Leaderboard

You can still have a heart! When you do decide to offer a discount, show them the full rate and clearly identify the discount and the reason. Then if you ever pull the discount (maybe their finances have turned around and they are no longer struggling), it won't be a surprise and you won't hear, wow - your rates really went up.

One of the best talks I heard on this topic: If you raise your fees 10%, will you lose 10% or more of your clients? If yes, then you need to consider if that is the correct increase. If no - if you raise your fees 20%, will you lose 20% or more of your clients? If yes, then you need to consider if that is the correct increase. If no - if you raise your fees 30%, will you lose 30% or more of your clients? If yes, then you need to consider if that is the correct increase. etc. So, to put it into practice: If you raise your rates 25% and lose 15% of your clients, isn't that a favorable exchange? You make more money and have more available time.

Maybe what you can do is raise your base fee per Jack's suggestion (or whatever you feel is correct) and then when you find a case that merits a discount, extend one. This will allow you to have a more appropriate fee structure and then accomodate those that you feel are on the line or need the help. I would also show that discount on their invoice so they realize that you have given them a "Good Customer Discount" and so they realize the full value of your services.

I had a few like that years ago, I simply raised their fee the next year by 15% and then gave them a 15% prompt payment discount if paid at pickup and 10% if paid within 10 days. Of course, printed on the invoice was also a statement indicating the return would not be filed until I received their payment.

‘Swimmingly’ Imaginative 5th Grade Talent Show Skit Has the Audience in Tears of Laughter

This one shows some real creative thinking. He helped two client businesses reduce their taxes by making up bogus 1099s, which is not that unusual. What was 'creative' was that he then used those bogus 1099s to create bogus returns for other clients to get them bogus EITC. This went on for 5 years. I'm really curious how he got caught. Columbus, Ohio: Preparer Fatma Ali, 39, has been charged with two counts of conspiracy to defraud the IRS and 48 counts of willfully aiding and assisting in the preparation and filing of false federal income tax returns, and was among five individuals indicted in a conspiracy to defraud the IRS with false returns. According to the indictment, Ali, a preparer for Speedia Tax Services, joined another of the indicted individuals in allegedly helping to prevent the IRS from computing and collecting income taxes from the local company Health Empowerment Partners LLC, between January 2011 and March 2012, and joined with two other indicted individuals in a similar scam involving taxes of the local company Better Home Care Services Inc., between January 2008 and October 2011. Ali allegedly created false 1099s in the names of “other” taxpayers that claimed a portion of the income actually earned by the individuals from BHCS and HEP, helping under-report AGIs. Also, amounts claimed on the false 1099s were reported as deductible business expenses. Although the “other” taxpayers did not actually receive the income shown on the false 1099s, Ali allegedly prepared returns for them that claimed this income as their own, enabling unwarranted tax credits. Between April 2008 and April 2012, Ali allegedly prepared false 1099s reflecting income received and expenses claimed by employees of BHCS and HEP that were included with the returns for persons not employed by those companies. Conspiracy to defraud the IRS carries a maximum of five years in prison and a fine of up to $250,000. Willfully aiding and assisting in the preparation and filing of false federal income tax returns with the IRS carries a maximum of three years in prison and a fine of up to $250,000.

REDMOND, Wash. (AP) — Microsoft says a security gap in Internet Explorer could allow an attacker to take complete control of a computer if the user clicks on a link to a malicious website. The vulnerability affects versions 6 through 11 of the Web browser. Microsoft Corp. said Saturday that it was aware of "limited, targeted attacks" that tried to exploit the security gap. The company is working on a safety fix which it will provide in an upcoming software update. In the meantime, Microsoft encourages customers to enable a firewall, apply all software updates and install anti-malware software. I prefer Firefox with Google Chrome as a backup.

Hahahaha, I know this is serious, but Tom, you should be afraid of jshtax, not me. Crying.

by law you can't do that unless your original invoice included the terms. mine say due net 30, or a late charge of $25 plus interest at 18% per annum will apply. Doesn't mean you have to charge it if you don't want to but once I send out a statement with the late fee and interest, I usually receive a check dated 1-2 days before the statement for the original amount. othertimes i get the late fee and interest, a nice bonus since these are usually the under $500 clients, my late fees is a nice raise percentage wise.

I do not allow anyone to submit efiles except for me. The stakes are too high, an not just for your client's increase in tax from the inability to fund the SEP. You've filed a return without the signed 8879, and without the client having a chance to review the return, both no-nos. The client has a legitimate complaint, regardless of the amount of SEP contribution involved. If it was a 'nominal' contribution, say a few hundred dollars, John's suggestions might work. What if income drops in the upcoming year, and the client cannot contribute for 2014 what s/he could have for 2013/2014 if the return was extended? If you are going to continue to allow staff to submit the efiles, I'd revisit your processes to ensure this doesn't happen again.

This worked for me this year, I told the TP I was embarrassed to be asking to get paid and to be calling people to remind them they owe money. And it worked.

Years ago I came up with the idea of collecting a check for my services when the clients came in to sign & pickup. I allowed them to postdate their check until their refunds got to their banks. This has helped trememdously

Send invoice with 1&1/2% interest charge each month past due. I usually get paid 1st. month.

