kcjenkins

It's been around for a long time, but I suggest if you put your name on it, you do a bit of editing, as a number of those taxes WERE around 100 years ago. Here's a bit from one of Professor Maule's posts, which offers some good links. I'm not being critical, George, I too think we have too many taxes. But I think we need to be careful, too, that we do not over-state the issue. That just gives those who want to pass more taxes ammunition to attack you on the errors. "Had the author omitted everything between "FUNNY?" and "What in the world..." the point of the message would be focused. Instead, we are treated to assertions that are either untrue or irrelevant other then to demonstrate the anger that cannot be contained or disguised by the humorous poetry or the list that encourages thinking about the scope of taxation. Had the author looked at something like Taxation History of the United States, http://en.wikipedia.org/wiki/Taxation_hist...e_United_States he or she would have learned that a federal income tax existed more than 100 years ago. So, too, did state inheritance taxes. Examining Fact Sheets: Taxes -- History of the U.S. Tax System http://www.treasury.gov/education/fact-she...xes/ustax.shtml would have informed the author that liquor taxes existed more than 200 years ago. A little more research would turn up articles such as Slouching Towards Utopia?: The Economic History of the Twentieth Century: -VII. From the British to the American Century, http://econ161.berkeley.edu/TCEH/Slouch_British7.html which would disclose the salient fact that the United States was not the most prosperous nation in the world 100 years ago. The assertion that there was "absolutely no national debt" is nonsense, and anyone who wants to become educated on the subject can read something like The United States National Debt, 1787-1900, http://eh.net/bookreviews/library/1058 which discusses the national debt from its beginnings more than 200 years ago. It's unclear whether the assertion about the size of the middle class refers to total numbers or percentages. Nor is it clear how middle class is defined for these purposes. But during the nineteenth century, there wasn't much of a middle class in this country or elsewhere. Whether "Mom stayed home with the kids," which may or may not be a generally accurate statement about life 100 years ago, or whether someone must press 1 for English, which is true in at least some voicemail systems, doesn't seem to tell us much, if anything, about the scope of taxation or the history of taxation. These claims illustrate what happens when emotions trump intellect while a person is communicating." http://mauledagain.blogspot.com/2007_12_01_archive.html

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1. Save the whales. Collect the whole set. 2. A day without sunshine is like...night. 3. On the other hand, you have different fingers 4. 42.7 percent of all statistics are made up on the spot. 5. 9 percent of lawyers give the rest a bad name. 6. Remember, half the people you know are below average. 7. He who laughs last thinks slowest. 8. Depression is merely anger without enthusiasm. 9. The early bird may get the worm, but the second mouse gets the cheese in the trap. 10. Support bacteria. They're the only culture some people have. 11. A clear conscience is usually the sign of a bad memory. 12. Change is inevitable, except from vending machines. 13. If you think nobody cares, try missing a couple of payments. 14. How many of you believe in psycho-kinesis? Raise my hand. 15. OK, so what's the speed of dark? 16. When everything is coming your way, you're in the wrong lane. 17. Hard work pays off in the future. Laziness pays off now. 18. Every one has a photographic memory. Some just don't have film. 19. How much deeper would the ocean be without sponges? 20. Eagles may soar, but weasels don't get sucked into jet engines. 21. What happens if you get scared half to death twice? 22. I couldn't repair your brakes, so I made your horn louder. 23. Why do psychics have to ask you for your name? 24. Inside every older person is a younger person wondering what happened. 25. Just remember - if the world didn't suck, we would all fall off. 26. Light travels faster than sound. That is why some people appear bright until you hear them speak. 27. Life isn't like a box of chocolates.... it's more like a jar of jalapenos. What you do today, might burn your behind tomorrow.

Thank you Sue. Glad to have you back with us. My husband had a stroke on 8/31, and he is still in the 'recovery' stage. It's been a long road, and still miles to go, but the prayers of my friends have been a great help to me. I know what you mean about the season. I just hope that the Congress will stop playing their political games, and get that tax bill, and the AMT corrections, passed soon. Or this is going to be a horrible tax season, with lots and lots of very unhappy clients.

Of course it's OK, this is public information that needs to be disseminated more widely. IMHO. It clearly shows that those pols who talk about the Bush tax cuts being 'for the rich' are not telling the truth. The bottom HALF of all taxpayers got their taxes cut by 25%. While the top 10% went up significantly. Unless we can talk HONESTLY about taxes, we will never get real reforms passed. As long as they demagogue the issue as they are doing now, we will just get more and more complexity, without addressing any of the real issues of inequities in the system.

