ILLMAS

I was part of an IRS audit back in 2009 and here were the arguments: Company vehicle expenses for supervisors and other key employee who do not have a fiscal office to report to, was allowed 100%. Employees do not maintain a mileage log, all the cars and vans have the company logo. (Employees do take the vehicles home and visit different offices directly from home.) Auditors position: No change Officers vehicle expenses are being deducted 100% Auditor position: Since officers take the car home, that was not considered business use. Adjustment: 80% was allocated to business use and 20% to personal use, the amount from the 20% was not allowed and allocated as income to the shareholders 1040. Us: We did not agree with the auditors adjustment and suggested for the 20% to be reported as a constructive dividend and not as additional wages or other income. Client paid 15% tax on the dividends vs paying a high tax because their high income. Auditors position: Accepted our suggestion.

To be on the safe side, I would say YES, you do want to show the IRS that are more then 2 partners. I seen a return where the preparer put only 1 (100% owner) partner and right away the IRS sent them a letter saying it had to have more then 2 partners to be considered a partnership...... If I remember correctly, the IRS wanted for future returns to be reported on Sch-C.

Have you check to see if the financial statements retained earning=net assets match the 2009 tax return? Don't be surprised to find out they don't match, that is the first thing I check. Clients sometimes void cleared checks, enter checks in the wrong year or enter crazy journal entries that affect prior year retained earnings. MAS

Usually you don't pay FICA on unearned income, which is your case.

I did too, just haven't had a chance to go visit the site.

In certain cases the IRS is longer releasing refunds until the tax payer is up to date with their filings and the same goes for a payment plan.

Good question, I would say if it's a personal residence, NO because at the end the 1098 only shows interest, PMI and property taxes paid on the boxes, maybe on the back side it might show the payment history including late fees. For a business account I would say a YES for bank service charges because it's part of doing business. Now writing checks without funds, I think that's a bigger problem.

I would think his advertisement cost is the one-time cost of the sign, I have seen these signs before and they are reusable. In order for him to claim the discount as advertisement, he would need to issue a 1099. Plus he would have recognize 100% of the revenue including the discount, the 1099 will cover the advertisement cost. Roof $5000 Disc. -300 total. $4700 price He would report $5000 as revenue and the 300 as advertising expense, net = $4700

Thanks John, I always want to make it as easiest as possible for them to follow, don't want to give them more work LOL. I am referring to the IRS agents, not my clients.

I have a new client that had his/her tax return prepared somewhere else, supposely they didn't get a copy, so I requested a transcript from the IRS, when I amend a tax return I usually include "As originally filed" return, the 1040X and "As corrected" thing makes things easier for the IRS employees. Just wonder if I should include the copy of the transcript as the "As originally filed" or should I create a 1040 that matches transcripts figures and use it? Thanks

Good assumption, but I don't think illegal aliens are the only contractors that like to get paid in cash.

This question is for those that have bought a new computer with Windows 7, what is the best way to move ATX files to the new computer? Hear is what I was thinking of doing: Old computer 1. Make sure every year has the most recent updates. 2. Export all clients to an external hard drive, year by year New computer 1. Install ATX 2. Update every year first 3. Import all clients year by year 4. Input preparers information, I believe that doesn't transfer over 5. Test the system Does someone else have suggestion they would like to share. Thanks Marco

Why not just buy a laptop cooling platform like this one: http://www.costco.com/Browse/Product.aspx?Prodid=11471714&whse=BC&Ne=4000000&eCat=BC|84|1333|21392|76167&N=4025518&Mo=7&pos=0&No=7&Nr=P_CatalogName:BC&cat=76167&Ns=P_Price|1||P_SignDesc1&lang=en-US&Sp=C&ec=BC-EC19722-Cat21392&topnav= I would remove the battery to get more air into it, also make a backup of all your data.

Probably no here one here has heard blame the "Tax Preparer" or the "Accountant" right? Well why is it the tax preparer fault if the banks, mortgage brokers, loan officers and even real estate agents are coaching the clients on what the bank wants to see to get approved for the loan (at least in the past). Either 60 minutes or 20/20 had a bit on Countrywide Home Loan right after it went under and a top executive even said they had to sell loans no matter what, and basically they were instructing brokers to have clients tax return be prepared a certain way. Before going independent, we used to get random people showing up, "I made X amount of money and I have no expenses", later on as the mortgage crisis came to light it turned out that most banks were not verifying tax returns or even a CPA letter would simply due to get approved. I am glad you told your client you could not make the change, unfortunetly, the next tax preparer they approach will get a different story from them.

Here is a list of all the tax pro's in your state: http://www.google.com/search?q=il+tax+preparer&ie=UTF-8&oe=UTF-8&hl=en&client=safari

If you recently ordered a hair piece, you won't be getting it anytime soon, thanks to these guys: http://www.chicagotribune.com/news/local/breaking/chibrknews-hair-stolen-in-breakin-at-beauty-supply-firm-20110425,0,2188146.story

For me it will be the EA review & hoping to sit in for the exam in August 2011.

You might want to contact ATX directly for this, but I think it turns to be samething if you network you ATX, install ATX on the server any return you prepare on a workstation, the data is stored on the server, on the workstation you are simply using the software but the data is saved on the server.

I have printed it out, incase the date mysteriously changes to 04/15/11, you never know.

Yes, a special thanks to everyone on the forums and have a Happy Easter. Marco

Not worth looking into any further 15th or 18th, as they say "tough luck".

I have a client that hasn't filed in a couple of years, he qualifies for the EIC based on his income, I just want to make sure, he will need to file his 2007 today inorder for him to get the refund or is it 2008? My brain is not working today. Thanks and good luck to everyone, hope you had a very successful tax season!!!

I tell them please bring their (friends) copy to compare them and that shuts them up.

That happens a lot to me with my clients actually, however I am so freakin busy they do me a favor by not showing up or calling (takes to much of my time). I see this way, you need me, not the other way around.

Men, cheaters, no I do not believe that. Wait, we are talking about taxes right? LOL