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Jack, I guess I am just cushier and nicer than you. I purposely included the "fluff" for this client but not for all. You don't know the entire back story and I won't bore all here with it. I do not expect full payment but I do expect to continue to see her in social situations. It will not be difficult to sever this client relationship from my end if she doesn't from her choice sooner. Thanks again for your input. I thought long and hard about this as well as rereading the many thoughtful responses above. In the end, we each must act according to our own understanding and needs. I did so. You very well would have handled this in another matter if you had ever even gotten to this stage with a client - which I doubt. I am satisfied and will be with whatever the outcome. I don't think I burned any bridges or created an enemy, just lost a client and can live with that.

Use it in your garden!! The ultimate recycling!!

Totally agree with this. There are old bats that I choose to treat "fluffily," because, oh dear God, they need it. They are not running over you if you lay down in front of the bus. It's more like a rough massage. And no skid marks. Many times I benefit when they send family. Or bring me a nice jar of apple butter and a hug cause, let's face it, they are bats, and nobody else pays attention to them. Other times I just get a rough massage. Run your business the way you see fit.

Margaret: I think your letter was very thoughtful and professional. I have clients to whom I'd write a letter like that if necessary, but I also have clients to whom I'd simply say "Get Lost!" if that's what was required to make my point. A professional practice is not a cookie-cutter enterprise where everyone is treated exactly alike. The essence of good business practice is knowing when to make distinctions, and a qualified business manager understands this nuance . I trust your judgement that this was the way you needed to handle this situation. Nice job.

Chicken of course!

More soup for you!

Just exactly how is this information going to be sent to the IRS? Don't overthink this and turn off your logical mind. The IRS will ONLY receive the W-2 information. GOOD GRIEF!! Has the IRS struck such deep fear into all of us that we think they are monitoring all conversations? Don't overthink it!!!

Dogs have masters. Cats have staff.

This contains some great points that apply to ALL, OF ANY AGE. I thankfully avoided most of this as I had the several years after Don's stroke,to sort things, but still had a few of these issues bite me in the butt. Letter written by a wife after her husband's death in an accident "Few things I learnt after my husband's death:- We always believe we will live forever. Bad things always happen to others. Only when things hit us bang on your head you realise... Life is so unpredictable.... My husband was an IT guy. All Technical. And I am a chartered accountant. Awesome combination you may think. Techie guy so everything is on his laptop. His to do list. His e-bill and his bank statements in his email. He even maintained a folder which said IMPWDS wherein he stored all login id and passwords for all his online accounts. And even his laptop had a password. Techie guy so all the passwords were alpha-numeric with a special character not an easy one to crack. Office policy said passwords needed to be changed every 30 days. So every time I accessed his laptop I would realize it's a new password again. I would simply opt for asking him 'What's the latest password' instead of taking the strain to memorize it. You may think me being a Chartered Accountant would means everything is documented and filed properly. Alas many of my chartered accountant friends would agree that the precision we follow with our office documents and papers do not flow in to day to day home life. At office you have be epitome of Reliability / Competent / Diligent etc but. At home front there is always a tomorrow. One fine morning my hubby expired in a bike accident on his way home from office. He was just 33.His laptop with all his data crashed. Everything on his hard disk wiped off. No folder of IMPWDS to refer back to. His mobile with all the numbers on it was smashed. But that was just the beginning. I realised I had lot to learn. 9 years married to one of the best human beings. With no kids. Just the two of us to fall back on. But now I stood all alone and lost. Being chartered accountant helped in more ways than one but it was not enough. I needed help. His saving bank accounts, his salary bank accounts had no nominee. On his insurance his mom was the nominee and it was almost 2 years back she had expired. But this was just a start. I didn't know the password to his email account where all his e-bill came. I didn't know which expenses he paid by standing instructions. His office front too was not easy. His department had changed recently. I didn't know his reporting boss name to start with. When had he last claimed his shift allowance, his mobile reimbursement The house we bought with all the excitement on a loan thought with our joint salary we could afford the EMI. When the home loans guys suggested insurance on the loan. We decided the instead of paying the premium the difference in the EMI on account of the insurance could be used pay towards prepayment of the loan and get the tenure down. We never thought what we would do if we have to live on a single salary. So now there was huge EMI to look into. I realised I was in for a long haul. Road accident case. So everywhere I needed a Death certificate, FIR report, Post Mortem report. For everything there were forms running into pages, indemnity bonds, notary, and surety to stand up for you. No objections certificates from your co-heirs. I learnt other than your house, your land, your car, your bike are also your property. So what if you are the joint owner of the flat. You don't become the owner just because your hubby is no more. So what if your hubby expired in the bike accident and you are the nominee but if the bike is in a repairable condition. You have to get the bike transferred in your name to claim the insurance. And that was again not easy. The bike or car cannot be transferred in your name without going through a set of legal documents. Getting a Succession Certificate is another battle all together. Then came the time you realise now you have to start changing all the bills, assets in your name. Your gas connection, electricity meter, your own house, your car, your investments and all sundries. And then change all the nominations where your own investments are concerned. And again a start of a new set of paperwork. To say I was shaken. My whole life had just turned upside down was an understatement. You realise you don't have time to morn and grieve for the person with whom you spent the best years of your life. Because you are busy sorting all the paper work. I realised then how much I took life for granted. I thought being a chartered accountant I am undergoing so many difficulties. What would have happened to someone who was house maker who wouldn't understand this legal hotchpotch A sweet friend then told me dear this was not an end. You have no kids. Your assets will be for all who stand to claim. After my hubby's sudden death, I realised it was time I took life more seriously. I now needed to make a Will. I would have laughed if a few months back if he had asked me to make one. But now life had taken a twist. Lessons learnt this hard way were meant to be shared. After all why should the people whom we love the most suffer after we are no more, sorting some paperwork before we go will at least ease some of their grief. Check all your nominations: It's a usual practice to put a name (i.e. in the first place if you have mentioned it) and royally forget about it. Most of us have named our parent as a nominee for investments, bank accounts opened before marriage. We have not changed the same even years after they are no longer there with us. Even your salary account usually has no nomination. Kindly check all your Nominations. Bank Accounts and Bank lockers Fixed Deposits, NSC Demat Accounts Insurance (Life, Bike or Car or Property) and other Investments PF Pension Forms Investments: Every year for tax purpose we do investments. Do we maintain an excel sheet about it. If so is it on the same laptop of which the password you had not shared. Where are those physical investments hard copy Passwords: We have passwords for practically everything. Email accounts, Bank accounts, even for the laptop you use. What happens when you’re next in kin cannot access any of these simply because they do not know your password... Put it down on a paper. Will: Make a Will. I know you will smile even I would. Had I not gone through all what I did? It would have made my life lot easier. A lot less paperwork. I wouldn't have to provide an indemnity bond, get it notarized, ask surety to stand up, no objections certificates from others... Liabilities: When you take a loan say for your house or car. Check out on all what ifs. What if I am not there tomorrow, what if I lose my job? Will the EMI still be within my range? If not get an insurance on the loan. The people left behind will not have to worry on something as basic as their own house. My battles have just begun...But let us at least try and make few changes so that our loved ones would not suffer after we go. We do not know what will happen in the future. But as the Scout motto goes: "Be prepared" NEVER TAKE LIFE FOR GRANTED DO THINGS APPROPRIATE FOR THE ONES WHO DEPEND ON YOU WITH LOVE

