ILLMAS

IRS is doing something to prevent First-Time Home Buyer Credit for a change, now sending copies of the HUD statement is not enough. One of my client bought a home in March 2010 and paid it cash, we submitted his tax return in October and in December he recieved a letter stating the IRS was still in the process of reviewing his return, well today he recieved a certified letter giving 5 options to proof he lives in that house, IRS wants to see owners bank statement or driver license or utility bills or vehicle regristion to make sure it ties to the address. I guess the IRS really wants to make sure you live there and it's not a rental property or your address is the county jail.

I just sent you a PM.

I think sales(men/women) lie just a little to make the sale and we all know that. This happened to my sister down in TX, car salesman told her if she bought the 2009 hybrid edition of the Toyota Camry she would get a certain amount of credit from the IRS, well when it was time to do her taxes, there was no credit for this particular car But this experience helped her out last year when it was time to replace the windows and AC unit at her house, she called me up and we verified the manufacturer and ratings and they did qualify for the energy tax credit before signing off on the contract. Did I mention that they mark up theses items like crazy?

He was a full time student, he met the dependency test, parents paid his tution, parents were behind on the mortgage, mother had lost job after more then xx yrs of service and had to take a minimum wage job to survive financially, parents lost a investment property because tenants were not paying rent. I had not mention all of this before because the issue was with the son, come on you don't go to someone's office and put your leg over the chair like if you were at home and be arrogant. On sadder note google Republic Window Chicago, and read what happens to it's employees, the mother was one the victim.

He acted like a total BITCH and had his head up his ass.

You think you heard them all, today a TP brought in his two grown kids, parents provide a home, meals you name it for both of them. The son tells me he wants to do his return separate from his parents to get as much as possible, and I tell him it's better for your parents to claim you because it looks like they are going to owe. No that he wanted to do it separate from them, so the father said just do it separate. Well once I punch in the numbers, the parents were going to owe around $400 and the son was going to get about $1200 back, so I put the son back as dependent on his parents tax return and the parents would get a $900 refund and the son only $244. I presented the return as a draft to see if I can get the son to understand that the parents would benefit from claiming him, the hard headed son, didn't care, he wanted his money, so the parents are like, son we will give you the difference back, help us, and here is where I lost it. I asked the inconsiderate son, how much rent do you pay your parents, you are a grow man already, how much do you contribute to pay for food utilities, tell me, he wasn't saying anything, then the father is like you know (to the son), how I'm I going to let you do whatever you want, I already co-signed a car note for you which you never paid, I have been paying since day one, if you want to live under my roof you will do what I say. Since the son wanted to be so independent, I gave him his bill, guess what he ask his father to pay for it.

If it's a first time client and they bring it with them I usually make a copy of the SS card but not birth certificate. I only request birth certificate when preparing a W-7 amongst other required documents.

LOL I've been doing this since 2007, during tax season I do a manual update everyday. Try this, let do the automatic update, then click on the update icon, then click manual and you will see there are still forms ready to be updated.

And I want my piece of the pie too!!! This bothers me so much, there are so many people out there, that are willing to take any type of job to earn an honest living, then we have the ones that choose not to work because at the end they get rewarded (EIC, public aid etc...) by the government. Over and out!

Just wanted to see if anyone is remember to ask their clients of out state purchases, were no sales tax was paid. As you know the state of Il is broke and wants to collect every penny it can, so far most of my clients have been older couples that know nothing about computers and internet, but I have to ask them anyway.

This is so true, stuff like this happens all the time. I was in my doctor office (paper work office, not exam room) a couple of years ago and here comes another doctor knocking on the door, he wanted to consult with my doctor if he was prescribing the right medication for a guy with genital warts. LOL

In early 2010, TP was not able to continue to provide care for his elderly parent, so he had to put his mother in a nursing home. He pays zero for her expensive, he only provides clothing to her, does the mother still qualify as a dependent?

Your story reminds of this one I heard, a man tells his doctor that he is losing his memory and what he recommend for him? The doctor told him pay your bill first.

Never mind, TP both surrender their policy so it's correct.

