David

OK, thanks for your help.

When I print form 8948 and the related statement for the client choosing to paper file, the forms are printed in huge font and half the form is cut off. This is the case when I also print the worksheets in the client copy selection. Sometimes these forms print fine but quite a few times they don't. All other forms print OK. Has anyone had this problem and can tell me what I need to do to stop this from happening? Thanks.

I have never e-filed 940s or 941s. Do we have to do anythng special in order to e-file 940s and 941s or is it ready to go as it is with other tax returns? Do we have until midnight tonight if we e-file? Thanks.

How are you supposed to know whether a corporation has made a particular election on its income tax return? On the other hand, how are you supposed to know whether an LLC has made a particular election on its income tax return? That is why the W-9 always had a box for C Corp and S Corp. I thought the purpose of that was to know if the company is a C Corp that you don't have to send a 1099. Otherwise, why wouldn't the W-9 just have a box for Corporation? So are all of you saying that since the dawn of time no 1099s need to be sent to an S Corp?

If nothing is new, I thought only C Corps were exempt and 1099s had to be sent to S Corps. Hmmm... have I been wrong all these years? I know I read that 1099s had to be sent to S Corps years ago.

I am just now finding out that a 1099 does not need to be sent to S Corps or LLC's taxed as S Corps. When did this change? I haven't heard this before and was still under the impression that only C Corps were exempt. I read the 1099 instructions and nothing was mentioned as far as S Corps being exempt. Thanks.

TP was involved in a very bad accident. The medical costs and lost wages were well above the insurance coverage and the TP was ordered by the court to pay restitution to the other driver for the difference between the medical costs and lost wages vs. the insurance covereage. The TP is planning to pay the significant amount in one payment - I don't think this matters. In my research it seems that restitution payments are deductible if, for example, embezzled funds for which restitution payments are being made, were previously taxed as income to the TP. Also, my research seems to only address whether personal injury payments are included in taxable income. There is no mention of whether the personal injury payments made by a TP are deductible. The research shows that the personal injury payments, both medical and lost wages, are not included as taxable income to the recipient. Since there is no mention of the tax treatment to the payer, does it stand to reason that the persanal injury payments made by the TP are not deductible? Is the court ordered restitution for medical costs and lost wages deductible by the TP? Thanks.

When is the deadline for e-filing a 2008 1120S? Do we have until 12/31/11? Thanks.

TP sold rental real estate. He has a $48K gain and has taken $15K depreciation over the years. He has a loss carryforwar of $30K on his 2009 Sch D. Form 4797 is reporting the full gain as long term on line 6 and carrying that to Sch D to be netted against the $30K loss carryforward resulting in $18K long term capital gain. Is the ATX program handling this correctly? I thought $15K of the gain should be taxed at the ordinary rate and the remaining $33K would be taxed at the long term cap. gain rate. Also, I didn't think the rental property gain from sale would be netted with Sch D loss carryforwards. I thought the gain would be reported strictly on Form 4797 and reported on Form 1040 line 14. Another issue - allowed depreciation is $28K and only $15K has been taken. The "allowed depreciation" on line 22 of Form 4797 links to the accumulated depreciation for the property. I can't determine how to change that number to the allowed depreciation number - other than overriding it. Can anyone help me on this? I know that there is a reg. that allows a TP to include the difference between the allowed depreciation vs. the depreciation taken all in the year of sale on Schedule E. Can anyone help me with the mechanics of how to do this? In this case, is the full $13K additional depreciation taken on line 18 "Other" of Schedule E? What description should be used? Also, does Form 3115 (change in accounting method) have to be filed in order to take this deduction? Thanks for your help.

Thanks. So do we have until midnight or until the last drain? If not midnight, how do I find out when the last drain is?

Do we have until midnight 9/15 to efile business and trust tax returns? I'm not sure if the returns are considered not timely filed if we don't email by a certain time, such as 11 am. I couldn't find anything on the ATX website that mentioned all business and trust tax returns have to be efiled by a certain time to be considered timely filed. I thought we have until midnight on the 15th. Thanks.

TP is a S Corp shareholder. His wife works for the company as well. Both are covered for health care from the company. Of course, they don't qualify for the health care premium credit. The company hired an employee who started in September 2010. The employee worked 333 hours and earned $12K for the four months in 2010. The instructions for Form 8941 appear to allow the full 35% credit since the FT equivalent is 1 and the annual wages are $12K. It seems that the annual average wages should be $36K, which is the $12K of wages paid in 2010 annualized. Is the annual average wages the actual amount of wages paid or the annualized average wages paid? Thanks for your help.

I don't see anything in my research that indicates the NOL carryforward is lost since the return is not timely filed. I do see that the 1045 has to be filed within 1 year. In this case, the carryback period is 2 years. The NOL can't be taken back since the previous 2 years, the TP did not have taxable income. Please let me know if anyone knows a cite that says the NOL carryforward is lost if the return is not timely filed. Thanks.

