BulldogTom

After 5 years, it amazes me what I still don't know about how to get the most out of MAX. Thanks KC.

What box did they use on the 1099? Surely not box 7? I see it as a reduction in basis. It would be impractical for the company to rip out all the wiring. So that is why they left it behind. I don't see any reason to take that into income. The IRS may not see it that way. Enter it on line 21 and zero it out with an offsetting entry. Add an explanation page and spell it out for the IRS. They won't read your explanation but it will be there when you write the letter explaining this 2 years from now. My 2 cents. I know Jainen will disagree. Tom Lodi, CA

I am with OldJack on this one. I would probably "suggest" to the bank officer that he should contact the AICPA or other governing body, expain that these returns are questionable, and that he thinks a peer review is in order (without making accusations of course!). Since it is in the best interest of the AICPA to police their members, and they would not want a story like this "getting into the local press", they might want to take some action. A person who was really steamed could call the local press "anonymously" and give them the name of the bank and the CPA and say "sick em". Every reporter is looking for a good mortage meltdown story that will show how we got into this mess. Not that I would use the second method, it was just a thought. Tom Lodi, CA

Thanks KC

OK, now I am not happy. I did not know that you could pull the company info over from somewhere else. I have been typing that in. Let me ask another question please, KC. If I have 1099 INT and 1099 MISC to send out, the program allows only 1 of the forms to be added, so you need to make a second "return". What is the easiest way to do this? Thanks for your time. Tom Lodi, CA

More help on this please? I was reading the instructions and got confused. Do I send in a complete set of the 1099's that I originally sent, or just the 1 that I corrected. What should go on the 1096? The total of the 1 corrected 1099, or new total of all of the 1099s, or a negative amount showing the change in the total decrease in 1099's from the taxpayer Sorry if this is basic. I just have never screwed up the 1099's before, so I don't know how to fix them. Tom Lodi, CA

Never thought about the written part. Of course, I have the client's permission, because they give me the lawyer name and delivery information, and they approve of the disclosure. I guess I should have thought of that. Thanks Mike. Tom Lodi, CA

Could someone remind me how we make sure we have the latest version of a form in the return? I thought they updated automatically, and we process updates every morning, so I should have the newest version in this return. In the past, there was a menu item that allowed you to replace the current form with the latest form. I think that went away? Did it? If that is the case, then I should assume that the form is still not working properly and the interest needs to go to line 48? Thanks for your help Tom Lodi, CA

Started happening to me a couple of days ago. If you still have PDF Factory installed, click change printer and select PDF Factory. It takes a couple more steps, but it gets you there. Don't forget to change your printer back. More wonderful improvement of the AXT program by CCH. Tom Lodi, CA

I thought this was fixed for the interest paid to banks on CC and such without a 1099. Was I mistaken? But I rolled this client over early in the season. I thought we could update form with new form, but I can't find that menu now. Please tell me I don't have to delete and re-enter the schedule C Tom Lodi, CA

This is where I send the schedule of division of income and deductions to the attorney for the other spouse. That way there is no question that the other party got notified. Then you have your audit trail showing you did what you were supposed to do. It is the same situation where one parent (unmarried) of a child will run down and file their tax return first to get a refund loan, and the other one is really qualified. You document your position, and then when the letter comes, send in your proof. These things are never easy. I bet if you prepare a schedule for the attorney, your client will come back and say that they will just file with their own information to make the proceedings go smoother. The lawyers don't want to get into this fight on both sides, so they will try to get the clients to back off. I have had it happen to me 3 times. Tom Lodi, CA

Unfortunately, when I went there, it was 2006 links. I still do not have my book either. The postman must not have crossed the Sierra Nevadas yet Tom Lodi, CA

No, that would be dislexia (sp?) As for the OP question, I think there may be an exception somewhere, but I am not certain. If the state has custody and severed parental rights, I believe you are correct. But if the parents still have custody, and the hospital stay is required medically, they may still be able to keep the deduction. Is everything for the child paid by the state? Tom Lodi, CA

