Leaderboard

Believe it or not.; I called a long time client a couple of years ago just to make sure that they knew they had to file. Turns out, she had taken the return to VITA. I asked them to bring it in so I could look it over free of charge. Unbelievable, how many serious errors were on that return; plus the preparer had never even filed it. I fixed that one and filed it and they have been the most appreciative and generous clients again, ever since. I lowered their fee to accommodate their lower incomes and all is well. She brings me something every time she shows up; along with hugs and even cooks a Thai meal for my husband during tax season. So, really,. you just never know.

Thought I would share a form that I have used to Gross Up that Christmas bonus check for proper withholdings. GrossUp.pdf

And, in re-reading the title of this thread, it reminded me that when this particular client came to me in 1998, we were unable to obtain the depreciation schedule from the prior preparer. We ended up rebuilding it from scratch; according to the 4562 info on the prior returns. These clients have fallen on extremely hard times since 1998 when things were "flush". I have no animosity toward them. Everyone has the right to choose; and in the end, they chose me.......again.

To gross up for just the social security and Medicare tax, divide the net by 0.9235, which results in the 'gross'. On OldJack's worksheet set the federal and state w/h % to -0-. Lynn

Maybe also the desire to "help" even when a return is past your level of expertise. I had a kid working for me a couple of years ago who had worked for VITA. He had an MS in accounting. I wouldn't let him work on returns after one look at the work he did; kept him on document prep only. He was real good at printing returns out in the right order.

Yes, don't forget, it was that feeling between 'us' and 'them' that led to the creation of THIS BOARD, when Eric, at that time an ATX employee, understood how bad the decision of CCH to close the 'official' board in early April! Might be a good time to use that 'Donation' button again........

In an article I read some months ago the official error rate on VITA prepared returns was close to 50 %.

I used to question why I continue to live in Ohio due to all the crazy taxation that takes place here. But, the more I get involved with NY tax returns and all the associated unbelievable number and size of the taxes there, I count my blessings.

No blind dates for me. What would motivate a client to use this service and what kind of a gimmick is Intuit using to attract them? Why should I donate 25% of my revenue to Intuit?

Grand Poo Bah, you sure got to the heart of the matter. First Intuit was advertising that anyone could do their own taxes using Turbo Tax. The last few years they have offered professional advice for the do-it your-selfers from CPAs. Maybe not enough signed on so they then included EAs. Intuit actually called me at home a few years back to ask if I wanted to become an advisor. I told them what I'm sure all the other CPAs and EAs told them--that I already work 60-70 hours a week during tax season and couldn't give them another hour. Now it seems they are moving beyond the DIY or DIY-with-advice parameters and getting into preparation. If their software was so "intuitive," why would people even need advice or referral to a professional? We've all had clients come in because they tried TT and gave up because they owed. Or something out of the ordinary happened this year and they came in with last years TT return. After we reviewed it and discovered they had cheated themselves out of a few grand in deductions or credits, they vow never again. Or, worst case, they come in with an IRS notice because they messed up royally. I once had a couple in that situation who made way too much to claim any education credits but somehow were able to override the TT system and claim them. They had read that if you had a kid in college you can get all this money but never read the fine print and just assumed the software was wrong. How they overrode TT I can only guess. I'm not saying that people shouldn't do their own taxes or that TT isn't useful to those who can. Folks with simple Sch A and B returns should be able to manage it. It seems that Intuit now wants it both ways (three ways actually): Our software is so great anyone can do their own taxes; if you get stuck we offer professional advice; if you give up we can refer you to people who know what they're doing.

I agree with you 100% Rita. Also, since I am a one man operation, it is important that my clients have the information if anything should happen to me.

Totally agree with Rita. By the time the 'new' preparer or the client asks, their decision has been made. All you can do, assuming you wish you could retain them, is keep the road back to you smooth and open. And if you don't want them back, why delay tying up loose ends? So be nice, be helpful, and be professional.

