Cathy

It's just too easy to print a voucher for the payment due. Always tell my clients that it would just be "our luck" for IRS to take the amount out of the account on a daily basis rather than a one time payment. And, I do mean "our" luck as I know a client would consider it MY problem to fix it!

Understand completely your position. The domiciliary state can and my state (Louisiana) would definitely dispute the credit of taxes paid to other states in a return of this type. Louisiana is already disputing several items this year when in past years returns have flown through without any problems. They're scratching for income (probably as is all states) this year as the budget hole is getting bigger each year...after our legislature quickly spends any excess revenue found after the fiscal year ends on special pet projects. The "spending the last dime" takes place in special sessions called for just that purpose. As the extra time Louisiana Revenue employees would spend on disputing this type of return will exceed the revenue to be gained by our state, a preparer would be doing everyone involed a favor. You see....a gain for everyone involved. Take care, Cathy

Deadline for filing an extension for a corporate return is March 15, 2011. That's what I'd do for starters...and then after April 18th....or probably 1st part of June is when I'd complete the returns. Too much hoo rah for this time of year. Cathy

Before you separate Sch C income, see Publication 504, Page 22. Cathy

OK...let's try this link to Choice of Entity: http://www.xtranormal.com/watch/7533793/

When I click on the link, I see the video Lion mentioned. Also, I see "Additional Episodes in this Series" below the video that Lion originally posted. Hope you can see the same as they were really hilarious! It may have something to do with having a twitter or facebook account....seems like I signed up for a twitter account a while back, but don't ever use it or facebook...anyway...if you can't bring them all up on that one link that Lion provided, its probably going to be due to having a twitter account or not. Good luck!

In the For What It's Worth Department, I agree 100%. My biggest concern is that his domiciliary state would dispute the income allocated to the other states (especially since the employer lists all income as earned in his domiciliary state). Cathy

Thanks, Lion, I needed that laugh! Got a kick out of all of the videos....the "home based business" was the best! Cathy

My office and clients are in southern Louisiana. Many clients have come this year so proudly with their "energy efficient home improvements eligible for the 30% credit" (mainly replacement windows). After verifying their U and SHGC factors for the replacement components, I normally have to break the news to them that the particular windows they purchased aren't eligible for the energy credit. And, I know that your "supplier told you that these windows do qualify for the credit" yada, yada, yada. After steaming over the different vendors not telling their customers the "truth", I decided to get down to the "bottom" of the confusion. Taken from the "Energy Star" website (energystar.gov): "While some windows and skylights are better at keeping you warm, others excel at keeping you cool." A graphic is displayed that shows people in southern Louisiana are better off purchasing windows with a U factor of .60 or less and the same graphic shows that people in the northern states are better off purchasing the windows with a U factor of .30 or less. This is where the problem lies....the tax credit is for windows with a U factor of .30 or less ONLY. In other words, people in Louisiana would not be wise in purchasing windows with a .30 or less U factor as windows of .60 or less U factor do a better job at cooling because of our climate. We rarely have to use heaters in the deep south...but air conditioning is essential! Vendors and suppliers stock and order the best energy rated components for our climate, and although the windows they sell are the best windows based on the "Energy Star" recommendations, they DON'T meet the requirements for the tax credit. As "Energy Star" is a government affiliated program, why wasn't someone with "Energy Star" consulted with prior to Congress establishing this tax credit and the requirements for the credit? I know....it's the same as asking why were the rules changed for the EIC qualifications when there was so much fraud involved. Instead of taking care of the ones committing the fraud, it was easier to make rules to where those same persons were NOT committing fraud......NOTHING IN THE TAX CODE MAKES SENSE ANY MORE! Thank you for listening. I have vented and now ready to go back to work. UPDATE: For double hung windows with the argo gas option, google the brand name and "Manufacturer's Certificate Statement" to see if the particular model or series of windows purchased are eligible for the credit. A window that has a label that states a U factor of .32 could still be a qualifying window if it is then double hung with argon gas in between two panes of window.....that's when the "Manufacturer's Certificate Statement" comes in handy...especially if you are dealing with sales persons who can't tell you anything else but "you can rely on my word".