It looks like the first bill has passed the house and is going to the senate. Future is uncertain, but the mechanism for the rebate is in the house bill. It is an advance on the 2008 Child Tax Credit. The clients will need to know the amount they get this year when they do there taxes next year so you can plug it into the worksheet on the 2008 tax return. Remember the last time? Hopefully, IRS will give us a website to get the payment amounts. Again, I realize this is not law yet, but the bill does show how the house intends to approach the subject. Tom Lodi, CA

I know what the instructions say, but I was also told by an IRS agent at a seminar that they don't like it because they cannot match the reporting documents (w2, 1099,K1) to the return. It is only those 9 states, but they cause problems. The agent told me that if a taxpayer files only their own information, the IRS will not question that as the basis for an audit. She also said that on the other hand, it was very likely that they would look closely at a return that kicked out for not matching up in the system. That is just what I heard. Tom Lodi, CA

I have not read that section in a couple of years, so I don't have a good feel for that. I don't think you can drop the info on the spouse on Oct. 15th, but I may be wrong. Sorry I can't be of more help. Tom Lodi, CA

There is a code section, and I THINK it is 60, that states that if the spouse is not timely notified of the income and expenses of the other spouse, they only have to use their own. Remember, they only have to split income and expenses during the time of community, not the whole year. And also remember that the IRS don't like you spliting income off from W2's and screwing with their matching. It will probably generate some ill will on their part. As a side note, you can use this to your clients advantage in the divorce procedings if your client has the higher wages (and you want to get involved). Prepare a schedule of income and expenses for the period of community for the other spouse's attorney. Send it along with a note requesting the information from their client so that the tax returns can be properly completed. Put the code section references in your letter. It leaves a nice audit trail when the IRS comes knocking. The trail leads to the other spouses attorney. SWEET. Tom Lodi, CA

Brilliant! I knew I was going about this the wrong way, but I just had a brain cramp. I have never had to correct a 1099 before. Thanks Chris. Tom Lodi, CA

I am sorry, bad joke. The firing statement was because of using the green paper, which is the color of HRB. I don't want the employees of our company to go to HRB. Tom Lodi, CA

We did not update a file for one of our 1099 contractors. They incorporated this year. I issued the 1099 in the owners SS#. They should be exempt as a corporation. What is the best way to correct? I think I should issue the correction in the name of the corp. I know that sending a corp a 1099 is not correct, but I think that is the only way to get the SS# replaced in the IRS computers? Your help is appreciated. Tom Lodi, CA

Today is payday. In my paycheck envelope is a new notice, required by the state of CA. It says I may be eligible for EIC. WOW, the state is pushing EIC. And the notice was printed on bright green paper. I am going to fire our payroll service. Tom Lodi, CA

Dawn is a southern girl with an accent as thick as can be. She is from North Carolina. Really nice person. Kinda new to software sales. We met at Super Seminar in Reno last year. I was so close to switching, but I believed all the CCH bull$h1p about nothing changing. Oh well. Tom Lodi, CA

I just got back my CA from TODAY!!!!! OK, maybe we can make some money this year. Tom Lodi, CA

Tom, It’s good to hear from you. I will be happy to see you in Reno again later in the year. I hate to hear you are having trouble with CCH. We have actually processed over 1.2 million returns thus far and CA was ready by Jan. 2. We are e-filing your S-Corps as well. I will have to say, we have been running real smooth. I hate you’re not with us this year, I’m sure we can work something out next season. Let me know if you have any further questions. I look forward to seeing you in Reno. Regards, Dawn Spivey Sales&SystemConsultant 800.890.9500 ext.4104 [email protected]

Well, I am starting to see my CA returns come back accepted. If the client is expecting a refund, I think I would tell them it is going to be late and then just wait. I think you may do more harm than good by reprocessing and "gumming up the works". I am sure that is not what you want to hear, but I think it is best for you. I share your frustration. Tom Lodi, CA