Yardley CPA

Does ATX offer a cover sheet that can be placed on the front of the clients individual Federal and State returns that provides summary information (the fact that the return was efiled (or directions to paper file) and the copy is for their record/file only, the amount of the refund/amount due, etc?) I know the program has the Federal and State Letter option and I do print that out for each client. I also realize there is a cover sheet that provides the clients name and my name/address as the tax preparer, but I didn't know if the program offered the ability to include additional information on the cover sheet that I am just not aware of? I have a new client this year that brought me a copy of his previous year return. Stapled to the font of the return is a sheet that provides all of this information. The preparers name and address is at the top of the return followed by specifics on that return. Same was done on the State return. I know I could probably prepare a document in Word that would allow me to do this, but just wanted to see if ATX offered something besides the letter information?

I use ATX, Lion. I don't have any ability to enter Stock Incentive info in box 14 of ATX's W2 input form (unless I am missing something or just don't see the entry?) Based on the letter the client received, it seems like the $907 is included in his Federal and State wages on the W2 form. I planned on completing Schedule D/8949 to show: Date Acquired: 4/30/2008 (date option was granted) Date Sold: 4/25/2013 (date option was exercised) Proceeds: $2,226 Cost Basis: $2,226 Thoughts, Lion?

Rich...the W2 does not reflect any stock option code in box 12. Only thing in 12 is Life Insurance and Medical. Nothing else. But box 14 Other shows OCOMP of $907

Thank you, All for chiming in.

MCB...thank you. I recall something similar since they are reported on the W2. With that said, a part of me thinks you need to show the exercise on Schedule D as no gain/loss. No 1099-B was received.

Client received Form 3921 showing: - Date Option Granted 4/30/2008 - Date Option Exercised 4/25/2013 - Exercise Price Per Share $21.27 - FMV per share on Exercise Date $35.90 - No Of Shares Transferred 62 In addition, received letter from employer stating: I have exercised your 4/30/08 ABC Company Corporation Stock for 62 shares of Class B Common Stock and issued stock certificate # 6819 in return for your payment of $1,318.74. Per your request I have redeemed these shares and issued you a check for $2,225.80. The $907.06 difference between the FMV of ABC Company at the time you acquired it and its cost will be included as ordinary income on your 2013 Form W-2. Based on this information, I assume, since the $907 is included in the employee's W-2, that the exercise should be shown on Schedule D/8949 as Proceeds of $2,226 and Cost Basis of $2,226, showing no gain or loss? Is that correct? Thanks!

I wouldn't provide her with anything more than the results of the returns based on the information she provided me. If she feels I'm incompetent and chooses to go elsewhere to have it reviewed, then so be it. I wouldn't be concerned with offering her any estimate on what that may cost her to do.

I'm very confident in the personal service and product I provide to my clients. I know there are CPA Firms and H&R's in my area that charge much higher fees than I do. In the event they are not happy with my price then they owe it to themselves (and to me) to look elsewhere. What were you thinking of charging for this return?

What exposure does she have in the 6 states besides NY? All W2 income? I assume she would be itemizing her deductions? If there is nothing more than W2, Schedule A and B...with 7 States. I would probably charge between $500 and $700. Since I am not overly familiar with states outside my general region, I would qualify my statement by saying it may be more depending on how much work may be involved with individual state returns.

I had a client who had a Roth conversion and we split the income into 2011 and 2012. I can't imagine the IRS won't come knocking at some point, I think the best course of action is to amend and correct the issue. Why wouldn't they want to do that???

I believe you can amend a 2010 return as long as the 1040X is filed by 4/15/14.

Doesn't that depend on whether they receive a 1099S? I was under the impression that if they receive a 1099S it should be reported. With that said, what harm is there in showing it on Schedule D even if they didn't receive a 1099S?

I provide my clients with a "draft" copy of the completed return (including a copy of the 8879) normally via a secure email (unless they choose to come in personally). I normally call and go over the return and ask them to also look it over and then, if all looks okay, please sign the 8879 and return it to me. It's their return and since nothing is filed yet, they can do whatever they want to do with the draft. If that includes taking it to their banker, so be it. They can come back and ask me any question they may have or ask for changes they feel are necessary (even if those changes were suggested by the banker.) That doesn't mean the changes would actually be made to the return. Ultimately, my signature is reflective of my belief that the return was prepared accurately and abiding by IRS regulations. I personally wouldn't get overly caught-up in the nature of the email they sent you, Jack. They requested a copy of the return and I would provide that to them.

Article from today's CPA Letter Daily: http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2014/Tax/DrawingBoard.jsp

Thanks very much.

Tom...yes, thank you. That's why I included the AGI for 2012. I know it is suspended but I want to bring forward the amount and enter it on this years 8582. Since they are a new client it did not transfer automatically. I'm having trouble entering the amount and was wondering if anyone could provide some guidance on how to do that?

New client with Rental Property. 2012 AGI 162,000. Form 8582 shows total unallowed passive losses of ($5,493) Shouldn't this amount carry over to the 2013 return? If so, how can I enter that amount on this years form 8582? I'm having a mind-lapse with the passive loss rules. Thanks!

Cathy...it's an invoice they can't refuse! ;-)

Crank...I have a single client who insists on brining me his W2 every year. That's all he has, just a W2. I always offer to accept it by email scan or fax if it saves him time but he wants an appointment. It isn't a long appointment but it still does take up time. I guess some people feel it's necessary to discuss their tax situation in person. Maybe some clients just want the peronal interaction.

Rita...you're right on target. Most of my intereaction now takes place through email. I still have a good number of folks who stop in to see me personally but the majority is through email. I send my clients a copy of the final return through a secure pdf. I ask them to review it and to let me know if there are any questions or concerns. Included in the email are copies of the respective 8879 forms with instructions to print the 8879's sign and return them to me. Once I receive the signed forms, I normally wait at least until the next day to efile. Just want to allow for a bit of a cushion in the event anything "pops-up."

I am a one man shop and efile returns after receiving the signed 8879 forms. Once the returns are accepted, I prepare a packet of information including a copy of the individual returns, client letter, summary and comparison and mail everything to the client along with my invoice included. I also place a self-addressed stamped envelope in the packet for them to send payment back to me. Much like MichaelMars, I've only been burnt once in 20 years. It's worked well for me.

Good ideas, JKL.

Does anyone know of a way to make the "Client Copy" watermark print smaller than it currently does?

Where would you place a fee obtained for being a Proctor? TP supervised high school student taking tests and received $500. Line 21?

On my detail screen, the option to sort is gray and I do not have ability to choose it.