Lion EA

Thanks. Good point. Now, I'm definitely calling the Hotline

IRS letter suggested RP 2003-43 as a relief, requiring 1.) Form 2553 with signatures from everyone 2.) statement of reasonable cause, blah, blah 3.) statement from all shareholders attesting that they reported income, etc. 4.) declaration by officer under penalties of perjury, etc. all of which I'll draw up for client. Anyone have any good boilerplate paragraphs you've used successfully? Just really mad at the lawyer who insisted company form an S-corporation to the (former LLC) partners and to me and then did not fill out the final form needed to actually BE an S-corporation. I was suggesting a C-corporation to the lawyer so the $25,000+ health insurance could be a fringe benefit instead of reported on their W-2s (and they could have a broader range of future investors and they could have more than one class of stock and...), but the lawyer insisted he should form an S-corporation for them. Lawyer had plenty of opportunities to tell me that he was NOT going to file Form 2553 and that someone else would need to do that piece of the package.

BUMP Client said his lawyer formed an S-Corp for them effective 1 January 2008. I prepared Form 1120-S. IRS writes that they cannot process Form 1120-S because no Form 2553 was filed. Husband and wife shareholders did receive their K-1s and did report K-1 information on their joint personal tax return for 2008. Do I use Revenue Procedure 2007-62 for an entity that has not yet filed a tax return -- they mailed it in, but the IRS did not process it? Or, Revenue Procedure 2003-43? Any tips on what to include? By the way, I'm definitely blaming the lawyer!

Client said his lawyer formed an S-Corp for them effective 1 January 2008. I prepared Form 1120-S. IRS writes that they cannot process Form 1120-S because no Form 2553 was filed. Husband and wife shareholders did receive their K-1s and did report K-1 information on their joint personal tax return for 2008. Do I use Revenue Procedure 2007-62 for an entity that has not yet filed a tax return -- they mailed it in, but the IRS did not process it? Or, Revenue Procedure 2003-43? Any tips on what to include? By the way, I'm definitely blaming the lawyer!

I tried searching on this and variations of it and of Form 2553 but get thousands of posts containing "late" or another part of the phrase. Does someone remember a thread regarding a late election, maybe one you took part in and could search by posting name? Thanks for any leads.

Unique! And, a beautiful couple.

Thank you, Eric.

Jainen explained what I meant but did not explain. All the increases and decreases to the basis of the old house and resulting deferred capital gain are now part of the basis of the newer house. You don't need to send the client looking for capital improvements made to his former house; he did that the last time he sold.

Great idea, Tom. I'll second that.

Snopes e-newsletter this morning covered protecting your data if your computer is lost, stolen, or given away. Of course, you can make more severe changes if you're giving it away, so the smash-the-hard-drive-with-a-sledgehammer method was the number one suggestion. If your computer was stolen, it's too late for the sledgehammer, though.

Wouldn't the type of basis adjustments that a client would find for you have already been included in the gain he postponed?

It emerged from bankruptcy during 2004, at which time the old stock was worthless and the old bondholders received pennies on the dollar. Maybe try Verizon investor relations for more information.

Here's a good starting point on the IRS site: http://www.irs.gov/newsroom/article/0,,id=....html?portlet=7

Aren't they organized with their state? File an amendment changing the name with the state. Take the state acceptance of the filing to the bank.

I've been off ATX for a couple of years, but until someone more knowledgeable jumps in... Does ATX have a code to input for wash sales that'll automatically put in the corresponding line backing out each disallowed loss?

They haven't owned a principal residence anyplace in the world in the last three years, per your scenario. If they qualify for all other issues re FTHB credit, why would rental property enter into the equation?

I'd vote for that guy!

My web site has a FileShare button. My clients choose their own passwords which I do NOT know. I can leave a file for only them to see; they can leave files for only me. (I can also leave files for all my clients to see, such as our Engagement Letter, but that's another topic. Clients can NOT leave files for anyone else but me.) I have to accept the client as a user of this feature of my web site.

A very :bday:

This was on today's e-newsletter from NAEA: Members Receive 50% Discount Become a Provider of TASC's AgriPlan or BizPlan and generate additional revenue, diversify services, and retain and expand your clientele. Based on Section 105 of the Internal Revenue Code, a self-employed individual who employs a spouse in the business may be eligible to deduct 100% of their family health insurance premiums and out-of-pocket medical, vision and dental expenses not covered by insurance. For more information call 1-888-595-2261, e-mail [email protected], or visit website.

A very :bday:

A very :bday:

My husband does pick-ups and deliveries for me and goes to the bank and stops at Staples, that type of thing. My daughter sorts/organizes paperwork for two of my clients and creates large, green ledger sheets (can't get her to work in Excel yet) adding up their business income and expenses and itemized deductions and office-in-home items and anything else she uncovers with a tax consequence. She also files. If your clients overlap, perhaps he could schmooze with the waiting clients. He could answer the telephone, screen your e-mails, serve coffee, file, etc.

Did you run the numbers for you each to have your own policy? Does it make a difference in the premiums if you're buying as individuals or if you as a company buy for your employee husband? Can your company hire your husband and provide health coverage to him and his family (you)? It could still be a high deductible plan and company provided HSA. I have a client who formed an LLC from her sole proprietorship, because her insurance agent was able to get her lower premiums that way. Don't know why that helped since she's single and the LLC is a disregarded entity, but the agent has a copy of her Schedule C.

Our state has a pool for hard-to-insure conditions. Of course, it's expensive; but it's coverage. And, there's more than one company to negotiate with. I have a client with Lupus who uses the pool carriers; she's changing carriers this year to save $300/month. Maybe a combination of a high deductible insurance policy and a health savings account is right for you at this time. Anyway, glad to hear all is well for now. Good luck tracking down a policy you're comfortable with.