**Accounting thread: Tickmark A: F w/o/x, PFAW

Discussion in 'The Mainboard' started by NothingIsOT, Apr 13, 2016.

  1. miles

    miles All I know is my gut says, maybe
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    That's kosher?
     
  2. NothingIsOT

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    What's the applicable period?
     
  3. Juke Coolengody

    Juke Coolengody One name. Two men?
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    4 years down in audit at GT. Fresh off working on a new accelerated filer over the past year, I've been offered the "opportunity" to lead yet another new one. :killme:

    Only a year out from the manager promotion that I was thinking about going for, but definitely second guessing that now.
     
  4. Cheshire Bridge

    Cheshire Bridge 2017 & 2019 National Champions - Clemson Tigers
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    This. Recruiters will try to sell you on "pre ipo,great work life balance, great to get your foot in the door ". Don't fall for it. Get on glass door, filter to your city and potential job and do your own research. Go on LinkedIn in and do the same.
     
  5. CUwhit21

    CUwhit21 Member

    Yea you're only reporting on 2015 income. You said you sold the stock a month ago. Anything after 12/31/15 goes in your 2016 return filed next April.
     
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  6. Jimmy the Saint

    Jimmy the Saint The future is a benevolent black hole
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    You'll need to file a Schedule D with your 2016 tax return. If you have all documents associate with the acquisition and disposition of the stock it shouldn't be that hard to fill out.
     
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  7. miles

    miles All I know is my gut says, maybe
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    Thanks guys

    You can all feel good about helping a retarded person
     
  8. Jimmy the Saint

    Jimmy the Saint The future is a benevolent black hole
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    Today I had to explain to a staff why a flip in an accrued expense account to a P&L account had an impact on pretax book income.

    What the fuck are they teaching kids in accounting classes now?
     
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  9. tjosu

    tjosu This is kind of like the breakfast club, huh?
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    There's a guy I work with that has been in my group for just over a year now that is somehow the dumbest smart person I've ever met. He just passed all four parts of the CPA on his first try within two testing windows but can't apply anything to his work. He recently turned in an assignment and his excel reconciliation that is supposed to tie to book to start out was off by $1.5 BILLION. To top it off, he had written a note next to it that said "off by $3 due to rounding"

    Needless to say, we've also had the accrued expense talk with him too
     
  10. AHebrewToo

    AHebrewToo Albino Hebrew Extraordinaire
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    Big4 tax senior manager, but I do no compliance work. :feelsgoodman:
     
  11. Jimmy the Saint

    Jimmy the Saint The future is a benevolent black hole
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    Lost out on a great industry opportunity because he's ex-military and I'm not. That was the deciding factor. In tax accounting. Had considerably less experience than me. :killme:

    About to go Big Four to large regional. Done with this shit.
     
  12. Cheshire Bridge

    Cheshire Bridge 2017 & 2019 National Champions - Clemson Tigers
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    Don't give up on industry if that's what you want.
     
  13. NothingIsOT

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    Hit three official years next week. Don't know how I'm still around
     
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  14. Rejuvenal

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    Does anyone know how much a Myaccountinglab access code costs?
     
  15. NothingIsOT

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    LMGTFY
     
  16. Rejuvenal

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    Thanks. When you do, tell me which price is right.
     
  17. EMAW FC

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    CPA here. My license runs through end of September. Realized that I fell just short of my CPE requirements for 2015. I work in industry so my hours are free webcasts through Deloitte and CPA Academy. Scraps

    How thoroughly do they check CPE? Don't want to submit my renewal application if I'll get burned.

    My title is Financial Analyst so I don't need the CPA but I'd prefer to keep the designation. Thoughts?
     
  18. tjosu

    tjosu This is kind of like the breakfast club, huh?
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    Don't know what the Kansas (or Missouri, whichever side you're on) renewal process is like, but for Oklahoma they randomly audit CPE, so we could in theory lie about meeting it and scrape by. The part that would catch us though is we have to get a certain number of hours per year and at least 120 per 3 year rolling period, so when I renew this year I could get audited going back to my 2014 CPE. However, I've never heard of anyone actually getting their CPE checked
     
  19. EMAW FC

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    Makes sense. Part of me just wants to send in the renewal app but I'm so paranoid about the audit.

