BulldogTom

If the prior preparer handled it as a sale of an asset on the 2008 return because that is the date that the client gave it back to the bank, I would do nothing. I would document the file and be ready to respond to an IRS inquiry if it comes. But I would be suspicious of the treatment by the other preparer. Double check that the truck was properly disposed of for the amount of debt remaining on the note at the time. If it was not done correctly, advise your client accordingly. Tom Lodi, CA

Eli, He has "sold" the truck back to the bank. Use the amount of debt forgiven as the sales price and do a disposition just like you would any other asset that has been sold. Tom Lodi, CA

Jack, That "myth" came from a CCH support tech who was on the board for a short time eariler this year. I think she said that it would be 2 more years was the rumor floating around CCH SFS. Tom Lodi, CA

That is a variation on the old line that goes like this: How does a farmer end up with a million dollars at the end of the year? He starts with 2 million. Tom Lodi, CA

Lisa Ann, Try this company. I don't know if it is overkill for what you are looking for, but I have heard it is pretty good. www.harrisbusinesssystems.com The product is called Maxwell. Ask about Computer Ease. I think they are still selling that too. Tom Lodi, CA

Dennis, Please don't think I was putting your software down, because that is the last thing I would want to do. For those of us in the construction industry who have to deal with prevailing wage jobs, we understand what you mean by the complexity. It is highly specialized and not everyone is willing to do it. That takes nothing away from your excellent product. Tom Lodi, Ca

With one child, you are limited to 3K, and since all of that was paid by non-taxable income, there is no credit. You will have to repay the amount you claimed as a credit on your return. Tom Lodi, CA

Dang, I am really feeling left out. I did not take advantage of TRX offer last year, and because I stuck with ATX, I won't get the 40% off this year. I missed the boat. Tom Lodi, CA

How many children? Limited to 3K for one child or 6K total if more than one child. You have claimed too much child tax credit if you claimed $2,900. Tom Lodi, CA

We use timberline. But that is not my choice. It is very old technology and cumbersome to use. The reporting leaves much to be desired. However, I must say that if you know what you are doing, it will do everything you ask of it. It just takes a long time to figure out how all the modules work together. In fact, I am going to my 4th conference on how to use the software next month. I will be looking at setting up direct deposit using the software and getting our vacation and sick accruals to work properly. Tom Lodi, CA

Lisa, What you need is a contractor's software. They are not cheap, but that is really the only place you can find what you are looking for. Unfortunately, you can't just buy the payroll software. You have to buy the program to make the payroll work. Timberline is one of the industry standards. American Contractor is also very good. Intuit has a product called Master Builder that is geared towards smaller contractors but might work for you. How do I know this, because my day job is Controller for a contractor and we do prevailing wage jobs. I have looked at several software packages over the years. Tom Lodi, CA

What went right: Advertising was very effective. 14% client increase. Software was very good (sans bank products and some e-file issues) What went wrong: Bank product debacle on January 14th Getting ATX to help with fee collect to offer something to my clients Efile issues at front end and April 14th (are you freaking kidding me - they did it for the second year in a row). Clients with more and more complex returns and not understanding what is going on. California (need I say more?) More letters to clients, tax increases, confusing withholding schedules, confusing Estimated taxes, HOH questionaires, tax credit reductions. This was a cluster trying to explain why people who never owed are now paying and why their withholding was not enough. Especially if they have lots of kids. A $211 tax increase for every child on your return. Schedule M - the infamouse question - Did you get the $250 payment. No IRS lookup until APRIL??? Tom Lodi, CA P.S. - Jack, this is all minor crap compared to what you went through. My heart goes out to you and your family.

