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Here is my rant.... Went to bed late Friday night for a church social event, then up early to drive two hours to an 8 am start at a Rotary event. So, I am losing a Saturday for tax season, already. Had a client, who's daughter and daughters boyfriend (DBF) got involved in this business of checking on the foreclosure houses of a very large bank. Lots of driving around, but good money, I was told. So, since their house is on the way back, I stop in to collect the my clients tax stuff and talk to this young couple about incorporating and minimizing taxes and how to do it right. First thing out of DBF's mouth is how he wants to DEDUCT EVERYTHING, all the mileage, all the phones, the GPS, the camera, entertainment, etc.... ME: "Ok, well, how much money did you make" As I look at the pile of info for daughter (1 W-2, a 1099 and 1098T) and DBF (1 W2, 1098T and a HUGE unemployment 1099-G $15k+) but no 1099 from this company to "him". Him: Oh, whatever is there, but we drove SO much, and the guy said that I could deduct..." ME: "Wait, all this for $5,200? How much do you get paid to do this? Him: Finally after much hemming and hawing, he finally admits that they get paid $4.25 a house to check on them once a month or every other month.... and he did NOT get a 1099 for anything, just the daughter got the1099... ME: "How many miles did you drive?" Him: 15,000 miles. ME: "So, you spent $7,500+ to make $5,200?" "You want tax deductions? Your accounting fee is $10,000 so just write me a check, and I will worry about the taxes..." Him: Silence. Me... I shouldn't meet with idiots when I am tired. Rich

My husband works for a chocolate company. My mother-in-law also works in the candy kitchen for the same company. We NEVER run out of high quality chocolate in our office!!!

We got your back, and you got ours, Girlfriend.

I can't see 'em on my iPad either. I'm learning to type a lot of them because I've been using Messenger a lot and they don't work on my desktop in there, but do on my iPad. figures. I'm so glad all you guys are here. I had a wee meltdown today, and I come in here and don't have to explain anything.....just have to say meltdown...

Haha, be careful or he will back off enough to get EIC, and he'll be eating better than us.

One of the best pieces of advice we feel we have received when we were developing our pricing structure was: "If none of your clients are complaining about your fees, then you are not charging enough." The problem with the tax prep part of our industry is that the box stores make tax prep seem like merely a commodity. As Michael points out, we are not dealing in transactions, but rather relationships. This is what differentiates us from the box stores and is our value proposition and should be a major part of whatever our marketing is.

when I get asked "is this a fair fee?" my stock answer is "no because I wanted to give you a break, based on time and value it should have been $XXX" I usually get a laugh and a check.. I have never had a client leave over fees. You need to let your clients know that its not the tax prep they are only paying for, its the knowledge, experience, your review of their lives, and suggestions that are worth your fee.

Went to a continuing ed class a couple years ago - guy specialized in OIC and bankruptcy cases. He said the same folks would come back every few years, in trouble again. One of the folks at the class wanted to know how he could stand to deal with the same problems from the same people time and again - didn't it drive him crazy after a while? He told us that the secret was not to see them as "perpetual problem clients" but rather as "walking annuities" and if nothing else stuck from that class, that phrase did! Attitude -- it's all in the attitude. (Or, at least, lots of it is in the attitude.)

The 34% calculation should come after determining the gain on each animal. This sounds like a required partnership tax return whether they like it or not?

I'm going to start off by saying this is a good thing for me...maybe the cosmos heard me complain. I often complained about not liking to do 1040-NRs...at my ridiculously low fee. So I raised it...still low..but not ridiculous. I got 4 inquiries...referrals (who probably heard about my ridiculously low fees)....and no jobs! I also complained about a certain group of clients who flooded me last year because of my comparative low fees....although they could afford to pay a bit more. The flood subsided...I just heard from a couple of them this year (they were early birds last year...I don't think thy are all waiting until the end). My theory is the former preparer offered them a better price this year. Stupid EITC requests....paying mtges with $20,000 interest ....with 3 kids....on incomes of $10,000. From what I understand the business accountant is doing their personal returns. So...although less income for me, no stress.....and more time to concentrate on the people who use me because they like my service....not just my price!

