Margaret CPA in OH

I just noticed (everything is delayed in Cincinnati) that the time shown on the posts is an hour earlier than my local time. I went to my account but don't see where I can change it to my local time. Is it even possible? It's confusing to see that I posted something an hour earlier than I did!

the week of Nov. 23rd, according to Sandra Blake of TRX. Isent an email asking to plan for W-2 and 1099 prep. I am very anxious to see the program to soothe my angst as to whether is truly is ATX Max.

A little personal interest here - my son and wife closed on their home Friday, Nov. 6. He had owned and lived in his prior home for 5 years, 6 months. The purchase was listed on the county website as date of conveyance Nov. 10. I looked at the new law, faq's, and other places but cannot find a definitive answer as to what "the date" should be. Any chance they could qualify for the $6500 credit? Or should we just sigh and think, "too bad?"

Thanks to all and especially to my son, my nephew and his wife, my older brother, my brother-in-law, my former husband, and my now deceased father-in-law. It gives me pause knowing how many loved ones have served and how many I will never know have provided for my/our security. Thanks, KC, for that link.

In my experience, no IRS agent will talk to you or provide information about a specific client without the client present or a POA. Since your client will be present, you may not need it unless your client expects you to answer. I doubt you would get any documents without the POA. If is was me, I would insist on a POA now or as soon as possible. I agree with OldJack. How can you represent the client without it? I am a bit puzzled, too, as to why you would agree to this with such a recalcitrant client. Why don't you meet with him the evening before or very early in the morning to look over the paperwork and talk straight with the client? You need to be prepared for the client's sake. If the problem is you as far as the agent is concerned, that's another matter completely. I think you don't want either you or your client to be put on the spot. Be prepared!

I find it curious that you haven't seen any of the paperwork, at least as yet. Surely you can get copies from the client immediately, right? You probably have or will very soon have POA so can get copies from IRS, right? I should think it invaluable to be apprised of the issues beforehand. Good luck with whatever happens and let us know the outcome.

Welcome back, Julie! We are so glad you were here in time for your birthday celebration.

If the church staff is knowledgeable, the fund, say the Children's Healthy Heart Fund, will be for any discretionary use by the governing body. Checks will not have an individual's name, for example, as deductible contributions cannot be for specific individuals. The church governing body can then designate the fund distribution but cannot guarantee the recipient. See earlier discussions of this topic.

Groan... My husband is notorious for gawd awful puns, as well. I may choose to not spare this board in the future since you have figuratively broken the ice. You/we may come to rue this day! Or just have good laughs. Thanks for sharing this one. I shall pass it on.

:bday: and many more!

:bday: and many more!

:bday: and many more!

This is tied to the Housing Allowance Exclusion, I believe. Hammar's Church and Clergy Tax Guide addresses this although stating that neither the IRS not a federal court has specifically addressed this issue. He states that "a case can be made that the local telephone expenses are properly includable in the housing allowance calculation. Here's why. Section 107 of the tax code permits a minister to exclude a housing allowance to the extent used by him/her to rent or provide a home. No requirement is made that the expenses be business related. All that is required is that the expenses be incurred to rent or provide a home. Ministers are permitted to exclude the full amount of their mortgage payments, insurance, taxes, electricity, natural gas, and water (assuming these expenses do not exceed the housing allowance)-despite the fact that the vast majority of such expenses are incurred for purely personal reasons having nothing to do with the conduct of the minister's profession." And so on... My question is, what is the housing allowance for your minister? I have two now-retired minister clients. They pay all the bills, submit the calculations to substantiate whether the total exceeds the designated housing allowance or the fair market rental value and the tax chips fall where they may. Since you mention a rectory, similar provisions apply. The parsonage/rectory value is not included as income and the church designates a parsonage allowance, in advance, as a portion of the minister;s compensation to the extent used to pay parsonage-related expenses such as utilities, repairs, and furnishings. Hammar is of the opinion that the first landline is "indispensable to a minister's home" to use for local calls and should be includable in the housing allowance calculation. He goes on to state, "(h)owever, this same reasoning ordinarily would not apply to long-distance telephone calls or cellular phones." I think you get the gist. There is more but it's late. Hope this helps.

