Margaret CPA in OH

Cathy, I can access all but the Choice of Entity. I can live without it if it means a requirement to have Facebook or Twitter. My life will not be totally incomplete!

I concur. The next thing you know, the business would be contacted as to why it didn't file withholding returns, etc. And it is possible that the business has already done due diligence, knows the amounts are below whatever threshold required, etc. I doubt there is true nexus or they would be filing corp returns as a foreign corp.

My first accounting position was for a smallish firm outside of Boston. The owner actually did over a million in billing back in 1986 but most records were still in his home office. He was audited the second year I was there and told the story of his wife's experience with the auditor. After about 3 looooong days of combing over every little detail, the auditor challenged the wife with a single $100 deposit in the checking account which didn't have a notation such as reimbursement, gift, whatever. By this time this little, middle aged woman used to going out daily was so frustrated that she yelled at the auditor that it was payment from a John she picked up. Materiality - $100 in the context of well over a million...

In Ohio, Kentucky and Indiana, this is on the personal returns, not business.

That's good news, Bart. An hour and a half is better than half a day. And you likely had great notes about what was entered elsewhere and a good memory of the bottom line to double check. Still very frustrating, I'm sure! None of us like to do double work for single pay and there is no ready excuse for the software to behave that way. Here's hoping Never Again!

Thanks for educating me about found money. I honestly did not know that. I will begin keeping track of the change that I find on my runs. I would appreciate cites for the reimbursement of gas money for a trip to the airport as payment for services when not in the position of employment. If this is so, there must be millions of us that wilfully, albeit unknowingly, violate this. Perhaps most folks would consider it a gift because it is at least likely that the person 'providing the service' would not set a charge or even truly expect money for helping a family member or neighbor get somewhere. Still, there may be something to the materiality aspect that you raise. More research!

Pacun, you raise what may be good points here but I think they are more philosophical. The $30 for gas might be considered income except it is more likely a reimbursement for expenses incurred and would not be payment for an activity engaged in for profit. The found $20 I would view more as a gift. You did nothing to receive it. Generally speaking, and it is a generalization, it appears that reportable income is income defined in the tax code and specified in the instructions for the tax return. I did not find reimbursements for gas for taking someone to the airport or found money even under line 21, other income. If it is important to _you_, by all means amend your returns. Given the specific examples that you cite, it would not be reportable income to me. I don't believe it is a materiality issue so much as source of income. I invite you to educate me on reporting found money or reimbursements. I certainly don't know it all. If I found hundreds of dollars, I would most likely donate it after trying to find the loser first, though!

Hmmm, I think I suggested the same thing above. Great minds, etc. but only if this was a returning client. For Bart's sake, I hope so!

Ohio, where I practice, and Indiana and Kentucky (from where I have a few clients) all have a Use tax. I do require a written answer to the question from clients. The question on the Ohio return asks if you made any out of state, mail order, internet or other purchases on which you did not pay sales tax? If so, how much were total purchases? The return calculates the tax due related to the resident county as the rates vary. There is a check box for NO for those who answer no so no need to input a 0. I include the efiling page which has a checkbox at the top stating that "Under penalties of perjury, I declare that to the best of my knowledge and belief, the Ohio income tax return and if applicable, the Ohio school district income tax return are true, correct and complete." I no longer check that box unless the client has checked it and signed the page. In addition, Ohio now also has a CYA for the tax department that is a disclosure statement. Essentially the taxpayer has to sign that they read the details related to the direct deposit options selected. The tax department is not responsible for the misapplication of a direct deposit refund, yada, yada. I make the taxpayer check that box and sign the page, too. I also apologize for the extra steps but I will no longer assume those risks.

I am a clutterer, too. Somehow my desk can't stand being cleared. It just attracts paper and holds with unseen forces. Of course, part of the desk is a cushion for whichever cat arrives first. Both also like to lay on any paper so I have to leave some around for that. But really, if it's on my desk I can find it. Might take a while but at least I know it's there - somewhere. Drives my husband a bit nuts but it's good to know that there are others like me.

