Margaret CPA in OH

Ah, the good ol' days...I do wonder whatever happened to those excellent folks. I hope all are well and somehow know how very much they are/were appreciated. Like you, Chuck, I don't do RALS, Fee collect, etc. I guess I am fortunate with my clientele, too. So far, knock knock, never been stiffed for an income tax return, only bookkeeping fees...once. That was my fault, however, as I let it go on too long. Never again, lesson learned. To this day I have no idea where she is or whatever happened to her business which used to have international customers.

Thanks for the jog, Wendy. Like you I have the TTO through TRX but am not sure what exactly I have or how to access it. I've only had MAX for the last several years. I'll call support to see what is in my goody bag!

For those who might complain that they don't get a deduction, one might just thank them for the generous spirit which motivated their contribution.

:bday: and many more!

Thanks, Maribeth. I think it isn't needed because of the asset minimum but then wonder about depreciation for common area improvements, etc. More research but we are probably okay.

Well, we were wondering about that...

Thanks for this good discussion. I imagine that even some of us smaller firms will increasingly face these questions as the world of commerce reaches to the smallest businesses. I am grateful that my issue is product for resale but they may contract with other non-US citizens for services. I will catch up after tax season and learn from any other information shared here. Good luck!

A new client is a HOA, actually a condo owner's assn. They have existed since 1983 and filed each year. The one page form itself is simple and, apparently, the 60% and 90% requirements for income and expenses, respectively, have been met at least most of the time. There is no balance sheet and so no assets listed for depreciation purposes. They keep a detailed spreadsheet showing beginning bank operating balances and assessments income and expenses throughout the year. There is also a Repair Fund. Is it required for an 1120-H to provide a balance sheet and have depreciation? The association does not have assets in excess of $250,000 but the entire building is worth much more. Each unit, however, is owned by individuals. What say you all who have experience with HOA's?

First $2,400 of Unemployment Benefits Tax Free for 2009 IR-2009-29, March 26, 2009 WASHINGTON — All or part of unemployment benefits received in 2009 will be tax free for many unemployed workers, according to the Internal Revenue Service. “This morning we learned that a record 5.6 million people were receiving unemployment benefits in the middle of March. This underscores the need for the relief provided by the American Recovery and Reinvestment Act, which includes making the first $2,400 of unemployment insurance exempt from tax,” said IRS Commissioner Doug Shulman. “I urge all unemployed workers to take this special tax break into account as they plan their tax withholding and quarterly estimated tax payments for the year. This change offers a helping hand to millions of Americans who are out of work and struggling to make ends meet.” Under the American Recovery and Reinvestment Act, enacted last month, every person who receives unemployment benefits during 2009 is eligible to exclude the first $2,400 of these benefits when they file their tax return next year. For a married couple, the exclusion applies to each spouse, separately. Thus, if both spouses receive unemployment benefits during 2009, each may exclude from income the first $2,400 of benefits they receive. The new law doesn’t affect the return taxpayers are filling out now. Unemployment benefits received in 2008 and prior years remain fully taxable. Unemployed workers can choose to have income tax withheld from their unemployment benefit payments. Withholding on these payments is voluntary. However, choosing this option may help avoid a surprise year-end tax bill or a possible penalty for having paid too little tax during the year. Those who choose this option will have a flat 10 percent tax withheld from their benefits. Unemployed workers who expect to receive more than $2,400 in benefits this year should consider having tax withheld from their benefit payments in excess of that amount. Those unemployed workers who have already chosen to have tax taken out of their benefits, should consider the $2,400 exclusion in determining whether to continue to have tax withheld. Use Form W-4V, Voluntary Withholding Request, or the equivalent form provided by the payer to request withholding to begin or end. Form W-4V is also available on IRS.gov or by calling the IRS toll-free at 1-800-TAX-FORM (829-3676).

That's kind of where I got hung up trying to wade through the Form 42 something or other. It seems there is a reporting requirement from the US company to substantiate, maybe, that payments were made for services to a foreign entity or person. I wasn't understanding that there was a reciprocal requirement (who would chase after them?) for that person/company to report that income to the IRS? I deferred that research until after tax season because I think my client issue is resolved thanks to Pacun's astute observation. I will follow any responses here for education, though, and wish you luck!

I just noticed that my reply was not correctly posted. I guess I don't know how to do the quote thing and have my reply posted beneath it. Somehow, it got imbedded in the original post. Sorry! I hope SunTaxMan gets to read it.

My guess is that you appeared to be the one intelligent person in the store who would most certainly know the location of this product. You probably had the "aura" of someone intimately familiar with its use... I want to know which dog food you think is best. I need to know what to feed my granddog when she visits.

:bday: and many more!

Pacun, the forest for the trees! I didn't consider that this was for resale. I get caught up sometimes with my construction clients and the 1099's they issue to subs and other clients that must issue same for services from unincorporated vendors, I didn't think about resale. I know that applies to sales tax but didn't think about it applying to raw materials. Thanks again!

Anyone out there want to take a shot at this? Do any of you have clients in this position? I would appreciate helpful comments!

My new client, olive oil bottlers/distributors import their olive oil from a cooperative in Greece. One partner has an interest in the family olive groves there the oil from which goes to the coop. The company here will buy olive oil (for 2009 it was contributed to the company by one partner) for product in 2010. What are reporting requirements akin to 1099's and obtaining W-9's from unincorporated vendors? I read some about Form 1042s and other forms but frankly got my shorts twisted by the language. Is there any reporting requirement by a foreign company or individual from whom my client purchases inventory? If so, what legal recourse does the IRS have should that company not report? Does issuing something akin to a 1099 to the foreign vendor somehow protect or preserve the client purchases as legitimate business expenses? Any guidance welcome!

I knew there would be some wonderful person who would provide other details and suggestions. Thanks, OldJack. My offering was just off the top without research or careful consideration of all aspects. I will go back to my cave now...

A quick check might be to see if the trailer is fully depreciated. If so, it can be abandoned by the defunct corp and acquired by the remaining corp as a fully depreciated asset. That's all my brain can handle now. Back to 1099's, etc.

:bday: and many more!

Now that, Catherine, is an excellent example of the reduce, REUSE, recycle mindset! And I expect we here in Ohio have not seen the last snow this year. Ray, good job on not simply throwing away such a reusable product!

I suppose, like many things such as my brain, they will eventually biodegrade. I do find it hard to believe that even the salt has lost its flavor, though. That's stale!

Yes, the pdffactory program that originally came with ATX does produce a smaller file. Also, I second the security caveat. I encrypt and use a password on the files I send. For ease, the password is the last 4 digits of the SSN so it's easy to remember for both ends. I prepare with pdffactory then open in Adobe Pro and password protect.

:bday: and many more!

:bday: and many more!

Thanks, HV Ken, I can now throw away my chart from last year.