New Living Will Form I, __________________________, being of sound mind and body, do not wish to be kept alive indefinitely by artificial means. Under no circumstances should my fate be put in the hands of pinhead politicians who couldn't pass ninth-grade biology if their lives depended on it or lawyers/doctors interested in simply running up the bills. If a reasonable amount of time passes and I fail to ask for at least one of the following: ______a Bloody Mary, ______a Margarita ______a Scotch and soda ______a Martini ______a Vodka and Tonic ______a Steak ______Lobster or crab legs ______The remote control, ______a Bowl of ice cream ______The sports page, ______Chocolate ______Sex it should be presumed that I won't ever get better. When such a determination is reached, I hereby instruct my appointed person and attending physicians to pull the plug, reel in the tubes and call it a day.

Who Pays Income Taxes? See Who Pays What For Tax Year 2005 Percentiles Ranked by AGI.....AGI Threshold on Percentiles..... Percentage of Federal Personal Income Tax Paid Top 1% .........................................$364,657......................................... 39.38 Top 5% ........................................ $145,283......................................... 59.67 Top 10% ........................................ $103,912........................................ 70.30 Top 25% ......................................... $62,068........................................ 85.99 Top 50% ........................................ $30,881........................................ 96.93 Bottom 50% .................................. <$30,881 ...................................... 3.07 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2004 Percentiles Ranked by AGI..... AGI Threshold on Percentiles.....Percentage of Federal Personal Income Tax Paid Top 1% ....................................... $328,049................................... 36.89 Top 5% ...................................... $137,056 .................................. 57.13 Top 10% .................................... $99,112 .................................. 68.19 Top 25% .................................... $60,041 .................................. 84.86 Top 50% ..................................... $30,122 ................................. 96.70 Bottom 50% ............................... <$30,122 ................................. 3.30 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2003 Percentiles Ranked by AGI......AGI Threshold on Percentiles.....Percentage of Federal Personal Income Tax Paid Top 1% ..................................... $295,495 ................................... 34.27 Top 5% .................................... $130,080 ................................... 54.36 Top 10% .................................. $94,891 ................................... 65.84 Top 25% .................................. $57,343 ................................... 83.88 Top 50% ................................... $29,019 ................................... 96.54 Bottom 50% .............................. <$29,019 .................................. 3.46 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2002 Percentiles Ranked by AGI..... AGI Threshold on Percentiles.....Percentage of Federal Personal Income Tax Paid Top 1% ........................................ $285,424 ................................. 33.71 Top 5% ........................................ $126,525................................. 53.80 Top 10% ..................................... $92,663................................. 65.73 Top 25% .................................... $56,401 ................................ 83.90 Top 50% ...................................... $28,654 ................................ 96.50 Bottom 50% ................................ <$28,654 ................................. 3.50 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2001 Percentiles Ranked by AGI..... AGI Threshold on Percentiles..... Percentage of Federal Personal Income Tax Paid Top 1% ...................................... $292,913 ................................. 33.89 Top 5% ...................................... $127,904 ................................. 53.25 Top 10% ................................... $92,754 ................................ 64.89 Top 25% .................................. $56,085 ................................ 82.90 Top 50% .................................. $28,528 ................................ 96.03 Bottom 50% .............................. <$28,528 ............................... 3.97 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 2000 Percentiles Ranked by AGI.......AGI Threshold on Percentiles.......Percentage of Federal Personal Income Tax Paid Top 1% ..................................... $313,469 .................................... 37.42 Top 5% ...................................... $128,336 .................................... 56.47 Top 10% .................................... $92,144 .................................... 67.33 Top 25% .................................... $55,225 .................................... 84.01 Top 50% .................................... $27,682 .................................... 96.09 Bottom 50% ............................... <$27,682 .................................... 3.91 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service For Tax Year 1999 Percentiles Ranked by AGI.....AGI Threshold on Percentiles.......Percentage of Federal Personal Income Tax Paid Top 1% .......................................... $293,415 ................................. 36.18 Top 5% .......................................... $120,846 ................................. 55.45 Top 10% ........................................ $87,682 ................................. 66.45 Top 25% ........................................ $52,965 ................................ 83.54 Top 50% ........................................ $26,415 ................................ 96.00 Bottom 50% ...................................<$26,415 ................................. 4.00 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service

We are happy that you've joined us.

And while Pubs are not 'authoritative sources', in this case this one is totally right. Paint is always maintenance, not a capital improvement, regardless of how much it costs.