An S-Corp client who cannot, for some reason, get their information to me in a timely manner. 2012 return extended and they blew beyond the extension due date and just e-mailed me a spreadsheet for the 2012 TY. It came with the statement that we don't intend to rush you or nothing but NC Workman's Comp has some new law and they need a copy of the return in a week. Are you kidding me!!! Almost a complete year late and you really want it in a week? I don't know how they have escaped the failure to file penalties each year but this is the fourth year they have done this. Each year I warn them. Just once I wish they would get penalized and I bet they get it to me on time. BTW- e-mail also said they would have 2013 to me by march 15th. I am holding my breath. Okay rant over. I wonder if it is proper to charge them an additional fee for expediting the return. Hmmm

sure they have to be reported. Worldwide income. I put them on the dividend form with the name of the payor, and uncheck the box that says to add to the payor manager. Haven't had an issue so far....but the one client I have with this issue always goes on extension, so I'm not sure about this year.

Terry, I certainly wouldn't bang my head against the wall on this no brainer. Plain and simple....NO, NO, NO. There's no possible way you can put off your good clients for one who is perpetually slow and seems to only think about having his return prepared when he's pushed up against the wall. Your client certainly has payroll records the auditor can view plus the fact that an auditor usually tells the client he is to audit to have those payroll records ready in addition to his check register for the policy year so he/she can see if any "sub contract" labor exists without Certificates of Insurance. Trust me, it is not necessary for an auditor to have a completed income tax return as normally the policy year doesn't run from January through December as does the tax year for most. As long as you pacify your client and abide by their absurd requests this time of year, the longer they will keep on doing it to you. Take care, Cathy

There are three threshold requirements that everyone must meet to qualify for the home office deduction. You must: · Be in business · Use your home office exclusively for business (unless you store inventory in your home) and · Use your home office for your business on a regular basis. If you pass the first hurdle, then you must also meet any one of the following five requirements: · Your home office is your principal place of business o If you work in more than one location, your home office still qualifies as your principal place of business if you perform your most important business activities – those activities that most directly generate your income – at home. o If you perform equally important business activities in several locations, your principal place of business is where you spend more than half of your time. · You regularly and exclusively use your home office for administrative or management activities for your business and have no other fixed location where you conduct substantial administrative or management activities. o Administrative and management activities include, but are not limited to: § Billing customers § Keeping books & records § Ordering supplies § Setting up appointments and § Writing reports As long as you have no other fixed location where you regularly do these activities – like an outside office – you’ll qualify for the deduction. Also, you can qualify for the deduction even if you have suitable space to conduct administrative or management activities outside your home, but choose to use your home office for those activates instead. · You meet patients, clients or customers at home. · You use a separate structure on your property exclusively for business purposes, or · You store inventory or product samples at home. There are a few additional requirements if you are an employee of a corporation, including owners (for the convenience of the employer & the corp must pay).

OMG, where do you live?! I want to be your neighbor. My retired hubby would take a part time job; are they hiring?!

The part of the reimbursement that is attributable to the loss on the sale of the house is taxed as wages as ordinary income. From 1.82-1(a)(5): (a) Reimbursements in gross income (5) Attributable to employment or self-employment. Any amount received or accrued from an employer, a client, a customer, or similar person in connection with the performance of services for such employer, client, customer, or similar person, is attributable to employment or self-employment. Thus, for example, if an employer reimburses an employee for a loss incurred on the sale of the employee's house, reimbursement is attributable to the performance of services if made because of the employer-employee relationship. Similarly, if an employer in order to prevent an employee's sustaining a loss on a sale of a house acquires the property from the employee at a price in excess of fair market value, the employee is considered to have received a payment attributable to employment to the extent that such payment exceeds the fair market value of the property. How to report on Form 3903 depends on how the reimbursement was reported on W-2: If reimb is only in box 12 with code P, and moving expenses exceeded that amount, Form 3903 should report all allowable expenses and report the reimbursement. If the reimb is in box 12 is equal to the expenses, do not file Form 3903 to claim the deduction, since the TP has been fully reimbursed. If your reimb is split between box 1 (wages) and box 12, and expenses are more than what is in box 12, file Form 3903 with all expenses, but only report the reimbursements in box 12. If all of the reimbursement in box 1, file Form 3903 with all expenses, but do not report the reimbursements.

