Gail in Virginia

North Carolina has the same requirement. I am not willing to certify for my clients that they don't owe consumer use tax, so I ask them and explain some of the circumstances where they might have purchased something and not paid sales tax. So far, I have had only one customer who said they had purchased something and not paid tax through a catalog order. They pulled the amount off my ceiling and we went with it.

There are two different issues - contractor vs employee, and box 3 vs box 7. I understand Catherine's point - for example, I had a client who got a 1099 from the LTC insurance company for taking care of her mother. Normally, that type of work would result in SE tax BUT the taxpayer was not in that business - she only did the work because it was for her mother. This sounds similar - the taxpayer is not in the business of performing clerical tasks - she only did it because it was her sister in law, and she needed some short term help. However, if the taxpayer goes out and gets a job as a file clerk, secretary or receptionist I think it would be harder to make this argument.

A+ is a certification for computer technicians, N+ is for network certification, MCP is Microsoft Certified Professional, MCP+I is plus internet, and MSCE is either a Microsoft Certified Engineer or a Master of Science Civil Engineering. MCSE is probably more common - a Microsoft Certified Solutions Expert. Anyway that you look at it, that is an impressive list of credentials. BUT if I had that many certifications in IT, I would probably work in that field instead of being an unpaid auditor and data entry clerk for the IRS.

Done.

Thanks, Grace.

The ATX payroll software will generate the W2c. I did one the other day.

I like that idea better, Lion. That way they get ruptured ear drums, but I don't get a sore throat!

I read an article that H&R is experimenting with using Watson, the computer that competed successfully on Jeopardy, to prepare tax returns. I am thinking that the end is in sight.

I live about 11 miles away from the office, and it usually takes between 15 and 20 minutes. Mornings the biggest problem is the school buses; afternoons, the problem is getting out of the driveway here at the office. Unless I get behind a tractor or a log truck - then all bets are off.

Not quite. In Virginia, the contractors pay the sales tax when they buy the materials. There is no sales tax on labor. So contractors, as a rule, do not file sales and use tax returns.

If you decide to let her pay you when she gets her refund, I would ask for a post-dated check.

You probably won't be "prompted" to enter the pin - the return will just reject when you efile it if you don't have the identity protection pin number on the return. I use ProSeries, and the entry is made on the state information sheet. It shows up on page two of the state return at the bottom of the additional filing information section on a line labeled Office use only. Maybe you can work backwards to find the entry point. I hope this helps.

He did not do any work for them but if the payment was to replace lost business due to their blocking his door and preventing customers from entering, would it not just be run in with the other receipts of the restaurant? I can't say that I have had this situation so I might be wrong.

I haven't had the exact issue, but a friend of mine did not get her SS check one month because SSA said she was dead. She had to take all of her information to the local social security office and prove she wasn't before they started her checks again. Good thing she is not one of those people who have absolutely nothing every month until their check comes in.

Lion, i went looking for the book you mentioned at the site you gave, and I can't find it. They have 17 booklets listed as free (minimum order 100!) but no books and nothing by that title. I wondered if one of the booklets looks reasonably close to what you got. I hate to order all of them since the minimum order is so large! Besides, I don't speak or read Spanish which lets about half of them out.

Actually, I think SaraEA's statement gave me a good laugh.

I thought if Uncle Joe paid the tuition, that was all figured in total support but whoever provided over half the support and claimed the exemption got the tuition credit. Is that not correct?

In my rural area, we would charge $115 - $130 for that, assuming no ETIC or CTC. But I am sure if I lived in a large city with higher office and labor costs, my charge would have to be more. And believe it or not, our prices are fairly high for this are. Too many kitchen table preparers.

I think that if the intern is employed by a non-profit, they can pay a nominal amount (20% or less of what someone in that position would normally be paid) and issued a 1099. If a for-profit, then it should be on a W2. Either way, it is subject to social security or self-employment tax, whichever applies. At least, that is what I gathered from a quick Google search.

Thanks for the heads up. Just checked and mine was there too.

I dunno Bart. I always thought my brain could hold enough information to understand taxes or insurance - but not both at the same time - it would explode.

Me too, Christian, but I am not worried yet. Virginia often starts slowly.

I don't have a definitive answer - even the IRS was not giving definitive answers in the webinar I watched. My personal opinion is that we should be careful, apply common sense, document what we do and treat all clients the same. One thing they emphasized was that you need to have office procedures in place regarding due diligence. If you have employees who prepare tax returns, and they don't ask the questions you have told them to, that is on them as preparer. But if you have given them any guidance as to how to follow due diligence, that might be on the firm and the firm face its own penalties. I sometimes seriously think about changing careers.

I believe that 1099s are required if the expense is incurred in the conduct of a "trade or business." I think the Sch F would be a trade, whereas the 4835 would be a business, assuming a profit motive for the rental. I think that it would be required. This is not a definite answer - I did not look anything up.

I don't know if I can make it during tax season - maybe a special performance after?