Pacun

Same here. I also hate the fact that a lot of them are calling and saying "I don't have my W-2 yet but I have my last pay check stub, I want an appointment". I say to myself... thank you H&R Block for your come in December with your last paycheck stub and we will get your refund campaign.

As long as you are preparing his personal taxes ONLY and you have an engagement letter signed by the tax preparer you should be OK. If you prepare the payroll and/or the corporation's return along with this 50% owner, you will have a problem regardless if you have an engagement letter. By the way, don't understimate the power of an engagement letter. Now, if the client confessed to you that he didn't pay the payroll taxes, you might have a problem. Remember that the first thing this taxpayer will say during the payroll audit: "my taxpreparer knew about this". So, Run Forest Run (and don't look back) might be a good advice.

Kari, I checked your profile and there is no information about you. Are you in California?

I don't think ATX makes a good calculation for that. If you owe 2,000, the first month you will pay 10% for not paying and not filing, which makes it 2,200, then you calculate the interst. You do that for 5 months and then you add only interest until paid. If a client is late more than 12 months, I tell them that they will owe double as much. In the case above, I will tell them that they will owe about 4K.

"I have a client that gets a 1098 with her and her husband listed on the loan. Can she claim the interest deduction if they are not legally separated and he lives in the home without her? Or can they split the deduction?" If she is owner of the house, is liable for the loan and she paid the interest, she can. Keep in mind that there is only one social security listed on the 1098 and most likely it is not hers.

Very nice. Thank you for sharing and labeling properly.

I would suggest you to install only the previous 3 years on this new computer since you will keep you old one. If not, start with 2005 and move forward. If you use the archived CD, it should include all updates but it doesn't hurt to update on line too. Don't use the network version for previous years since the main computer will be your old, slow computer. If you insist, you can do it by maping a network drive to the old computer and install from the workstation folder. You don't need CDs for this type of installation but I am not sure when ATX started the network version. For tax year 2010, install normally on your fast computer and then install ATX on the old computer from the workstation folder, which resides on your fast computer. I posted a link to an ATX video on how to do network installation on a previous post. I bought a new computer last year and I installed only 2007, 2008, 2009 tax years. For previous years, I fire up the old, slow computer only when needed.

Install the oldest program. Copy the database folder by replacing it on the new computer. Create a new test client. Save it, reopen it, print something and close the new client. Then open one of the returns you transferred from the old computer, test it, resave it, print it and exit out. Make sure everything works before continuing. Install the next oldest year, copy your database folder again. Create new client, open an existing client, roll over the new test client you created from previous, roll over another client and test. Printing is a good test always.

"Transfer of an Installment Obligation at Death – A transfer of an installment obligation at death is not a disposition of the note for tax purposes. Rather, the income is reportable by the estate or beneficiary who receives the note in the same manner as if the decedent had lived (this results in “income in respect of a decedent,”)"

I was writing a long reponse to your post but I will limit to say: Very nice comparison you made: An employer who withheld a bit less than required with a guy who protested paying taxes.

Under the wherewithal-to-pay doctrine, withholding should happen when the IRS is best able to collect from the taxpayer. If I get a million dollar bonus, the best chance for the IRS to collect money from me is when I am receiving it. When I get an $800 bonus, the IRS will be able to collect from me any time. So, in this case, you don't have to worry about anything and just tell them to use bonus calculations for the future. Even if the taxpayer owes money, they IRS will not waste time and effort for such small amount.

I bump it up or down. It seems a new organization which is not ready itself. How can they help us with the new requirements if they are not ready. I belong to two organizations: From one I can ask one question every year... from the other one, I can ask 5 questions. This new organization doesn't have that service. It is stated that the directory will be ready on January 1, 2011, I guess they mean 2012. "Tax Professional Directory NARTP's Tax Professional Directory will be live on January 1, 2011. Welcome to NARTP's Tax Professional Directory, the public directory of members of the National Association of Registered Tax Preparers. This Directory is a service of NARTP, a professional membership organization, and is free to the public. Tax Professionals Tax Professionals consist of attorneys, Certified Public Accountants (CPA), Enrolled Agents (EA), and Registered Tax Return Preparers (RTP). Each tax professional is distinguished by stringent requirements. Tax professionals have extensive tax knowledge, skills, experience, and ethics. In order to qualify for their respective accreditation, tax professionals must possess tax education, pass a national accreditation exam, meet experience requirements, conform to a professional code of conduct, and obtain continuing professional education annually."

http://www.irs.gov/individuals/article/0,,id=96304,00.html

Politics and economics act very strange. Everybody wants to reduce the deficit when there is not a piece of the pie for them. Think about this. We all know that RALS are bad, really bad for poor people who pay a lot of money to get their refunds 10 days earlier. I have never ever been tempted to offer them to my clients because it is a RIP OFF. But, if bank will share what they charge 50 50 with me, TRUST me, I will offer RALS tomorrow. Perfectly labeled post! Let's keep it that way.