Good one! Wish it would happen to me and my clients!

Thanks, KC, for your usual thoroughness and on point research. I have mostly kept up with these same or similar articles but have limited influence in the church. The likelihood of audit is extremely low for the church but I reiterate that the point is to follow the rules, not to avoid an audit. Well, I tell the same thing to clients, too, every tax season and sometimes in between. As yet, none have been audited for these things but I keep thinking it will happen yet!

Thanks, Jainen, for your usual good advice. I don't consider the employees' individual tax situation myself and I don't think that is or will be an issue. You hit it with your second statement about the church protecting itself. Unfortunately I am only one voice on this committee and one member. The latest issue, as of yesterday, is the pastor's desire to have wireless access throughout the church. I have already expressed my concern about data security with the existing situation and am very anxious about opening up access even more. At least my computer guy is the one who will evaluate the possibilities and cost and he knows my security concerns. We'll see how that goes! I did get the administrator to back up the church software database twice weekly to our website, at least. But I still have angst with the volunteers using the computers.....

:bday: and many more!

Isn't it just wonderful? I like your idea of selecting the specific pages from both at the same printing. I didn't think of that even though I had both organizers in those that needed Sch C and E. I did like being able to print them all to pdf and just go eat dinner then add in the few extra schedules I needed. I, too, really appreciate the signature line. Kinda helps bring home the message that the info listed is the client's representation.

This doesn't answer your query directly but may be informative. In the September issue of Church Finance, published by Christianity Today International, Richard Hammar JD, LLM, CPA, editor, a column addressed this. The question actually focused on usage of a church-provided computer but the answer extended to all listed property. Without typing the entire response, the mention of "de minimus fringe benefit" led to the distinction between occasion use and usage several time each month for significant time. It goes on to say that "many employers, including many charities, have adopted "cell phone and internet usage" policies. And personal use is taxable. Cell phone usage substantiation is still stringent but the income recognition for personal use is the same. What several employers have done is to adopt a policy with the following features: (1) the employer no longer provides cell phones to any employee (after current contracts expire); (2) the employer grants employees (with a need for a cell phone) a monthly taxable stipend with which the employees can purchase and pay the monthly fees for their own cell phone; (3) the employer grants employees (with employer-provided internet access) a monthly stipend to cover the personal use of the internet. This is an increasingly popular way for employers to handle these issues." I am a new member of our church administration committee and dealing now with both the internet access and cell phone usage. I have recommended that we follow these policies. We'll see how they are received and I will practice ducking quickly!

I am truly impressed at the type and number of significant improvements made. I really appreciated the return of the condensed organizer although disappointed that the detail sheets for Sch C and Sch E didn't reappear. For those handful of clients that I have with those, I added the comprehensive organizer, too, and printed the pertinent sheets. I edited the cover letter (I don't make appointments, etc.) and then added the condensed organizer at the top level. I then printed them all to pdf and discarded those not appropriate. It was easy to add the other C and E sheets, too. I am in awe that they have actually included the Ohio MFJ/MFS option, too. I knew it was available in ProSystem FX having used it years ago. Like KC, I find it hard to swallow that CCH will simply put this puppy to pasture so soon - at least that is my most fervent hope! Thanks, Taxbilly, for the link to the listing.

Woo Hoo! Congratulations! It is so great for those of us not masters of anything to be in the company of Masters! Thanks for 1000 posts of erudite knowledge!

Can you efile the corrected W-2? I file through ATX to SSA. The instructions for W-2c state: File Forms W-2c and W-3c electronically by visiting SSA's Employer Reporting Instructions and Information website at www.socialsecurity.gov/employer, selecting "Electronically File Your W-2cs" and logging into "Business Services Online." SSA's "Create Forms W-2c Online" option allows you to create "fill-in" versions of Forms W-2c and Form W-3c for filing with the SSA and to print out copies of the form for filing with state or local governments, distribution to your employees, and for your records. If you prepared the originals through ATX, you should be able to follow the above instructions. The AccuWage program checks it and allows you to go to SSA.

:bday: and many more!

:bday: and many more!

KC, you have no idea to know how good it is to see that some of us are not alone in overlooking the obvious!