    I think I'm going to submit an inactive status application to MO. You have to have an active license to request that designation so I should be good to go as long as I get it in before 9/30. When I request reinstatement to an active CPA, I will have to have 40 hrs CPE in the 12 months leading up to the request or get 40 hrs CPE in the 60 days after. Plan to do that next year so I can go back to being an active CPA. Never know when I'll want to test the job market and I'd like to have those three letters next to my name.

    Hoping to get my company to pay for a CPE course subscription this time, my old boss wouldn't cover it and I figured I'd go the webcast route. Came back to bite me as I didn't do enough.
     
  20. tjosu

    tjosu This is kind of like the breakfast club, huh?
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    That's the one benefit I can say working at a public firm had over industry...they actually had a person who was in charge of everyone's CPE status and took care of tracking your hours and applications; once I went to industry I had to start tracking all that on my own and finding CPE was a hassle for a while but the company finally got the free webcast hook up
     
  21. EMAW FC

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    Yeah it is impossible to not hit your CPE requirement when working in public. One of the few things I miss
     
  22. Jimmy the Saint

    Jimmy the Saint The future is a benevolent black hole
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    Making the switch from B4 to large regional in tax. Not really sure what to expect after 3.5 years in B4 but excited nonetheless.
     
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  23. —

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    Today has been a roller coaster of emotions.

    Around two months ago I got a letter from the IRS saying that I failed to report $10,000 of earnings in 2013, and I owed them ~$1500.

    I'm like "that doesn't sound right, but I have to acknowledge receipt of this letter anyway." So thats exactly what I do, I send them a response letter declaring I received their notice, although I think it is incorrect.

    Then I hear nothing.

    Fast forward to today. I get letter from the IRS that states I now owe $2700 by Sept. 6th and if i don't pay in full I am liable for additional fees and a higher interest rate. I am so confused... and angry. This is bullshit.

    So I call the IRS today, Hour and fifteen minutes on hold. I get to speak with someone. I tell him that I believe the notice was sent in error. He has to transfer me to a different department. Another fifteen minutes on hold until i speak with someone. I plainly plead my case which is "I know how much I made in 2013, $10k is a good percentage of the total amount. I have no idea how it would be possible for me and my accountant let a cool $10k go unreported without noticing."

    The IRS lady was actually really nice, she looked into the account while I was on hold for a few more mins. She comes back and says "o it looks like a 1040x was filed at a later date, but we do not have a copy of it. We will look for it and I'll take down your number so we can call if we find it." I'm like "Grrrrrreat in the meantime I'm gonna call my accountant and get a copy myself and give it to you so that I dont get another surprise letter in a month saying I owe $5k."

    I talk to the accountant, she immediately finds the 1040x for $10k. So now I'm going to go from owing 2700 to getting a return from the IRS.

    After hearing these events, who the fuck can I blame for this large waste of time? My guess is that someone at the IRS lost the form, or never filed it? I also dont know why the 1040x was filed at a later date? Did the accountant potentially forget to send it in back then? Tax stuff is greek to me, so any insight would be appreciated.
     
  24. Jimmy the Saint

    Jimmy the Saint The future is a benevolent black hole
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    What did your accountant say? Kind of sounds like she's a lousy communicator if you had no idea an amended return was even filed in the first place.
     
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  25. TLAU

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    Sex Fuckhead none of that makes sense. besides the waiting on hold for that long with the IRS. I always call with the maximum 3 clients to get all done at once.

    1 - 2 months you go from $1500 to $2700??? I'm not sure what "fines" they would tack on there. You get a failure to file and failure to pay penalty but it sounds like you filed... two returns so that one is out and failure to pay doesn't add up anywhere close to that quickly. And interest is a pretty small % too. That's shady as hell to begin with.

