Tax Prep by Deb

I held out, and sometime in June I received a phone call, told the sales person I wasn't sure if I was renewing. The sales person asked, I told him I wasn't to pleased about the sudden changes, such as closing the community down just before end of tax season, and also the price structure for e-file. I told him that if I had to pay for the e-file with my client base it would cost me over $1,000.00 more than previous, and that I had no need to upgrade to MAX to get un limited e-file. He asked me if I would renew if I could get an e-file module that will allow me to file as many e-files as I wanted for just $200.00. So I renewed, got my discount and only had to pay $200.00 this year to e-file. Not sure what they are going to do this year, but neither am I sure what I'm going to do. My hopes is the Mel will be able to get something going, and in the meantime I'm going to test run several competitors programs. My biggest complaint this year was the lack of support, which also goes back to them doing something stupid, laying off our support team and forcing us to call a center that wasn't familiar with our program. For me it's going to take some enticements! Deb!

Same here! I'm going to be hitting that red button in the next day or two! Deb!

If in the city of San Diego, yes they have 1/2% local sales tax. Some cities within San Diego county however have higher percent. Hope this helps! Deb!

We can always count on you for a smile! Thanks! Deb

Amen! However I would like to add that we should never forget what the creator of this community did for us by immediately getting a better community up and running. Even though earlier when he had to do some tweaking on this board, he stated he didn't need any more donations, I think it's a great time to remind all of us that now the season in comming to a close, perhaps it would be a good time to send a little more his way, so that this community will be kept alive! Deb!

THIS ONE IS FAAAAAAAR SUPERIOR!!!!!! Personally I feel that every penny I spend on this one is worth it! (But I think you already know that!) Deb!

That's pretty much how I do it. I may not list every line change because obviously if one line changes it's going to automatically effect the others. But I do explain key changes, such as change in AGI, Itemized Deductions, EIC, Additional child tax credit,ect. I also include any new forms that may not have been generated by the original return, such as in your case if AGI is now less perhaps on the original return you didn't file for EIC. I would therefore include the new form. Hope this helps! Deb!

I don't know where you were looking, but I just went to the site and KC's comment is still there. It's under the thread welcome to the ATX Community. So far it looks like they have left all posts alone, those favorable and not so favorable. Please don't take this the wrong way. I only go there out of curiosity. Right now that board is extremely lonely. I remember when I first found this community and logged on the first time. There is just so many more of us here and extremely content, that I can't imagine myself ever going back. I feel perfectly at home right here! Deb!

Same here! I've had several who call and ask what they need to do, I reply come see me, they ask how much, I say nothing! Needless to say I have some very happy people, and in almost every case they have given me a little something anyhow. I honestly feel a little good will can go a very looooooong way! Deb!

I was just on MYATX Site and there was a notice on the e-file tab that if the return has a balance due the person will get a paper check. Apperantly all balance due returns will be handled this way even if paid electronically. Deb!

My ATX site stated that they would be ready to e-file these types of returns, (1040A) on the 6 p.m. drain on March 18. They did make some changes to allow the e-file including including 1 dollar on I believe line 8a. Then you can go to the e-file worksheet, and as was already stated the box should be checked for stimulas payment return, this will then allow you to put the banking info in for direct deposit. As to the question whether IRS will process these types of returns, they did state they will not challenge the $1.00 entry. So apperantly we are set to go. Deb!

Thanks KC. That's were I was going, but just wanted to confirm. Deb!

I have a client who had a friend whose house burned down. Either because she had no insurance or was way under insured she didn't have enough money to rebuild. My client used $80,000.00 of his equity to invest in this project, as well as provided much labor to rebuild it (not in the trade of building houses). When the home was finished it was put on the market and was sold. On the closing papers it states that my client received $201,102.00, and he did. He was never on the deed, or the mortgage that was paid off when this house was sold. I'm not quite sure how to handle this. Any suggestions? Would it be Schedule D? Schedule C? Any thoughts would be greatly appreciated. P.S. No 1099-S was issued to my client. The only record of payment is on the closing papers that his friend provided. Thanks for your opinions! Deb!

