Terry D EA

You can also fill out form 8821 for tax information authorization. This will enable the IRS to speak with you. You can fill out the 2848 but as you said you didn't prepare the return and your credentials are such that the form is almost useless anyway.

I don't like being honored with a closer look. While my creative plan does sound tempting as KC said I will do the right thing so I guess 3115 it is. Automatic and transparent is key.

I agree, creative indeed but if there is a better way to handle this I am open for suggestions. Yes, these items are on the list to be depreciated for 2012. With that said, I have filed an extension so I do have a little time to play with this. Also, doing this would remove the items from depreciation this year.

>>>>>>>>Doug's going to have to start from scratch, with a new company name.<<<<<<<<< I think that has already happened. if you look at my original post, the check was drawn against '" Over The Top Technologies"

After reviewing assets with a single shareholder S-Corp, it was identified that some of their assets were given to me twice to begin the depreciation in 2006 & 2007.Urghhhh!!! My first thoughts to correct this is to show a disposition of the phantom assets on form 4797 as sold for the initial cost and reclaiming the accumulated depreciation to show a gain on the sale that would reduce the current 156K loss. While this sounds a little off does anyone see a problem with this? I know there is a form to use to correct incorrect depreciation claimed which can turn into a PITA with the IRS. Thoughts please.

I agree the day she converted it or made it available for rent is when the time begins.

So far, all is well with my deposit. The bank has released the hold on the check. Again, I wish the rest of you the same.

I agree your client needs to be ready to return the money to the IRS. Even if they don't ask for it now, eventually they will. I would then call with the client present the practictioner priority line to get someone to review the return.

I couldn't agree with you more. Thanks for the kind words on being a fantastic teacher but I don't put myself in that category. I feel I do a good job and will always strive to do better. I have seen teachers like you speak of and wonder why they are in the classroom. I have done evaluations where it was discovered the teacher was unlicensed. In our district we have one teacher that uses lessons sung by Justin Bieber and other stars to take the place of classroom lectures. If parents were more involved in their children's education I feel you would see a big change or at least an increase in accountability. Just to note, we have open houses twice per to invite parents to get to know their child's teachers. Normally, I have 50 to 60 students per semester and usually get three parents to show up.

You are so gracious to go help count inventory. I for one do not have that kind of time and if I had to do it, there would be a significant charge. As you said, they have had junk data in QuickBooks and I have complained every year. I tried to get them to adopt a new set of controls but the more I tried the worse it got. There will not be a correct procedure as this company is finished. Literally no production of any kind and no employees and it will take the next year or two to wind up business. S0, as I said earlier is there a problem adjusting up to zero which actually reflects the quantity on hand as far as I know. I have sent an e-mail inquiring of this deficiency so we will see what the response is.

I hope the rest of you receive a check for what you spent as well. Remember in my original post, I said this was post marked on Mar 9 which was last Friday. it got here awful quick so check your mail box each day as delivery times can be different. I don't think I received any special treatment here and I certainly hope that was not the case. This resolution should be the same for everyone who was a victim. Mind you, there were no notes, no apologies, no explantions at all in the envelope just the check and I forgot to see who signed it. May have been karen Bills but not sure. Right now, I don't care I am just glad I got it and now I can put the mess behind me. Again, I hope the same comes to all of you.

These are all good questions that I wish I could answer. This is a manufacturing company under one roof. So, the rules out a location miscount. A production finish verses in process error is not the problem either. Here is the main problem. This company has been using QuickBooks for years and QuickBooks does allow negative inventories without throwing up any flags. Their sales people were able to process sales for items they didn't even know if they had the right amounts in stock. I just want to zero this out but am not sure if I should.

Can an S-corp show a negative amount for year ending inventory? This is blowing my mind here. In this case, sales for the year are substantial enough to have sold every item at a profit. Some rough figures are: Gross sales 528,000 COGS (by books) 228,000 including purchases but how can I calculate the year ending inventory when it is negative? It makes no sense to me to have a negative amount of something onhand. I think someone in this company needs to give me a good explanation of what happened. I do know this much, this company has the worst of any I'v seen set of inventory controls. Huge adjustments have been made each year, I have asked for physical counts verses books and it is always messy. This gets better, this company is now out of business and to the best of my knowledge has nothing left to sell. What to do with this?