Yes, I expect some of the improvements will take away a lot of the bad taste that the 'system' changes left us. I know some of the new worksheets will come in handy in my practice.

http://www.atxinc.com/products/prod_merchant.aspx Pricing and Fees Set-up/Enrollment Fee $0.00 Monthly Statement Fee $0.00 Discount Rate for VISA® and MasterCard® 2.99% Monthly Internet Fee $12.00 Per Authorization Fee $0.20 The discount rates disclosed are based on the following: VISA® CPS Card Not Present, and MasterCard® Merit 1 Interchange rates The transaction is authorized and settled Non-qualifying transactions will be charged a higher rate based on the Visa® and MasterCard® rates This offer is only available to ATX Software Licensees

As a lot of you are just now coming back to, or finding, this board, I will once again ask all of you to PLEASE put into your profile at least your state, for the benefit of all of us in knowing what state you are in. This helps if we want to ask a question of someone on the board about a state form, or even just if we are reading an answer about something that might be affected by state law differences, like labor law questions, for example. It also might let us find a new friend to turn to, if we need to discuss a state tax question or form. Or just to know a fellow ATXer for social reasons.

Without the time to research the problems you mention right now, I'd merely suggest that on each line you seem to be having a problem with, do a right-click on that line, and look at the worksheet that is behind most of them. Often you will find that there is a check-box or some other option on that worksheet that needs to be selected to make the line flow to the right place. That is because some items have more than one place they COULD flow to, and only the preparer can decide which one is the correct one in the specific situation. It's not a program flaw, it's actually a protection against just always flowing it to the 'most common destination', when, in fact, a decision needs to be made first.

Yes, using other programs does not make you less a part of our Community, if you want to be. We are all wondering about how things will go. I must admit to a lot of angst about some of the changes, although the early delivery of the program is one positive sign that I like a lot. It looks good, and the enhancements they are touting, if they are what they say they are, will be welcomed. Having it in my hands in Nov is a real spirit booster. I liked the changes ATX made last year on CA returns, Tom, so I can well understand why that would be a real issue for all you CA preparers, if a program does not address well the many differences that CA has. Especially this year, with the 'domestic partner' issues in CA. I'd hate to have to deal with those!

Here are some of the enhancements made to the functionality of your 2007 ATX software: • Printing Sorted Labels, Client Lists, Extensions, Organizers, and Returns – We expanded our printing options to give you greater flexibility sorting each of these items when printed. You can sort by client number, city, state, ZIP, the current Return Manager order, and more! • Error Check Renamed Check Return – We renamed our familiar Error Check feature to Check Return, as we expanded it to make it even more useful, identifying fields that contain estimated values, overridden amounts, or notes. Just click any item in the Check Return list to jump right to that field, where you can edit it as needed. You can also print reports for each type of field. • Updating Government Instructions – You can now update the government instructions for all of your forms right from within the program. • Saving Update Manager Preferences – You can now customize your updating experience—just make a few choices the first time you update, and then you can update your program and forms exactly the way you want, faster than ever! • Client Letter Wizard – We have made several enhancements to our Client Letter Wizard, including options to check whether the return will be e-filed and whether you want to use the default due date or an alternate one. • Product Integration – We have increased the product integration options for your office, as we now offer several exciting new programs—including Scan&Fill, Fixed Asset Manager, and Document Manager—with which you can export and import data. • ATX University – We created this Web-based self-study system as a powerful tool for you to train your staff to make the most of our software. Form Enhancements Here are some of the enhancements we made to commonly used forms in your 2007 ATX software: • Signing Amended Forms – You can now print the preparer signature on amended forms that allow it. • Client Letters – We updated our federal and state client letters to include Form 1040 and 1041 amended returns. Also, state client letters are now available for state payroll forms. • Clergy Worksheets – We created new clergy worksheets based off of IRS publications. These worksheets are fully integrated with Form 2106 and Schedules C/C-EZ and SE. • Enhanced SEP Calculations – We added the ability to calculate SIMPLE and defined-benefit self-employed retirement plans to the line 28 worksheet for Form 1040. • 1099 Interest and Dividend Input Worksheets – We expanded the Interest and Dividend summaries. The interest worksheet now includes additional information for state-associated tax-exempt interest. • Carryover Summary Worksheet – We added an informational worksheet for Form 1040, 1041 and 1120 tax returns, which provides certain carryover details for the following tax year. • 990 Series Forms – We added expandable worksheets and explanation fields to accommodate significantly more data input than in the past. Forms 990, 990PF and 990EZ now offer the full functionality required for e-filing. • Schedule K-1 Viewer – We enhanced the on-screen navigation for viewing federal and state Schedule K-1s based on the partner, shareholder, or beneficiary name. • Schedule D for Forms 1065 and 1120S – You can now enter Alternative Minimum Tax adjustments for capital gain transactions in Form 1065 and 1120S returns on Schedule D and have the amounts transfer to Schedule K. You can also now designate capital sales as non-portfolio sales. • Form 2220 – You can now enter multiple payments for each quarter on federal Form 2220. For state underpayment forms, we added the ability to roll over prior-year information and more easily calculate underpayment penalties and interest for fiscal-year filers. • Ohio City Product – We created a new worksheet that allows the Ohio resident city return to automatically calculate the credit of taxes paid to other Ohio cities. • Asset Entry Form – We made several enhancements to our Asset Entry Form, including: • Linking of casualty and theft transactions to Form 4684. • Linking from Forms 6252 and 4797 to their state equivalents. • Linking of disposition of principal residence information Form 4797 and Schedule D. • Automatic application of the Mid-quarter convention when warranted. • Added calculation of post-recovery calculations. • Ability to change the business use percentage for each year in an asset’s history. • Integration of information from our Fixed Asset Manager program.

