joanmcq

Make sure you've made the adjustments, if any to the passive loss worksheets (they're kind of a pain) and then you may have to make an adjustment on the Sch CA; there was a tab last year where I had to enter state differences or the loss. I haven't done one yet this year, but in other years there were some blue boxes you had to fill in on passive income/losses to make the CA return work properly. Every year it gets more automated, but there are always some entries somewhere. I hope this helps; I'm typing while waiting for a particularly huge return to open....

Really breezy and in the 60's and I ended up kneeling on my desk with the loppers trying to get rid of the branches that are scraping across my office windows and driving me batsh%$. couldn't get the worst of 'em though. Now I really gotta get to work.

Our fairs have the fried dough too; funnel cakes. and they'll even cover 'em with strawberries and whipped cream as well as the sugar, in case you aren't huge and a walking heart attack already. Ok, gotta get back to work. really.

If payments are from joint accounts you are supposed to allocate based on the funds put into the joint account. I disagree with the ownership issue; it depends based on state law, but she is probably a beneficial owner. Now, if they filed joint and she paid the mortgage from her separate account would you deny them the deduction because he did not pay and she is not responsible? Maybe i look at things differently since I'm in a community property state, but if you would not deny the deduction if filing joint, I don't see how it would be an issue filing separate.

There's a check box on the 568 for a disregarded entity. Something like 'check if you are filing this form for a disregarded entity and it is only used to calculate the gross receipts tax'. No 1065 required; file the 540 like usual, with the C income, and the 568 with the $800 or whatever to where ever the 568 goes. I haven't done but one of these, hence the really vague instructions.

So you fill out the worksheet that part of it is a rollover, and 'ROLLOVER' gets put beside line 15a and the taxable amount (not rolled over) goes on 15b and everyone is happy and hopefully no CP2000. If there is, you show them the docs proving the rollover.

Oh god yeah! I know the ones you mean. They set up in by the county exhibits. OOOHHHHHHHHH! and they melt in your mouth....

Works just like stocks; you can keep buying and selling the same money over and over again. The B lists the total of all the sales, not the net. Look to the year end account summary for the details.

Gave up again. Paper filed. Every time I tried to look for the CA EF info BUS, the program crashed.

Hey Tom, are they at the state fair? Do you know? God, I can almost smell them. My roommate likes to bake. So do I but I don't have time. Oh to come home during tax season to homemade cinnamon rolls!

I was unaware that basis tracking from inherited IRAs was kept separate from the rest of your traditional IRAs. Of course that could be why they ask you if it is inherited. You might want to check the 8606s and make sure the basis hasn't been subtracted each year.

Yes, if the tax has been assessed it is often necessary to file a 1040X. what you are doing (although the X form really isn't needed) is to file a dummy return with the changes made, and yes, marked with 'worksheet' or 'workpaper' keeps it from going to a unit for processing. My emphasis on these posts was to please dissuade anyone from not answering the AUR unit and just filing an amended return to wherever their X's go. That is of no service to your client. Sending an X to the service center while also addressing a response to the AUR unit will also gum things up. Tom, I wasn't referring to you when I made the comment about being too lazy to read the whole notice; it was addressed to all the posts below which stated they did NOT ever read the darn thing. It only takes a minute or two; pages 1-4 don't ever change except perhaps year to year and the address of the particular service center, so you only need to read them once a year, and the rest tell you exactly what is being addressed by the notice. I really can't see how sending in an X in response to a CP notice would help or hinder you if you are later audited. You can add things that are affected by the notice, for example, the FTC when missing dividends is the issue, without amending. And, as with an X, you only send the forms & schedules that are changed by the corrections; you don't re-file the whole return unless the whole thing is changed. And DO amend the state return once the federal notice is agreed to. I've seen far too many state notices resulting from not accounting for the changes at the state level. And even if there is no effect, I've often seen state notices which pick up on the initial CP proposed changes or audit changes without taking into account the final result, so save the federal response!!!

You're welcome! Now I just tried to open the file and it said my CA EF info BUS would not roll over because it wasn't installled. now I'm trying to install it. Of course I have no idea why it didn't install along with all the other p'ship CA forms but....will probably just print the damn things for paper file again, but I'm getting tired of it!