    2 - elaborate on the "she finds the 1040x for $10k"... like she filed an amended return that reported an additional $10K of income? Or do you have a schedule C that reported no income previously on the original 1040 and then filed a 1040x that actually had income of $10k on there as gross receipts? In both these scenarios you would have had to pay in extra money and wouldn't be getting a refund back... the best case scenario would be your CPA sent in some kind of packet proving you DIDN'T have an additional $10K income and your return was correct as filed - in which case you just wouldn't owe any additional tax.

    3 - I don't wanna start anything here but.... your accountant cannot file a 1040 or 1040x without your knowledge and authorization signature. It's fucking illegal. I'm assuming you file electronically and for the original 1040 to have been filed you need to sign the 8879 e-file authorization form prior to them submitting it for you. 1040X has to get paper filed, so she would have had to send you the entire return and instructions for you to sign page 2 and mail it to the IRS office... her filing one without your knowledge at all would mean she forged your signature on the 1040X and submitted it without your knowledge. Holy shit that's not okay

    4 - The IRS doesn't just lose returns like that. it just doesn't happen. :idk:

    That whole situation is honestly one of the more shady things I've heard in 8 years of public accounting. #3 can probably get her license suspended :twocents: If it's someone you have a longstanding personal relationship with I'd at a minimum go to her office and have a nice long chat. Again not trying to start a fire but goddamn I can't believe any of that

    edit: the ONLY way that's not head scratching as hell is if you signed a power of attorney form for the 2013 tax year. And even then I'm not sure you can sign/forge someone's signature on a 1040X. I think the POA just lets your CPA get transcripts and resolve issues over the phone themselves with the IRS instead of you having to do it. I'm not sure there's ever a situation where someone other than your guardian can sign a tax return for you.

    And the signature thing is a huge deal at both firms I've worked at. My current firm doesn't do every single thing by the book when it comes to some gray area deductions and shit but we will absolutely not e-file a return without the 8879 electronic authorization form signed and God knows what would happen if someone at our firm tried to sign a client's amended return and file it for them.
     
    #75 TLAU, Aug 19, 2016
    Last edited: Aug 19, 2016
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  26. TLAU

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    what I really came in here for was to bitch about 2nd busy season starting on monday :killme:

    we do have a disaster relief provision from flooding in Travis County and a few other areas surrounding Austin which is nice so september 15th deadlines all got moved back to october 15th. #SilverLining
     
  27. —

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    The grand majority of the increase was from "Decrease in credit for tax witheld" Actually looking at it now it went to 2450, not 2700, i wrote it wrong the first time.


    Honestly since this whole mix-up was with regard to 2013 I don't remember all the details, but I actually think its possible she e-filed then saw the additional W2 and immediately did the x? Is schedule C the form you use if you are incorporated and don't want tax withheld? if so, I do not have schedule c.


    Jesus I hope not, really hope I'm forgetting a return trip to the office or something. I'm an independent contractor and after filing with her that year I didn't go back because I felt she may have been out of her element and I thought I should've gotten a bigger return.



    Definitely do not remember signing power of attorney considering we don't have a longstanding working or personal relationship.

    When i called today I spoke with her. She said she remembered me, I haven't been there in 3 years so that seems unlikely unless she did something bad and it was hanging over her all this time? I know that seems a bit far fetched but this whole experience has been kind of eye opening wrt taxes. I always do them, get the return, move on. Pretty jarring when something that seems like an innocuous mix-up blows up to a "PAY US RIGHT FUCKING NOW" situation with almost no communication or real explanation of what is actually going on.

    The most confusing thing to me is how the IRS rep i spoke with today was able to find a record of the 1040x being filed, but not the actual document. Is it a two step process for accountants? "Hey we are going to file something." "Ok now we are going to file the thing we told you was coming." ?
     
  28. —

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    Also I think my biggest fault was not calling the accountant immediately after the first notice. I figured my "I dont think that is correct" response would lead them to look at the facts again, but apparently not. My bad for assuming they'd be proactive on my behalf.
     
