Tax Prep by Deb

I just received a phone call from the IRS Auditor to let me know that he is closing the audit of my client with no changes. I am so verrrrry happy! My client thinks I'm swell, and the Auditor and I are on first name basis. This was just the shot of confidence I needed. Thanks for all you offerred to help. If it happens again I will not wait until the day before to let you all know. You guys and gals are wonderful and I am so happy to be a part of this community! Deb! :P

I agree! It's amazing how many times a client can change their story depending on the outcome. Then if anything goes wrong the tax preparer is the first to get blamed! Deb!

Thanks for the heads up. I have a client that has been waiting 12 weeks and still nothing. At least now I have some kind of answer to give her. Deb!!

Thanks, Right now I'm more concerned with the 941, 940 and California DE6 Deb!

I have a Quickbook Payroll subscription that will allow me to e-file my clients payroll tax returns electronically. I've never done this but am thinking very seriously about it as sometimes it's difficult to make connections for paper filing. Besides registering with e-services and adding business returns to my profile, what form does my client need to sign that will let me file the returns? I know when another client of mine used one of the other payroll services there was a form they had to sign that allowed the payroll service to act as their agent. Is this what I need or is there another form I need? Any help will be greatly appreciated! Deb!

That is exactly what we are doing. The man doing the audit is sending us his deposit reconcilliation and wants me to go over my clients records of deposits with her to see if we can find the descrepency. My client is baffled at the difference but we will be looking it over and see if we can justify the difference. So far this seems to be the only concern so if we can clear this up we may be o.k. Deb!

Thanks, I will definitely keep you posted. We are still trying to find the descrepency as my client is sure that nothing was hidden. I do agree with how he came up with the descrepency I just would feel better knowing if it is legitimate or if a transfer, cash advance, loan, ect... caused the problem. I will let you know what the final report shows and if anything else comes up along the way. Thanks, Deb!

Thanks to all who did respond. I apologize for waiting until the day before the audit to post my comment, but I have had a wacky couple of weeks and am trying to leave town in a day or two. The auditor was very pleasant and appears to want to work with us. He did find some descrepencies in the deposits to the bank verses what shows on the books. My client feels that it has to do with monies they invested into the business and he did take a close look at any deposits that were marked transfers and gave them credit as such. Even so there is about a $20,000.00 descrpency. He did say though that he may have missed a couple of the transfers so my client is going back and adding herself just to double check. I also suggested she pull a report of all her deposits and look carefully for anything non business. I had caught a mistake when I was reviewing her books, we addressed it and it doesn't seem to be a problem. He asked me to prepare an ammended return with the correction for his review but he and I feel it will result in no change. All in all today went fairly well. I wasn't there when he left as I had to leave early for another appointment, but my client did inform me he would be calling me for clarification on some items, and I have notes in my return that should settle them. I hope I never have a client with an audit again, but if I do I will definitely let you in on it and I will welcome any help that can be given. I will keep you posted as I hear more. Thanks again for your advice! Deb!

I am going to my first audit with my client tomarrow, and I am feeling a bit nervous. Not because of the work I did for the client, and in going over everything it looks like she has all the doc's she needs to justify deductions and so forth, but I have no clue what to expect. I keep trying to prepare her and she although feeling confident is going into it with a terrific attitude. She feels and so do I that it is a learning experience, and even if she owes she is prepared. I know some audits are done by going to an IRS office, this one however is being done at my clients office. The original letter stated that they are wanting to review the automobile expenses, insurances other than health, cost of goods sold, and utilities. These are all on schedule C. However in the second letter they sent her it wants all kinds of info. When she read me off the list it sounded like they are looking deeper than the first stated things. Should I be worried more so because they are coming to my client or is this pretty normal. I have only had one other client that was audited and she went it alone and things turned out o.k. but she went to the IRS office they didn't come to her. Any thoughts would be appreciated. I have worked for this client since they started their business and from what I can see everything is on the up and up except for some small mistakes that I caught when reviewing their actual QB file. Again I don't forsee anything major, but I am sooooooo nervous! More so than my client! Deb!

Thanks Taxbilly! It's not surprising. Deb!

Way Too Cute! Showed it to my 12 year Lhasa Apso Pup and she proceeded to clean the outside of the screen! Sure wish I had my camera ready! Deb!

I was in on the original deadline, but I was set up on a payment plan and as of yet I have not been contacted by ATX so I am concerned that I may not get it at the price, and I have already invested about 1/2 of the cost with TRX, so I'm not sure what is going on. Deb!

Current estimates = 40,000 unemployed in valley because of no water, more than just a few boats docked, and although cotton is grown, so is alot of other crops that people like to eat, that without the water, will be eating imports from other countries. Sorry, I just had to chime in. I live in the thick of this water shortage and what it has done to human lives is unbelievable! Deb!

That's the same formula I used. Deb!

It took me about two minutes, after reading the post went back and figured it out. Deb!

I have a new client whose former preparer had taken a 100% business use depreciation for her vehicle. In 2008 she sold the vehicle however the business use prior to selling it dropped to 24%. On the disposition tab of the asset worksheet, which business use percentage should I enter? Do I average it over the three years the vehicle was use? Or do I use the current business use figure of 24%? Any thoughts would be appreciated, client is due in the office in about a half hour and this is all that I like from having this one completed! Thanks, Deb!

Call the sales person who signed you up and ask for the written guarantee. My sales person sent me the written guarantee and it was very detailed as to what I would be getting. I have talked with my sales person on a couple of occassions, and I honestly believe that if you ordered the total tax package that is what you will be getting. I feel that what happened was unfortunate and there is enough blame to share. I was told that everyone who had already ordered the total tax package would be getting it, they were not able to issue any more. When you go to the web site and take a look you will see that this package is no longer available. Deb!

I called today and spoke to the saleman who signed me up. He said that everyone who had already purchased will get the software they ordered. They just can't issue any new ones. Deb!

we've had this going on for years in California. If you look at the form real closely it says that it is a soliciation and that there is no connection between them and the secreatary of state. First time I saw it, it took me by suprise. I had no real experience with Corps, but I had never read anything about filing your minutes, just that you needed to keep them and present them if asked. Deb!

Thanks to all who responded. We decided to go with a repair as it really did do nothing to increase the value of the property. It was necessary not only to fix the problem, but hopefully to keep it from happening again. Thanks, Deb!

You are correct! The cut off date for receiving a tax return for 2007 credit was October 15th 2008. If you missed this deadline you had no option other than claiming the credit on the 2008 tax return. There are no exceptions that I know of! Deb!

I just got off the phone with the client, and we agreed it should be an expense. It simply brought it back to being usable. Leaving it alone created a mold hazard that would have been far more costly to fix. So it seems logical to me that what was done was a repair, not simply to add life! Deb!

Glad I could help. I have received so much from this board that it feels good to give back! Deb!

I have a client that has a rental property. She had to do some work in her rental's bathroom due to a leak that resulted in dry rot. She spent $6,598.98 to tile the shower, replace the leaky faucet and repair the dry rot. Does this qualify as a repair, or should I depreciate it. If I do depreciate it what class and how long? Thanks, Deb!

It looks to be the third. I will try to post a link to the IRS site which helps to identify this for you. I had to look and look and look to find it. Deb! http://www.irs.gov/taxpros/providers/artic...=175068,00.html