Wow! I can't even imagine that happening. Don't you have a backup somewhere? Or have you maybe even overwritten that. 500 assets... All just input last week? Is it possible to rollover again from last year or is this a new client? I really feel for you, Bart. That's worse than losing several hundred Sch D tranactions.

Time for a stiff drink, I'd say, and a good night's sleep!

Okay JohnH and Cathy. Let us in on your secret. You both wrote that you saw them all so please be kind enough to share the 'how' with Lion, me, and any others out here having problems. Thanks!

That is puzzling that you don't see them there. What you can do is right click on the icon and select Properties (last option). Choose Shortcuts tab and you should see the path where the executable program resides. I haven't checked, but there may be helpful information in the Knowledge base, too.

Thanks for sharing, indeed! I do need a little help, though. For some reason I am unable to view the Choice of Entity video. It has a brief bit with a robot that says, Just refresh the page. I do that, click on the start and it simply repeats. I admit to be challenged here, no more pride. I enjoyed the others and would like to see that one, too, so any suggestions would be appreciated!

Thanks, bcolleen. That makes sense; I guess I will figure out how to indicate that. I also guess, with tax due and paid, it may be less of an issue than filing a 1310 for a refund!

Client had POA for now deceased mother, but that died with mother. There was no probate estate so no court document stating that client has power to sign return as executor. I suspect, based on prior year, that tax will be due, but don't know who signs when there is no 'official' document designating someone. There will likely be more of these in the next few years, too, as we all age....

Thanks, Jeff, for the information which, frankly, I had completely forgotten. Since I efile all returns except those that cannot be due to forms that are not efilable, I guess it didn't stick to my brain. This is also the first year in ages that I was unable to attend a state/local update. In any event, I did pull up, from the state website the form and saved for potential use. Since it is fillable, couldn't you just complete it and add to the return as it says to do? How many clients refuse to efile? I have a handful that still insist on the paper check to or from the gummint (keeping that bank account secret, you know), but my policy, clearly stated, is that I efile all returns possible. Thanks again for setting me straight!

I run the amended return process in the older version to get the correct figures then create a new return, just 1040X and state if needed, in the current program and fill in the figures. It's a bit more work but I want it to be accepted.

I'm puzzled by this question. To my knowledge, there is no mandate to efile in Ohio. I just reread the instructions (I may very well have missed something), and see nowhere obvious to me this requirement. If you are sure that there is, what form are you describing that you found on the website? And if you found it there, why not print it out and use it or use the pdf version (I think virtually all OH forms are fill-ins)? After all, if this is a decision not to efile, wouldn't there be a paper form to complete?

New returns like W-2's would be new returns

Wow! This is one you surely are better off without having as a client. I just hope he doesn't owe you any money!

If the POA is general and authorizes such actions, I believe so. I have a client with MS that is totally incapacitated. Her long time partner has POA and I always include a copy with her returns. For about 10 years this has not been a problem.

I don't actually _tell_ my clients any of that because it is all in the engagement letter. The first time I work with a client, I carefully explain all the information in the engagement letter so that it is very clear (based on AICPA sample letter). If I have questions or doubts about any information while preparing a return, I ask for clarification or more details. I may also remind some people that I don't need to see support documentation but to be sure to retain it in their records in case of audit. Then again, I do not have walk-ins, about 99% of my clients are returning clients of many years and others are referrals who may need help for one or two years based on specific circumstances. The couple of clients that were iffy never returned. For several years I had posted on my file cabinet in sight of clients a headline about a tax preparer being imprisoned for fraud. I never said anything about the details, but one woman told me she would never come back because she thought I was trying to intimidate her. My thought was, if the shoe fits...

As mentioned, the percentage of non-Ohio income should be calculated. Form OH IT-2023 can prove useful in allocating the income whether or not 'required.' It is especially helpful I think with interest and dividends and other non-W-2 items when you know where earned but the system doesn't.