NECPA in NEBRASKA

Thanks for the information, Jack. I don't have any employees, so there should never be anyone else working on the program.

I am not a technical person, but I have a questions. I did not have as many issues as others, because I only have one Windows 7 Pro with 12 Mg of RAM. I have encountered slowness and some random crashes. My questions concerns using two different operating systems. I was able to use my XP laptop and SLOWLY prepare a few returns when absolutely necessary through Logmein Pro. Is that normal or was I just really lucky. I'm undecided about next season, and am going to look at other programs this summer, if I ever get caught up enough to look. Thanks!

I dislike EITC, because it can be used for anything and it is in their tax return that we have to pre-audit and sign those returns hoping that we are correct. I do not have many clients that get it thankfully, but last year I know that it bought new breasts for a recipient and a vacation for her and her boyfriend to go show them off. She dropped her full time job down to 15 hours a week, so that she could go back on food stamps and get more welfare. I'm very sure that many people need and use it wisely, but I would rather that it come to them monthly or in some other way that can't be abused so easily.

I have some accepted, but most transmitted. I have a state return rejected by them, because they say they already had it, but I don't see another one.

I'm trying to file extensions and a couple of returns and it is checking for ancient acks that I already have. I am so tired of this.

I'm sorry. I feel the same way about most of my clients. I've lost some very close ones the last couple of years and I expect to lose several more this year, due to many of them being with me since I was in my early 20's. I pick up a lot of their kids and grandkids, but they are never the same and normally way more demanding than their elders.

I don't know what I would do without this group. I learn so much and sometimes feel stupid, but this is a wonderful place to hangout. Thank you everyone! Bonnie

Happy Birthday!

My office phone has a do not disturb button. I love it so it just goes to voice mail when I am trying to sleep. I work very late too.

I am having frequent crashes now. It just started yesterday. I am on 12.13 with 12 G RAM, Windows 7 Pro, stand alone.

I do not have that option when I create one.

Thank you. The rep says it was sent with the 2011 return, but I will send it again. I don't know how Block managed to efile it.

A client brought me his mother's final return for 2012 to prepare. She passed away last year before 2011 was filed. It was e-filed by Block. This year, ATX error says that a court appointed personal rep may not efile. I had a 1310 in with Box B checked, but ATX said that I have to check box C. Am I missing a box to check in the program or does this have to be mailed? There is a refund involved. Thanks! I just want it off of my desk.

I'm not sure., but it will be up. I moved up my deadline in my January letter, but apparently a lot of my clients think that it didn't apply to them and are having a cow. I told them when the returns came in that they would be extended, but they thought that I would change my mind. I will be lucky to get done the ones that came in before the deadline.

I had to eat all of the finches at our feeder today before my husband got them. Our snow melted so I couldn't have any coffee today and am really crabby.

Thanks. She just came in and said that she may be starting Team National this year and that she didn't do parties anymore for Mary Kay. She sold to family and close friends and used the product herself. I know that I don't work for the IRS yet, but they are sure pushing for it. I am just super cautious. I am the sole support for my family now and I don't want anything to screw it up for a few hundred $ in fees. I belong to another list serve with a couple of CPA's on there that scare me to death daily with their horror stories about Circular 230 audits.

Jack, I went through those questions with her. All of the answers were negative.I do not want a preparer penalty for taking a stance that it is really a business when she has no intention of trying to make money. She admits that she spends very little time on it. I have to make the determination of whether I want to sign the return or not. If she wants it to be a business for 2012, she can take it to someone else that doesn't care.

Tom, I don't think that anyone would be in this business as a hobby. Who would want all this stress for fun?

Old Jack, if she makes a profit in 2013, I will amend this year for free and apologize. I called her today and asked her what $220 of labor is and she paid her daughter to count inventory. Her inventory is $800. That seems like pretty high labor, She is fine with it being a hobby for 2012.

We went through them yesterday after I emailed her some IRS pubs and papers on hobby. She didn't have any good answers, except that she is busy and that she needs her taxes finished ASAP so that she can give them to her kids' high school to see if she can get a scholarship for next fall. She just said that she was going to have to decide in 2013 if she wanted to continue. I do think that she had good intentions in the beginning after going to all of the conventions in Texas, but she has never shown a profit, her gross profit % for 2012 is 30% with a $3,000 loss after all of the other expenses that she gave me.

I will ask her some more questions, but she just threw out a bunch of product that had expired after five years, so I think that she bought too much a long time ago. Her sales have never been more than a couple thousand dollars a year and she doesn't even get a 1099. We have gone through this several times and it is not getting any better. Jack, with all of the questions I have asked, I don't feel that I have a leg to stand on if I allow it to continue to be reported as a business. I ran all of her reported expenses through last night and now she even gets a small amount of EIC. I will call her again and get more details as to how often and to whom she sells the products.

Because it is my job to know the tax laws and how to apply them. It is not my tax return, but I cannot sign something that I believe is incorrect. No engagement letter will protect me form Circular 230 or malpractice if she pulls an audit. She can always take it to someone that doesn't care if it is a business or hobby.

Thanks for all of the comments. It has to be a hobby in order for me to sign the return. She talked to her brother and he told her the same thing that I told her, so now she agrees that I was correct.

I think that her motive is to make money, but I don't think that she actually knows how to. As far as a business plan, she says it is to try to get more parties and sales. If she doesn't have anyone working under her and collect more commissions, I don't think that she has a chance.

I have been going round and round with a client about whether her Mary Kay is a business or hobby. She has never produced a profit in several years, but keeps trying. She says that she is trying to make money, but that no one will buy the product without discounts. She does fill out the record sheet that Mary Kay gives them, but here gross profit is less than 50%. Her husband died unexpectedly two years ago and I know that set her back, but she has a full time job and I can't justify it being called a business when the only improvement I see is that her losses are smaller. Am I being unreasonable to not want to sign a return that continues to kick off losses. She is worried that it will trigger an audit if she changes to a hobby, but I can't let that drive the decision. She doesn't pull a lot out for personal use, but gives a ton of discounts and product away to hostesses. Thanks for any comments, good or bad. I think that it has to be a hobby, but I would love to give her the benefit of the doubt.