I reviewed three years of returns for a bat I mean real pleasant lady. Amended one year to recover $150 for her. Plus interest. Charged her $60. "Well, I'm not even coming out ahead," she bleated I mean said. She is either Grinch or does math like Congress.

Support gave me the direct download link: download.cchsfs.com/tech/atx/atxYYYY.zip Just replace YYYY with the year you need. Right now this works for 1996-2012. Happy New Year!

Margaret- I'm with you. Recoup whatever you can....and for this coming season (if she comes to you) explain that your time is limited and that she needs to "have it all" before you start. At times I feel that I'm "my clients shrink" ...because I'm a humanist. Many people are cut and dry....only seeing the numbers.

For me, paper. 1. The requirements put on me by the various tax agencies are unacceptable, should I choose only electronic records. 2. I only keep what I am required to, for no more than the required time. What you are not required to keep (voice ot Jack Webb here) can and will be used against you...

Okay, here is what I finally sent. Thanks to all for your input. I don't know how this will play out. Thank you for the check received, #6306, in partial payment for invoice #1458, copy enclosed. I appreciate your note regarding my ‘usual charge,’ however there is no such thing. As my engagement letters and cover letters clearly state, I charge an hourly rate for the time it takes to understand the documents, clarify uncertainties through email, telephone and personal communication, input the data, review the returns, efile, invoice, and complete all processing. I have enclosed a report of your charges since 2003 and have looked at each invoice. Most years the time involved was 1.5-2 hours at the rate in effect that year. For tax year 2013, 4.5 hours were documented and I provided a discount of 1 hour due to the health issues you mentioned about (son). The additional time was spent in email correspondence (at least 22 exchanges from April 9-Oct. 21), telephone calls and two meetings to discuss proper listing of specific deductions and review of final returns to file. These meetings and the final review were critical as your figures for expenses changed often over time so it was necessary to input the final, correct amounts in the proper place. You may recall us tracing the correct, final numbers from my printouts of myriad emails with differing amounts and types of expenses mixed together. The most positive aspects of this extra effort were, finally, significant refunds of $866 for you at the federal and state levels and preserving the loss carryover at the local level. A refund has not been the case for many years. As a self-employed sister professional yourself, you surely understand that invoicing for services provided is comprised of time, overhead such as software ($1300 in my case each year) and materials, as well as expertise (40 hours of continuing education at my expense annually as well as licensing as a CPA). I appreciate your confidence in my professional services for these many years. However, I choose to value those services appropriately. Even at that, I undercharge significantly compared to many less qualified preparers. As has been necessary in a few other years per the enclosed report, it may take some time to pay for these returns in full. I understand and trust you understand my position, too. Best regards now and in the New Year,

