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Don't compete with the big box stores. Don't compete with national CPA firms. Compete on your (maybe year-round) customer service to clients who want their taxes done right. You can also research your own niche and become that expert: investors, small biz, virtual, whatever. If Liberty goes out of biz in your area, do you even want those customers?!

I just got through to the PPL in about 3 minutes. Trick is to call between 5pm & 7pm. Most practitioners go home at 5. Now I’m on Pacific Time, so maybe this doesn’t work in the East, but I’m rarely on hold more than a half hour. oh and don’t call on Monday.

I’m confused as to whether your client is a US person who worked in Australia for a summer job or an Australian who worked in the US. In either case, the 2555 isn’t used. If client is US person with Australian earnings, put the wages on the FECWKS, and the income taxes paid on the 1116. Don’t forget to convert the Australian dollars to US dollars before putting the numbers on the return.

No basis - no deduction. Although an entirely different situation, I believe the net metering ends up in the same boat. Case law has held that most consumer "points", rewards etc.... are not taxable income, therefore there is no basis to deduct. In the case of the net metering, the taxpayer also does not recognize income by producing more energy than he/she produces but receives a credit instead. It sounds like the only options are: use it, lose it, or give it away. If the taxpayer had an option to receive cash, the excess electricity produced could generate taxable income and a 1099. In that case the taxpayer would have a basis to deduct. So it appears to me without a basis there is no deduction.

Tom, You make some very valid points. I really don't get your "intimidation and fear" point. Your "accept the audit finding or else" point is really over the top. I don't fear the IRS, I want them to do their job.