Pacun

Jack, I posted this yesterday because I was curious. I am glad you passed two of them.

Congrats Jack. I took one by one and when I was half way on part 2, I thought I was going to fail, but I passed it. I was so happy when I saw that I passed it. I did pass the pencil and paper about 6 years ago but I never registered to get the EA classification. I am planning to register in August 2011 since you have one year to fill out form 23. You remind me of me in 2000. I sent a letter to the Guiness record asking them if I could be on their book if I passed all 6 exams in one sitting for the MCSE (MicroSoft Certified System Engineer). They told me NO. So, I took 2 in one day and a month later, I took 3. A month later, I took number 6 and failed it. I retook it a month later and I passed.

People like these, I fired them while they are my visitors. As you know, it is easier to fire visitors than someone who has been your client for a couple of years. For my clients, I take the time to explain.

Keep your eyes open next year because the Tax payer must report that interest. Remember that the IRS will have its eyes wide open for that interest since it knows for fact that it was paid.

I think one of the forms needs to be updated. Update your program and recreate the efile file and transmit. When you resave the return before being transmitted, you label it as rejected automatically and you cannot efile it. In your case, the return made it to ATX and it was rejected.

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The IRS will start testing preparers who are not CPAs, Attorneys, or EAs. There will be the EA exam set and a lower level exam for preparers who don't want or will not be able to pass the EA exams. The lower exam will be like California's exam for preparers. Passing this exam will qualify you are a preparer but not as an EA. So, here we have a preparer with 15 years of experience who doesn't want to take the EA exams but wants to continue preparing taxes so he/she has to pass the easy/low level exam. We have a person who doesn't know anything about taxes. As a matter of fact, doesn't even know what a W-2 is as I write this response. That person, who doesn't know what a W-2 is, will take the H&R Block class in September 2011 and will pass the low level exam with the IRS. The Tax Preparer who has 15 years of experience but refuses or cannot pass the EA exam will settle for the low level exam. In the eyes of the IRS, he will at the same level of the person who (currently) doesn't know what a W-2 is. That's what I meant by the lower exam. My suggestion to the IRS is: Have all preparers take the EA exam. Whoever reaches the current passing grade for the EA, gets the EA classification. Whoever passes above 50% and below the EA requirement becomes a regular preparer. Whoever gets below 50%, fails and cannot prepare taxes for 2012. I am pretty sure they will extend taking the exam for a couple of years. A couple of years ago, I stated 3 important points: 1.- The tax preparation industry is no longer for people who cannot pass exams and/or cannot put in practice what's learned in classrooms. 2.- I have embraced efiling from the very beginning. 3.- I agreed that the IRS can audit everybody in a 5 year cYcle if they want to. I stated: Don't understimate the power of computers. (Remember that there are different levels of audits, don't get distracted by the traditional audit definition)

Female client would qualify in most state even if prior husband had a house. I cannot believe we never answered this post. I guess everybody was wrapping up and ready for vacation.

I posted that letter on this forum about a year ago. PS: I looked for my post but I din't find it. Maybe I never post it.

I already entered the checking account beginning balance but I would like to enter owner's equity. How do I do that on Quickbooks? I have 2009's 1120 and a simple income statement printout from quickbooks from previous preparer, where do I get owner's equity from those forms. I have glanced at the 1120 and the quickbooks printout but I didn't see it. No one owes this company and the company only has one car that I can see was depreciated. Is that the reason why I didn't see owner's equity when I glanced?

It is very simple in VA. On 760PY page 1 enter the dates of residency in VA. On page 2, second column, enter the amount of income while in VA.

I sign all returns whether they pay me or not.

That's because they go to the SS Adminitration counter and they filed their taxes on paper. 65 years ago, today's computers were not born and there was not need to be accurate. Everything is changing now and we have to efile everything and we have to adjust.

Husband doesn't qualify. We need more info for wife. They both might qualify for the continuing education credit.

I had that problem this afternoon, but it worked for me a couple hours later.

Good luck. Yes, you are crazy because it is tax season but you are smart because we have confidence that you will pass them. Even if you fail one, so what, you will have another chance. I decided to take the exams (not in the same day) because I don't want to be at the same level of someone who just started preparing taxes 45 days ago. Is someone does take the EA exams, he/she will take the lower exams. That will place them at the same level of the person who doesn't know anything about taxes right now but will take the H&R Block class this coming September.

I normally fill out the Substitute W-2 form with the information from the paycheck and send a copy of the paycheck stub. You must paper file.

Thank you. I have another problem. I saw a deposit that read "transfer from Chk 9202", I thought someone paid for services and made a direct deposit and I chose Contracting income... I see that type of deposit every other month, which makes me think that this is his personal account and I should be using an Equity account. How hard it is to go back and change those deposits if client confirms that he was injecting his company? Will my reports show a bunch of mistakes?

You are right. Are you installing from the Same CD? No need to answer... your situation is very strange and you will not get help remotely. You might need to get local/hands on help. Please change your profile and list your state.

Some people don't ask questions because they are embarrassed that their question will be so basic. I don't have that problem AND I need help with quickbooks. A construction Company gave me all 14 bank statements. I am entering the deposits or money received. I have date, amount and counter or online deposits. I have been entering each deposit by pressing next and next... I have done Jan 2010. Income statement looks good so far... everything looks good. I just realized that I do not need to click next on top but rather continue on the next line below. What's the difference? What's the best way?

Having Windows 7 and 64 bit OS doesn't tell us much. How many processors? What kind of processors? How much RAM? How much disk space? Is the database shared on another computer? If shared on another computer, what kind of cabling do you have? I am sure I can come up with more questions if I had the time.

I will add... his parents cannot claim him because he didn't live with them and he provided more than 50% of his own support. It seems that my original answer will stand.

Yes to all of them. American Oportunity credit for himself and for herself and EIC because of child. All those credits to his return. I didn't see that your dependent has to be blood related in order to claim eduction credits, so you should be OK. You didn't specified if they lived with her parents, which I believe they didn't. (I don't think you would miss that piece of info on your question).

Could your ex-employee or helper be using your efile credentials and efiling some returns? Why don't you call ATX?

Questions: Do you ask for photo ID for your repeating clients? Do you keep copies of SS cards? Do you make a copy every year? Do you ask for Birth Certificates? This is from the IRS. What to Bring To receive this free assistance, you should bring the following records to your military VITA site: 1.-Valid photo identification 2.-Social Security cards for you, your spouse and dependents or a social security number verification letter issued by the Social Sec Administration 3.-Birth dates for you, your spouse and dependents 4.-Wage and earning statement(s) -- Form W-2, W-2G, 1099-R 5.-Interest and dividend statements (Forms 1099) 6.-A copy of last year’s federal and state tax returns, if available 7.-Checkbook to get routing number and account number for direct deposit 8.-Total amount paid for day care and day care provider’s identifying number 9.-Other relevant information about income and expenses 10.- Joint returns If your filing status is Married Filing Jointly and you wish to file your tax return electronically, both you and your spouse should be present to sign the required forms. If it isn’t possible for both of you to be present, a valid power of attorney that allows tax preparation can be used to sign and file the return.