David

Thanks for you help, KC.

KC, I just realized that we will be processing payroll deposits, 941s, etc for Q1. The name change isn't effective until 2/1/15 so, if I understand you correctly the 2014 tax return will still be a 1065 with the old name. When I file the 2553 with an effective date of 1/1/15, the old name will still be listed. I won't change the name until we file the 2015 1120S next year. If we use the new name on payroll reports beginning 2/1, the IRS will more than likely be confused. Is there a form to file when we prepare payroll reports that show the new company name? Thanks.

KC, thanks so much for your help.

Are there any regs to refer to? I didn't think the foreign company would owe US taxes just because a US company is purchasing materials from them.

Does anyone know if there are any special forms or filings that need to be done by my contract manufacturing client for a new customer located in another country? The foreign customer also has a location in the US, however, my client doesn't do business with the US location. Are there state requirements in addition to federal requirements? I couldn't find anything in google. Thanks.

Ok. The banker filed a conversion with the Sec. of State to convert the LLC to a corporation and to change the name. He also got a new EIN for the entity because he thought he needed to. I talked to the banker and he said the account can use the original EIN instead of the new one if we needed them to . Since this was done I think I can do the following: File for S Corp election effective 1/1/15. SH B terminates his SH interest 1/31/15. File a name change from A and B LLC to A Law Firm, PC. Keep the original EIN. Does anyone see a problem with my thinking? What form do i use to make the name change? Do I do this before the 2553 is filed or after? Thanks.

Thanks, Lynn. Regarding the parking lot paving costs - since it isn't a betterment can the $22K be expensed? Or does it have to meet the required 2 times in a 10 year period test before it can be expensed? Thanks.

Client owns a restaurant business and also has a separate LLC that owns the building that the restaurant is leasing. The restaurant is responsible for all maintenance, repairs, improvements, etc. He paved the parking lot for $44K and received a grant from the city for $22K. Since the paving is keeping the property in it's original condition and isn't a betterment, does he get to expense the $22K cost? Or is does he have to meet the expected 2 times in a 10 year period test? Also, now that we don't need to file a 3115 for our small business taxpayers, don't we still need to make the annual election for the deminimis safe harbor and the repair safe harbor? Thanks.

The remaining LLC member would love to continue on and transfer all receivables assets and liabilities to his new PC without a taxable event. I don't think that is possible is it, since this is a technical termination? Or is there a way for everything to transfer tax free to the remaining member's PC? Both members are fine with the remaining member keeping all receivables, debt and other assets and liabilities and just returning the departing member's $2K capital contribution.

This is a friendly partnership/LLC dissolution. One of the attorneys is going back to the DA world and the other is continuing on. The attorney that is continuing wants to operate as a PC electing S Corp status. The continuing attorney is fine with assuming all receivables and debt and wants to give the departing partner his $2K original capital contribution. The effective date of the dissolution, unless there is a more favorable date, is 1/31/15. In order to do what the two attorneys want can the 2014 tax return show a change in % allocation for assets and liabitlities where the departing member has 0% assets and liabilities and keep the 50% allocation for profits and losses? However, since this is a technical termination won't the remaining attorney have a taxable event because he won't be able to transfer those receivables, assets and liabilities to his PC? Or can he transfer everything to his PC and not incur taxes? Thanks for your help.

Thanks for your help. What about the receivables not being paid until 3 years later? The LLC would be inactive but wouldn't they have to keep the bank account open until all receivables are paid?

2 member LLC is being dissolved and one of the members is continuing his law practice as a PC. I'm sure that the new business can't use the same EIN, or can it? Also, the client says that sometimes receivables aren't paid for 3 years. Typically, how is this handled? Does the inactive LLC maintain the bank account for as long as it takes to receive all receivable payments? How have those of you involved in dissolutions advised your clients regarding this? Thanks.

OK, I updated prior year ATX programs and unchecked the auto update box. I just prepared a 2014 tax organizer in the 2013 program and was able to print it and save it but I received the Error Box saying an error was encountered while communicating with the ATX server. Would you like to retry? Usually, when I click on Retry it works. Now I can't click on Retry, the X or anything. Everything is grayed out. I can't even get rid of the box. Oh boy, I was afraid I wouldn't be able to use prior year ATX programs. That shouldn't be the case since I paid for all those years. Anyone know what I need to do to be able to use the prior year programs? I'll need to prepare an amended 2011 soon. Thanks.

My understanding is that if I didn't turn off automatic updates for all prior year programs and i needed to prepare amended returns or do anything else in 2013 or prior year programs, that the program would try to connect to the ATX server and, since I am no longer an ATX customer, the connection to the ATX server would not be successful and I would not be able to open the return.

I switched to a new tax software for 2014. Since I unchecked the automatic updates box in ATX 2013 I'm wondering if I may have problems using the 2013 program to prepare 2014 tax organizers. It appears that I won't be able to prepare the organizers in my new software because the 2013 numbers from the ATX data conversion won't appear in the 2014 organizer prior year numbers. Are updates still being applied in the 2013 ATX program for the 2014 organizer? Or am I safe preparing organizers in the 2013 ATX program? Thanks.

I am trying change preferences in my ATX programs to not auto update. In the 2008 and previous years auto update doesn't appear in preferences or anywhere else as far as I can tell. Only forms update appears in preferences. How do I change the earlier year ATX programs to not allow auto update? Thanks.

TP had $1,600 excess Roth contributions in 2011. The penalty was reported on Form 5329 and we discussed that he needed to get the 2011 excess contribution recharacterized by his broker as a 2012 contribution. He made no contribution for 2012 and I recently found out that he never had the 2011 contribution reclassed with his broker as a 2012 contribution. During 2014 the broker characterized the 2011 contribution as a 2014 contribution. The TP made a contribution in 2013 which was allowable. The 2012 Form 5329 shows the 2011 $1,600 excess contribution carried forward to line 19 in Part IV. Line 19 shows $3,300 (the difference between the 2012 allowable contribution and the 2011 excess contribution) thereby, zeroing out any continued excess contribution. Is ATX treating this correctly? I thought the excess Roth contribution had to be shown as recharacterized to the following year by the broker in order to not be subject to the penalty. Shouldn't the $1,600 excess contribution be shown for 2011, 2012 and 2013? If so, how do I get the 5329 to correctly report the excess contribution? Thanks.

I appreciate your help with this. ATX 2008 and earlier appear to only have forms update in the preferences and not updates. I can't find where to deselect auto update in those years' program. Any ideas?

You asked how many I prepare - almost 200.

I talked to an ATX rep today and told him I was not renewing. So ATX will realize I am not renewing and I will no longer be able to update the program or forms. Therefore, if I understand you correctly, soon I probably won't be able to amend tax returns prepared in ATX programs.

Thanks so much for your help.

Since I didn't renew with ATX for the 2014 tax year, will I still be able to amend prior year tax returns that were prepared in ATX? Will my prior year ATX programs still be updated? For example, if I have to amend a 2011 tax return that was originally prepared in ATX, will I still be able to use the amend feature and prepare the amended return using ATX2011? Or will forms not be updated since I no longer have an ATX subscritpion? Or am I better off preparing all amended returns in ProSeries? Thanks.

Since I switched to ProSeries will I be able to e-file 2012 and 2013 returns prepared in ATX when e-filing is open?

For those of you who switched away from ATX - what W-2 and 1099 program are you using for the 2014 tax year?

I just switched to ProSeries and the sales rep advised that they no longer provide BNA tax research with their program. What tax research program are others here using? Thanks.