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Years ago I had a client give this to me: "A Tax Shelter Complete with Loophole"

Well, Pacun, I think your example there of married people filing with the wrong status is tax fraud, not a loophole. Loopholes are really just tax laws that are perceived as unfair by someone who doesn't benefit from it. I think the benefit that rubs me most wrong is pastor housing allowance. The days of paying the pastor with fried chicken and a dinky, ancient place to stay are long gone. And getting to deduct home mortgage interest and property tax twice, since they're housing expenses and still allowed on Sch A. That's a double dip. I love my pastor. This is not his fault, and he'd be stupid not to take advantage of it. But if Joe Parishioner, busting his butt to make post tax mortgage principle payments and electric bills knew this, I don't think he'd like it much.

I was just doing a return with some stock sales and had a flash back to when I had to go to the basement and dig through the archives to find stock basis. Thanks IRS - for bringing the brokerage firms into the current century. That little thing (well, not so little) has saved me tremendous time on some returns.

I have a password-protected document that runs over 27 pages long. Far too many sites require not only complex passwords but you can never re-use so you have to keep track of what you have ever used there. Plus places where you need notes on navigating complex login procedures. I have 1Password for "normal" stuff (banks, shopping, etc) but still need the other file for details. E-services is a good example; lists of prior passwords, notes on how to get to the screen I need, click here, DON'T click this one, if you are looking to get to hither first you have to go to yon... blarg. It's ridiculous, when so many people use passwords like "password."

I'd tell the wife to enjoy her refund now and be prepared to pay it back plus interest. I would also be tempted to report the other preparer for filing a married person as HOH. unless, of course, they lived apart for the last 6 months of the year and kids lived with her. If this was the case, then clearly they are already "disappointed" with each other.

Since I instituted a $30 paid-in-advance fee for printing out and mailing a new return copy, the incidence of clients who cannot find their copies has plummeted to zero. I do gets calls or emails -- when I explain the fee (and note my handy-dandy "pay my fee" button on my web site), the "I'll take another look and get back to you" crowd somehow never has to get back to me.

I have a separate monitor on the desk that I turn on for the client to view their returns. At that time I go over every line on the tax return that has information pertaining to their specific circumstance. The paper copies 20Lb good paper, and put them in a nice folder, like Catherine, I use the ones from Tennez. Also, I agree with Jack as a lot of my clients seem to misplace their copies. However, there is something to be said for professionalism and I have had many banks in my area comment on how neat the client's documents are. Just to add, I have a client who spent an enormous amount of time serving on a Jury for tax court cases and he told me to never stop reviewing the returns as the folks that used the excuse their preparer prepared the return and they trusted them didn't hold water with the IRS. Their comment and question was why didn't you the taxpayer know what was on your return. I prefer my clients know what is on their return. Yes, I have those that say just print it I trust you, but I make them sit through the review anyway.

I think the biggest loophole I see exploited are: Married people who file single or HH in order to get EIC. If I were the IRS, I would not have "you are considered unmarried if you didn't live with your spouse in the last 6 months of the year". I would said: If you are married on Dec 31, you have ONLY two choices: MFJ or MFS period. Share other loop holes.

Those email addresses are always great to see on a resume

There are two types of passwords I recommend that all of my clients use for the admin panel for their website. A hand full of random common words separated by underscores/hyphens/special characters. See this XKCD comic for an explanation. These are the default passwords I create for new accounts. They're somewhat possible to remember, they're perfectly secure, and fun to come up with. Like rambunctious-jellyfish_pineapple-eater! or travelmug-handicapped-platypus-ransom An 18 character string of gibberish, random numbers, special characters, and mixed case letters. I recommend an encrypted password database for anyone going this route, because they're impossible to remember. Lots of good applications out there to help you manage your secure passwords, varying in price and features (autofill browser extensions, multi-device sync, etc) Keepass 1Password Dashlane LastPass I've got more than 300 unique passwords to keep track of, I can't imagine trying to keep them straight without some kind of software to organize and remember them for me.

We implemented bright orange 10x13 envelopes with our return address and 'TAX RETURNS' printed in large letters in the center to make it easier to find in that drawer or pile or box the client keeps it in. Giving clients CDs with PDFs of returns and records, cut our requests for copies of tax returns to near nil.

