Maribeth

I have not received any acks from any of our efiles yesterday also. Maribeth

Margaret, I have had one of these. It is not income until the deal closes. So look to 2008 for any gain recognition. Maribeth

My DCN counter just reset itself to zero. We caught it before transmitting any returns but I am wondering if it happened to anyone else? Maribeth

I haven't received any renewal offers whether it was from email or snail mail or telephone. I also did not receive anything on the new ATX Community site being resurrected. I am feeling a bt abandoned here . . . . . . Maribeth

His basis in his stock is what he gave to the corporation in exchange for his stock. Probably the net book assets of his sole proprietorship, less any liabilities, plus any tax paid upon the incorporation. There "should" have been on the original tax return for the corporation a statement listing the assets, liabilities transfered to the corporation from the shareholder and this statement would tie back to his basis. Add to this basis any additional paid-in capital that he contributed to the corporation over the two years that he owned it. His gain or loss is recognized by comparing that basis with the consideration he received from the person who bought his stock. How much did this person give him in cash, property? Maribeth

Efiled a 941 on 4/3/08. It is now 4/8/08 and it just continues to sit in Validated by EFC limbo. Maribeth

We have the PDFfactory and its companion piece Fine Print. Fine Print lets you manipulate the pages, then PDFfactory acts as the storage. We print everything to Fine Print, delete, reassemble, whatever, then put the final product into PDF factory. You can go back & forth between the two. If you wish to add a watermark or indexing to an already saved file, you just print it back to Fine Print, make the changes, then save or print to a hard copy. Come to think of it . . . . we probably use Fine Print more than we do PDFfactory. They are both great. Maribeth

You can also set each member up on EFTPS and deposit their estimates that way. You can also set the payments up in advance. We have on "forgetful" client that we set up on EFTPS, she wanted monthly payments, and she loves it. Maribeth

On next year's return, you will calculate the amount of the 2007 NOL that is being used on that return and that amount will go on Line 21. Use Schedule B of Form 1045 in order to calculate the amount that is being used. Don't worry about the 2007 NOL calculation not going with the efiled return. Just keep that worksheet in your file. Maribeth

That's correct. The treasury stock transaction can make your equity secton negative. A prof told me that the theory is that the retiring owners had withdrawn their portion of the goodwill in the company but because the balance sheet is historical cost, the remaining goodwill had not been booked. That creates the negative equity section. Maribeth

Mike, don't have a 101 textbook around either but I believe the entry is just to a new account in the equity section called "Treasury Stock". In my state we cannot have treasury stock, so the entry would be a reduction in the common stock account by the par value of the stock redeemed and whatever is left over would go to retained earnings. hth, Maribeth

We've definitely decided that if we do renew we will downgrade from TTO to Max. We haven't used the trial balance or document manager but the biggest issue we have is with Kleinrock. We just don't like it and we'll probably be going back to RIA or Thomsen or whatever it is called now. We also did not use any of the paper research materials that ATX sent as we already have The Tax Book and the CCH Master Tax Guide. Maribeth

We will do about 500 returns this year -- the whole gamut, 1040, 1120, 1120S, 1041, 990, 1099's, W-2, 941, 940, state payroll & sales taxes. We run ATX on a 3 computer peer-to-peer network. For the money ATX is the best I have found. It has all the forms we need, I love the forms based input, and the price is right. I will probably renew ATX next year (unless Mel has his software up and running) but I will not renew Kleinrock, I'll be going to a different research source. Maribeth

A simple trust, all the income is distributed every year, before the exemption. You will have the -300 amount every year on the return. Maribeth

Monica, I would call the practitioner's hot line and tell them the story -- the problems with ATX's efiling this year and how you just got the reject back. I had the same problem with ATX and a 990 extension last year and I was able to get it approved by calling the hot line and talking with someone. Good luck. Maribeth PS: As a precaution, since the 7004's were not timely acknowledged, we sent paper copies to IRS on 3/17/08. Good thing we did because we just received a reject on a 7004 that had previously been accepted. I believe that there are mice and bugs and other slimy creatures living in the EFC and I do not have a comfort level at all with ATX and its entities efiling this year.

The K-1 income goes on her 2007 return, not the 2006 return. Maribeth

And what is even scarier is that they are postmarked as 12:00 AM, which is midnight or the morning of the day that I transmitted them. So I transmit at 3:30 in the afternoon and they are postmarked as 12:00 that morning. And no IRS postmark date . . . . Maribeth

I printed them all out and mailed them certified yesterday. Good thing I did because this morning I got two back rejected with that "schema" error. Really strange, as these two that were rejected went through just fine last year. Something is wrong with the CCH server, that's for sure. Maribeth

I sent 12 extensions on Saturday and still have no acks back. I tried to submit another 7004 this morning, got the screwy server notice and then resent it. It went through okay. But no acks. And no IRS postmark dates. Scary. Maribeth

Peggy, this was on the support page: 3-15-08--We will be conducting our weekly database restart each Sunday at 9:00 AM EST. Normal restarts should not take more than 30-60 minutes. The DBA expects this reboot tomorrow 3-16 to take some additional time. All web applications, including this support site, will be off-line during the database restart. We have a once-weekly restart of our systems, every Sunday morning at 9am EST. This is historically a very slow hour throughout the entire tax season. During this time you will not be able to transmit returns to the Electronic Filing Center or Training Electronic Filing Center. All web applications will be off-line during the database restart. This restart usually takes 60-90 minutes at most. We apologize for any inconvenience. Maribeth

In my experience you cannot efile a new corporation or partnership. It just won't go through. This has happened to me for several years and now I just paper file the first year return. Maribeth

My client received a $35,000 refund on long term care insurance premiums. The policy was issued through Conseco Insurance. One of the terms was if the taxpayer kept the insurance in force for 10 years, then a refund of part of the premiums paid would be made by Conseco. The taxpayer's 10 years were up in July 2007; they received the refund. The policy is still in force and the taxpayer continues to make monthly premium payments. The taxpayer did not have any long term care expenses, is not in a nursing or retirement home, and is not otherwise disabled or requiring assisted living help. During some the of 10 years the taxpayer did have medical expenses over the 7.5% floor and part of those expenses were the long term care insurance premiums. I am thinking that the tax benefit rule would apply here and that I have to determine how much of the refund is taxable. Does anyone have any experience with something like this or any opinions? Thanks for all your help. Maribeth

Okay . . . . the research that we've done so far, which isn't much, is that the interest is reportable on Schedule B. My client is still a Schedule C and the rest of the award, net of the attorney fees, is going to Schedule C because it is a "refund" of an overcharge and would have been reflected in the COGS section of Schedule C. I would love for someone to have a cite or letter ruling or anything that would say we could take it off of the Schedule C but I don't believe that would happen. Maribeth

You can have a medical reimbursement plan through the company. It can cover out-of-pocket medical expenses and medical premiums of the employees, if so stated in the plan. I believe that it is covered under IRC §105 and you must meet two tests in order for it to be a tax-free benefit to your employees. Benefits must be available to all employees and it may not discriminate against any employee group. My above analysis is very brief and general. However, in all cases my research refers to employees. The question then becomes is your client an employee if he did not receive wages. hth, Maribeth

Great idea! Thank you, thank you, thank you! Maribeth