Yeah, none of the billing methods will be perfect. Charging by the form or line entry isn't any more accurate. That's why SFA adjusts the form charge to factor in complexity. I charge by the hour because I don't want the hassle of sitting down and figuring out a fee for each form, line entry, etc. I try to be fair where if I feel I'm slow or the fee looks a lot bigger than last year, I go back and compare the two to see where the differences are. If there are additional meetings, research needed, additional complexities that weren't in the prior year, then yes, the fee should be higher. If it's the same return as the prior year and it's a year that I've raised my hourly rate, then I automatically expect that the return will cost more by roughly that same % increase. If I feel that I should know something but am looking something up for my own assurance, then I don't charge that time. Likewise, I am not going to charge a client if I am stumbling with an input issue (how do I make my tax prep software do this?) or if my software or printer is having problems. Like SFA, when I am done, I step back and look and the bill to see that it is fair. I don't have any complainers, and that tells me that I am probably undercharging on some.

SFA: After this: "They think the return should be $225.00." I would have countered: "How about $425" Then, I would have explained, how I arrived at the bill that I did. And why it was worth it. And that they could call me later and tell me where they got it done for $225.... Rich

Also, if you are going to deduct sales tax, etc; be sure that those amounts are included in gross income. Yes, the unreimbursed partnership expenses should show up on the Sch E as a minus. Do they each have other forms of income such as W2 income? I don't see how they could start a business without any basis; even if they had to borrow the money to begin.

In my office, I review, sign and invoice all the individual returns (another person invoices business and write-up work). Sometimes, the returns, when finished look so darn easy and simple, yet when I look at the time cards, they tell a different story. We charge by the form and factor/adjust for the complexity of the form. We also charge an hourly rate for any work required prior to the start of tax return entries, such as compiling and organizing papers. This can be especially true when we receive QuickBooks backups that are a mess, or the classic shoebox of papers. After all of that, I step back and look at the big picture to decide if the invoice is fair . . . and I do exercise some discretion in that area as well. Our clients our like the goose that lays the golden egg. We do not want to fall on our sword over one return, when we are looking forward to a long and prosperous future with them. Recently, we had a new client, who prior to pick up, tell us that she and her husband are unhappy with the invoice. They have called around and compared prices and believe we have pushed the limits. I am sure that they did not call HRB or Liberty! They have self prepared in the past. They itemize, have employee business expenses, and in 2013 they started a new business with home office, depreciation, travel, etc. The information needed to be organized prior to the start of their return. The price of the return was $320 plus $50 hourly. They think the return should be $225.00. They are not the goose that lays the golden egg. I will have no problem saying goodbye to them. On a final note, their criticism is helpful. We do need to stay informed of and sensitive to the prices of our competitors. I personally prepared that return and felt like I had done a good job for them. It does hurt a little to have them turn on me and diminish the value of our product. Oh well. NEXT!

