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Regardless of legal liability, if a tax preparer makes a mistake, he should pay all penalty and interest. A client, of course, would have the use of the money interest-free, but he did not engage you to provide him an interest-bearing loan. Even if it is the client's fault, you cannot always be sure. I missed a couple of things last year and had scanned all client documents. Since I had scanned them, I was able to see that it definitely was my fault. I paid all penalty and interest which amounted to more than I had charged to prepare the returns. Their past and future business was well worth the cost.

Although I did not use ATX, I ended up with the royalty from a partnership shown on Schedule E and the depletion shown on the line for depreciation and depletion. I think I just entered the K-1 info and the figures flowed to the proper forms. The partnership was a law firm that only had a small amount of royalty

I don't know about ATX, but what they probably mean is that the $3515 is 15% of gross income, but if the taxable income is less than $ 3515 you can take no more than the client's taxable income; i.e. you cannot create a NOL with depletion.

Drake also has a company-provided forum, but is limited to users. The new google group is open to non-users who may or may not be considering Drake. A lot of the comments are about difficulties of using Drake for CA returns.

The next census will not only ask your race, but also your sexual-orientation, how tall you are, how much you weigh, who did you vote for, your bank account number, whether you have health insurance, and how long it took you to fill out the census form.

You would probably credit Accumulated Depletion just as you credit Accumulated Depreciation if it were depreciation. The average small investor probably doesn't keep double-entry books and reports it on schedule C or schedule E with no book entry. I have seen accounting records from back when 27½% depletion was allowed that showed negative assets due to depletion in excess of 100% of assets. This also caused a negative net worth. For Texas Franchise tax purposes, depletion in excess of the value of the mineral interest was not allowable.

Free health care and every other cradle-to-the-grave program would be fine if we didn't have to pay for it. If you stop and think about it, the average Joe SixPack lives a more luxurious life than the Royal families did a few hundred years ago. If society were so productive that no one had to work unless they chose to, then anyone who felt like it could live high on the hog on welfare with a new car, large home, smaller second home, frequent vacations and FREE HEALTH CARE. Unfortunately, we are jumping the gun if we try to have all that now and spend trillions on useless wars at the same time.

A friend of mine who was an engineer at ARCO got an MBA and he later became CEO of Noble Energy. He gives his MBA training a lot of the credit.

I tested it using Drake's 2008 program and was able to create two 2106s. I don't know if it would e-file, but apparently it could be used for paper filing.

I deducted the cost of my MBA. My employer paid most of the cost, but they added it to my salary. The IRS questioned me about the deduction. I told the auditor that I took the MBA courses to improve my skills in my present position. He allowed the deduction.

It's what I once heard Thornton Bradshaw call the Californication of Oregon.

In Texas there is no personal income tax, but even a single-member LLC must file a TX Franchise tax. The way my tax software works, I have to prepare a Form 1065 (but not file it) and the data flows thru to the Franchise Tax.

He is an undesirable client whether he pays or not. I would return all documents he has provided and explain that you cannot do them for several weeks, but if he can find someone less busy, he can take the documents to them in order to meet his timeline. I would rather forfeit the amount he owes than to deal with him. If you hold out waiting for him to pay you, it is probably going to result in no pay still. Your only hope would be to go to small claims court, but do you have the time to spend going to court?

Repaying a loan will not reduce corporate income. The only problem with repaying the loan would be if it had been recorded originally as contributed capital rather than as a loan. If interest is paid on the loan, it would be of no benefit for a one-owner corporation. It would reduce the corporate income and would increase his personal income--a washout unless the tax brackets were different for the corporation and the individual. He should have made it an S-Corp and then all this would not be a problem.

My guess would be that the Estate of the deceased would be liable. If there were nothing in the estate, then the credit card company would probably be stuck for the amount. However, if the daughter continued using the card after the death of the mother, then I think she would be legally liable. A fundamental rule of law is that you can't squeeze blood out of a turnip.

The only way you could make the AAA positive is to make a profit. Consequently, the Retained Earnings can vary from the AAA. The AAA can be negative due to losses, but cannot be reduced below zero by shareholder withdrawals.

The par value has nothing to do with the amount for which stock is sold. You may need to check how S-Corp stock is to be valued when the company is formed. There must be some rules, but I don't know off-hand what they are. The assets contributed would have some bearing, but you need to know how to split it between Capital stock and other equity.

I ordered the Tax Book disk this year instead of the book. If I want to look up something in the book, I can use last year's book unless it is something that has changed, in which case I can use the disk. I will probably use both if I have to research something. The big advantage of the disk is that you can click a link to the IRS web site which is a lot better than attempting to start from scratch in the IRS web site. Nothing is more complete than the IRS instructions, but often nothing is more difficult to understand than the way they explain how 2+2 = it's taxable.

A large company took over Quickfinders and required that all employees move from Minnesota to Texas as I understand it, so the employees who wrote the book decided to start their own version and ramain in Minnesota. As far as I know, both books are about equal in quality. I went with The Tax Book since I am more inclined to trust a company that specializes in one publication than in one that one that engages in a multitude of publications. The Tax Book's forum seems to have a lot more activity than Quickfinders' forum and the book authors often step in to clarify issues raised like William Tasker used to do for ATX.

It seems like a clear case of "too big to fail." If it had been a cash-only bar, then it would not have been so critical to the economy.

I never click on a link unless it is something I've requested and the body of the e-mail has a message that convinces me that it actually from the person, not from some hacking operation.

I modified what you had prepared slightly and e-mailed it to most of my clients that have an e-mail address and also e-mailed it to a lot of people that attended the same high school I attended back in those golden days of yesteryear.

The link above was truncated. this may work: My link

I have a web site, but it is like a sub-site for www.1040.com I assume that any returns filed through my web site would be the problem of www.1040.com. I tried to start a return on my web site, but it was so tedious I gave up. I've had a lot of "hits" on the site, but no no one has used it to actually file their return. (Most of the 'hits' were probably by other users of 1040.com checking what I had on my site.)