Sorry for the date problem. This did occur in 2006, not 1996 like I previously stated. The parents diffinitely lived in the home long enough to exclude any gain. The children did not rent it from parents at any time, they lived with the parents in the home until they purchased it in 2006. At this time the parents moved out and children took over the home. Let me through one more kink in the mix and see what you guys think. Parents lowered the price of the home so that children could qualify for the loan. The house was on the market prior to children taking the home, however it did not sell. Five months later the home did sell for what the parents were originally asking. I do believe, but I haven't comfirmed this, that the children did give mom and dad the $100,000.00 when it sold. This family has done everything wrong as far as I'm concerned. And I just want to make sure that when I do these taxes that I'm doing them right. So I'm spending extra time on this whole issue. So here is my next question: Is there anyway to treat the $100,000.00 as a loan, e.g. seller finance? If so then the extra $100,000.00 would be added to the basis right? I realize this is all a long shot and I'm hoping for miracles as I feel that the children in this have really been dealt a dirty deal. I do not believe they walked away with anything except possible capital gains tax on $100,000.00. Any thoughts? Deb!

I have a client who in 1996 sold there home to their daughter and son in law. In order for the daughter and son in law to qualify for a loan, my client reduced the sales price of their home to the tune of about $100,000.00. Daughter and son in law lived in the home prior to purchasing it, for at least two years, but sold the home after only 5 months of the purchase. My clients, the mom and dad still have not completed their 2006 tax return, I will be working on that right away. Daughter and Son also want me to prepare their 2006 return. The sale of the home 5 months later did generate a profit from purchase price to sale of about 100,000.00. In other words what mom and dad deducted when sold to child is what child ended up with as a profit. My thinking is that mom and dad should have to file a gift tax return, because obviously they gifted 100,000.00 equity in the home. (and this is not just an asumption on my part, parents agree as well as comperative sales in the area). My question is how do I show this on the gift tax return, and also does this mean that daughter and son now add the $100,000.00 gift of equity to the basis of the home which then makes the sale pretty much a break even thing? I am no expert on the gift tax thing, so any thoughts and help would be greatly appreciated! Thanks in advance, Deb!

Actually I've been pretty busy the last couple of weeks and therefore not able to visit this board as often as I would like. Fortunately I haven't had any major problems or questions come up. So far this year I haven't even had to think that hard, it's kind of scarry! I hope that doesn't mean the next month will be a nightmare! Deb!

Likewise, I had this happen with a client as well. In his case several checks went through. In fact over 12,000.00 disappeared from his checking account. Someone used his check info and created themselves some payroll paychecks made payable to about 4 different people and all cashed at a Walmart store. Walmart cashed the checks, the bank allowed the checks to clear even though the person who signed the checks was not my client, in fact that didn't even sign his name. The bank totally screwed things up even in closing the compromised account, things that should have been allowed to be paid weren't and there was some serious consequences. The bank ended up giving my client all his money back, reversed the bounced fees, and issued letters of apologiese to several venders, and even had to write a letter to the District Attorney who was trying to make life miserable for my client. I stopped working for this client close to a year ago and when I had left we were still working with the DA to get the one check that didn't clear straightened up. It took us almost 9 months to get things back to operating smoothly. It's amazing what damage a person can do in a short period of time! Deb!

I had someone walk up off the street (my office is in my home, not advertised except to my clients). Turns out all she wanted was a form that she couldn't get at the post office. I gladly printed the form to get her out of my office. She's actually a neighbor of sorts and I have had problems with her children stealing things, as well as the fact that I had done an amended return for her last year because a friend did her taxes on line and didn't file for the additional tax credit. She was insulted that I would charge my normal fee (even though I explained to her I basically had to do her return completely over). She paid me then hounded me for weeks until finally the refund showed up. (so can you guess why I was eager to get her on her way?) She took the form, prepared her taxes, came back to my office asking for the address where to mail it, which I gave her, again just to get her to leave. Then she had the nerve to ask me to look it over and see if she had prepared it correctly! This time I drew the line. I told her not without her paying my normal fee, as this is what I do for a living! Some people leave me wondering. For example I wonder if she would work if her employer didn't pay her? Just to add my 2cents worth. Deb!