Oh, if a loophole is a means of evading a law, the biggest loophole I see is lying about your income and business miles. Sorry about that. When politicians and most others talk about tax loopholes, I think they are talking about legit tax laws most of the time. http://dictionary.reference.com/browse/tax-loophole Tax Loophole: A provision in the laws governing taxation that allows people to reduce their taxes. The term has the connotation of an unintentional omission or obscurity in the law that allows the reduction of tax liability to a point below that intended by the framers of the law.

I also like the favorite quote types, where you use the first letter of each word. Example (that I do NOT use) "Four score and seven years ago our father brought forth on this continent" becomes fsasyaofbfotc; add your favorite fancy character at the end if you need, or make the first letter a capital.

I always felt ..........IF a client doesn't know what he paid for stock.....They shouldn't be buying it..BUT..That's just me...O' Well

This is the attitude that gives the fraudsters free reign and cost us billions. Till we cure Americans of this addiction, filing fraudulent tax returns will continue to be a very lucrative endeavor.

I guess I did not mention in a previous post: We do print the return on decent paper - the printer / copier like this a lot better as well. We put the client copy in a nice folder and envelope that we get from Greatland. We use two different folders. If the work papers are too voluminous, then we use a folder with no back pocket and put the work papers in a separate envelope. For those with fewer work papers, we just put those in the pocket at the back of the folder. It is a very nice and professional presentation. The folder is not oversized and will fit nicely in the client's letter size file cabinet.

I agree, Terry, I want to hand my clients a nice product. I admit I have been guilty of thinking "all my clients" must lose their copies. But that's a severe reaction under duress to the five to ten out of 385 who ask for copies later. Sorta like that one Algebra II class that I thought was "full of delinquents" because three kids out of 27 sucked the life out of me. The great majority we don't have to babysit after we're done; it's just those other little derelicts that make our jobs tough. And they don't lose their copies; they're just too lazy to locate and/or copy them. If it gets to be a habit, I just quietly increase their fee the next year.

I had to chuckle at the title. Thought ILLMAS was doing my ex's tax return. Just the title. None of the details are remotely similar. Just to be clear.

PLEASE FEEL FREE TO ADD TO THIS LIST: 1. 12345 2. DATE OF BIRTH 3. QWERTY 4. LETMEIN

Also, my apologies to Rita. I believe I deleted her post from the thread earlier. You can still see it quoted in mine though! (sorry) I'm terrible at multi tasking. Nobody this scattered should have this much control over a website. Good thing I don't run a cloud storage service.

And if you substitute you get F$@$y@0fbf0tc

as a non-credentialed preparer who took the test for RTRP and does continuing education every year, I am all for this.

See, this would increase the incidence of clients asking me to buy them a computer.

I think all states were taken advantage of in the past and now they are checking a bit more. Keep in mind that starting next tax season the IRS will have two types of returns: Simple ones and refunds will be issues with no delays AND the ones that include EIC and education credits, which will be automatically delayed.

Just a few notes on the 179 elected expense problem. Again, I discovered what the problem was when I was on the phone with Dan from support. Yes, he did finally call. The program did put up an error regarding the number of 4562 forms for the same business. I questioned this error and was first told it had nothing to do with the problem. In fact it did. Dan admitted that we both learned something and I did tell him that I had no idea how the second 4562 for the same activity got started. Anyway, I deleted the second form completely and that solved them problem. While I am grateful, it still should not have taken as long as it did to get help. I'm still investigation a different package and thanks for all the suggestions and input from my friends here on this board.

"I left you a surprise in my diaper. Wanna guess what it is?"

Exactly, @RitaB! They are signing under penalty of perjury, so we at least have to try for as long as they are willing to listen.

Paper (22 lb) copy. Nice folder. Discuss until client is satisfied with explanation or gives up on understanding. Hard to tell. I am very patient and know you explain thoroughly when people ask questions. And try to use words they understand. I think some figure out that they will never figure it out, but if she is willing to try this hard, I'm going with whatever she says. Always tell them to call if you think of something else to ask. No problem. Many, perhaps most, don't want to know anything, just tell where me to sign.

His filing correctly will not hurt his wife. Her filing incorrectly could hurt her. But, we know how efficient the IRS is! I would probably suggest he bring his wife in with him to discuss MFJ. Or, if I didn't like her, let her continue to deal with her new preparer.

I decided to make "incorrect" my common password. That way, when I enter it incorrectly, the site will tell me "Your password is incorrect." Thank you...