More soup to you and no more tequila.

The weather here today is approximately what it was the first time that you were here. In all reality, ice cream would not be the food of choice today. If we actually get to file before the 22nd, I will, however, expect you to pay up!

According to the classes that I took, Michael is correct - there has to be a filing requirement before income must be counted,

All files have been paperless since 2006. Current year client docs are returned to clients from the ONE lateral drawer used for them during tax season. All paper in office is micro-shredded. Less space in recycling bin....

Thanks, Jack. I knew it was a simple question, and I did find that. I wanted to be sure I didn't miss some update on another page or published elsewhere. I admit to not thinking too clearly these days. I was very ill for a week after Thanksgiving and can't seem to shake the last of it. I think I had a few good days in mid-December, the rest have been a struggle. This is not the way I like to feel going into the season. Ugh!

For certain employers, types of coverage and situations, there is transition relief from the requirement to report the value of coverage beginning with the 2012 Forms W-2. This transition relief applies to the 2013 Forms W-2 and will continue to apply to future calendar years until the IRS publishes additional guidance. (Note: employers generally are required to provide employees with the 2013 Forms W-2 in January 2014.) Any guidance that expands the reporting requirements will apply only to calendar years that start at least six months after the guidance is issued. See the “Optional Reporting” column in the below chart for the employers, types of coverage, and situations eligible for the transition relief. http://www.irs.gov/Affordable-Care-Act/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage

^ This is no problem. All the company is doing is giving a valued employee a raise, nothing more. Report the wages on the W-2 in the usual manner. It is not related to health insurance.

I still have prior to 2013 all on paper, and like you, I will always have permanent files on some clients, especially for the businesses and trusts. I also have some broker stmts too. I will be cleaning out another year's archive records out of storage soon and shredding it into confetti.

I have reduced from 4, 4 long drawer filing cabinets to 1, 4 drawer cabinet and after this season, there will only be three drawers used. 2 for current clients, one for former clients. Micro-shredded paper is perfect mulch in the garden. Start with everything not wanted pulled or killed, and 2 inches deep or more will stop 95% of anything growing. It also holds moisture and over the winter just disappears. My garden looks like it has snowed in it.

That will necessitate a trip to WI after tax season! I think I will refrain from travelling to WI during the winter months!!

I answered "completely paperless" but actually keep a few paper files. Most are estates that are on fiscal years but the income docs are calendar years so I have lines drawn all over the place. I wouldn't know which year to file them electronically anyway. Some paper files contain brokerage statements that predate the modern world. I keep them in case a client does sell I might be able to come up with some basis (the brokerage sure won't). Too many pages to scan plus I may never need them. One folder has nothing but my research notes for a client who keeps coming up with the weirdest things I never heard of. I also have a huge file of correspondence, brokerage statements, foreign currency translations, etc. for the client who had the OVDP issues. I did scan all of it, but I wouldn't feel comfortable shredding the originals just yet. Is it just me? Normally I feel very secure with my electronic files.

I have two file drawers of client docs. Went mostly-paperless a couple of years ago hallelujah. What is in my files is pre-conversion notes (slowly getting shredded as more years pass), engagement letters that haven't been scanned, and my scribbled notes for each year that I don't think are worth the effort of scanning. The client folders also have phone numbers under the names, in case I have to make a quick call before my computer wakes up, has its coffee, reads the paper, and decides it's OK for me to try to use it. Or when I have too many programs/windows open to want to bother with yet another, just to find a number. Notes on bookkeeping clients stay on paper, as I lug those off with me to the client's location.

Totally paperless since 2008..and loving it of not losing any client papers...

Just remember, Jack, you might be owing me a hot fudge sundae.

Moving toward not keeping ANY paper. Digital is too easy. Archive takes up 1 cu.ft of space. Total security of 10 years of records only requires a fire safe about 3 ft high. The only thing in the client's folders are demographic info and special notes. This is the second year of my moving this way.