I agree they are good lists. I found "The Hispanic Service Center" on both efile and ITIN acceptance. It does bring some business since very few preparers (maybe 5) are listed for the whole District of Columbia as ITIN acceptance. My new company's name will start with A. After we all register this year, if a taxpayer enters my Zip code, there will be pages and pages of preparers. If I use Pacun for my name, no one will have the patience to scroll throw pages to find me. Keep in mind that your name needs to start with an A or B if you want new people to find you.

All the previous years the IRS has not been ready to process returns on January 1 when the tax season starts. They could easily blame it on the postal office in previous times. On the new 21st century when efiling is everywhere, the IRS should be ready earlier. Congress delaying the IRS seems to be the norm in the past couple of years and I hope they don't do it anymore because it slows down the jump start of the economy. Did you know the refunds from the IRS jump start the economy every year? It is bigger than any stimulus package since in a couple of weeks a lot of money is spent from refunds. My complaint is not about the forms not being ready. My complaint is that the IRS if forcing any one that prepares more than 100 forms to efile 100% and the IRS is not ready with efile when the season starts. As you can see, they might be a lot of us a bit nervous since they have not embraced efiling from the beggining. If I were one of those, I haven't started this post. I would also be reconsidering accepting new clients since efiling takes a lot of effort the first years. Again, since I efiling everything and I am happy with it, the new regulation doesn't affect me much. If I were the IRS this could have been my approach: If you prepare more than 100 returns for tax year 2010, you must efile 25% of all the returns you prepare. No opt out at this level. Next year you have to efile 50% of all your return and the following year, you have to file 100% unless the client opts out. Or they could have said, file 50% for tax year 2010 and 100% for tax year 2011. I understand that congress was late and I understand that the IRS is late with schedule A, which is the biggest one delay. I do understand that one is not IRS fault.

I got both of them. Each came like a week apart in December.

Does anyone know why they are using l instead of i on these new forms? At least that's what it looks like. I copied and pasted the form name and it looks OK, but it doesn't look OK when I go to irs.gov to see the form. I believe no one on this forum will have the economic waiver option since we all have internet connection already.

I prepared the returns today and I told them to come back next weekend since the IRS is not ready. They are happy with that since a paper return will take longer anyways to get their refund. For the last 2 years I have efiled every return whenever possible and I have explained to my clients the advantages of efiling. All of them have accepted to efile and I have saved a bunch of paper, staples, toner, paper jams and time since I don't have to wait for the printer to print. That's without mentioning the frustruation of paper jams and printer maintenance. I LOVE EFILING. My point is that the IRS is coming hard on preparers that are not ready for efile at full force. The IRS is coming hard on them and the IRS is not ready yet to efile and/or the form is not ready to have clients opt out and keep it for our records.

I understand that tax season will start for some taxpayers in February. That's why I stated this on my original post "My client is ready to file and all forms are available for him". I checked form 8948 from IRS and it reads DRAFT. Too many requirements from the IRS this year and it seems they are not ready.

It is a good idea at first look and that will FOR SURE eliminate the bogus PTINs because crooks will have access to ALL PTINs available. They will use a real PTIN from you and me depending on their location.

My client is ready to file and all forms are available for him, also tax season starts on January 3 and ends on April 18, 2011. IRS is not ready to receive efile but yet I am required to efile. Will they give me a break if I paper file this return? How about if I have 101 returns between today and Thursday?

The rules are the same. You can exclude 13K per donee and then you use the unified credit. If he dies soon, his estate might need to pull back those houses. I know you were clear on your question that the gifts were made after his wife passed away, but the question below is interesting and related. Question: Your client’s husband Henry passed away earlier this year. She has not remarried, and wishes to gift substantial amounts to her children before year end. No gifts were made by either spouse prior to Henry’s death. Can she use the gift splitting rules to treat the gifts as made half by herself and half by her deceased husband, in order to double the annual exclusion and applicable credit amount available for 2010? Answer: No. For purposes of the gift splitting rules, an individual is considered to be the spouse of another only if [§2513(a)(1)]: He (or she) is married to that other person at the time of the gift; and Doesn't remarry during the remainder of the calendar year. Thus, there is no splitting of gifts between persons who weren't married to each other when the gift was made. For example, gifts made by husband or wife during that part of the year in which they aren't married, or in which the donor's spouse is deceased, may not be split [Reg. §25.2513-1((1); Rev Rul. 55-506].

Now, I remember what a combine is. We used it for haversting rice. It cuts, separates and cleans the rice very nicely. We called it a combiner (combinadora). I thought a barn was like a building that you must recapture depreciation if needed. If I have seem that question before today, I would have thought that the correct answer was a combine. Thank you for the answers.

Email might sound good but link doesn't work.