Gail in Virginia

That trade off is not likely to happen. If a politician did manage to streamline the tax code that dramatically, within twelve months some special interest group would have convinced some other politicians to add back just this one exception that is so important to fair tax administration and economic policy, and before you know it our vacation would be over. At least that is my guess as to what would happen. :wacko:

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It was different last year as far as real estate taxes go, Pacun. This year just adds sales tax on new vehicle sales into the mix.

In some instances, a business might choose a different method of depreciation for purposes of internal and external income reporting than that which they are required by law to use for taxes, or that which they find more advantageous to use for tax purposes. This would make a fixed asset manager useful. Also, in some cases in the state of Virginia, the local commissioner taxes business property and it might be easier to print a report from a fixed asset manager. Also, if depreciation is managed from a separate program than the tax program, changing tax software is less stressful.

From the instructions for form 8453: Form 2848. An electronically transmitted return signed by an agent must have a power of attorney attached to Form 8453 that specifically authorizes the agent to sign the return So yes, you do have to attach the 2848 or substitute POA to the 8453 and send it to the IRS. I don't think the 2848 is included as part of the e-file, but I would modify it as you have done if it is open in the return rather than take a chance. As far as the federal goes, I think you have everything fine.

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Have a client in the restaurant business who hired a dishwasher and they agreed to cash payments under the table. Other employees have been given W-2's, and now the dishwasher wants his W-2. I chastised the employer, told him at this point he has to pay both halves of the social security, etc. My question, though, is how to correct this. The employer has already sent in his W-2's with a W-3, and all of the other year end reports. I know we have to file a 941c to correct the taxes, and correct the other year end reports. But - do I file a W-2c for this employee changing his wages from -0- to $$$, and do a W-3c to show the new total for this employer, or can I just do a W-2 for this employee and a separate W-3 for just this amount? Long day and the brain just isn't working;

You must have bought the party version. Mine isn't nearly that interesting.

Have you marked the box that you are ERO and paid preparer? If so, I think it will only complete the preparer section with signature there counting for both.

However, she will still not be subject to unemployment tax until age 21 (at least Federal, and not in the state of Virginia).

I think that once you fill out the POA information on the EF info sheet, the check box on the 8453 will automatically be marked without needing to be overridden.

Just shooting from the hip for someone else to critique, but - she can file head of household because she has a child and she and her husband lived apart the last six months of the year. If she files that way, he should file MFS and file on his global income (I think). Next couple of years if he has no US income, he can probably avoid filing. OR they could file MFJ this year, and save HOH for next year. I am not really sure about this since he does not have permanent resident status or citizenship yet. But I feel sure someone will correct me.

And remember, a new year has started and if this is still a going concern, he will have the same problem next year if they don't get and EIN for the business and use it for everything.

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I hope someone with more experience answers you also, but I think the main thing you need to be concerned with is making sure that you do no duplicate DCNs.

I have seen it happen when someone makes a mistake. :)

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Thanks, August! I have bookmarked the page.

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I have a test return that I use, and when I made sure the sch c, sch SE, and the proper social security numbers were entered, the amount from the schedule c less the 1/2 se tax subtracted from AGI flowed onto the form just fine. I did not have to override anything to get it to work.

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