  29. Gotch Yarbrough

    Gotch Yarbrough Canada eh?
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    You get a refund, not a return :comicbookguy:

    And yes, not going to your CPA immediately was the mistake. The IRS issues the CP2000's based on information from the employer cross referenced with the info on file from you. The burden is on you to prove one of the two sources is wrong. A letter saying it's wrong with no verifiable proof is worth doodoo.
     
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  30. Doug

    Doug Skeptical Doug-o
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    I once had a client whose prior CPA filed an s-election and 1120s for her without her knowledge. That made for a lot of fun notices.
     
  31. Jimmy the Saint

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    Not a lot of working Saturdays for the 9/15 deadline? From past experience I'd be pretty pissed if that happened tbh.
     
  32. TLAU

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    Nah no weekend except probably the 10/15 weekend just being around a computer at home "to put out fires" just mostly bumping billable hours back up to more than non-busy season

    Younger brother is getting married 9/10 my boss was pretty stoked about getting that request off form
     
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  33. TLAU

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    numbers correspond to your parts of the post

    1 - so they said you had additional income on a W-2 that was unreported AND less federal tax withheld than originally reported? That would basically be one of a couple different scenarios: A) your CPA typed 2 boxes numbers in wrong on the input screen. highly unlikely unless she's incompetent a 4 year old could do that. B) Your employer that year that issued the W-2 prepared it wrong originally, subsequently filed a corrected W-2 with new numbers for those two things, and forgot to send you a corrected form. Could see that happening I guess if it were a small business that does payroll in-house and just plain forgot about you. Pretty shitty though but definitely possible.

    2 - An additional W-2 could account for the additional wages but not the decrease in tax withheld. If you did get an additional W-2 that had income not reported on the original 1040, the worst case would be $0 withheld on that additional income. It wouldn't decrease withholdings stated elsewhere. as for Schedule C that relates to your next thing...

    3 - As an independent contractor did/do you get a W-2 or a 1099-Misc that states income? (Don't worry if it's a 1099M and you've been calling it a W-2 this whole time literally half my clients call every form they get with income on it a "w-2" even fucking IRA distribution forms :loldog: ) Typically contractors get paid cash/check without it being run through payroll at all, i.e.- no SS or Medicare tax or Federal Withholding. And it goes on a schedule C which is for self-employed people with their own business. That's where you typically see the income discrepancies. People that pay you throughout the year and send you a 1099-Misc for the year total paid and they also get sent to the IRS, reported under your SSN. IRS takes all the 1099s for your SSN for the year and if your gross receipts are less than that on your Schedule C they assume you underreport and they add on additional income to match the grand total of all 1099s reported for you that year. This scenario could also explain the reduced credit for taxes withheld - but it would have been in the form of Estimated tax payments you physically made yourself each quarter (you would remember doing this you basically get your CPA to estimate your total tax owed for the year based on a projection and you write a check on 4/15, 6/15, 9/15 and 1/15/2014 and mail them to the IRS - which acts the same as federal withholding on a W-2.) A lot of times a client will think they made a quarterly payment or misremember the amount and that results in an overstatement of taxes paid in during the year. Honestly this paragraph would make the most sense but...if you know for a fact you were paid as a W-2 employee via payroll paychecks in 2013 disregard #3 altogether and back to head scratching.

    Either way the whole idea of "finding another W-2 and immediately filing a 1040x" is a gigantic red flag no-no in the industry. You would have still had to sign it or her forged your signature. So hopefully this isn't the case or you went back and signed a 1040x and just don't remember.

    Look on the bright side - you started handling it before you got the 3rd notice which comes with a big bolded heading "We are going to put a lien on your assets, bitch" Good God you really see clients have some meltdown emails/phone calls or the rare in-person visit when that notice comes in :roll:

    I guess theoretically it IS possible they lost your 1040x. That just seems so unlikely..... IDK maybe someone else here in public has heard of it happening. Like I said in 8 years of doing tax I've never heard of that and even though it has to get paper filed, it's not like paper filing is a new thing. That was the standard for decades. I've had them lose POA forms we've sent in before but an actual return goddamn IRS I know funding was cut but that's a little silly. It's not a 2-step process you just file a 1040X when you have to change something.