RD: Learn something from this. Your new client was willing to pay $2,500 for his two returns. And you charged him $500. He would not have gotten out of my office for less then $800 for the 1065 and $400 for the personal. And I would spend a lot more time with him as well... And I live in MD... There are several firms even I my rural area that want to start at $500 to do a basic 1040/SchA. I am not at that point yet, but most of my 1040's go out at least about $350. And the Corp's/1065's/990's go out at much higher rates... It really isn't about how much time it takes, its about client service and what the market will bear. I am not afraid of losing a client because of fees. (I used to be, not anymore...) I have my "billing rate" at $150 an hour now.... If I spend 30 minutes with a client meeting with them to get the info, then my staff inputs the return, I review it to make sure its right (15 minutes), staff prints and assembles, then meet with them for 10 minutes at pick up (sometimes they just pick up) I have less than 1 hour in a return that pays $350.. When I did it soup to nuts, with no staff, it was about 20 minutes more... So that would make my billing rate about $300 an hour... When you are more efficient, YOU should benefit. Not your clients so much. Remember that. If you get 10 returns done tonight, and you bill each one at $125, then that is $1,250. If it took you 5 hours, then that is sweet return... But, you then would not turn around and say, since I got them done in 5 hours, you are only going to bill them 1/2 or 1/3 of that.... Rich

Requirements to Claim the Deduction Regardless of the method chosen, there are two basic requirements for your home to qualify as a deduction: 1. Regular and Exclusive Use. You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room. 2. Principal Place of Your Business. You must show that you use your home as your principal place of business. If you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction. For example, if you have in-person meetings with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business. You can deduct expenses for a separate free-standing structure, such as a studio, garage, or barn, if you use it exclusively and regularly for your business. The structure does not have to be your principal place of business or the only place where you meet patients, clients, or customers. Generally, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities. So basically, a self employed trucker, if he meets the first test, can take the OIH deduction, because scheduling of truck runs and paying bills are both critical parts of running a successful business.

No basis no losses. As Judy said it will carry over. Let me add one more twist to this. Do these partner's have a capital account? You really need to track their outside and inside basis. If the partners have a prior year return and preferrably 2012 that may help you a lot. If done right, it should show basis if any. Interesting thought on the 179 possibly triggering the loss. If that is the case, and based on other factors, I would reconsider taking the full amount.

Well you all have confirmed my thoughts on the expedited fee. I will indeed make it high enough that hopefully they think the next time. As far as the WC auditor, it really isn't my responsibility to get him what we wants and I don't have time as well. This client thinks he is reporting a loss again this year because his bookkeeper ( I use that term loosely) deducted a 68000.00 loan as an expense and didn't include the balance as a liability. He/she needs to go back to school or give it up totally. BTW- payroll was wrong as well. I backed into it and got the same numbers as the reports from ADP. Where's the head banging guy when you need it.

nasty to you! anyway how do I copy and paste to send this on!!! love it - but it hurt me to even watch it! and that is after 5 children..

ATX2013 is a 32 bit program and cannot access more than 3.2GB or RAM. More RAM may help other programs and computer things, but no help to ATX.

We had tenants in our rental house that were 10 out of 12 months 10-12 days late. Came time to renew their lease, we did not increase the rent, but we tripled the late fees. No problem increasing the rent, because 10 out of the next 12 months, they were 10-12 days late as well. Third year we were going to raise the late fee by 50% again, but they chose not to renew. Walking annuity!! With the increased late fees they were paying much higher rent by their own choice of actions.

This is one area I need to work on, but if we don't value our services enough to charge a decent price for them, why should our clients value them?

I don't show the rush fee separately; only one total number on the bill.

Point 1: I think the answer to your question is BOTH! You undercharged yourself and the other firm overcharged. Point 2: We do an entire seminar for small business owners on pricing strategies and considerations. From our studies, in general entrepreneurs will undercharge for their services (not taking into account ALL the costs, expenses, and other issues of operating their business), and female entrepreneurs tend to undercharge even more than males.

