Terry D EA

I found this article to be interesting. While I do not have alot of EIC clients, I have read several posts in the past regarding this topic. http://ppc.thomson.com/sitecomposer2/Index...mp;mc_id=133463

I have had this happen with one of my clients who has hired illegals in the past (client didn't know SS not good). The IRS has sent the notices regarding the incorrect or invalid number but has only asked for verification and possible backup withholding from regular employees. The IRS has never disallowed any deduction for the expenses due to the bad number. BTW, an employer can register with the SS administration to verify social security numbers and names. However, according to the SS regulations, this cannot be used as a tool for hiring. You have to hire them first, then verify and attempt to correct the error. In the case of fraud, then termination is the answer. Terry D.

I agree with all of the above statements and this board may very well present a better avenue for peer to peer reviews of tax preparation, accounting, write-up, as well as any other software that some one wants to know about due to the fact we are not in any particular companies back yard. I will be evaluating other software as well. Whie ATX has some quirks, I am sure other companies do as well. For the money, it is a good product. Closing down the community was a bad mistake because we lost the knowledge and helpfulness of all of our peers. Even those who were not congenial usually offered some of the best advice. It appears this board is rapidly expanding to that level and I for one am pleased. Terry D.

Cat, This situation can be quite confusing. When the Vet closed the business, the assets would be converted back to personal use to show disposition and his basis would be FMV which would probably be a taxable event as he can be taxed on the difference between his original cost basis minus any depreciation subtracted from FMV. That difference would be a taxable gain on form 4797 and included in his income. Now that he has converted the property to rental, yoju are right to include the income and expenses on Sch E. Remeber, rental income is not subject to SE tax. However, you should begin new depreciation of the assets using the FMV at the basis which may offset the taxable gain from the conversion. I did one of these on a S-Corp repo which was a PITA to figure out. If someone here has a better approach, then I would be interested as well. BTW, how is good ole Youngstown? My home town is Warren and I must admit I am in no way sorry that I ever moved from that area. It has become economically depressed and I am sorry but it is not as beautiful as good ole NC. I hope I have helped you a little. Terry D.

This is just another reason for me to stay away from Pro-Series.

Eli, Just to add to the others replies. The person who is appointed the personal representative is the person who would sign the return and complete form 1310. The probate court will determine who that person as you stated there was no will. It will probably be one of the parents. BTW, thanks for the e-mial about this board. It is nice to see most of the atxers from the atx board here. Terry D.

Marge, I had the same idea that you have a couple of years ago. I closed the office store front, moved everything to my home where I thought I could pick and choose my clients and scale the business back. The picking and choosing did work but we still have new clients every year and the flow of human traffic in and out of my home is becoming a pain. The nice trade off is I am able to have dinner with my family and spend more time at home. Watch out when you say you want to cut it back a little, as it might not happen. Terry D

Transmitted last return at 6:00 PM which was accepted and transmitted last extension (mine) at 9:30. So I guess this means I made it. I wil finish my extension today so it's off to the beach ( if I can find a warm one) Terry D. :)