Agree! I always attach the depreciation schedule to the client copy of the return. Some might say, "Don't do that, you want the client to have a reason to contact you if they are leaving," presumably so you can persuade them to stay. Ain't nobody got time for that. Don't bust somebody's chops in an effort to make them stay or punish them for leaving. The Golden Rule is still classy.

This discussion focuses on the rules/requirements for releasing client info. Let's talk about the pragmatic side. We always provide depreciation schedules when a client or new preparer asks What is the point of withholding them? The client has already chosen a new preparer and they're not going to change their mind and stick with you because you won't release their data. It costs you little or nothing to print and fax the schedules, so just do it. Maybe the client moved and wants to use someone local, but they'll have a good word for you to people they still know in the area if you're not uncooperative. Or maybe the new preparer will not be a good match and they'll come back. (We just had a client return after 2 years away.) Or maybe the new preparer charges twice what you do so they'll definitely be back. Don't burn bridges if there's no real reason to. Sound like this client's old CPA just doesn't get it. Ever notice how CPAs seem to be more competitive and unfriendly with one another than EAs and other tax professionals? Maybe it comes from their training. In my Masters in Taxation program one professor said he liked teaching tax people more than MBA students because we were eager to help one another whereas the MBAs hated each other. Something to think about.

I am adept at scrolling and not clicking on things I am not interested in. It is a long term developed skill.

I would prefer if the ATX specific software issues stay in the General Chat section of the board. I can't tell you how many times I have avoided a problem because someone else found out about it and I was aware of the problem. I do like that the political stuff got moved out of General Chat - that was a nice move. But I read the General Section almost exclusively and would like to see the ATX software issues stay in this area. Just my humble 2 cents.

Yes, VITA serves SOME people OK, the very simplest returns, but so often they don't know enough to know when they should not try one. They mean well, but screw up lots of times out of ignorance. Which says more about our complex and convoluted tax code than about the volunteers.

I would prefer that it stays the way it is now. I don't want to have to check 4 or 5 different categories

I agree. I don't even think about the other forums most of the time. I don't care about having any more compartments to deal with, either. I can scan and ignore with the best of em. What worries me most is people answering tax questions that they didn't read carefully. Assuming facts that weren't given. Going off into left field with the 1,345 possibilities if it's a Tuesday and there's a full moon. Kinda like I'm doing now.

Because only a few read the other forums. You could do away with the other forums as far as I am concerned.

it is an S-corp. The commitment is signed. They are expecting downpayment/consideration within 2 weeks. I will contact the attorney to push for a firm date to close on the transaction and have that in writing. Good point Judy- on the making sure the sale date is reported by all the same way. thank you!!

As they say about QuickBooks, if you can write a check you can do your own bookkeeping. Implying that you are just as good as a professional.

Ah, the good 'ol days.... Never have I felt such a connection with service providers that were nearly like family.

i have and have had an insurance license as a life and health producer for many years. I DO Not sell health insurance because I do not understand it. No more than I understand all the tax ramifications of ACA. I too have a health insurance specialist I send inquiring minds to.

My objection to them is mostly to their advertising methods. They run ads implying that "anyone" can prepare their own return just as well as a professional by just using their software. Clearly untrue. They do the same thing with their other software.

That is a great point! Also, you'll know someone is gone when he doesn't show up. If you want to know why he left, just call him and ask. It might be viewed as good customer service.

My opinion without research is that a firm commitment letter does not constitute a sale. I think you need an agreement of sale with a sale date in 2014 and funds changing hands, even if it is only a downpayment. With that downpayment in place, you can then elect out of the installment sale by reporting the entire sale and gain in 2014. Basically, you have to question when the benefits and burdens of company ownership transfer to the purchaser. Additionally, the purchaser has to be on board with the timing and reporting because they shouldn't be caught in a situation of late filing simply because your client reported the sale as occurring on an earlier date. As an example, if you reported that the sale occurred on 12/15/14, the purchaser would have that short period of activity for the remaining days in 2014.