury of treating them as from contributions and not taxable. But, it seems it's a more widespread issue than I could've imagined.

ProSystem fx admits the problem and releases the solution tonight (subtitled I'm Not Crazy After All): An issue has been identified on Release 2008.03020 that affects Massachusetts Individual electronic filing, causing REJ 0892. Release 2008.03021 will be posted on Thursday, March 26th after 10:00 PM CDT to address this rejection. Those electronically filed returns receiving REJ 0892 should be recalculated and resubmitted for transmission using Release 2008.03021. Returns transmitted on prior releases, or those that have been accepted are not impacted. Sincerely, CCH, a Wolters Kluwer business

With the 1040 fd at the beginning, could it be a federal error code 404?

At least support knew immediately what the problem was. And, knew the update would be Saturday. So, maybe they know it was them. I was just glad it wasn't me! It was bizarre that the return was rejected for no Schedule E/ES when no Schedule E is in the federal.

Well, I hired someone to lightly renovate two bathrooms from the 1960's (you should see the blue/turquoise-y fixtures in one) at the end of 2008. She's got a few things left to do, such as put on the new handles; but I also hired her to help me during tax season with filing and deliveries and such. The guest room was the repository for my still unpacked boxes from 11 years at Block and has been added to with other stuff over the last couple of years. However, my son's girlfriend and her father came recently when he had surgery in a local hospital. So, I paid my daughter who was home from college to haul the boxes and stuff to the basement. A little over a year ago, my husband and I decided that we're old enough to treat ourselves to a cleaning lady every two weeks to keep the most used rooms of our house under control; and I added the guest room to her chores for her next visit. So, without even breaking stride on tax returns, and with only some of my hard-earned money, I had a clean bathroom and guest room with little work on my part. My son's girlfriend ended up eating out every night after visiting hours were over at the hospital, so I didn't even have to stop to cook. I was a lousy hostess, but the house was clean!

Perfect. Thank you for sharing.

We had a party line, don't remember how many digits we had to dial. Do remember not dialing at all from my grandmother's phone and maybe ours, just telling the operator who we wanted to talk with. Then we got Linden-4 3541 which is the only number I ever remember, learning it to recite in kindergarten and write down for the teacher. My parents had LI4-3541, 544-3541, all those years, and then my sister moved into their house keeping the same number until she was robbed and the police suggested she change her telephone number. Now she's 544-U ROB.

Thank you, Catherine. I had not tried the gnashing of teeth and growling noises when I print. It's certainly worth a try. CCH tells me there was something widespread, didn't admit whether with them or with MA, with MA looking for Schedules E and ES in NR returns and rejecting them if missing. So, the update will be out before Saturday morning. Then I can recalculate and e-file MA alone and maybe add the gnashing and growling to see if that also assures the e-filing goes smoothly. Hope I still understand my notes by Saturday! Thanks again.

Do any of you have a document retention chart for individuals you'd be willing to share? I had a client asking about certain types of documents today and went to print out a chart I had. Well, it's for corporations. I don't have one for individuals.

A very frikkin' :bday:

CT's adding a new area code, too. So, we'll have to dial all ten digits to call anyone in the state. I wonder if they mean eleven digits including the "1." And one of those couples with investments and multiple states and child care and...has an appointment to drop off tomorrow but e-mailed me today to ask if I could guarantee he'll have his returns by 14 April. Since I'd already told him he was getting an extension when he booked his appointment, I don't know what he thought changed. My clients' financial lives continue to get more complex, not less.

A very :bday:

Have a very booger birthday. :bday:

You're making me drool on my keyboard. If it short circuits or something bad, it's all Mel's fault. How will I explain that to my client tomorrow morning?!

CT is milder than ME or MA, but the temperatures go up and down and up and down. Everyone has respiratory infections. I just painted the guest bath and cleaned my boxes out of the guest bedroom. If you want to go as far south as CT, I have a laptop that's been acting up! You could drum up some business along the gold coast of Fairfield County.

Tell his mom to buy some flowers for the cemetery or plant a tree in her yard in his memory.

Any suggestions re MA reject code 0892: The Schedule E Reconciliation is required for this return. It also references MA form Sch ES. This is a CT resident who worked in NY but spent some time in same company's MA office during 2008, so filing MA NR for the first time for this client. Looking on the MA site, it appears that MA Schedule E is the counterpart to federal E. However, this client has no rentals, nor pass-through entities, nor anything else that required a federal Sch E. Same with federal ES; all his taxes were well paid with withholding and not ES payments. He has W-2s, interest & dividends, a few stock trades, itemized deductions, and AMT. He also has CT, NY, and MA returns. Any suggestions for me? This client may have an indefinite assignment to MA during 2009, so I better learn how to handle his return!

May I have a cinnamon bun from Mel for my prize?!

A very :bday:

If the software doesn't work out, will you airfreight cinnamon rolls to CT during tax season? I think a standing shipment to arrive every Monday morning while I make my cup of tea.

The buyer and seller will need to include the asset acquisition form with both of their returns, so they better pull out their contract or bill of sale or letter of agreement or whatever has the results of their negotiations re the purchase price, so your client can tell you what he bought for his money.

CT doesn't move anything over the weekends either, even though they are very fast during the week.