I have had a couple of clients do things similar. However in my case unfortunately they do come back and have me file. Each year I get one or two that I really would rather they not come back. But they do and each year they question the correctness of their returns. Each year I go through the same explanation and like Janitor Bob try to explain what they can do to minimize the damage however each year they choose to ignore the recommendations. Our job is one in which we rarely receive praise for a job well done! If we tell client they will receive $5,000 refund they complain it isn't $6,000 and if we tell someone they owe, they try to make us feel like it's our fault. There are days that I wonder why in the world I chose to go into this profession, and then someone really nice comes along, someone with a difficult problem and you are able to assist them and they love you for it! That's when it becomes worthwile for me! Deb!

That is basically your only option. I have had this come up. The courts placed a child with my clients and appointed them legal guardians. Every year when I would go to file the return, the childs social security number had already been used. We paper filed the returns and then towards the end of the year we would get a letter from IRS requesting additional information regarding the child. We sent them court documents showing guardianship and other documentation and each time my clients prevailed. Your client will have to furnish proof at some point that they were the custodial parent. Usually IRS will request school records, leases that include childs name, doctor records, ect... Any documentation your client can get that shows their name and the name of the child with the same address is basically what they will be needing to offer proof. Not a pleasant road ahead, but it can be done! Deb!

Thanks Jainen, I was able to get the state info I was looking for. It doesn't look good for my client at this point. There was no state w/h which means that more than likely there was no fed w/h. I'm sure I can get the Fed info, but Fed's stated that they do not keep state info. So at least I have 1/2 of the puzzle solved! Again thanks so much! Deb!

No I'm not sure, but that's the point. Before I have my client agree to the change I would like to confirm. An earlier comment stated that he doesn't go the extra for his clients with missing W-2's, and under certain circumstances I would agree, however this client came to me early in February last year, was up front about not having the W-2 tried his best to get a copy, (I do not believe he lost the original, I do believe the post office didn't deliver it, and no he didn't move. He has lived at the same place for several years). Having said this, I believe I owe my client the best care I can give him. That is the reason that my clients come back year after year and why I am continuing to increase clients each year. As to the e-service. Yes I am registered, however I am just a lowly tax preparer so my use is limited. I have tried to file a POA on several occassions, but as of yet I have never had one accepted. I must be doing something wrong! It's funny, they won't accept my POA however I can make phone calls pertaining to third party disignation and they will usually talk to me. I would really like to be able to help my client. I will follow Jainen's comment and check out the FTB site, and hope for the best! Deb!

Thanks that would be great however California doesn't require a copy to be filed they share with IRS. Keep the ideas coming! Deb!

That's what IRS website said, however I went to social security website and the only info I see is instruction for employers to file W-2. I hoped that someone else maybe had this experience and could give me some pointers! Thanks anyways!

I have a client from last year who has been trying in vain to get a copy of his W-2 that he never received. He has gone to the former employer who gives him a phone number to call. He calls the number gets and answering machine, leaves his message but never receives a call back. The employer does have a web site were you are suppose to request the information, problem is you have to have you employee ID # to access and client had not worked there since early 2006 therefore doesn't remember his number. Goes back to former boss who tells him he doesn't know the number either and informs him that he has tried contacting HR department but doesn't get any response. Client did not keep any pay stubs and can not seem to find anyone who has. We filed without it knowing that eventually IRS would catch it, and they have. The amount the claim is fair however they do not include any withholding. I am reasonably sure there was withholding and I would like that information taken into their consideration. I know I can request a transcript from IRS however that is not going to show me the state information. This change will also effect his state return, and again I'm reasonably sure there was some withholding. Does anybody know how I can go about getting a copy of his actual W-2? Any help will be greatly appreciated! Deb!