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I don't understand when it became possible for us to ignore an IRS ruling just because we don't like it. EITC aside, There are many IRS rulings that we don't like, disagree with and/or resent. However, our obligation is to prepare tax returns in accordance with the law; practice due diligence and do the best job that we possibly can for each and every client, within the guidelines of the IRS. If I know and believe that a client is entitled to EITC, I will prepare their returns too. I don't think it is part of our jobs to judge or envy anyone. Some might make much more money than I do, but a whole lot of them make less and deserve the same consideration in the preparation of their tax returns as the wealthy do when we try to find every deduction, etc that we can to lower their tax liability. IMO, every client's return is just as important as my own and will be prepared accordingly. Wishing all of you a very prosperous and happy New Year.

This is really the problem. The IRS is having the largest problem not with "Paid" preparers, but with "unpaid" buy the TurboTax box and prepare as many returns as you can until TurboTax quits accepting them from that box, and go buy another one. I'm sorry, the problem isn't in those folks with a PTIN. Its in the folks who DON"T HAVE TO HAVE THEM, and are preparing fraudulent returns. And I am TIRED of being compared to CROOKS. Kim Hawkins can kiss my ass. She needs to use her resources to go against those who are commiting CRIMES, not searching around in my files for a missing birth certificate.... Which, I can tell you, I haven't a single one in my files. /rant off. Rich

Thanks jshtax and MrPencil. I was a bit concerned after reading these posts that IRS may have an issue with me accepting a "picture" from an iPhone of the signed 8879. I would much prefer a fax copy or a pdf because the "picture" sometimes is not very clear if they don't take it correctly.

Can you believe there are preparers who aid and abet these tax cheats? Sometimes they keep filing for about a decade, even though they think the situation is ridiculous. Sometimes they just like the clients, so they aren't going to demand anything from them as proof. For a fee of course. Such preparers give the whole industry a bad reputation. They're the reason we have Form 8867 in the first place, and the big push to regulate tax preparers. The only alternative would be self-regulation, so it's heart-warming when a preparer is seriously thinking about it.

Three Kings Day is also called "Epiphany", "The Feast of the Magi", and "The Manifestation of God", and is the day that Jesus was revealed to the 3 kings (wisemen). The Eastern Christian Church celebrates the day of Christ's birth on Jan 6. And for many, the 12 days of Christmas are from Dec 25 to Jan 6 ending on Three Kings Day, and not from Dec 13 to Dec 25 as some celebrate it.

I have no idea what the guy down the street charges to prepare a return. And I really do not care. I have an idea what HRB/Liberty/chians charge, and in many respects, it is, and can be, much higher than my fees. But they are doing work I don't want to do, so it doesn't matter. My fees are too low, no matter what, becasue *I* want to make more money. And play more golf... But those fees listed in the first post would be below my averages. The low end for me would be at least $300-325 for a 1040/SchA/MD return. If you are selling a commodity, then you ARE sensitive to what others charge, because your product is no different from the chains/others. I do not sell a commodity. I sell myself, and my knowledge, and that is worth alot more than any of the chains. I happen to be a CPA, and started working for a CPA firm 20 some years ago, then I went to work with a Non-CPA firm, and have been stuck with lower pricing becasue of that... But it has not stopped me from raising my rates since. But if you are in this business, and in it for real, then get your EA, or your new RRTP when it comes back, (and it will!) and charge accordingly. The clients that leave because of cost? In 20 some years of doing this? Not that many in the first place, but most of them? Were gonna go anyway. And are not missed. And don't be afraid, and think that your clientele isn't that economically priviledged, and they can't "afford" it. THAT is not your problem. Rich

No--technically it is NOT in order. There is a 1098 that says he spends more money than he has. That discrepancy MUST be resolved before the return can be signed. Maybe he feeds his family at the restaurant. That's a good answer, and I probably wouldn't question whether that constitutes a taxable fringe benefit on the W-2. But that still wouldn't explain the cash flow problem. Maybe he gets gifts from overseas. That one I probably would question a bit more to see if it is taxable income or subject to FBAR, etc. That is not violating anyone's privacy, but rather understanding the context of information already provided. If the client doesn't want to answer the questions, he doesn't have to! The questions are identical whether EIC is involved or not, and in neither case does he need records if his answers are otherwise consistent and complete. Records of course are usually the easiest way to get there, and I scan any records EIC or not. So the only difference in terms of due diligence is that I am required to keep records that I copy anyway. Somebody wondered if my clients tell 100% truth. Well, I'm sure they do and it's just a coincidence that not a single one has ever been called to jury duty! I have no reason to know that they sold something for $50, though I daresay I've had a few discussions about theoretically selling things. But bank interest, yes, if they had an account last year it will be on their organizer and I will always ask and annotate. So I'm not a detective but I don't ignore the implications of information they give me. Karen Hawkins seminars notwithstanding, it's really not that big a deal.

In answer to the bold above: Yes, it is. Yes, it is. No, the job of a preparer is more involved than that. That's not good enough. No, that's not true. Please review the EITC due diligence requirements, specifically the bullet points in the "Knowledge" section: http://www.eitc.irs.gov/Tax-Preparer-Toolkit/dd/lawandregs and Circ 230, and review the meaning of the jurat you sign on each Form 1040 that you prepare. Maybe you should lay off those chill pills for a while.

MsTabbyKats, looks like we have all been attending the same IRS pep talk seminars. I will not be turned into a government law enforcement officer until they put me on their payroll. I am an income tax preparer. Over the past years, something is shifting in their treatment of our profession. We are now working under constant threat of severe penalties, suspension of our PTIN, and disgrace. Since the sophistication of computer technology, the tax laws have become so crazy, that even professionals will arrive at different outcomes when preparing the exact same tax return. Sometimes we are at the mercy of the quality of the tax prep software that we purchase. We have an adversarial relationship with the IRS and now our clients. I can remember when kids didn't have SS numbers; I prepared returns with a pencil and calculator; i had a wall of reference books with weekly replacement pages sent to keep them updated;I would call the IRS help centers and their answers were usually flat out wrong. And it was all kinda fun. I did fewer returns, but made more money per return. To be profitable today, we must operate like a factory. Don't get me wrong, we still find ways to have fun, enjoy our clients and take pride in our work. It helps to have a network of peers who understand the pressure and offer real solutions to problem situations. That's what I find here. I will continue to fight the good fight. Bring it on!