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I am shocked, *shocked*, to find gambling on the premises. Oh, wait, my winnings... https://www.forbes.com/sites/kellyphillipserb/2017/06/26/irs-private-debt-collectors-accused-of-pressuring-taxpayers-breaking-the-law/#428eb5252aeb For those who don't like to click links, here is the first paragraph-and-a-bit from Forbes: A new law which went into effect this year directs the Internal Revenue Service (IRS) to hand over some unpaid tax bills to private agencies for collections. The law was pushed through despite the failures of past privatization efforts and despite concerns about what privatization efforts might mean for taxpayers (including those recently expressed by Treasury Inspector General for Tax Administration J. Russell George and National Taxpayer Advocate Nina E. Olson). It appears those concerns were not unfounded.

I can vouch for Pioneer's ineptness. They were put in charge of PA's amnesty program that ended June 19th. I understand that a lot of the issues with the program stemmed from the State's own utterly ridiculous ineptness. But Pioneer did not help the cause. PA and Pioneer together sent out 100,000 notices to delinquent taxpayers. Some of those delinquencies went back into the 1990s. Some of those notices were to my clients for whom my office has been filing and confirming reporting and payments for a great long time. The State, somewhere in the interim, changed over to a new system and did not bring over the history with them. So many, many of those notices were in error. But for that far back, can I expect my client to keep those records and cancelled checks to prove to the State that there is no delinquency? Why do I implicate Pioneer in this mess? Pioneer was the muscle behind trying to collect this stuff - and often times in a less than friendly manner - and Pioneer had no interest in being logical nor interested in coming to a reason solution to the problem. I have a notice still on my desk for 18 periods of non-filed quarterly sales tax reports dating back to October 2006. I can not do anything with it because every time I pick it up, I can not see it through the anger I am feeling. This client passed away in early 2006; we filed all of the paperwork to close the business and we cancelled the sales tax license and confirmed that cancelling within just a couple months of his passing. We, and the client's widow, have not heard one word about unfiled reports until the widow received this notice from Pioneer dated 04/28/17. Pioneer collecting for the IRS? This ought to be fun.....................................!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I raise my prices a little every year, on most clients. I usually keep the simple returns pretty cheap, or I lose the easy money. The more detailed returns always go up every year. It's better than skipping a year or 2 then hitting them noticeably hard. All prices go up. Social Security benefits are the only thing that remains the same. So, my prices increase.

I was just wondering how often others here raised their fees. And by how much - flat dollar amount, a certain percent, or determined how? I usually go up $20 every two to three years if they have the same stuff as past years; $35 to $50 if some added forms (not major) are necessary. This method used to work well - I'd raise the fee, 20 to 40 clients would quit, increased fees covered the loss, I'd work less. But as I've aged, the herd has thinned (death, retirement, increased filing ceilings) and isn't being replaced as in the old days. Clients used to bring their kids, but now they're on TT - it's rare to land a millennial. While not a problem for those servicing the (upper) carriage trade; many mom-and-pop shops are serving middle-aged factory guys, and (increasingly) the elderly with interest, rent, and SS; so it's getting to be thin gruel for those fighting Block, J-H, and TT for the scraps. Just culled/burned the old files and looks like I dropped about 15 this time. AR may not be #1 in the nickel-nursers race, but we're definitely in the running. Had a client for ten years and after three seasons at $75, raised him to $95 -- he's gone with the wind and (apparently) hurt feelings. Another casualty was a good, many-years $250-$350 case (client said daughter was fixing it). Checked around - found out, sure-enough, the mythological (I thought) barber-beautician home of deep tax lore actually exists (the kid's a hairdresser by day and Super-Preparer by night). ______________________________________________________ After crosses and losses, men grow humbler and wiser. ---- FRANKLIN

A friend of mine works for Nuance. They were all sent home this morning due to a cyber attack. This is getting really serious, it's war whether we want to believe it so or not.

If it were my client, I would send the "missing" forms, the e-file-forms-sent listing from the computer with the "missing" forms highlighted, the e-file submission ID/ack, and would also make sure that if there was a 1040 requested, that the client SIGN it. I had a request for a 1040 for someone *just* as backup - forget the details - and the idiots rejected the backup info because it wasn't signed. Took another letter to dope-slap them into admitting the signature wasn't actually needed. I'm seeing more inexcusably incompetent foul-ups with the IRS and have actively been trying to give them no excuse not to do things MY way (because that's the right way, of course - no pride here, nope, uh-uh, no sirree... lol).