I am preparing TP's 2003 - 2006 tax returns. TP was single until 2005. Her Husband filed MFS for 2005 - 2007. TP had no income in 2007. TP filed MFJ with husband in 2008 - 2010. TP has a $150K NOL carryforward from 2006. Since she had no income in 2007, I am planning to amend the MFJ tax returns for 2008 going forward, to take the NOL carryforward. Can the NOL carryforward be taken from 2008 going forward since the TP had no income in 2007 and since her husband filed MFS in 2007? Or does the H&W need to amend the H's 2007 MFS tax return and file MFJ and take the NOL beginning in 2007? Thanks.

I am preparing a client's 2006 tax return. She received a 1099-A that year for the acquisition of her principal residence, which she had lived in for at least 2 years. I thought the IntelliConnect program had prior year tax information but I can't seem to find the 2006 tax law. Can anyone tell me how to find the 2006 ruling for this situation in IntelliConnect? Also, does anyone know the 1099-A will be handled for the 2006 tax year? The 1099-A shows that the borrower was personally liable for repayment of the debt. The principal balance outstanding is $149K and the FMV is $170K. Is the TP liable for any taxes related to the 1099-A? Thanks.

TP has a 2006 Toyotal Prius Hybrid that he converted to plug-in electric in 2010. On line 1 of Form 8910 I entered the year of the vehicle as 2006. I entered 11/10/10 on line 2 as the date vehicle was placed in service. I would think this is the date that the vehicle was converted to all electric. The e-file check did not indicate any problems. However, after e-filing, the return was rejected with an error message saying that the vehicle year can not be less than 2009. Am I supposed to enter 2010 as the vehicle year, indicating this is the date of the conversion? The instructions aren't clear on this. Thanks.

On 8/31/10, TP sold her house that was used as rental property since 9/20/08. She purchased the house on 4/21/05 and lived in it as her principal residence until 9/20/08. She sold the house for a loss. Since the property was used as residential rental for almost 2 years does she get to deduct the full loss or does she have to prorate the loss to personal use and business use? She lived in the house as her principal residence for 41 months and rented the house for 23 months. I think the loss is supposed to be allocated to personal use and business use, therefore, the loss that is allocated to personal use will not be deductible. If the loss has to be allocated to personal use and business use, how and where is this done in the ATX program? Is the allocation done on the "disposition of asset" tab on line 7 "Business use percentage"? If so, is it simply changing the 100% business use to 35.9% business use (23 months/64 months)? Or is the allocation entered somewhere else? I don't think changing the business use from 100% is correct since 100% of the rental property is business related while it is being rented. Thanks for your help.

He had W-2 income of $38K and Sch C profit of $48K. Total AGI with wife's income is $202K.

BTW, the TP had no 401K contributions through his employer in 2010 - don't know if that matters or not.

TP had W-2 income for first part of year and the W-2 indicates a retirement plan is available. TP left employer mid year and contributed $3K to his IRA. The ATX program is treating the $3K as nondeductible. I'm sure the reason is because the W-2 indicates a retirement plan is available. Isn't the TP allowed a prorated IRA contribution based on being self employed half the year? How do we get the ATX program to allow the IRA contribution? Thanks.

Thanks - I wanted to be sure. Have a great week going into the home stretch.

TP has a 1099-R from an insurance company. Box 1 gross distributions are $171K. Taxable amount in box 2a shows zero. Nothing is checked in box 2b. Box 5, reports insurance premiums as $140K. Box 7 reports a code 6. Per the IRS instructions the taxable portion should be indicated in box 2a. If the taxable amount can not be determined then box 2b should be checked. Is none of this taxable since box 2a shows $0? Or is $31K taxable which is the difference between the gross distribution minus the $140K insurance premiums? Thanks.

I get the following 2 errors when I try to set up a tax return to be e-filed: The credit allowed for the current year and any refundable credits must equal the sum of the empowerment zone credit and the total of the "Credits Used" columns on the Line 1 and Line 29 credit summary worksheets. Low-income housing credit used exceeds the tax liability limitation for that credit. The only credit involved is a low-income housing credit from a K-1. All the forms, 8582-CR, 8586 and 3800, show the same credit. They all match line 1 and line 29 credit summary worksheets. Also, the credit doesn't exceed the tax liability limitation for that credit. Has anyone else encountered this problem? Please let me know what I need to do to take care of the error. Thanks.

Client mapped his accounts in QB for his 1065 tax return in hopes of lowering the fee to prepare his 1065. I am in the process of importing his tax report and it has already been 30 minutes. Based on the accounts processed vs. the total number of accounts, this will take over 5 hours. This is my first time importing QB information into the ATX program. Nothing in the instructions indicated that it would take this long. I can't stop the import and I can't continue to work in the ATX program. I am frozen until the import finishes. Does anyone know what I can do to stop the import and be able to work in the program? Thanks.

TP transferred with same employer from CA in 2009. Employer erroneously reported part of 2010 W-2 wages as CA wages. Employer will not issue a coorected W-2 and told the TP to just file a CA NR return to get his money back. His wife moved from CA during 2010 so there will be a part-year resident return filed for CA. My question is how to handle reporting the CA wages as CO wages. Since the return is being e-filed, I have to report the W-2 as issued by the employer don't I? Do I simply change the number that transfers from the W-2 to the CA 540NR form? Thanks for your help.