We can only hope Tom Lodi, CA

Thank you. Personally, I don't want this board clogged up with a bunch of taxpayers trying to get free advice. But, it is not my discussion board, and Eric will have to decide who he wants to allow to join. IMHO, there is a board on MSN for taxpayers, and this board should be for professionals. Do you really want all the discussions about "how do I get a bigger refund?" and "how do you make turbo tax work?". I hope I did not make it sound like "GO AWAY", but if retired teacher took it that way, good. Tom Lodi, CA

Retired Teacher, This board was created for tax professionals to network together. We generally are very free with our advice to each other, but we get paid by our clients for our tax expertise. Your issue is really with your tax professional. If he has not properly filed your return, he should fix it. Tax professionals generally take a few days off after the tax filing season to recharge. If you think you want to tackle this on your own, you should get the IRS publications for 1040X. In general, the form is pretty simple to fill out. You put in your return the way it was filed, you put in what it should look like, and you put in the difference and explain why the change. Send it in with any new forms that were not included on the original return and a copy of the original return. Wait 6-8 weeks for the IRS answer. Or, you could wait a few days for your tax pro to answer your call. Tom Lodi, CA

I am worried. I just sent a return and it says it was transmitted, but then it says it cannot process acks. This is why we love this job. Tom Lodi, CA

NO. "Frikkin" is the adjective that describes the word "Unreal". You are from California - haven't you studied your ebonics? I know you are a young man and surely you were in school when that wonderful program came to be. "Frikkin" can be inserted into any word or phrase at any time to show emphasis or extreme emotion. Examples- Stupid Frikkin Client, Incomprehensible Frikkin Publication, Idiodic Frikkin Politicians, etc. You get the idea. However, it is the highest measure of acheivement when you can insert "Frikkin" inside a word. Example - In-Frikkin-Sane, Un-Frikkin-believable, etc. Try it - it is a good Frikkin stress reliever. Tom Lodi, CA

Client has a basic return with Sch A and Sch E with 3 rentals. Not a big deal most years. Had a loan modification on both residence and rentals. Spent 30 minutes on the insolvency worksheet in our first meeting, and then another 45 when they came back tonight. They owe for the first time in their married life. Pissed about it. Hey - you just got income releif of 200K, and you have withholding of 1600 on 95K AGI with another 30K of non-taxable income. But here is where it gets unreal. "Since we have to pay so much, can you cut our bill down some"? I only charged him $249. He asks if I will take $200 cash or I can wait for the money. I was about to lose it. His wife was mortified. So I very sweetly said, the return doesn't get filed until I get paid. Now the best part, he says "you know our checks bounce" My reply - "I will just call the IRS and tell them that I am not your paid preparer, and I don't know what they will do" His wife wrote the check. Can I go on vacation now. Tom Lodi, CA

I know it considered professional courtesy to tell the new preparer what you did and why, with client's permission of course. But it is also professional courtesy to not bother the previous preparer in the last week of tax season. If you know the CPA, personally or professionally, it might be ok to give him a quick call to discuss, but if you called me this week about a PITA client that you were taking from me, I would ask you to call me after tax season and explain my rates for consultation. To me, it sounds like the client is not telling you everything. They may just be intentionally uniformed about their tax situation or hiding something. But this doesn't pass the smell test. Why didn't they just ask the CPA when they picked up the returns? Why are they coming to you at this late date? Get a retainer. Tom Lodi, CA

Can't take it. Look at the questions on the EIC tab. "Does the taxpayer (and spouse if filing jointly) have a SS# that allows them to work in the US?" If the answer is no, you do not qualify for EITC. Tom Lodi, CA

wait for the 1099 to come in. Ask the lender for one. They should provide it. Tom Lodi, CA

KC, Could you please update this post when that scam is scheduled for the Lodi Lowes? Thanks in advance. Will be checking the price of wallets at WalMart. Could stand to lose a few pounds as well. Tom Lodi, CA

<<I think that would be very improper. In my opinion, the trust can NOT receive the refund.>> Thanks Jainen. But just out of curiosity, why would it be improper for the trust to take the refund, as it is going to go to that account anyway for distribution to the beneficiaries? Inquiring minds want to know. Tom Lodi, CA

Sorry, he is also the personal representative. If the trust has a bank account, can I just send the refund electronically into the account? Tom Lodi, CA

Taxpayer had a revokable living trust. He passed in Oct. Brother is successor trustee for the trust. Final return has a refund. Shouldn't the refund be made out to the trust? Form 1310 does not seem to have this option. Should I have the check sent in the name of the brother under his social security number? That doesn't seem right when the trust has a tax id#. The trust will also have to file a return based on income earned by the assets of the trust reported on the trusts Tax ID #. Thanks Tom Lodi, CA