A new worldwide ransomware attack is currently under way !

I follow pretty much the same system as Possi on raising prices. Several years ago one lady left over a $5 increase - oh well. But each year I increase my fees by roughly 5%, except for the simplest of returns or those who I feel have already maxed out their fee based on the return.

I assume you are joking, although your math is correct proving the most basic of economic laws. But our clients are people that we know to be good, bad, and ugly so a blanket across the board large increase would not be appropriate in our business. I do small increases for the good, more for the bad , and large increases for the ugly, hoping they will leave.

It goes on the 1120S return.

No, I don't think it is a scam. The letters are in duplicate (not sure a scammer would waste the paper) and the return address to mail documents is the IRS address listed online down to the zip code. On reflection, I think what may have happened is that we sent an amended return about 5 weeks after the original return was efiled. I had omitted Form 8962 as the client had provided erroneous information caught later. So she owed money from that but then could avail herself of the energy tax credit. I wrongly assumed that the efiled return would be in the system by then. Apparently the amended return folks thought the 1040X was her original return - or something. Don't know but am sending the requested forms along with the 1099 various supporting documents showing the source of the amounts questioned. I'm not worried although it seems it will take some time to sort it out. The client is unhappy, though. Then again, she is a chronic complainer about high her taxes are so I should be used to it.

If they had been filing joint returns in the past, it's best to use the same primary taxpayer as was used previously.

'Bury 'em in paper' usually works for me!

It depends upon the client but all things equal, the rate goes up a little every year for most. the really high paying clients - I'm actually fine keeping it where it is since they are so high above my normal rate. Some clients as they get older actually get far easier returns so I don't raise. Really poor clients (I have a few) I'm fine charging a small fee. Consider it a karma investment.

Who are we at war with?

Is she paying into the Romanian equivalent of social security? If so she could request a certificate of such coverage and be exempted from having to pay US Social Security.

Thanks everyone for the clarification. Have a wonderful day!!! Bonnie

Perfect. Thanks for the clarity!

A SEP is supposed to be set up at the employer level with contributions from only the employer, in this case the S corp. https://www.irs.gov/retirement-plans/choosing-a-retirement-plan-sep The line for SEP contributions on the 1040 is for a sole proprietor owner's share while the Sch C employees' share goes on Sch C, or for the partner's share of the contribution while the employees' portion of the SEP is on the Form 1065.

Catherine, I have done virtually all the things that you listed. I called the number on the letter, the agent saw that the return was efiled, couldn't understand what was being asked but couldn't really help. The letter was from a different department, Operations Manager Input Correction, ICO Rejects Team FSPC. When I explained that I called the number on the letter, well, you can guess that went nowhere. I would love to just fax all this but, of course, '(d)ue to high volume, we can't acknowledge receipt of your fax..." At least I'm not too busy now but the client is really unhappy and won't enjoy the postage.

My state, Oregon has had mandatory licensing/testing since 1973, and now the number of licensed preparers has been declining has for the last 3 or 4 years. Other than a few part time preparers working out of their home, fees in Oregon are high enough that most preparers feel like they are fairly compensated. Preparers that want to work tax season only are in high demand ! There was another thread last week where some posters were bitching about state licensing, yada, yada. The higher the entry barrier, the more money you make, so I have no problem with state licensing. The same barriers exist for attorneys, architects, cpas, engineers, doctors, dentists and etc.

This has always been one of my pet peeves. Year after year I get estimates (like 12,000 miles) that I usually need to adjust and reduce greatly after I document a conversation and email statement from client describing their job and travel particulars. I will only take a deduction if they could not do their job without travel. I've always explained the requirements and have told them to pick up a $6 mileage log booklet from Staples and keep it in the glove compartment. I've even bought a few for some clients but it is never filled out. I drive 7 miles round trip to the post office 260 days a year and write it in each day, takes 10 seconds, so I tell them, get disciplined, it's money.

Frannie, I'm assuming you aren't a tax practitioner as this is your first post. There are many, many factors that need to be considered before amending this particular type of return (situation). It's best to get professional help before the grave is dug deeper. Take care, Cathy

Not in the instructions yet. https://www.irs.gov/uac/where-to-file-your-taxes-for-form-2553