I know your pain! This client is definitely one that needs your new policy: No returns will be released prior to payment, any and all work performed by you will invoiced accordingly (the no charge situation will cease immediately), and as your costs have increased over the years but your fees have not, any future work for him/her will reflect your long overdue rate increase. It works every time. I either get rid of an aggrevating client (the type that makes you hate the whole tax season just because of him/her) or I happily do their work as they have accepted my HUGE rate increase. Either way, you come out way ahead! Last but not least, as I have said many times on this forum: the more you charge them, the more they appreciate you. After giving one of my clients his invoice (with a $75 increase from 2009), he immediately wrote his check and told me he'd be right back. He went to his truck and returns to my office with a bottle of liquor (retail - $120) and told me how much he appreciates me. Go figure!!! Take care, Cathy

Brilliant idea, j!!! Rather than comtemplating the "what ifs" later down the road, I'm going to incorporate your suggestion on such cases before hand rather than after the fact. Cathy

Taxpayer's refund should not be delayed because of the corrected 1099 (and they did mark it "corrected", I hope). Inasfar as the letter in a couple of years...don't know but make sure you document the date, time and name of the person with whom you spoke... just in case. And their reasoning for the two becoming one make sense to me....IRS will notify taxpayer IF it doesn't make sense to them. Cathy

I did have one very similar to your situation this year....but only one. Website did change dates, etc..as you stated. I called the e-file practioner help desk (you can get the number off the IRS.gov site...just not in my office at the moment). The help desk told me that the return was indeed delayed for a week, but should be deposited the following week as shown on the refund cycle chart. The help desk said the situation appeared to be an "internal glitch" within their system as she could offer no explanation for the delay. In all of the years of my e-filing deposit delays, there has always been a reason that caused a delay.....not so in this case. The client did receive her refund in her account the following Friday....however, there is still no valid explanation as to what happened other than an "internal glitch". This one particular client was in dire need of the deposit as spouse was layed-off. Seems as an "internal glitch" can happen to the wrong taxpayer at the wrong time> So now, I'm sure to tell my clients (as I always have done in the past) that out of the many returns I've e-filed thus far this year, one deposit was delayed a week...so "don't count your chickens before they hatch" yada, yada, yada.... Take care, Cathy

You're absolutely correct! ;)

Kudos, Jack! In the off season, I ponder whether I will be able to go it another year. And once the year starts, slip right back into the groove. Will follow your lead...next year this time, I will be testing also. Would wish you "good luck", but I know you don't need it! Cathy

Hmmmmmm.... Seems like someone at CCH is too dedicated to their job. Tornado warning and sirens generally mean drop what you are doing and run for your life! Sad thing about it is that CCH wouldn't skip a heartbeat if this very loyal (but very...let's just say...very "not too bright") employee was killed by flying debris while trying to take care of CCH customers.

MAM... Also, you can open your return and click on your "E-File" tab then "Display Rejection Errors". You will then see: EFC41: Return changed after E-File created The return was changed after the e-file was created. The e-file was rejected to ensure that you would re-create the e-file and incorporate the changes before you transmit it. I purposely make my returns reject when I am waiting on the client to come back for signatures, etc.... That way I won't forget to e-file them when things are hectic. Cathy

Yep, you're right. The credit starting with the tax year of 2008 could be e-filed and deposits were sent to banks within the normal refund schedule. Then...IRS found out that many people (including some locked away in cells for years) were receiving refunds fraudulently. These returns whether amended or on original 1040's are now taking months (as in 8 to 10) as IRS is scruitinizing each and every return with the FTHBC. The interest your client will receive is nice, however. I'm surprised that return has come so far in 4 months. Perhaps they caught up with their backlog...somewhat anyway. Cathy P.S. Tip: If taxpayer has all 5 items, send them all. Too much info is so much better than not enough in this instance. ;)

EFC41 is an ATX rejection.....probably means you printed something after you created the e-file. Go back to your return and make sure the refund/payments match, etc...create the e-file again and transmit. You should be fine after that. Cathy

Had similar situation several years back. Tough situation. I refused to prepare the son's return as some one else could claim him as a dependent. Son never came back. Later that year, the "parasite" moved out of his parents' house and went somewhere else to have his returns prepared. This business is tough enough without having to deal with spoiled brats. Next.....

I agree that the parents are enablers. My husband used to pull my reins many times when I wanted to "help" our sons. He told me we had to teach them "survival skills". He was right.

Pancun, You can also open the company's check register and enter "after the fact" checks and deposits. It's like entering into an ordinary check register. Cathy

If the one possible W-2 that may or may not be issued did not effect the refund drastically, I might consider #4 on the link David provided.... And, IF, the client chose that route, I would prepare both the e-file and amended return at the same time and charge accordingly. I'd also advise the client to wait until the refund had cleared, then immediately file the amended return. But, then again, I have an alligator making a nest under my office as we speak! Sometimes we do things a little different in the swamp, but never short change our Uncle. Cathy

If you hit a dead end, the toll free number to the IRS's Identify Theft Department is 1-800-908-4490. Had my first Identify Theft issue last week. First one ever. Here's a link to the ERC reject codes: http://www.irs.gov/taxpros/providers/article/0,,id=175068,00.html Cathy

Question is: Is there any adjustment I need to make on Form 6251 for the gambling loss she claims on Line 28 of Schedule A? And the answer is NO!