The independent truckers I do all get accounting sheets of the type you described from the company they are hauling for. Be aware that even though some things may be reimbursed, others, like fuel, are subtracted from the gross pay. Drivers usually have a fuel card, and may get a fuel bonus (added to gross pay) but the actual cost of the fuel is subtracted from the com account or from the paycheck. Paying for personal expenses from the com account is like paying personal from your biz account; you have to educate your client on how to keep biz records. The com account gives them a biz account; make sure they use it properly!

That's funny, because I have an inherited IRA and it always shows up taxable on the IRA line. Do they have an 8606 in the return? I put in amount in box 1, taxable in box 2 and check IRA/SEP/SIMPLE box and Inherited IRA box. Shows up on line 15b since for me, taxable is same as gross. And I just opened my return and looked at it and it is there on line 15.

Ok, I am a professional CP2000 preparer and have done hundreds and hundreds (actually probably over a thousand by now) of these. Never, ever, ever file an amended return to some other service center without addressing the corrections to the AUR unit. The AUR unit sent the notice, the AUR unit needs to know you are responding so Notices of Deficiency don't get issued. Also, don't do a frikkin 1040X. What we do is a corrected 'worksheet' return. Give them, for example, a new sch D & 1040 & maybe an A if the income or loss changes. If long term capital gains are involved, calculate the tax, since this is one thing the AUR unit gets wrong a lot. Write a letter and explain what changes. You are not helping out just the IRS, but your client as well, since the quicker and easier one of these gets cleared up, the better it is for everyone. If you screw it up and have to send it through audit recon its a lot more work on your part, and just because you are too lazy to read the notice? Would you ignore an invitation to an office audit and just send a 1040x? And remember, most of these things get issued because of a screwup on the client's part (like not reporting securities) not the IRS's part, even if it means like if the stocks sold at a loss, it ends up being to the benefit of the client that they got the notice.

Last year I had a big problem with an NY return that stayed in IRS cleared for months. finally, near Oct 15, I got on the phone with ATX trying to find out what was up and I find out it had been rejected months before. Sucked; I had synched, and the status never changed.

I keep getting an error message that if the firm name for ERO is filled out the EIN has to be also; both filled out or both blank. I don't have an EIN. Don't know how to get rid of the firm name, its just my name + CPA. Don't have this kind of problem with individuals..anyone got an answer? Oh, and if I try to create the CA efile, I get the error message that I need the form CAEFBUS, which isn't in the list of forms to be added. WTF???

I deduct mine! My employer doesn't provide, so I do. Unfortunately my employers vision and dental plans are so lousy I provide my own, but that is on Sch A...

I agree the doctor should specify the type of mattress necessary. Jack, you've never had a back or neck injury, I can see. Now I've never been so bad that I needed one prescribed, but I'm a mess after a night on a bad mattress.

They didn't get a state certificate (general partnerships appear to be the only entity NOT regulated to the hilt by CA) so no state dissolution. Very informal p'ship; 1065 required simply because they are not married for fed. Could be one of those joint Sch Cs if they were.

Last year I filed a final return for a general partnership that was selling antiques, but the one partner who was most involved got really sick and so they said they had stopped the activity and donated most of the stock. I treated the inventory as distributed to the partners and then each got a donation per the reciepts they had since the partners actually donated the pieces, not the p'ship. So now the sick partner is doing better and once and antique dealer, always an antique dealer, I guess. He's picked up some more stock and has been trying to sell it on ebay, but did not have any sales but incurred some selling expenses. They are looking to getting another space in an antique mall nearby. So, if they are firing up the p'ship again, can I use the same EIN? file it as a first return, or just ignore that I checked the 'final' box last year? Or, since the expenses are pretty low, just ignore them until they are going in full swing? ($950 in expenses approx)

I think you would file to get back tax withheld, since Canada taxes based on residency. But I've only gotten to resident Canadian returns in my Canada course, so this is only off the top of my head. And because of that plea for help! May want to try TaxPro Exchange on yahoogroups to try to contact Tim Parris. I don't think he posts here. But he's Canadian, and does cross-border tax.

Got my acceptance yesterday too. For some reason, my program froze for a few days everytime I tried to get acks. Had to reboot.

Last year you could convert to personal, but not delete the assets when you roll over next year. That way they just hang out in the return until you fully dispose of them, like if you converted a rental to personal, but kept it on the books so the depreciation doesn't get lost. Or you have an ex that moves into a rental, then moves out and rents it again.....