I have husband and wife that took out thier money from what it seems a life insurance policy, however box 7, has a 7 as a distribution code "Normal Distribution" the funny thing is the couple is under 50 years of age. I'm I missing something here, or is that how a life insurance cash out work, both TP contributed money towards the policy, however they are being tax on the gain only, but not getting hit with the 10% early withdraw penalty. I would appreciated is someone can assist me on this one. Thanks

Here is something to look at: Certain expenses incurred in traveling for medical purposes are deductible for U.S. federal income tax purposes. Internal Revenue Code Section 262(a) generally prohibits the deduction of personal or living expenses unless specifically allowed by the Code. Section 213 allows a deduction for expenses paid for medical care, to the extent that such expenses exceed 7.5 percent of adjusted gross income. Therefore, you may deduct the cost for certain types of medical procedures obtained overseas. Medical care is defined, in part, as amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body, and for transportation primarily for and essential to medical care. A deduction is allowed for up to $50 per person for each night for lodging while away from home primarily for and essential to medical care if such care is provided by a physician in a licensed hospital (or in a medical care facility which is equivalent to a licensed hospital), and there is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Therefore, it is possible that the $50 per person deduction may be used for funds paid for room and board at a hospital or medical care clinic while obtaining healthcare overseas. A deduction is also allowed for transportation expenses of a nurse or other person who can give injections, medications, or other treatment required by a patient who is traveling to get medical care and is unable to travel alone. Section 213 specifically excludes a deduction for cosmetic surgery or other similar procedures, unless the surgery or procedure is necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease. When combining travel for medical purposes with tourism, determining the amount of the deductible portion can be problematic. When reviewing a taxpayer’s return claiming such deductions, the Internal Revenue Service will look at expenditures first as non- deductible personal expenses and allow only specifically documented medical expenses. It is therefore important to first obtain a doctor’s written statement stating the medical purpose of the trip and the necessity of the travel companion, if applicable. All documented transportation to and from the medical destination, allowable lodging expenses during treatment and recovery, and hospital and physician costs would then be deductible. Any additional costs of a vacation or pleasure nature would not be deductible. Raymond V. Stephano, CPA, CFS, Principle and Founder of Stephano Financial Management. Raymond has over 30 years experience in financial and tax management. He is a graduate of Villanova University and his background includes serving as Treasurer and Chief Financial Officer for several companies. In 1991 he became an independent tax consultant and in 1993, he started Stephano Financial Management, an independent financial service organization.

Thanks for posting this website, I am going to use it as an inspiration, this past summer I took up photography as a hobby and I am learning as I go. Here a couple of pictures I took this passed weekend:

I believe that is correct, however you can itemize them on Sch A.

Ouch, what a burn

Thanks, I googled it and found out my mac computer does it, just have to email the files to myself, open them in the Mac Pc, then send it with a pw.

Does anybody know if one can out a password on PDF file from ATX. A client as asked me to send them a password protected copy if their return, so if anybody can help me that would be great. MAS

"I do have clients that tell me stories of their married friends each filing as HOH and splitting the kids" I hear the same stories too, to bad the IRS hasn't cracked down on these individuals :)

Just out of curiosity, what EITC abuse/fraud are you seeing with your clients? With todays technology I don't understand how people can get away with EITC fraud, I understand abuse, claiming a child lived with you and they don't or lying saying you provided more then 50% support. When I was an aprentice, I do remember correcting tax return of individuals who put down dependents they didn't have (used fake names, SS# or SS# applied for), but this was in the mid to late 90's, today I just can't understand how they can cheat the system. Someone please explain. Thanks

This year a have client coming to see that had identity theft and has had trouble with IRS due to this, how do I go about getting an ITIN? Do I have the client contact the IRS directly and provide documentation of the identify theft, or do I submit a W-7? Thanks

This may not answer your questions, but would recommend to your client to get a pre-qualification for a loan first, let me tell you, banks have gotten very strict. I see it kind of hard for banks to lend if you have negative equity, but again have him do all his homework first before taking the plunge. I am sorry to hear that, but do you know if the TP refinanced during the years and just wasted the money? I hear a lot of people complain they owe more then what the house is worth, but they tend to forget they took out all the equity and bought a car, paid credit cards, vactions etc...