Oh wait....I forgot one. Last year....a giant PITA. There was an issue about his residency...and he got very hostile towards me and accused me of being biased. He fired me....then sent me an apologetic e-mail. Here's last weeks conversation: Him-I'm not sure if I'm giving you my return this year because there's a complication. I got a settlement from my job ( I knew he had been terminated...but no details). Me-What? Him-I got a W-2 with $33,000 and a 1099-misc (box 7) with $77,000. Legal settlements are supposed to be tax free. You can do the return, and then fight it. Me-I prepare tax returns. I don't do any fighting. You have to go back and talk to the person who issued those papers. Him-Can you do the return without the $77,000? Me-Yes...but it would be meaningless as the IRS has you on record for that income. Is this money by any chance back pay? Him-No. How much would the tax be? Me-(not going to tell him about 50 per cent). I don't know. You really need to speak to your settlement lawyer. I don't want to get in the middle of this.

In the spirit of ranting, yesterday I had a guy finally pick up his 2012 return which has been laying here since December. He mentioned three times that he almost had 2013 ready to bring me. I didn't give him a button. On the way out, he informed me that Junior needs to fill out FAFSA, so he'll bring 2013 next week. I told him Junior will be guessing on FAFSA and correcting it later. And have a nice weekend.

Of course you should charge extra for any rush job. It was not your fault that it has to be rushed.

It is possible with the current technology, when my youngest daughter was born, the doctor didn't like me so he programmed the computer and gave the command "TRANSFER ALL PAIN TO THE FATHER". My wife didn't feel any pain but with all the excitement, I did not feel any pain. All of us were released from the hospital within an hour since no pain was involved. The doctors congratulated me because I was "the strongest man alive". When we got home, the mail man was dead on our doorstep.

Is it proper to charge for expediting? I think it's necessary.

OK, you are all saying the same thing, so please, let it stand. I'm not on any 'side', just think that this is escalating for no purpose.

Finally have a moment to reply to the initial question. Here is our process: I physically use the paper 8879 and state signature pages. Once we have them signed by client, they go in the "to e-file" folder and I change the status in the Return Manager to e-file (usually from assembled). I then e-file the Federal and move that paper to the "currently e-filing" folder. After the Federal is accepted, I write the accepted date on the 8879 and I then e-file the state(s). Once the state(s) is/are accepted, I write the accepted date on the state e-file paper(s). I then mark all the e-file complete boxes in the E-File Manager, and change the status in the Return Manager to complete and mark the complete box in the Return Manager, and file the 8879 and state pages in the client folder. We also use Fee Collect, so there is an extra step for those returns to track until we receive the payment from SBTPG. Following this process, we have never mistakenly/prematurely e-filed a return, not have we missed e-filing one. I really do like the enhancement ATX made this year to include the E-file information at the bottom of the Return Manager.

I think he means ATX should merge the information from efile manager to return manager. I agree. That is what Drake and Proseries do. What's the matter with ATX?

If they are in the business of raising and "shipping" out the cows to market, then that's business income, not capital gain. Capital gain comes into play when they are selling off dairy cows that they have had as an investment for their business (when they are going out of business) or sale of older beef cows that they have used to make babies for market. Cull cows.

I'm not sure I can help with this, but I do a lot of beef farmers, and they all have sales tickets from the stockyards or cattle brokers(pinhookers to you old timers) and I make sure they bring them and go over them with the client and have them identify raised vs purchased. A lot of times you can identify the over 2 year animals by weight which is always on the tickets,at least in this area. Someone has the sales tickets and you need to get your hands on them.

Its the "forgetting" that I wish to avoid. The Efile Manager is going to have twice as many files as the Return manager... You will have Fed and State Efiles, plus other states when there are more than one for a client. Just merge the Status info from the Efile Manager into the Return manager. Have a column for Federal Efile Status, and State #1 and Maybe #2. You can still have the EFile Manager and all its functions, but drag the most important info to the Return manager so that I have it all in one place. Rich

Lynn, your answer is RIGHT ON THE MONEY! I just never clicked on the little red box. I guess I saw it and thought "another quirk that the rework of the progam does" then just ignored it. You have made my job following up on these SO MUCH easier! If you are a fan of good chocolate, I will send you some!! Thank You again!!