ILLMAS

Hello to all, I want to get your opinion about organizing tax returns after I have scanned them. So far any 2010 return I have prepared I am no longer making a paper copy for my records, basically I scan the TP return + all docs used to prepare it (W-2's, 1098, 1099s, notes etc...) and I created a folder called Tax Return Files and I created sub-folders 2007, 2008, 2009, 2010 (2007 was the first year I was on my own), so right now I have only done a few returns and been putting them in the 2010. Now here is my dilemma, would be wise just to create a folder for each client and just put all years in the clients folder, I think that would be easier to search, because you know what client you are looking for instead of going by year, anyway please comment, trust I am not the most organized person in the world. MAS

Line 21 — Military pay earned Write the amount of military pay that you received from the U.S. Armed Forces or the National Guard of any state. You may not subtract the following: combat pay that is not included in your federal adjusted gross income, Line 1 pay you received under the Voluntary Separation Incentive, from the military as a civilian, under the Ready Reserve Mobilization Income Insurance Program, for duty as an offi cer in the Public Health Service For more information, see Publication 102, Illinois Filing Requirements for Military Personnel. FYI don't forget to select special type wages for military personnel on the W-2, if you don't then it will be taxable wages in IL. MAS

Something many people forget, is that there are applications running in the background taking up memory. For example if you have various years of quickbooks on your pc, it's probably running in the background. My PC use to load very fast, now I have to give 10 minutes, if I try to open any program I get the Not Responding message, so if your computer is old and tired, let it load for a couple of minutes, hell I have see clients PC where they would never turn off because of the time they had to wait to load :)

New TP called to make an appointment and she was telling that she visited the local IRS and was told she can claim loses on her tax return and that the government would cover dollar per dollar, but she had to see a tax professional to prepare her tax return. I have never encounter a situation like this before, only casualty loses, but I wanted to see if someone can guide in the right direction. I find hard to believe the government would cover dollar per dollar on loses. I did a quick search and it seems the area is a disaster area designated by Pres. Obama. Seven counties (Carroll, Cook, DuPage, Jo Daviess, Ogle, Stephenson and Winnebago) were designated a disaster area by President Obama. Before visiting a DRC, residents of those counties who had flood damage between July 22 and Aug. 7 are encouraged to apply for disaster assistance. Call 800-621-FEMA (3362), (TTY) 800-462-7585 seven days a week, 7 a.m. to 10 p.m. CDT, or apply online at www.disasterassistance.gov/. Help in other languages is available. TP already received money from FEMA, but she claims it was not enough to cover her loses, I explained to her FMV on items and how you cannot claim 100% of the cost. Well any guidance will be greatly appreciated. Thanks

Hola Pacun, have you considered calling the Tax Practitioner Hotline first? You can explain to them what is going on, open a case for the tax payer, they might want proof to support his claim which I don't think would be a problem. A letter from the principal, teacher or friends supporting his claim would help. Marco

http://tosh.comedycentral.com/blog/2011/02/04/interest-in-girls-schools-at-an-all-time-high/?xrs=synd_facebook

Do you have the video where he puts his hand in front of the cannon to see if the cannon ball would go through?

Wow Chicago is under extreme weather advisory for the next hours, I am afraid the wind is going to take roof, yes this is the windy city but today we have snow, wind and thunder. Here is a short vid I took outside my window, you can't really hear the wind howling because of the double windows, but you can sure feel the house shake.

Just wondering what everyone does with prior year forms no longer used? Keep or delete? e.g. Sch C & assets no longer in service

Do you have access to the old computer? I am not an expert, but I am going to guess your problem is your Windows 64-Bit version, I would recommend down grading to the 32-bit version. If you do a search, I recommended it someone here and posted instructions not so long ago, but you can also PM if you wish. Marco

I would do a residency test, however don't know what difference it will make if he gets free rent from his employer. I would be concerned if the employer is not reporting FMV rent as additional compensation.

I would use 7 years for rental furnishings if this is a window unit 27.5 yrs if this is a capital improvement.

No birthday for me this year, I was born on Feb. 29.