My policy is I file your return and give you a copy AFTER you pay me

I think you have to level with the client, and put everything in perspective: 1) Their opportunity to fund the SEP ended when no extension was filed. That door is closed. 2) They are not in anybody's cross-hairs. They will simply need to navigate the payment process now, just like they would have done it with an October filing. They can get 90 days to pay by making a phone call after they receive their notice around mid-May. Or, if they need longer than 90 days, they will need to file an installment agreement request, which has a fee associated with it. Either way, their FTP penalty and interest will be the same regardless of whether the return was filed Apr 15 or an exension was filed. The FTP penalty and interest began Apr 15 and will run until it's paid. Aside from the lost opportunity to fund the SEP, they are in the same position with or without the extension. Was the intended SEP contribution a meaningful amount, or just a token payment to shave a little off the tax liability? In this situation, I MIGHT be wiling to refund them the FTP P&I for 3 or 4 months, but only for the portion which applies to the tax savings resulting from the SEP contribution had they been able to make it. And only if they are otherwise a good client. And only if they go ahead and make the SEP contribution for the current year. If they are a PITA, then I'd most likely just apologize for the error and move on .If they are as furious as you say, they probably aren't coming back next year unless they are otherwise reasonable people who will appreciate a token concession on your part. Also, unless they are making the full allowable SEP contribution each every year, they are only getting a marginal tax benefit by making last year's contribution now vs going ahead and making a contribution now for the current year. The analysis is a little more complicated, but for nominal SEP contributions, you can demonstrate that they get only a slight P&I benefit by holding the contribution window open via the extension.

The best case scenario is not to let them happen in the first place. But, since I also have a handful, I can't call the kettle black. In my case, I know that it is always the same ones and eventually they will all pay. However, I want the money NOW. I narrowed the problem this year by refusing to file until I had a check in hand, even if I had to hold it for a week or two. I just had a call from one of the laggards who is picking his up after lunch.

I agree totally. I personally want to see the detail. This is extremely important when the need arises to review a return you completed a couple of years earlier or for doing comparisons.

The worst thing about those peas is that they usually spit them right back at you, and they stain whatever they land on.

And so far I'm loving it. Carbonite would not let me backup the the ATX data folder because it's hidden, but CrashPlanPro is happily backing up C:ProgramDataCCH Small Firm Services as we speak... er, type. It solves some of my long-term complaints with Carbonite as well and it's a much more professional looking application. $10/mo per computer, so it's costing me a little more but it's well worth it. I've already tested it by deleting a file from my hard drive then restoring it from the backup. Worked like a charm!

He looked like he had big hands until the video got to the picture of him holding Grampa's finger!

And having a son who is 20+ IQ points smarter than his Dad get us this...

Congratulations! And, how thoughtful to wait until after tax season so you have time to spoil your new grandson.

They have a bunch of hood rats working there now. I can't get a call from anyone at ATX after telling ATX Catherine or someone that they were full of shit and they can take their terms of service agreement and shove it up their asses.

My thinking is similar to Jack's, that it's not really about the time involved in the amendment but about your knowledge in knowing how and why and when to amend. And as he said, basing it on time alone will Penalize you for experience. Time may be a factor in the way you set your base fee for a schedule, but it should not be the only factor. Or even the primary one, when it comes to amendments, especially. Likelihood of needing followup correspondence is, IMHO, a more important factor, for example.

Minimum $100. Not for what I would do, but for knowing what to do.

I charge $100 for an amended return and if it takes more than an hour, I charge by the hour at $100 hour. (I have to estimate the time because I am a one man office and I estimate how long it would take me if I had no interruptions which I always do.)

Saw this on Facebook and thought it has a great message...worth the read and definitely the share! A little girl had been shopping with her Mom in Wal-Mart. She must have been 6 years old, this beautiful red haired, freckle faced image of innocence. It was pouring outside. The kind of rain that gushes over the top of rain gutters, so much in a hurry to hit the earth it has no time to flow down the spout.. We all stood there, under the awning, just inside the door of the Wal-Mart. We waited, some patiently, others irritated because nature messed up their hurried day. I am always mesmerized by rainfall. I got lost in the sound and sight of the heavens washing away the dirt and dust of the world. Memories of running, splashing so carefree as a child came pouring in as a welcome reprieve from the worries of my day. Her little voice was so sweet as it broke the hypnotic trance we were all caught in, 'Mom let's run through the rain,' she said. 'What?' Mom asked. 'Let's run through the rain!' She repeated. 'No, honey. We'll wait until it slows down a bit,' Mom replied. This young child waited a minute and repeated: 'Mom, let's run through the rain..' 'We'll get soaked if we do,' Mom said. 'No, we won't, Mom. That's not what you said this morning,' the young girl said as she tugged at her Mom's arm. 'This morning? When did I say we could run through the rain and not get wet?' 'Don't you remember? When you were talking to Daddy about his cancer, you said, ' If God can get us through this, He can get us through anything! ' ' The entire crowd stopped dead silent.. I swear you couldn't hear anything but the rain.. We all stood silently. No one left. Mom paused and thought for a moment about what she would say. Now some would laugh it off and scold her for being silly. Some might even ignore what was said. But this was a moment of affirmation in a young child's life. A time when innocent trust can be nurtured so that it will bloom into faith. 'Honey, you are absolutely right. Let's run through the rain. If GOD let's us get wet, well maybe we just need washing,' Mom said. Then off they ran. We all stood watching, smiling and laughing as they darted past the cars and yes, through the puddles. They got soaked. They were followed by a few who screamed and laughed like children all the way to their cars. And yes, I did. I ran. I got wet. I needed washing. Circumstances or people can take away your material possessions, they can take away your money, and they can take away your health. But no one can ever take away your precious memories...So, don't forget to make time and take the opportunities to make memories every day. I HOPE YOU STILL TAKE THE TIME TO RUN THROUGH THE RAIN. If you've read this all and it's touched you... share it.

Me too! You have made this tax season the best with your knowledge and sense of humor. I am not afraid of you. Keep up the good work! Love your posts!

I had to ask myself: Do I want to be feared or loved? I decided I want people to be afraid of how much they love me.