User talk:Mr cheese

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Bad news

Mr. Cheese:

Thank you very much for being interested in importing tax research materials to the TaxAlmanac site.

Unfortunately, though, I will have to delete the Rev Proc you added (RP98-55), as your source for it was a copyrighted service. We are only allowed to copy and paste rev procs from the IRS website, and under TaxAlmanac’s copyright policy, we can’t post anything that was pulled from a copyrighted source, such as checkpoint.

Now, I can imagine what you’re thinking: “Checkpoint can’t copyright a rev proc!” – and you would obviously be correct about that. What they’ve copyrighted is the formatting, delivery system, headnoting, footnoting, organization, etc.

Many of these older rev procs are available on the IRS site, but they are in a pdf format that makes the importing somewhat difficult. Checkpoint has fixed all that, making it possible for you to copy and paste more easily, but of course by doing so you’re violating the copyright terms you and/or your firm agreed to with Checkpoint (and for good reason, it probably cost them quite a bit of money to digitize the volumes of IRBs et al that used to exist on paper only). So, unfortunately for those of us who would like an easier way to pull in the old research resources, that’s a shortcut we just can’t take. Similarly, we can’t just copy them off of websites that have taken the time and trouble to convert the formatting – they deserve to have the benefit of having done the work to get it into that form, and we can’t just take it for ourselves.

Here are some various pages that talk about TaxAlmanac’s copyright policy:


Also, I should note that the TaxAlmanac policy can't be superseded by citing or attribution – many people think as long as they cite the source or attribute the material they are “respecting” a copyright. But if you read the copyright terms of the source (Checkpoint, in this instance), you’ll find that you’re generally only permitted to copy short excerpts (which then must be attributed), and you may be precluded from using any excerpts in a mass distribution (e.g., posting on another website).

If you refer to the TaxAlmanac copyright policies, you’ll see that TA is even more strict than that: "Never submit copyrighted material without permission from the copyright owner." So, basically, the guidance is to avoid posting anything that might be under copyright of another party. The only exception could be for very brief excerpt (I think it says "a couple of sentences") of copyrighted material, should it be the only way to get the point across in a discussion or article, and of course that excerpt must be attributed. The best way to go is to link to an article/website, if one is available that's on point, or send people to their own research services to get the info you’ve found in your own service.

Again, really, thanks for being willing to import new research materials. I wish I didn’t have to say anything, but we’ve got to look out for TaxAlmanac here – don’t want them having to explain to Checkpoint how Checkpoint’s hard work ended up being ported over to TA and given away for free, do we!!

Thanks,

Trillium 11:12, 28 November 2009 (CST)

S Corp Quickbook mess

Hi I saw your prior postings regarding quickbook vs. tax return reconciliation issues. I thought you might provide me with some insight on an issue.

I have a problem with a small S Corp client where their GL doesn't agree to the prior years tax return. Basically, they would provide to the prior CPA (they moved business to TN..that is why they changed accountants)a manually prepared income statement and an ending cash number. My client bought her father's share of the S Corp mid 2009 and just took over the books from him. Father and daughter (2009 only) never provided a GL to the prior CPA; therefore, the books are a mess; namely, cash and inventory. Imagine that:)) Nevertheless, I have reconstructed year end balances using cash, AR, AP journals and 12/31/2010 bank statements, etc. With this reconstruction, I have managed to come up with some reconciling JE's to correct the books. One problem I have is that Cash per the GL is way higher ($41K) than the ending bank statement(reconciled somewhat)and 2009 prior years tax return. Client admits that she was awful bookkeeper and transferred some personal funds into the business this year because things were slow. I am thinking this is part of the cash problem but see that Last year was off to.

I would like to record my remaining difference to SH loans to company. IS there any potential tax issue here? I can't run it through retained earnings because it would create a negative basis and I am trying to keep retained earnings in line with prior years return. Problem is tax return is great with my reconstructed numbers and my ending cash balance. I can balance. It is the books that I cannot get to agree to tax return. I can only reconcile so much (cost >benefit)..in order to really get this right, I would have to go back to prior years (who knows how long her father has been business) and reconcile the books and amend. I don't think the effort will bring about much change to their tax situation. So I am trying to just get the books correct going forward.

Can you offer any insight?

I have only a small clientele, of which, most are pretty easy. I have been doing acctg a long time and know how to get the books right, my problem is to make it work with the tax return. I appreciate any assistance:((

S Corp Quickbook mess"

If the client made personal transfers to the S corp bank account, then the bank statement should reflect those transfers. Book cash is 41K higher than bank statements at 12/31/09 cut-off, which tells me that the transfers may not be the problem. It is possible that the client did not record certain disbursements in 2009 (or possibly recorded them in January 2010 by accident) that are reflected on the bank statements. It is also very possible that there are deposits recorded in the cient's cash G/L account that are DIT on the bank statement at 12/31/09. It is difficult to tell without doing a proper bank reconciliation......however, see if the personal transfers recorded on the client's cash G/L account in 2009 are DIT on the bank statements at 12/31/09, but land in the bank in January 2010. This could be causing the difference. Again, without seeing everything in front of me, it's hard to tell.

Personal transfers into the the corp bank account should be recorded as either common stock (if stock certificates are issued, APIC (if they are not) or "Due to S/H (intercompany payable)". I prefer to stick it into APIC so that I can add to basis. Also, because you stated that the client transferred personal funds into the S corp in order to help maintain business operations during a period of low cash flow, it would seem to me that the transfers in would be better classified as a capital contribution instead of a loan.

As far as the inventory difference goes, that is a harder question to answer without knowing the specifics.

Engagement Letter OIC

I saw from another discussion that you prepare engagement letters for representation/OICs. I use engagement letters for everything and will be doing an OIC for a client. I don't have an OIC engagement letter in my arsenal and was wondering if you wouldn't mind sharing yours with me? Thanks!

Szptax

Engagement Letter for OIC

You can contact me using my email address ericsoncpa@msn.com. Thanks in advance for the engagement letter. I am always looking for things to improve my practice. I don't have a well developed OIC letter though, I did prepare one using the framework from my tax engagement letter. I would be happy to share my engagement letters if you are interested.

Szptax

Mr Cheese,

I'm horrified at your obnoxious rant. Fortunately it looks like the other more helpful users of this site outnumber the people like you.

Please see my profile. I was asked to provide it when I registered with this site.

Thank you for showing me that you view this site not as a forum for people trying to learn and to do a good and effective job for their clients. It's for people like you Mr. Cheese who knows everything and has no interest in helping.

Thank you for showing me that even a forum like this, so useful and so full of rich information can be ruined by angry jerks like you who would rather belittle someone than provide help.

You obviously got more out of trashing me than you would've gotten for helping.

Thanks to DAJCPA, Mikex2e7n5, DavidG and Marcillo for their thoughtful and kindly provided insight.

Ann

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