The date is not here yet....

The older I get, the more I am realizing that people will assume my work is worth what I value it at. If I am inexpensive, they will assume that I am not worth much. I tell myself that every time that I am tempted to match a competitor's price. Besides, as someone (might have been the late, great Robert Anson Heinlein) once said, "Free advice is worth what you pay for it."

Reviewing an entire year of tax returns is charge $A. Then the amendment is $B. I find it troubling that you claim that 60 = 3A + B, since it implied rather frightfully small values of A and B. I can understand applying a discount. We discount filings for retirees and students, and then apply another discount if those are low-income retirees and students. But in your case, Rita, I'd have charged 3x$50 + $50 (low-income retiree without Sch.C, E or F or K-1), hence $200 for all of that. One of our senior tax preparers (a new hire; don't ask) insists that reviewing tax returns for free is one of those things you do to build and maintain your client base. Myself, I take the tack that "nobody works for free" and we have to keep the lights on, the furnace running, etc. Happy holidays.

Nah, I just got back from TN, it's not so cheap! If I were you, I'd: (1) go up on fees, and (2) tell the pleasant old lady to go be pleasant somewhere else (there are some real nice bat caves in Kentucky).

I work for those who pay me. Professionally, the IRS gives me nothing, not even telephone support. I don't do "stupid"...but I don't make clients take lie detector tests.

Clearly that is not a viable option for most of us. Small business that do their own books are the backbone of many offices. And QB has only boosted the number doing that.

Well, she's an old bat I mean pleasant elderly lady, and my meds and therapy don't cost as much in Tennessee as they do in California. Merry everything and happy always to you, too, Tom.

How in the heck do you stay in business doing $60 amended returns? I charge a minimum of $75 and that is if I prepared the original return (oops, I forgot about the brokerage statement that has 28 trades on it). Otherwise, I charge the fee I would have charged for the return plus $75. This bat, oops, I mean pleasant lady, just is not as afraid of you as she should be. You need to scare her like you scare me!!!! Merry Christmas Rita. Wishing you and your family all the best. Tom Newark, CA

She could have saved the $60 by doing the amendment herself.

I think the qualifications for dependency are fairly clear. 1. Can the filers be claimed as dependents by someone else? If no, then 2. Does the potential dependent meet both of the following tests? a. Was a US citizen, US resident alien, US national or a resident of Canada or Mexico, for some part of the year? b. Does not file a joint return...? (The answer to this question may be the determinant factor.) 3. Are they qualifying children? 4. Are they qualifying relatives meeting all the tests? a. taxpayer provided over half the support. b. they were child... or other defined relative or live in the household all year c. not the children of another person d. had gross income of less than $3950. Also check this http://www.irs.gov/uac/Who-Can-I-Claim-as-a-Dependent%3F

Always timely advice. Having watched others go through this, as well as family, our kids have told us to get our stuff together. We worked through a sucession plan for work as well - as our customers deserve it. This is something many small operations forget to plan for. Plan to be replaced!

Pacun, I think you missed the point. 1. She has already discounted the fee. The client has insulted her by not only not paying, but disputing it "my usual charge, according to her". That's on top of paying very late. 2. The client is [as a client] a true PITA. "She consistently provides info in small pieces, constantly scrapes for every deduction, pays very late and in several amounts, and more. This year she wanted to meet twice for planning purposes and multiple times changed various amounts (mileage, office expense, etc.)." Either one might be overlooked, but combined they are simply unacceptable stressors. It is not about Margaret's costs, it's about her peace of mind, and reducing the stress of what is already going to be a stressful season. She does not owe this client anything just because the client has problems in her life.

I posted the materials for my class on the ACA on my website http://www.afsb.net/joancpa/newsletter.php?nid=17126 If you don't like to click links, just go to www.joancpa.com and click on Newsletters.

I seldom collect when the return is completed - I just mail them an invoice. Over the years I've had a few who didn't pay, or didn't pay in full. Not many, but enough to remember. Most of the time I came to the conclusion that not collecting the balance due was a reasonable price to pay for the relief of not having to deal with them in the future. I did have one guy who was really gutsy. He owed me money, & failed to show up for a couple of years. I assumed he had gone somewhere else. But then he dropped two year's worth of tax info in my night drop, along with a note that IRS was pressuring him to file his past due returns. I put it all in a box in mailed it back to him with a bill for the past due amount, plus an estimate for the cost to do the new work, and a mention that the work would begin when he paid the entire amount. I included a note saying the estimate was probably high, but if his final bill came out lower then we could refund to him after 6 months if IRS didn't ask any questions about the returns after filing. Never heard another word from him. As I said, the old bill plus the postage to send his stuff back to him was money well spent.