    Depending on if #3 applies or not the response from your end would be pretty cut and dry and our company's fees are pretty fair :awesomeface:
     
    #83 TLAU, Aug 19, 2016
    Last edited: Aug 20, 2016
  34. Jimmy the Saint

    Jimmy the Saint The future is a benevolent black hole
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    Start at my new firm on Monday. Hoping this what it's going to be like.
     
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  35. TLAU

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    FWIW if your shitty ex-cpa doesn't magically work this thing out for you and you wanna take care of it yourself:

    1 - get a copy of the original 1040 from her
    2 - get a copy of the phantom 1040X from her
    3 - call the IRS again, pack a lunch, and get your tax transcript for 2013 (will have the totals they have on record for income, deductions, and taxes withheld for you for that year)
    4 - get copies of all tax forms you gave your CPA in 2013: W-2 or 1099Misc (whichever it was) and anything else you sent
    4b - from your last two posts I wouldn't be all that terribly surprised if she doesn't have everything even though legally she must keep all of that for *i think 7 years
    5 - see if you or the IRS is right

    If it comes to this, the response letter for you being right is pretty easy and we'll cross that bridge if/when we get there.
     
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  36. TLAU

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  37. NothingIsOT

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  38. Shock Linwood

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    Asking for a friend...

    How many years into the future can I apply capital losses to offset capital gains in the stock market.

    Completely random example: lets say I lost $19k in ORIG stock this year, can I apply that to any gains I make next year? And the year after? Any limitations?
     
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  39. NothingIsOT

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    How long did you own the stock before selling?
     
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  40. Shock Linwood

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    > 1 year. I think 15-18 months
     
  41. NothingIsOT

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    Believe you can roll it forward 5 years against long term gains. Or back 3 years. I'd have to open my old tax books.

    I don't remember there being limitations. I just think it's only long terms (>1 year) can negate long terms.
     
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  42. NothingIsOT

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    If no one gets you an answer tonight. I'll ask around the office tomorrow to get you a 100% answer.
     
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  43. Shock Linwood

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    Appreciate it.
     
  44. Alshon

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    This is the rule for corporations, not individuals. Individuals carry forward until it's used up. The loss is netted against gains. If the loss is bigger than gains, you can only deduct up to 3k each year and the rest gets carried forward. So if you lost 19k this year and didn't have any other gains, you'd deduct 3k this year and carry forward the remaining 16k to future years.
     
  45. bcuga

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    A man of your stature and wealth shouldn't have to resort to asking strangers on the internet for tax advice. However, being the generous CPA I am, I will indulge you with a proper answer.

    You can use up to $3,000 per year of your capital loss to offset any other type of income. Any unused losses above that can be carried forward to future years to offset future capital gains or, again, offset other types of income up to $3,000. There is no limit for how long you can carry forward capital losses on your personal return.
     
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  46. Shock Linwood

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    Part of having a lot of wealth involves keeping spending to a minimum.

    On that note, thanks for the free advice.
     
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  47. bcuga

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    I'd imagine you are in the 39.6% tax bracket. So the $3,000 deduction can save you an additional $1,188 in taxes.
     
  48. NothingIsOT

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    Whew... guess who just showed they took REG back in July 2013... and now just vouches tax payments, and performs limited procedures over DTA/DTL.
     
  49. Joe Withabee

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    This may be stupid but please help: I've been a self employed contractor since September, so my taxes have gotten slightly more complicated. I drive ~250 miles per day to various ever changing oilfield locations to oversee things, but I'm home every night. Can I use the per diem deduction?
     
  50. NothingIsOT

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    I'll do some research.

    TLAU bcuga tjosu Jimmy the Saint

    Resident tax guys
     
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