BulldogTom

Don't those muni bonds pay as they go? I thought you got the interest on a quarterly or at least annual basis. For the interest to accrue and pay at maturity is different to me. Perhaps some of you have seen these? Tom Lodi, CA

I think you are mistaken Pacun, this is an advance on the 2008 child tax credit. That is how the original House version read. It may have been changed at the last moment, but that is how it was advancing through the senate. Make sure your clients know how much they got, you will need that next year. Tom Lodi, CA

I thought about that to, but look at his post, it says the bonds "matured". That sounds like he reached the final day and the issuer gave him his capital and interest at that time. This is how I read the meaning. That is why I go with the 1099 Int Otherwise, you are right that he bought a bond for 1000, recieved non taxable interest over the years, and then sold it for a premium that would be taxable gain. This is not how I read the original post. Still not sure we have the right answer, but I am hoping L.S. will post more info. Tom Lodi, CA

I think you have to run it through the 1099 Int worksheet for the $2,487 in interest. On the 1099 INT worksheet, use box 8 and the information at the bottom of the worksheet for box 8 to make it tax free to both Fed and State. I don't think you need to report the return of capital, but I don't think it would hurt to include the "sale" on schedule D with a purchase and sale price = 1,000. Good question. I don't know for sure if this is the right answer. My best guess. Tom Lodi, CA

KC, Please tell me you aren't staying with ATX next year? I know the ATX people are good people, but those lousy, lying, condescending jerks from CCH now own this software. They have shown no respect or regard for their clients, and flat out lied to us. Do you really think that anouncing enhancements for next year is proof that they won't jack the price up or swap you into a "comparable" product next december when it is time to deliver the software. I took a some grief last year when the Total Tax Guide was replaced with the CCH Master Tax Guide. Everyone told me that complaining about getting a better product for the same price was stupid. Now the Master Tax Guide is $25 more expensive than the TTG (may it rest in peace). I would rather have the TTG, I think it is a better book. I think next year you will get your ATX version of Taxwise software. Just like we got the Klienrock version of the Master Tax Guide last year. Tom Lodi, CA

I was not questioning your statement that the amount is deductible on the schedule a. I believe it is too, as an unreimbursed employee business expense. I was questioning your statement that sympathy is the most important ethical standard. So not like you Jainen. You are the person I go to for the "cold hard facts of tax". You are the one I look to rain on my parade when I try to push the envelope. So it is suprising to hear you say that sympathy is the number one ethical standard. Tom Lodi, CA

There are two credits - one for homeowners and one for buillders. There are 2 separate forms (can't remember the numbers but one is in the 5000 series and the other I think is in the 8000 series). The homeowners get a credit up to $500 for energy efficiency improvements, and the builders get a credit for building energy efficient homes. Tom Lodi, CA

You are kidding, right? The most important ethical standard is to properly apply the tax laws to the facts and circumstances of our client's tax matters. I have sympathy for all my clients, that don't mean they get to deduct anything that makes me feel sorry for them. Tom Lodi, CA

We have them in CA too. They opened 2 offices in Lodi this year. Tom Lodi, CA

Just checking in to see how you are doing. Hopefully everything is ok with you and yours. Just thinking about you. Tom Lodi, CA

There are those special "Frikkin Bananas" again. Didn't someone say they came from a special part of Europe? Tom Lodi, CA

Legal fees for the collection of income are an ordinary and necessary business expense. No actual collection is required, just the bona fide attempt to collect amounts owed to the company justify the expense. Tom Lodi, CA

This has been going on for a few days. If you are trying to print from the PDF button, the software freezes. The fix is to print to PDF Factory, which you should have if you have been using ATX since 2004 (?). Just click the change printer button and select PDF Facory. If you don't have pdf Factory, send a PM to Monkeyman and I think he will be able to get it for you. Tom Lodi, CA

Is this a scammer trying to get info from you? My first thought is this guy is trying to get info from you. Never heard of the IRS issuing the same EIN twice. I would not re-issue the 1099. I would make the guy send in a w9, and if the EIN's were the same, I would call the IRS and ask them to explain how you got 2 W9's with the same number. Good luck. Tom Lodi, CA

You need to send them a W9. I have an FEIN but I am not a corp. Send the W9 and ask the question. If they don't answer, send the 1099. If they are a corp, they will just ignore it. Tom Lodi, CA

My client is in collections for 2004. We are not in dispute that he owes, it is just the amount. IRS transcript shows a refund in Feb 05 that my client swears he never got. I am inclined to believe him, since he had a collection amount for 2003 in effect at that time. We obviously cannot prove he did not get the refund, so how do I "politely" tell the IRS to prove they actually cut him a refund check? BTW - the 2003 transcript does not show an application of the 2004 refund against those taxes. 2003 shows the application of his refund from the 2005 tax return to pay the 2003 balance due. Thanks for your assistance. Tom Lodi, CA

KC posted in another thread that ATX is canning William Tasker at the end of the season. That is so crazy, and makes it look like ATX is history. I find it very interesting that they trotted William out on this board when they cut the Maine support to calm us all down. You think they did not know that we would all ask for refunds if we thought there was no support, and without William, there would be no support. They would have lost a bunch of us, and we were getting vocal. They got their money's worth out of him, because as soon as we thought he would be popping in, we calmed down. After a couple of days, he was not seen here anymore. Interesting. Tom Lodi, CA

I use X25 in my 3110MF printers. But when you said they did not work for you, it scares me to think that they may not work for me either. BTW, I have never used remanufactured in my printers. I am too paranoid that what happened to you will happen to me. I buy the X25 new at office depot for $74, or if I have a big enough order to get free shipping, I get them from DataBazzar.com for $69. Tom Lodi, CA

I can and did. But if there is a line that says "other interest", and I have other interest, I would assume that I should put other interest on that line. Moving it is not a big deal, but it would be helpful to know what changed. Tom Lodi, CA

Eli, did you get my PM? Tom

Nope. Put the income on line 21, create a list for line 21, put in a negative amount on line 21 equal to the 1099, add an explanation to the return, and wait for the letter 2 years from now. Poof, the correct tax treatment happens. Jainen will probably disagree, but from the facts as presented I believe this is the proper way to present this on a tax return. Tom Lodi, CA

Thanks 10sorTax. Appreciate the help. Tom Lodi, CA

Well, correct me if I am wrong, but the software has always accepted line 16b for other interest without a 1099 and e-filed it for the 5 years I have used ATX. I have put Credit Card interest on that line for the 10 years that I have owned my business. I have been e-filing for 8 years. I used Proseries before ATX. I have never had a reject for missing 1099 info on a line 16b entry....until this year. What changed? What is new this year? If this was always the case, why this year the rejects and not before? Tom Lodi, CA

Like I said before, an anonymous tip to the local press might make sure that this doesn't go away. There was a similar case up in Elk Grove (south of Sacramento, ground zero in the mortgage mess) where realtors were changing investor applications. All the house went into forclosure. Nothing was happening until a reporter at a local news station started asking why nothing was happening. Now it is a huge deal with the State, IRS, and Banking regulators all investigating. Not that I would make the tip.....just a thought on what might happen if a concerned citizen tipped the press. Tom Lodi, CA

I saw your post on the 1099's and you mentioned Colorado. If that is where you practice, can I ask a question? My brother lives in Edgewater, outside of Denver, and I prepare his return every year. He took an early distribution from an IRA. I have searched and searched and cannot find an early withdrawal penalty, and I don't think there is one. Can you confirm that? Thanks. Your help is appreciated. Tom Lodi, CA