Here' s an option, Terry https://emailus.usps.com/emailUs/iq/usps/request.do?forward=emailUs Click tab.....Where is my mail Select....Daily mail delivery

Yep, you know it happens all the time.

Catherine and I are working the same side of the street. I used to keep them in a binder but shifted about 8 years ago to an encrypted spreadsheet. Mine isn't 27 pages either but probably 5? A tech client of mine and a relative who works in Cupertino said to not use those apps / websites to keep track. The concern really isn't the app being hacked and your passwords being stolen, the problem is what if the app is hacked and destroyed? All of your log-ins are gone or at least unusable until the app is brought back up. If you aren't paying anything - that could take a while. I had a friend who used a cloud service to hold everything and was given a months notice to move it all because they were shutting down. That was fine but he was scared to death thinking what if he hadn't noticed the email telling him this?

I've got a client whose (non-work, thankfully) email announces to all and sundry that he is "bi" -- I really, really, did NOT need or want to know that, thank you. That one, of course, is the email he responds to the quickest. TMI!

My "I need my refund yesterday" EIC clients will be disappointed I would get on my soap box and bitch about how my tax dollars are going to people working the system...both fraudulently and legally....but I'm just to exhausted to climb up there.

My "I need my refund yesterday" EIC clients will be disappointed

A good number of my clients are starting to send me their information electronically (secured scanned pdf's to my email.) Some still want an appointment, others drop off an envelope of information into my drop box. Regardless, when I complete their return, I send the vast majority (except for some older folks who don't have email) an email containing a copy of the return, the 8879's and an informational sheet that provides specifics (refund, amount due, anything else I may want to point out) on their return.) I may call the client if their tax situation is significantly different than a prior year to discuss it further. I also prepare an estimate for the current year so they are prepared to handle any withholding issues. If all looks good, I ask them to print off the 8879's, sign them and return them to me. I then E-file the returns. Once accepted, I prepare a packet of information and mail it out to them. With in the packet is my invoice. I have a few who are slow to pay and a couple who still have a balance due from last year. For the most part, everyone pays. I am considering changing my process and including my invoice in the email I send to the client. We'll see if that happens or not.

Same here. Cheap copy paper and a simple envelope that allows the client's name and year of the return show through. Nothing else. Most disappear into a black hole once they leave my office.

About the same for me. Except, I stopped using nicer paper a couple of years ago. As I realized how many never open the folder, I stopped using the heavier stock. I explain until they tell me to stop, and then tell them they can call me with any questions or issues.

Taxable scholarships go on recipient (kid's) return, on Line 7, note at left "SCH 500" or (whatever amount is). No, not subject to SE tax.

I have one lady who over-withholds and uses the refund to fund her IRA contribution. It's the only way she is certain she can't use the money for other reasons during the year. I really dislike the tactic in general but for her it makes sense. She still gets her total tax line highlighted.

This works both ways. Some people just can't save money and a nice check each year is good for them. Even at no interest. Others who have to pay, whew. How do you get them to have more withholding or make ES payments. I have a few clients who don't do this year after year. And they wonder why they have to pay so much.

I give paper copies in a nice folder. It's just as much of a hassle for me to put things on a CD or flashdrive. I have a few clients who don't want the paper copy. I load it on my Sharefile site and they can get it there.

Don't take it too hard; just a few years ago I was as lowly a PTIN as anybody you'll ever meet and only took the EA exam 'cause I was afraid RTRP would throw me out on the street. My squeaking through (studied months, said a prayer, gave a bum outside the test site ten bucks) brought to mind Groucho Marx's observation: "I wouldn't want to belong to any club that would be willing to have me for a member." Anyway, maybe give it a shot -- it's a great morale booster. However, as a practical matter, most people think you're either a CPA or you're not. Folks around here figure "EA" is some part of a declension of the verb "eat" (as in "I eat"/ "I et"/ "I done et") -- yeah, I'm kidding, but you get the gist of it. I wish IRS would call us "Special" Agent or something besides "Enrolled" which sounds like we're still in school. As to the EFIN issue, I subscribe to the "If it ain't broke, don't fix it" school of thought (witness the problems other posters mention). IRS is liable to assign you two numbers and you maybe can't file with either one.

If we are going to be stuck with this law, at least they could use the prior year income, and then allow for changes if there is a "life event". They already have a mechanism for that to open enrollment, so why not use the prior year, and if you can document that your income in the coming year will be less, then you go through the estimating thing and take your chances. I like your thinking on this Cathy. Tom Newark, CA