Thanks Jainen for pointing this out.

I think you need to double check that entry. The amounts from the 1099R should go to retirement income, can't remember which line on the the 1040 but I have never seen this. In my opinion this cannot be considered wages.

Yes, did they put the amount in box 7 of the 1099 MISC? If so, you can still carry it to line 21 other income. This is wierd though. As a teacher myself I have attended many required classes/workshops that the district had paid for and have never received a 1099 MISC. This must have been done on an individual basis for some benefit of the school district. Hmmm.

Being a teacher myself, I spend at least twice that amount every year on my class and students. Students who cannot afford registration fees for State wide competitions get some every year. I am an automotive instructor and have been for a number of years and so looking forward to retirement in four years. All of the little things, small tools, wiring accessories; etc that I buy. Heck this year we couldn't even get a fifty five gallon size trash can for the "NEW" shop we are in. So, we (my partner and I) bought two. As for any additional amounts a teacher spend, they are subject to the 2% on Schedule A. It is a pure shame it has to be claimed this way. On a side note, our Superintendent just issued the budget proposal preparation letter. Sums up to get ready here comes more cuts. I've heard this song and dance for the last 15 years. Teachers in our area have not had a raise in pay since 2006. Matter of fact, four years ago, we gave up a one time 2% deduction from our pay to help the State out. How dare you teacher ask for a tax credit! Geez give us a break. For those who think we are just a bunch of over paid whiners, PLEASE come do my job for one week, then pass judgement on me. Don't get me wrong, I love my kids and my job and it is exciting to see young people grow and become successful. A true educator is not in it for the money or the so called great benefits. My rewards are the enormous smiles on graduation day.

<<<<<<Let's see if the check clears before we start the party.>>>>>> This was my initial thought so I ran to the bank with the check. If the check would not clear, now that would be double disaster for Doug and his crew. I certainly he is above this and I am going to give him the benefit of the doubt. My bank found nothing wrong with the check but did required a two day hold so we'll go from there.

I haven't had time to ship the software back so it is in the box under my desk and if they want it they can have it. Taxed, I think you know I tried to be as cordial with this as I could. Doug hasn't communicated with me since Januray 29th and like others failed to answer any e-mails. I believe in giving a fair chance which I believe we all did. I did take the oppotunity to make my opinion known in my last attempt to request a refund. I have been researching how to file a small claims out of state, written the BBB and began a complaint with the AG. So, maybe somewhere along the way, a kind word helped. I just hope that Doug realized what the software was and finally admitted it. Admitting failure is no small task for anyone. While I am not saying that I would ever try his software again, as a person though, I genuinely forgive him and I hope that somewhere he recovers from this and becomes successful.

I find this hard to believe but it is sitting on my desk. I received a check today from TRX for the cost of the software that I thought I purchased (Red Gear) last spring minus the shipping. While this in no way pays for all of the aggrevation and lost business, I'll take it!!. Maybe the folks at TRX are finally going to come through and have a heart after all. The envelope is post marked on Mar 9th which is the day of the meeting with the TN BBB for TRX to offer a resolution to all of the complaints. Thank you TRX! I wonder if this is a bit strange though the company the check is drawn on is "Over The Top Technologies" with a differenct address 626 Cason Lane in Murfressboro but with the same phone number. Hmmmm!

I'm not sure if PA is a piggyback state or not. But either way, I think you should be able to file the PA State separate from the Federal. Check with your State to be sure cause I know in NC they will not accept any business returns via e-file and all have to be mailed.

Do we really think a refund is on the horizon from these jokers? I hope so but will remain optimistic. Lip service is useless give us our money back. I for one will go away and never come back.

<<<<<<child's SSN on Schedule EIC could not be that of a spouse on another accepted return for the same period.>>>>>> I could be wrong but it sounds like the SS number has already been used on another return that has been accepted for this year. If this is true, then your only alternative is to paper file.

I am a State Employee and sick leave is not taxed until it is taken by the person who earned it. The person your client donated the sick leave to will be taxed as normal income. No deduction for your client. Sorry

I think, in my scenario however, that it would be a hard sale to be able to deduct your primary residence as entertainment. I do agree with deducting a portion that is used for marketing your product as you show the use of it in your home.