Did you check with CCH? Since you are an ATX user, and ATX is part of their packages now, you should be able to negotiate a deal with them. I'd try for a free demo use, myself. It's the old program, after all. The 2007 returns program is already out, now. Hinting that you might move up, in the next year or two, if you like their higher-end products, would not be unreasonable, now a lie. You MIGHT, after all, if enough things happen......... Right?

First, there is no such thing as 'owner's draw' in a corporation. I'd show it as an advance to employees, when it is given to an employee, and I would tell them not to write checks to non-employees for this purpose. If they must, write it to the employee, and let him cash it, and be responsible for turning in receipts. Any amount not accounted for with a receipt is considered income to that employee at the end of each month [or quarter, at the latest]. When you get a receipt, then you debit job materials and credit employee advances.

Paint is a normal repair and maintenance item. New siding would be depreciated.

Well, yes, he'd be subject to the recapture rules, so why would you take the deduction when you already know that he's not going to be eligible for the deduction, and will have to pay it back with interest. Also, when there is no question, up front, that it is not qualified as alimony, I'd worry, with the new rules, that taking it could make the preparer subject to the penalties for taking an unreasonable position on the return. At a minimum you would need to disclose the position, which the client would not like. I do not see any benefit at all from this, from the client's point, and an actual negative, from the preparers point. The recapture rules are intended for situations where it looks, up front, like it's valid alimony, but due to some significant change, it no longer qualifies. Not for taking it knowing at the start that it is not going to qualify at the end of three years.

Jainen, I forgot about that one. That would eliminate the first two for sure, wouldn't it?

On this one, I'm with Jainen. I do not think many of us will have a need to discuss this with the majority of our clients. I will only be discussing this with those few who's returns actually have 'issues' that might make disclosure an issue. For those, however, I will make sure that they are informed appropriately. Adding it to all engagement letters seems to me, tho, as not only overkill, but also needlessly frightening to the client.

Yes, most of the time his attitude is great. Occasionally, he gets really 'down in the dumps', and he's hard to live with then. But I do believe that the prayers help a lot, so keep them coming. I know, too, that just knowing my many online friends care helps ME get through the hard days.

Payments made under divorce executed after 1984 are deemed to be alimony if they meet six criteria. First, payments must be made in cash. Code Section 71((1). Second, they must be required under a written divorce or separation instrument. Code Section 71((1)(A). Third, the divorce or separation instrument cannot designate payments as non-deductible by the payor or excluded from the payee's gross income. Code Section 71((1)(. Fourth, if the parties were separated under a decree of divorce or legal separation, they cannot be members of the same household when payments are made. Code Section 71((1)©. Fifth, the payor cannot be liable for payments (including any substitute for required payments) after the death of the payee. Code Section 71((1)(D). Sixth, payments cannot be for child support. Code Section 71©(1). If all these criteria are satisfied, the payments are characterized as alimony for federal income tax purposes. Thus, payments may be characterized as alimony even if state law would characterize the payments as something other than alimony, such as part of a property settlement. So, what you have to determine is if any or all of them meet ALL six of the tests. Read the complete divorce papers, because you have to be sure that the third test is not covered somewhere else in the paperwork, either before or after the section where the financial details are set out. If she has a decent lawyer, it should be there somewhere.

Which state is that? Have you looked into offerings from state professional groups? Or asked other tax professionals in your area?

Tom, this section is so new and so complex that what you are doing is really 'the only way to fly', so to speak. There really is not much to go by so far, other than just reading the code itself.