Gail in Virginia

I got 19 - can't believe I missed the one about Wonder Bread. I prefer to think I am not an oldie - after all I am only 49....

You might want to check the details of the stock transaction with AMT in mind also. Some stock awards trigger AMT and some don't, but even without that his income sounds high enough that AMT might be an issue.

I did not get a phone call, but I did get an email to this effect. Glad they gave us at least a little warning!

I would agree with everyone else and just list the assets - it is a one time pain for which you make them pay. However, if you really don't want to, i believe you could export the asset list from quickbooks to excel and do the depreciation in excel and only put totals on the 4562 in ATX. I am not recommending this, merely offering it as an alternative.

At the bottom of the SEP worksheet, there is place to list partnership income that bunny hops over to the K-1 input screen. Is the partnership that you are using to calculate the SEP deduction listed here? This might be where it links, but I am not sure.

Since no one else has answered, I will take a shot but I am not an authority on this. It is my understanding that if it is an IRS rejection, you have at least two days to correct and resubmit. If it was rejected before submission to the IRS (ie, by ATX) I am not sure you have any extra time to be considered timely. I could be wrong.

Usually, if they want me to do it rather than going to an attorney, it is because they want to save money. Why should I risk a possible lawsuit, or action for practicing law without a license, for a very meager fee? I would only take risks like that if I were being paid at least as much as an attorney would charge, so they might as well pay the fee and get advice from an attorney, IMO. Besides, if I wanted to practice law I would go to law school.

Right about now I think it is either 2210 or 4868, because everybody is waiting is long as they possibly can because they owe money, and I am pretty sure that as soon as I can finally get them to bring in their stuff for us to file their return, they will start yelling about "where's my stimulus check!" Some days, I wonder why I ever decided to go into this business. :rolleyes:

It depends on what is acting weird. Last week I had to reboot my son. :rolleyes:

I got an email today from NATP, and they have a training session complete with tests for each section available on line. THey cover the basics of 1040, Sch C, Sch D, Sch E, an intro to Basis, and Fixed Assets. I have no idea how good the program is - this is the first I have heard of it. Costs $400 for members, good for three people in your office, no CPE, and includes up to three research questions next tax season and a one year membership to a chat room where you can answer each others questions.

:bday: and best wishes for many more!

Sometimes these awful clients are the ones that will do the most harm. If the returns were never filed, they may not be accurate (that might be why they never picked them up.) These deadbeats might also go around town spreading the word that you will release information about your clients to anyone, whether you are compelled to or not. While I agree that you should obey a lawful subpoena, I don't know enough about the facts and circumstances to have an opinion on this, and would therefore have to go along with whatever the lawyer representing the practitioner recommends; surely that attorney is protecting both the practitioner and his/her insurance company.

Does he not pay the delivery drivers anything but the delivery charge and $30 for gas? I am glad I am not a delivery driver. I would have thought they would be employees, and I would have thought they got paid, so I am probably not the best one to answer this question. Under the circumstances you outline, he pays them the delivery charge and the fuel stipend, so he should give them a 1099 for that, but he doesn't pay the tips and he probably doesn't have a clue what they get in tips. If they were employees, they should be reporting tips to him and he should be including them on the W2, but I don't think he would have an obligation to report tips if they are not employees.

Amen.

It does sound like sch F, but if it is a sale of (cow?sheep?horse?) that he raised, it might go on 4797. I wasn't clear from your post whether this was a prize or a sale, or what was involved.

In general, Virginia passes a law every January conforming to the federal taxation laws as of December prior year, with the exception of the bonus depreciation. There are some other areas of difference relating to farmers, and a few other things, but the option to elect out of capital gains should not be a problem in VA.

I agree that we need to complain to our representatives, because they are the ones that have initiated this round of preparer penalties. In fact, these tougher standards are designed by congress to generate revenue. So I am not sure that our representatives are going to be very open to changing this, but that is the only way it can be done. IRS has to follow the law.

And although I hesitate to disagree with Jainen, I really think that it is best to have any permission to discuss a client's information in any way, shape or form with anyone in writing. I like KC suggestion to approach this early with elderly clients, before it becomes necessary. Many of my older customers prefer that I call a child, or other designated party, simply because they have a hard time hearing on the telephone. The only time that I had a client that truly needed someone to take over her affairs, it was obvious to other people as well and they handled talking to the family so that I did not have to.

CONGRATULATIONS! :)

He can't write off value on an intangible, only unrecovered costs. If he never deducted any of the franchise fees previous to this, he can deduct them now. But if he previously deducted them, he has nothing left to write off. He will, of course, have deductions for any expenses that arise from this such as buying new signs, new letterhead, etc. But you cannot deduct something you have no basis in. Besides, if the franchise had that much value, why did he abandon it instead of paying the new fee?

Is there any kind of telephone number with the statement? You should be able to contact personnel/human resources and find out what your options are. This sounds like some kind of pension/profit sharing/401(k) account that you had with ATX that was rolled over into CCH's plan. You should not have to pay any one to help you get this money, if you are fully vested in whatever kind of account this is. If you take the money out, however, you might have to pay a 10 % tax penalty, in addition to regular taxes, if you are under age 59 and 1/2. There are other exceptions, but without knowing more details, it is hard to know exactly what advice to give you. I am sure we will all be glad to help if you can give us more information.

Do you know if the credits would be available to EA's?

Got my first one the other day - was totally shocked! I would have expected if they didn't have the extension, they would just notify you your return was late and tell you what the penalty was, leaving it up to the taxpayer to prove they sent a 7004. At least that is the way I remember it working in the past. This was a new one on me.

I would rather the IRS didn't force people to efile, but several states are already doing that. Virginia requires you to either e-file or use software with a 3-d barcode that is up to their standards if you prepare 50 returns or more each year. And I have to agree that efiling eliminates some error notices.

I think this is a great idea - I just wish they would change the original due date for those returns to March 15 like the corporations to help individual taxpayers who always seem to forget they bought into a partnership or are expecting a statement from a trust.