Wow, the wife was claimed as a dependent to claim HOH, just wondering what was the relationship? (daughter, parent, adopted or other)

If an ERO creates or automatically generates a PIN you must give a copy of the form 8879 to them. Do you give a copy to your clients? I create the PIN based on the day the TP signs the form, but never give them a copy, I just retain it for my records.

http://www.irs.gov/efile/article/0,,id=211143,00.html I recommend reading this for those who use the same PIN for all your tax returns.

What happens if you lose the token? Microsoft has a finger print device that's works similar to that, but are you in a high risk area that someone would want your files?

+1 for carbonite, just yesterday I bought it.

Ah there is other spanish speaking people here too. que bien.

NO, don't waste your time, as a comptroller you probably have a long to-do list, just have your secretary send those calls to voicemail. :)

Your pc will still have a 64-bit Processor/CPU, however the operating system will be 32-Bit so you won't be able to install any software that is 64-bit, which for accounting/tax I don't think any exist in 64-bit. How long ago did you buy this computer? Maybe you can return it and after you restore the PC to it's originally state or exchange for a Windows 7 32-bit computer, I don't why manufactures are selling PC that have a 64-Bit processor if most programs run a 32-bit systems. But this is what you would have to do incase you do decided to downgrade. 1. Backup all you data and have all the programs handy because you will need to reinstall them. 2. Purchase the 32-bit Windows 7, I recommend the professional version. 3. Put the disk in and shut down the computer. 4. Turn on computer and it should boot from the disk (fyi this will be what is called a clean install, you will loose everything that was on the computer before. DON'T CLICK ON UPGRADE 5. Then you will just follow the directions/instructions on the screen 6. Once installed, go to the computer manufactur to download drivers for your computer, but Windows 7 pretty much works after it installs, sound, video, unless you have a webcam then you will need the drives. 7. Also make sure you download the latest updates from microsoft. 8. After all is done, you can start installing your programs. Please see these two videos: Any computer shop can do this for you, but you save $ if you do it yourself. PM in you have any other questions. Marco

Here is another option for those who have a 64-Bit computer, you can downgrade to 32-Bit Windows 7 and avoid all these problems you are having, most software from the past is created to run on 32-Bit computers, Microsoft in past had a XP 64-bit it it wasn't to successful. A 64-bit computer is overkill for an tax/accounting business, these computer are great for people who play video games, do video editing, photography etc... I did this for my nieces laptop, I bought Windows 7 Pro from Newegg http://www.newegg.com/Product/Product.aspx?Item=N82E16832116756&cm_re=windows_7_professional_32-bit-_-32-116-756-_-Product and did a clean install, it actually loads and run faster then before.

Backup your data first, uninstall both years of QB, then reinstall the 1st version, update and open a company file. Shut down the computer, not a restart, install 2nd version of QB, update and open company file. This problem accured for the 2006/2007 version, script errors everywhere. QB eventually fixed it, but we couldn't have both years open at the same time, we had to open one year first, shut down the computer, turn back on of course, then open the other year, it work back then. I have been reluctant to upgrade to Windows 7 yet, because there is always software issues when a new operating program comes out.

Wow that is insane, way too many years, the CPA firm I used to work for would keep 5 years, the latest 3 years would be kept handy and the last 2 would be kept in the basement. I will be keeping 5 years on hand also, and planning on scanning every tax file with it's support and shredding the paper files.

Try installing an old version and then downloading updates before restoring any file, I believe the updates are still available except for payroll. If you try restoring them before updating the program you will get an error and won't be able to restore. Why not advise your clients to buy the latest version of QB, tell them you can no longer use old version because of changing technology, that is what I tell my clients because it doesn't make sense for me to have different versions of QB on my computer. I still have a client using version 2006 and have told them, I will not be able to help them out if their computer fails, they already had a problem 2 years ago and luckily I had a copy of the file on my computer, client was able to restore but had to re-enter a couple of months of information. I am a pro-advisor for QB and I found out that it's cheaper buying the program from Sams Club or Costco, even though I get discounts for my clients.